Thought Leadership

Homeowners Warranty Amendment Provides Contractors Right To Repair

Governor Pawlenty has just signed the “Right to Repair” amendment into law with an effective date of August 1, 2006. This amendment to the Minnesota homeowner’s warranty statute will require the owner to allow the vendor (i.e. builder or home improvement contractor) an opportunity to inspect the property and offer to repair the known loss or damage observed by the owner. Under the amendment, any such inspection must be performed and any offer to repair must be made in writing to the owner, within thirty (30) days of the vendors receipt of the written notice of the claim.

What Impact Will This Amendment Have?

The full impact of the amendment cannot presently be known, as a number of provisions and procedures are not clearly specified and will likely be established through future litigation. However, several consequences are apparent. An owner will likely have to refrain from commencing litigation against a vendor for breach of statutory warranties at least until after the 30-day right to repair period expires.

Builders and home improvements contractors who are interested in avoiding litigation will now have thirty (30) days to provide a timely response to written notice of a statutory warranty claim. They will be required to provide a written offer to repair within that 30-day right to repair period, or risk facing a claim for breach of statutory warranties along with other potential claims.

Further analysis of this statutory amendment will be provided in a future article. For more information, contact our construction attorneys at 952-941-4005.