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Business and Law IV
CCLD Enforcement and Statutory Warranties 326B.082 and 327A
| Question | Answer |
|---|---|
| If the commissioner requests information but gives no response deadline, how long does the person have to respond? | 30 days after service of the request. (Minn. Stat. §326B.082, Subd. 2) |
| What can the commissioner do if a property owner refuses entry for an inspection or investigation? | Apply for an administrative inspection order; upon probable cause, the district court shall issue an order compelling access. (Minn. Stat. §326B.082, Subd. 2) |
| How long does a person have to request reconsideration of a notice of violation? | By the 10th day after the notice was issued. (Minn. Stat. §326B.082, Subd. 6) |
| What happens if reconsideration of a notice of violation is not requested by the 10th day? | The notice becomes a final order and is not subject to review. (Minn. Stat. §326B.082, Subd. 6) |
| What must a request for reconsideration of a notice of violation contain? | The portions believed to be in error, why they are in error, and supporting documentation. (Minn. Stat. §326B.082, Subd. 6) |
| How long does the commissioner have to respond to a request for reconsideration? | 15 days after receiving the request. (Minn. Stat. §326B.082, Subd. 6) |
| What is the maximum monetary penalty the commissioner may assess for each violation? | Up to $10,000 per violation. (Minn. Stat. §326B.082, Subd. 7) |
| How long does a person have to request an expedited hearing after an administrative order is issued? | 30 days. (Minn. Stat. §326B.082, Subd. 8) |
| What happens if an expedited hearing is not requested within 30 days after an administrative order? | The administrative order becomes final. (Minn. Stat. §326B.082, Subd. 8) |
| When may the commissioner issue a stop order? | When an inspection or investigation indicates that a person has violated or is about to violate applicable law. (Minn. Stat. §326B.082, Subd. 10) |
| How long does a person aggrieved by a stop order have to request an expedited hearing? | 30 days after the stop order is issued. (Minn. Stat. §326B.082, Subd. 10) |
| Can unresolved violations or unpaid fees be grounds for denial of a license, permit, registration, or certificate? | Yes. (Minn. Stat. §326B.082, Subd. 11) |
| How far back does the course identify a criminal conviction as a possible licensing-sanction ground? | A conviction within the previous 5 years connected with the licensed activity. (Minn. Stat. §326B.082, Subd. 11) |
| When may the commissioner summarily suspend a license before an order becomes final? | When safety of life or property is threatened or to prevent fraudulent, deceptive, untrustworthy, or dishonest acts against the public. (Minn. Stat. §326B.082, Subd. 13) |
| What is the general criminal penalty for violating applicable law under §326B.082, unless otherwise provided? | A misdemeanor. (Minn. Stat. §326B.082, Subd. 16) |
| What may happen if a person fails to pay a penalty imposed by the commissioner? | The commissioner may revoke, suspend, or deny licenses, permits, certificates, and registrations issued by the department. (Minn. Stat. §326B.082, Subd. 17) |
| What are "building standards" under Minnesota's statutory warranty law? | The materials and installation standards of the State Building Code adopted by the commissioner of labor and industry. (Minn. Stat. §327A.01) |
| What is a "major construction defect"? | Actual damage to a load-bearing portion of the dwelling or home improvement that affects its load-bearing function and vitally affects, or is imminently likely to affect, residential use. (Minn. Stat. §327A.01) |
| Does a major construction defect include soil movement caused by flood, earthquake, or other natural disasters? | No. (Minn. Stat. §327A.01) |
| Who is a "vendor" under Chapter 327A? | A person, firm, or corporation that constructs dwellings, including construction on land owned by the vendee; it does not include subcontractors or material suppliers. (Minn. Stat. §327A.01) |
| What is the warranty date for a new dwelling? | The earlier of the initial vendee's first occupancy or the date the initial vendee takes legal or equitable title. (Minn. Stat. §327A.01) |
| What is the warranty date for a home improvement? | The date the home improvement work is completed. (Minn. Stat. §327A.01) |
