What is the Minnesota New Construction 1-2-10 Warranty?

According to Minnesota Statutes, when selling a new construction home, the building contractor must provide something called a 1-2-10 Warranty to the buyer. It is a warranty broken down by one, two and ten year periods. Each time period covers a different part of the construction of the home. 

What does it actually cover? 

The exact language from the Minnesota Office of the Revisor is the following:

"(a) during the one-year period from and after the warranty date the dwelling shall be free from defects caused by faulty workmanship and defective materials due to noncompliance with building standards;

(b) during the two-year period from and after the warranty date, the dwelling shall be free from defects caused by faulty installation of plumbing, electrical, heating, and cooling systems due to noncompliance with building standards; and

(c) during the ten-year period from and after the warranty date, the dwelling shall be free from major construction defects due to noncompliance with building standards."

A simple way to understand it is: One year for everything, two years for mechanical systems, and ten years for the structural parts of the building. This warranty stays with the home, even if it is sold to another owner within the period when the warranty is still active on the home.  

What if the builder goes out of business? 

It is important to note that ALL builders licensed in Minnesota have to provide this warranty. Even if the builder goes out of business The Contractor Recovery Fund is there to offer compensation to homeowners that need to file a claim against an out-of-business contractor.   

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