HF 362

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:36am

A bill for an act
relating to real estate; modifying homeowner notice requirements; amending
Minnesota Statutes 2008, sections 327A.02, subdivision 4; 327A.03.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 327A.02, subdivision 4, is amended to
read:

Subd. 4.

Response from vendor to notice of claim.

(a) Following notice under
section 327A.03, the vendee must allow an inspection and opportunity to offer to repair
the known loss or damage. Upon request of the vendee, a court may order the vendor to
conduct the inspection. The inspection must be performed and any offer to repair must
be made in writing to the vendee within 30 days of the vendor's receipt of the written new text begin or
actual new text end notice deleted text begin required deleted text end under section 327A.03, clause (a), deleted text begin alleging deleted text end new text begin of the alleged new text end loss or
damage. The applicable statute of limitations is tolled from the date deleted text begin the deleted text end new text begin any new text end written notice
provided by the vendee is postmarked, or if not sent through the mail, received by the
vendor new text begin , or from the date the vendor has actual notice, new text end until the earliest of the following:

(1) the date the vendee rejects the vendor's offer to repair;

(2) the date the vendor rejects the vendee's claim in writing;

(3) failure by the vendor to make an offer to repair within the 30-day period
described in this subdivision; or

(4) 180 days.

For purposes of this subdivision, "vendor" includes a home improvement contractor.

(b) Upon completion of repairs as described in an offer to repair, the vendor must
provide the vendee with a list of the repairs made and a notice that the vendee may have
a right to pursue a warranty claim under this chapter. Provision of this statement is not
an admission of liability. Compliance with this subdivision does not affect any rights
of the vendee under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to notices given on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2008, section 327A.03, is amended to read:

327A.03 EXCLUSIONS.

The liability of the vendor or the home improvement contractor under sections
327A.01 to 327A.07 is limited to the specific items set forth in sections 327A.01 to
327A.07 and does not extend to the following:

(a) loss or damage not reported by the vendee or the owner to the vendor or the
home improvement contractor in writing within six months after the vendee or the owner
discovers or should have discovered the loss or damage new text begin , unless the vendee or owner
establishes that the vendor or home improvement contractor had actual notice of the
loss or damage new text end ;

(b) loss or damage caused by defects in design, installation, or materials which the
vendee or the owner supplied, installed, or directed to be installed;

(c) secondary loss or damage such as personal injury or property damage;

(d) loss or damage from normal wear and tear;

(e) loss or damage from normal shrinkage caused by drying of the dwelling or the
home improvement within tolerances of building standards;

(f) loss or damage from dampness and condensation due to insufficient ventilation
after occupancy;

(g) loss or damage from negligence, improper maintenance or alteration of the
dwelling or the home improvement by parties other than the vendor or the home
improvement contractor;

(h) loss or damage from changes in grading of the ground around the dwelling or the
home improvement by parties other than the vendor or the home improvement contractor;

(i) landscaping or insect loss or damage;

(j) loss or damage from failure to maintain the dwelling or the home improvement
in good repair;

(k) loss or damage which the vendee or the owner, whenever feasible, has not taken
timely action to minimize;

(l) loss or damage which occurs after the dwelling or the home improvement is
no longer used primarily as a residence;

(m) accidental loss or damage usually described as acts of God, including, but not
limited to: fire, explosion, smoke, water escape, windstorm, hail or lightning, falling trees,
aircraft and vehicles, flood, and earthquake, except when the loss or damage is caused by
failure to comply with building standards;

(n) loss or damage from soil movement which is compensated by legislation or
covered by insurance;

(o) loss or damage due to soil conditions where construction is done upon lands
owned by the vendee or the owner and obtained by the vendee or owner from a source
independent of the vendor or the home improvement contractor;

(p) in the case of home improvement work, loss or damage due to defects in the
existing structure and systems not caused by the home improvement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end