House File 2722 - Introduced
HOUSE FILE
BY COMMITTEE ON COMMERCE,
REGULATION AND LABOR
(SUCCESSOR TO HSB 741)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to deficiencies in the construction or design of
2 residential real property.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6509HV 81
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PAG LIN
1 1 Section 1. NEW SECTION. 657B.1 DEFINITIONS.
1 2 For the purposes of this chapter, the following definitions
1 3 shall apply:
1 4 1. "Builder" means a builder or developer of a new
1 5 residential unit that is sold on or after July 1, 2006.
1 6 2. "Claimant" includes an individual owner of a single=
1 7 family home, an individual unit owner of an attached dwelling,
1 8 and, in the case of a common interest development, an
1 9 association. "Claimant" does not include a person not in
1 10 privity of contract with a builder.
1 11 Sec. 2. NEW SECTION. 657B.2 NOTICE OF CLAIM.
1 12 1. Prior to filing an action for recovery of property
1 13 damages arising out of, or related to deficiencies in, the
1 14 residential construction, design, specifications, survey,
1 15 plan, supervision, testing, or observation of construction
1 16 against a builder, the claimant shall provide written notice
1 17 by certified mail, overnight mail, or personal delivery to the
1 18 builder that the construction, design, specifications, survey,
1 19 plan, supervision, testing, or observation of construction of
1 20 the claimant's residence is deficient or violates the
1 21 applicable housing code or city ordinance. The notice shall
1 22 state the claimant's name, address, and contact information,
1 23 and shall describe the nature of the claim in sufficient
1 24 detail in order to determine the nature and location of the
1 25 alleged violation. The document shall have the same force and
1 26 effect as a notice of commencement of a lawsuit.
1 27 2. The notice requirements of this section do not preclude
1 28 a claimant from seeking redress through a customer service
1 29 procedure set forth in a contract, warranty, or other document
1 30 generated by the builder.
1 31 Sec. 3. NEW SECTION. 657B.3 BUILDER'S RECEIPT OF CLAIM
1 32 == ACKNOWLEDGEMENT.
1 33 Within ten days of receipt of a claimant's notice of claim,
1 34 the builder shall provide the claimant a written
1 35 acknowledgement of receipt of the claim by certified mail,
2 1 overnight mail, or personal delivery.
2 2 Sec. 4. NEW SECTION. 657B.4 REPAIRS.
2 3 Within ten business days of the builder's acknowledgment of
2 4 a claimant's notice of claim, the builder may make an offer in
2 5 writing which shall include either of the following:
2 6 1. A bona fide offer to compensate the claimant for repair
2 7 of the defect and property damages caused by the defect.
2 8 2. An offer to repair with a detailed statement
2 9 identifying the particular deficiency to be repaired, an
2 10 explanation of the nature, scope, and location of the repair
2 11 needed, and the estimated completion date of the repair, which
2 12 shall occur within either twenty=one business days of the
2 13 builder's receipt of the claimant's notice of claim, or within
2 14 reasonable weather=related construction conditions, or as
2 15 otherwise agreed to by the parties.
2 16 Sec. 5. NEW SECTION. 657B.5 CIVIL ACTION.
2 17 A claimant may file an action seeking recovery of damages
2 18 against a builder if the builder does any of the following:
2 19 1. Fails to make an offer to repair, performs an
2 20 inadequate repair, or does not complete a repair within a
2 21 reasonable period of time.
2 22 2. Fails to comply with any other requirement of this
2 23 chapter.
2 24 Sec. 6. NEW SECTION. 657B.6 STATUTE OF LIMITATIONS.
2 25 If a builder makes an offer to repair pursuant to section
2 26 657B.4, the provision of a notice of claim pursuant to section
2 27 657B.2 tolls any applicable statute of limitations from the
2 28 date of service of the notice of claim through the estimated
2 29 completion date of the repair.
2 30 EXPLANATION
2 31 This bill relates to deficiencies in residential real
2 32 property. The bill requires a claimant, as defined by the
2 33 bill, to provide a builder of residential real property with a
2 34 notice of a claim against the builder prior to commencing an
2 35 action against the builder for property damages arising from
3 1 deficiencies in the construction, design, specifications,
3 2 survey, plan, supervision, testing, or observation of
3 3 construction of the residential real property. The notice of
3 4 claim is required by the bill to state the claimant's name,
3 5 address, and contact information, and to describe in detail
3 6 the nature and location of the violation alleged against the
3 7 builder.
3 8 The bill requires builders to provide a claimant with a
3 9 written acknowledgment within 10 days after receiving the
3 10 notice of claim.
3 11 The bill allows a builder to offer to compensate the
3 12 claimant for a deficiency or repair the deficiency. The offer
3 13 to compensate or repair must be made within 10 business days
3 14 after the builder provides an acknowledgment of the claimant's
3 15 notice of claim. An offer to compensate must be a bona fide
3 16 offer and an offer to repair must include a detailed statement
3 17 identifying the particular deficiency to be repaired, an
3 18 explanation of the nature, scope, and location of the repair,
3 19 and an estimated completion date of the repair. The estimated
3 20 completion date of the repair is required by the bill to be
3 21 within 21 days of the builder's receipt of the notice of
3 22 claim, within reasonable weather conditions, or as otherwise
3 23 agreed to by the parties.
3 24 The bill provides that a claimant may file an action for
3 25 damages against a builder if the builder has failed to make an
3 26 offer to repair as provided by the bill, performed an
3 27 inadequate repair, failed to complete a repair within a
3 28 reasonable time, or failed to comply with any other provision
3 29 of the bill. The bill does not prohibit a claimant from
3 30 otherwise seeking other remedies available by contract,
3 31 warranty, or a similar customer service remedy provided by the
3 32 builder.
3 33 The bill provides that if a builder makes an offer to
3 34 repair as provided by the bill, the applicable statute of
3 35 limitations is tolled from the date of the service of the
4 1 notice of claim to the estimated completion date of the
4 2 repair.
4 3 LSB 6509HV 81
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