| What does the 1-year statutory warranty on a new dwelling cover? | Defects caused by faulty workmanship and defective materials due to noncompliance with building standards. (Minn. Stat. §327A.02, Subd. 1) |
| What does the 2-year statutory warranty on a new dwelling cover? | Defects caused by faulty installation of plumbing, electrical, heating, and cooling systems due to noncompliance with building standards. (Minn. Stat. §327A.02, Subd. 1) |
| What does the 10-year statutory warranty on a new dwelling cover? | Major construction defects due to noncompliance with building standards. (Minn. Stat. §327A.02, Subd. 1) |
| What is Minnesota's basic new-home statutory warranty pattern? ) | 1 year: workmanship/materials; 2 years: plumbing, electrical, heating, and cooling installation; 10 years: major construction defects. (Minn. Stat. §327A.02, Subd. 1 |
| Do Minnesota statutory warranties end when legal title to the dwelling is transferred? | No. The statutory warranties survive passage of legal or equitable title. (Minn. Stat. §327A.02, Subd. 2) |
| Does dissolution of a contractor corporation or LLC eliminate the statutory warranties? | No. (Minn. Stat. §327A.02, Subd. 2a) |
| What warranty applies to major structural home-improvement work during the first year? | The work must be free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards. (Minn. Stat. §327A.02, Subd. 3) |
| How long is the major-construction-defect warranty for qualifying structural home-improvement work? | 10 years from the warranty date. (Minn. Stat. §327A.02, Subd. 3) |
| How long is the warranty on plumbing, electrical, heating, or cooling systems installed as part of a home improvement? | 2 years from the warranty date for defects caused by faulty installation due to noncompliance with building standards. (Minn. Stat. §327A.02, Subd. 3) |
| What warranty applies to home-improvement work not otherwise covered by the structural or system provisions? | 1 year against defects caused by faulty workmanship or defective materials due to noncompliance with building standards. (Minn. Stat. §327A.02, Subd. 3) |
| What does Minnesota's "1-2-10" statutory warranty rule mean? | 1 YEAR = faulty workmanship/materials; 2 YEARS = faulty installation of plumbing, electrical, heating, and cooling systems; 10 YEARS = major construction defects. (Minn. Stat. §327A.02) |
| After receiving notice of an alleged warranty defect, within how long must the contractor's inspection be performed? | Within 30 days of the notification. (Minn. Stat. §327A.02, Subd. 4) |
| Must an owner allow the vendor or home improvement contractor to inspect an alleged warranty defect? | Yes, for purposes of offering to repair the alleged loss or damage. (Minn. Stat. §327A.02, Subd. 4) |
| Within how long after completing the inspection must the home improvement contractor make a written offer to repair? | Within 15 days after completion of the inspection. (Minn. Stat. §327A.02, Subd. 5) |
| What must a written offer to repair include? | The scope of proposed repair work, proposed starting date, and estimated completion date. (Minn. Stat. §327A.02, Subd. 5) |
| What may the owner do if the contractor fails to inspect, offer to repair, or perform agreed-upon repairs? | Commence an action. (Minn. Stat. §327A.02, Subd. 6) |
| If the parties do not agree on the scope of repair work, what must the owner do? | Submit the matter to the homeowner warranty dispute resolution process. (Minn. Stat. §327A.02, Subd. 5) |
| When may a district-court action generally begin under the process described in the course? | At the earlier of completion of the home warranty dispute resolution process or 60 days after the written offer to repair is provided. (Minn. Stat. §327A.02, Subd. 7) |
| How soon after discovering loss or damage must it generally be reported to remain within statutory warranty coverage? | Within 6 months after discovery, unless the contractor had actual notice. (Minn. Stat. §327A.03) |
| Is normal wear and tear covered by the statutory warranty? | No. (Minn. Stat. §327A.03) |
| Is normal shrinkage from drying, within building-standard tolerances, covered by the statutory warranty? | No. (Minn. Stat. §327A.03) |
| Is damage caused by an owner's failure to properly maintain the dwelling generally covered? | No. (Minn. Stat. §327A.03) |
| Is damage caused by an owner's alterations or negligence generally covered? | No. (Minn. Stat. §327A.03) |
| Is damage caused by materials or designs supplied or directed by the owner generally covered? | No. (Minn. Stat. §327A.03) |
