HF 3091

1st Committee Engrossment - 85th Legislature (2007 - 2008) Posted on 12/22/2009 12:38pm

1.1A bill for an act

1.2relating to real estate; permitting homeowners to recover short-term housing costs
1.3due to faulty construction;amending Minnesota Statutes 2006, section 327A.05.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5    Section 1. Minnesota Statutes 2006, section 327A.05, is amended to read:
1.6327A.05 REMEDIES.
1.7    Subdivision 1. New home warranties. Upon breach of any warranty imposed
1.8by section 327A.02, subdivision 1, the vendee shall have a cause of action against the
1.9vendor for damages arising out of the breach, or for specific performance. Damages
1.10shall be limited to:
1.11    (a) (1)(i) the amount necessary to remedy the defect or breach; or
1.12    (b) (ii) the difference between the value of the dwelling without the defect and the
1.13value of the dwelling with the defect; and
1.14    (2) reasonable costs for short-term housing made necessary as a result of the breach.
1.15    Subd. 2. Home improvement warranty. Upon breach of any warranty imposed by
1.16section 327A.02, subdivision 3, the owner shall have a cause of action against the home
1.17improvement contractor for damages arising out of the breach, or for specific performance.
1.18Damages shall be limited to the amount necessary to remedy the defect or breach and
1.19reasonable costs for short-term housing made necessary as a result of the breach.
1.20EFFECTIVE DATE.This section is effective the day following final enactment
1.21and applies to actions commenced on or after that date.