August 11, 2009
Alert for Home Builders, Contractors and Developers
Effective August 1, 2009, Minnesota Statutes § 327A.08 has been amended to place new requirements on home builders and home improvement contractors who provide residential construction or home improvement services. The new statutory amendments operate to place an affirmative obligation on home builders and home improvement contractors to provide and deliver, as part of the construction contract, written notice to the home buyer or the home owner of all warranties provided in Minnesota Statutes § 327A (commonly known as the “1-2-10 Warranties”).
Failure on the part of the home builder or contractor to convey written notice to a home buyer or home owner is a violation of Minnesota Statute § 326B.84. Possible penalties for violation of § 326B.84 include suspension or revocation of the home builder’s or home improvement contractor’s license. Accordingly, all home builders and home improvement contractors must now be sure to convey all warranties provided in Minnesota Statute § 327A in writing to avoid violation and possible suspension or revocation of their licenses.
We recommend that you promptly consider the matters contained in this e-alert. If you have any questions regarding the consequences of these statutory changes, please contact a Felhaber, Larson, Fenlon & Vogt PA Real Estate and Construction Law attorney at your convenience to discuss these matters in more detail.