Right To Cure Law Amy Bliss (608) WI Housing Alliance 02/27/08

Handouts In Packet  Copy of this Powerpoint with note section  Copy of the law  Right to Cure Brochure  You may photo copy this or get additional copies from the Dept. of Commerce website

Overview  Homeowner can’t sue before exhausting other remedies first.  Builder given chance to fix home. Law Hom e Complaint s Seller Buyer Atty Installer Contract

Overview of Right to Cure  This law is designed to resolve construction disputes before they land in court.  In effect since October 1,  The builder has two specific duties under the law at the time the home is sold (contracted for).

Right to Cure  Builder must give a notice and a brochure to all buyers before the contract is completed.  The content of the notice is spelled out in the law. A copy is downloadable from welcomehomewisconsin.com website.  The brochure is produced by the Wisconsin Department of Commerce.

Right to Cure Claims  Step One: Notice of Claim –  At least 90 working days before commencing an action against a contractor or window or door supplier or manufacturer, a claimant must deliver a written notice of the alleged defect to the contractor.

Right to Cure Claims  Step Two: Contractor’s Response -  A contractor has 15 working days (or 25 working days if it involves a defect involving a window or door supplier) to provide the claimant with a written: (1) offer to repair or remedy the defect; (2) offer to settle the claim with a monetary payment; (3) offer of a combination of (1) and (2); (4) statement that the contractor rejects the claim and the reasons for rejecting the claim; or (5) proposal to inspect the alleged defect or perform any necessary testing.

Right to Cure Claims  Step Three: Claimant’s Response –  If the contractor rejects the claim, the claimant may proceed to a lawsuit. The claimant must serve written notice on the contractor within 15 working days if he or she either accepts any offer or rejects an offer.

Right to Cure Claims  Step Four: Contractor’s Supplemental Response –  If the claimant rejects the offer, the contractor has five working days to provide a written supplemental offer or a notice that no additional offer will be made.

Right to Cure Claims  Step Five: Claimant’s Response –  If the contractor has provided the claimant written notice that no additional offer will be made, the claimant may commence a lawsuit or other action against the contractor. If the claimant has received a supplemental offer from the contractor, the claimant must respond within 15 working days.

Right to Cure – Other Aspects  Claimants may accept settlement offers, accept them in part, or reject offers, doing so via detailed written notice.  Remedies to claims may involve repairs, monetary payment, or a combination of repairs and payments.  The contractor has the right to inspect and, as appropriate, test alleged defects. Access must be provided in a timely fashion for inspections, tests, and repairs.

Definitions  “Action” (lawsuit) means a civil action or an arbitration under ch. 788.

Definitions  “Contractor” means a person that enters into a written or oral contract with a consumer to construct or remodel a dwelling.  “Dwelling” means any premises or portion of a premises that is used as a home or a place of residence and that part of the lot or site on which the dwelling is situated that is devoted to residential use. “Dwelling” includes other existing structures on the immediate residential premises such as driveways, sidewalks, swimming pools, terraces, patios, fences, porches, garages, and basements.

Definitions  “Construction defect,” in those cases when the contractor or supplier has provided a warranty to a consumer, means the definition of “defect” in the warranty. In all other cases, “construction defect” means a deficiency in the construction or remodeling of a dwelling that results from any of the following: 1. Defective material. 1. Defective material. 2. Violation of applicable codes. 2. Violation of applicable codes. 3. Failure to follow accepted trade standards for workmanlike construction. 3. Failure to follow accepted trade standards for workmanlike construction.

Right to Cure Resources  Copy of Notice – Included in registration packet and the modular contract from WI Housing Alliance.  Copy of Brochure – Included in packet

Q & A  Who does the law apply to?  YOU!  What if I don’t give the notice?  The law is unclear about penalties. However, the statute does say the contractor SHALL deliver the notice and brochure. Nothing good comes from ignoring the law.