Minnesota Legislature
HF 420
2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:37am
Current Version - 2nd Engrossment
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A bill for an act
relating to real estate; requiring that existing statutory implied residential
construction warranties be made as express warranties and be provided to the
buyer in writing; prohibiting waivers of the warranty; amending Minnesota
Statutes 2008, sections 327A.04; 327A.06; 327A.07; 327A.08.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2008, section 327A.04, is amended to read:
327A.04 WAIVER AND MODIFICATION LIMITED.
Subdivision 1.
Waiver.
Except as provided in subdivisions 2 and 3, the provisions
of sections 327A.01 to deleted text begin 327A.07deleted text end new text begin 327A.08new text end cannot be waived or modified by contract or
otherwise. Any agreement which purports to waive or modify the provisions of sections
327A.01 to deleted text begin 327A.07deleted text end new text begin 327A.08new text end , except as provided in subdivisions 2 and 3 of this section,
shall be void.
Subd. 2.
Modification.
At any time after a contract for the sale of a dwelling is
entered into by and between a vendor and a vendee or a contract for home improvement
work is entered into by and between a home improvement contractor and an owner, any of
the deleted text begin statutorydeleted text end warranties provided for in section 327A.02 may be excluded or modified only
by a written instrument, printed in boldface type of a minimum size of ten points, which is
signed by the vendee or the owner and which sets forth in detail the warranty involved, the
consent of the vendee or the owner, and the terms of the new agreement contained in the
writing. No exclusion or modification shall be effective unless the vendor or the home
improvement contractor provides substitute express warranties offering substantially the
same protections to the vendee or the owner as the statutory warranties set forth in section
327A.02. Any modification or exclusion agreed to by vendee and vendor or the owner and
home improvement contractor pursuant to this subdivision shall not require the approval
of the commissioner of labor and industry pursuant to section 327A.07.
Subd. 3.
Exception.
If a major construction defect is discovered prior to the sale of
a dwelling, the deleted text begin statutorydeleted text end warranty set forth in section 327A.02, subdivision 1, clause (c)
may be waived for the defect identified in the waiver instrument, after full oral disclosure
of the specific defect, by an instrument which sets forth in detail: the specific defect;
the difference between the value of the dwelling without the defect and the value of the
dwelling with the defect, as determined and attested to by an independent appraiser,
contractor, insurance adjuster, engineer or any other similarly knowledgeable person
selected by the vendee; the price reduction; the date the construction was completed;
the legal description of the dwelling; the consent of the vendee to the waiver; and the
signatures of the vendee, the vendor, and two witnesses.
A single waiver agreed to pursuant to this subdivision may not apply to more than
one major construction defect in a dwelling.
The waiver shall not be effective unless recorded with the county recorder or
registrar of titles who shall file the waiver for record.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2009, and applies to
contracts entered into on or after that date.
new text end
Sec. 2.
Minnesota Statutes 2008, section 327A.06, is amended to read:
327A.06 OTHER WARRANTIES.
The deleted text begin statutorydeleted text end warranties provided for in section 327A.02 shall be in addition to all
other warranties imposed by law or agreement. The remedies provided in section 327A.05
shall not be construed as limiting the remedies in any action not predicated upon breach
of the statutory warranties imposed by section 327A.02.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2009, and applies to
construction of dwellings or home improvements completed on or after that date.
new text end
Sec. 3.
Minnesota Statutes 2008, section 327A.07, is amended to read:
327A.07 VARIATIONS.
The commissioner of labor and industry may approve pursuant to sections 14.05 to
14.28, variations from the provisions of sections 327A.02 and 327A.03 if the warranty
program of the vendor or the home improvement contractor requesting the variation offers
at least substantially the same protections to the vendee or owner as provided by the
deleted text begin statutorydeleted text end warranties set forth in section 327A.02.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2009, and applies to
contracts entered into on or after that date.
new text end
Sec. 4.
Minnesota Statutes 2008, section 327A.08, is amended to read:
327A.08 LIMITATIONS.
Notwithstanding any other provision of sections 327A.01 to :
(a) the terms of the home improvement warranties required by sections 327A.01 to
commence upon completion of the home improvement and the term
shall not be required to be renewed or extended if the home improvement contractor
performs additional improvements required by warranty;
(b) the home improvement warranties required by sections 327A.01 to shall not include products or materials installed that are already covered by
implied or written warranty; and
(c) the deleted text begin home improvementdeleted text end warranties required by sections 327A.01 to deleted text begin 327A.07
are intended to be implied warranties imposing an affirmative obligation upon home
improvement contractors, and sections 327A.01 to 327A.07 do not require thatdeleted text end new text begin 327A.08
must be set forth as new text end written warranty instruments new text begin and must new text end be deleted text begin createddeleted text end new text begin included as part
of the construction contractnew text end and conveyed to the ownernew text begin . Failure to comply with this
paragraph is a violation of section 326B.84new text end .
new text begin
(d) If the warranties required by sections 327A.01 to 327A.08 are not provided to
the owner in writing as required by paragraph (c), they are implied statutory warranties
that have the same effect as if the vendor or home improvement contractor had complied
with paragraph (c).
new text end
new text begin
(e) The owner's right under this section to receive the written warranty required
under this section may not be waived or modified by contract or otherwise. Any agreement
that purports to waive or modify the right to the written warranty required under this
section is void.
new text end
new text begin
(f) This section does not limit the ability of the vendor or home improvement
contractor and the owner to enter into the agreements permitted under section 327A.04,
subdivisions 2 and 3.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2009, and applies to
contracts entered into on or after that date.
new text end