| Are losses from events such as fire, windstorm, hail, flood, or earthquake generally covered by the statutory warranty? | Generally no, except when the loss or damage is caused by failure to comply with building standards. (Minn. Stat. §327A.03) |
| Can the statutory warranty provisions simply be waived by a normal contract clause? | No. An agreement purporting to waive or modify the statutory provisions is void. (Minn. Stat. §327A.04, Subd. 1) |
| What are the form requirements for a permitted written modification of statutory warranties? | A written instrument in boldface type of at least 10-point size, signed by the owner, detailing the warranty, owner's consent, and terms of the new agreement. (Minn. Stat. §327A.04, Subd. 2) |
| Can a permitted warranty modification provide less protection than the warranties required by law? | No. (Minn. Stat. §327A.04, Subd. 2) |
| If a major construction defect is known before a dwelling is sold, may it be specially waived? | Yes, but only after full oral disclosure and compliance with the detailed statutory waiver requirements. (Minn. Stat. §327A.04, Subd. 3) |
| How many major construction defects may a single pre-sale waiver cover? | Only one major construction defect. (Minn. Stat. §327A.04, Subd. 3) |
| What must happen to a pre-sale waiver of a known major construction defect for it to become effective? | It must be recorded with the county recorder or registrar of titles. (Minn. Stat. §327A.04, Subd. 3) |
| What damages are available for breach of a new-home warranty? | The amount necessary to remedy the defect/breach or the difference between the dwelling's value without the defect and its value with the defect. (Minn. Stat. §327A.05, Subd. 1) |
| How is the home warranty dispute-resolution process started? | By written application to the commissioner. (Minn. Stat. §327A.051, Subd. 2) |
| How many qualified neutrals does the commissioner provide to the parties? | Three qualified neutrals. (Minn. Stat. §327A.051, Subd. 2) |
| How long does the commissioner have to provide the list of three neutrals after receiving the written request? | 10 days. (Minn. Stat. §327A.051, Subd. 2) |
| How long do the parties have to mutually select one neutral after receiving the list? | 5 business days. (Minn. Stat. §327A.051, Subd. 2) |
| May the parties use a different dispute-resolution process instead of the statutory process? | Yes, if both parties agree and provide written notice and a description of the alternative process to the commissioner. (Minn. Stat. §327A.051, Subd. 4) |
| Must statutory home-improvement warranties be provided in writing? | Yes. They must be written warranty instruments included as part of the construction contract. (Minn. Stat. §327A.08) |
| What happens if the statutory warranties are not provided to the owner in writing? | They are considered implied statutory warranties. (Minn. Stat. §327A.08) |
| Can an owner's right to receive the written warranty be waived by contract? | No. Any agreement attempting to waive or modify that right is void. (Minn. Stat. §327A.08) |
| New-home faulty workmanship/materials warranty | 1 year. (§327A.02) |
| New-home plumbing/electrical/heating/cooling installation warranty | 2 years. (§327A.02) |
| New-home major construction defect warranty | 10 years. (§327A.02) |
| Inspection after warranty claim notice | Within 30 days. (§327A.02) |
| Written offer to repair after inspection | Within 15 days after inspection. (§327A.02) |
| Possible district-court waiting period after written repair offer | 60 days. (§327A.02) |
| Report discovered loss or damage | Within 6 months after discovery, unless contractor had actual notice. (§327A.03) |
| Minimum type size for permitted warranty modification | 10-point boldface. (§327A.04) |
| Qualified neutrals supplied by commissioner | 3 neutrals. (§327A.051) |
| Commissioner sends neutral list after request | Within 10 days. (§327A.051) |
| Parties select one neutral after receiving list | Within 5 business days. (§327A.051) |
| Maximum CCLD monetary penalty per violation | $10,000. (§326B.082) |
| Request reconsideration of notice of violation | By the 10th day after notice. (§326B.082) |
| Commissioner response to reconsideration request | Within 15 days. (§326B.082) |
| Request expedited hearing after administrative order | Within 30 days. (§326B.082) |
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