Rep. Liebling: Homeowner Protection Bills Pass the House
05/12/2009
Dear Neighbors,
It has been a good week for Minnesota homeowners. On Monday the Minnesota House of Representatives passed several bills designed to help homeowners protect their most important asset – their homes.
Many homes in our area have been affected by construction defects—primarily water infiltration and mold—that drastically reduced home values and even made some homes uninhabitable. Under current law, unscrupulous builders can force homeowners to sue and rack up legal fees until they can no longer afford to press their claims. Legislation passed this week will strengthen protections for homeowners against faulty or defective construction when building, remodeling, or purchasing a new home, helping them secure a fair settlement when they have a legitimate claim against a builder.
The legislation will make it easier for homeowners to resolve warranty disputes with builders, give homeowners more time to notify contractors of construction defects and remove restrictions on warranty damage claims due to faulty construction.
A few highlights and information on the homeowner’s protection bills:
- Provide attorney fees for homeowners who prevail in court on a warranty claim. (HF 211/SF 170) Currently, a homeowner who wins a judgment against a builder may not recover his or her attorney fees. This proposal would allow a prevailing homeowner to collect reasonable attorney fees and other out-of-pocket costs after winning on a warranty claim, removing the builder’s incentive to stonewall until the homeowner drops the claim.
- Get rid of the requirement for "written" notice of loss or damage.
(HF 362/SF 362) Under current statute a homeowner may not bring a warranty claim if the homeowner has failed to provide "written" notice within six months after the homeowner discovered or should have discovered any loss or damage. This proposal removes a procedural hurdle by allowing for "actual" notice instead.
- Extend to one year the period for notice of loss or damage.
(HF 330/SF 264) Currently a homeowner may not bring a warranty claim if the homeowner has failed to provide "written" notice within six months after the homeowner discovered or should have discovered any loss or damage. This proposal would extend the notice period from six months to one year.
- Eliminate the short-term housing restriction on damages for homeowners in warranty cases.
(HF 239/SF 6) Right now a homeowner may only recover damages for "the amount necessary to remedy the defect or breach." Owners who have to move out of a hazardous home could have those costs reimbursed if they prevail in court.
- Give homeowners a real warranty, not just an "implied" warranty
(HF 420/SF 776) Currently homeowners have an "implied" warranty, which means that they receive no actual written warranty. This proposal would require a builder to convey an actual written warranty instrument so homeowners have in writing the terms of their warranty.
- Fix the Gomez decision on the time limit for warranty lawsuits.
(HF 412/SF 470) In 2004, the Legislature changed the Minnesota statute governing the deadline for bringing certain lawsuits. In 2007, the Minnesota Court of Appeals concluded (in the Gomez case) that the 2004 change applied to home warranty claims, shortening the warranty period. As a result, homeowners now have only ten years from the time of new construction
(instead of twelve years) to bring a lawsuit. This proposal would simply clarify that homeowners should have twelve years (not ten years) to bring a claim for a breach of warranty.
As always, please contact me with your concerns and questions.
Warm regards,
Tina
Tina Liebling State Representative House District 30A (Rochester)
553 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd. St. Paul, MN 55155-1298
507-289-4664
800-339-9038