Enforceability Status
Warranty exclusion clauses in Minnesota new construction contracts face significant statutory constraints. Minnesota Statutes section 327A establishes mandatory statutory warranties for new residential construction, including a ten-year warranty for major construction defects, a two-year warranty for defects in plumbing, electrical, and HVAC systems, and a one-year warranty for defects in workmanship and materials. These statutory warranties cannot be waived or shortened by contract.
Legal Analysis
Minnesota Statutes section 327A.01-327A.08 establishes mandatory statutory warranties for new home construction. The statute provides a ten-year warranty for major construction defects (defined as actual damage caused by structural failure), a two-year warranty for defects caused by faulty installation of plumbing, electrical, heating, and cooling systems, and a one-year warranty for defects caused by faulty workmanship and defective materials.
These statutory warranties are explicitly nonwaivable under Minn. Stat. section 327A.04, subd. 2. Any agreement that purports to waive, limit, or modify the statutory warranties is void and unenforceable. This makes Minnesota one of the most protective states for new home warranty rights.
Minnesota courts have consistently enforced the mandatory nature of these statutory warranties. Builder warranty exclusions that attempt to limit coverage below the statutory minimums are void. However, builders may exclude categories of defects that fall outside the statutory definitions, such as purely cosmetic issues that do not constitute faulty workmanship.
The Minnesota Consumer Fraud Act (Minn. Stat. § 325F.69) provides additional remedies for deceptive warranty practices, including actual damages, attorney's fees, and civil penalties.
Relevant Minnesota Law
Establishes mandatory nonwaivable warranties for new residential construction: ten years for major construction defects, two years for systems, and one year for workmanship and materials.
Prohibits deceptive trade practices, providing actual damages, attorney's fees, and civil penalties for violations.
Governs express and implied warranties in sales transactions, including provisions for exclusion and modification of warranties.
Builders in Minnesota Using This Clause
What Minnesota Buyers Should Know
- Know Your Nonwaivable Statutory Warranty Rights Minnesota law provides mandatory warranty protections that cannot be waived by contract: ten years for major construction defects, two years for systems, and one year for workmanship. Any contract term that attempts to shorten these periods is void.
- Distinguish Statutory from Express Warranty Coverage The builder's express warranty may cover different categories than the statutory warranty. Understand which defects fall under the statutory warranty and which are governed only by the express warranty terms.
- Report Defects Within Statutory Periods While the statutory warranties cannot be shortened, you must still discover and report defects within the applicable statutory period. Document all defects promptly and provide written notice to the builder.
- Review Exclusions for Items Outside Statutory Coverage Builders may still exclude categories of defects that fall outside Minnesota's statutory warranty definitions, such as cosmetic issues, landscaping, and conditions attributed to homeowner maintenance. Review these exclusions carefully.