Right To Cure LawRight To Cure LawAmy BlissAmy Bliss

(608) 255-3131(608) 255-3131WI Housing AllianceWI Housing Alliance

02/27/0802/27/08

Handouts In PacketHandouts In Packet

Copy of this Powerpoint with note sectionCopy of this Powerpoint with note section

Copy of the lawCopy of the law

Right to Cure BrochureRight to Cure Brochure You may photo copy this or get additional You may photo copy this or get additional

copies from the Dept. of Commerce websitecopies from the Dept. of Commerce website

Overview Overview

Homeowner can’t sue before exhausting Homeowner can’t sue before exhausting other remedies first.other remedies first.

Builder given chance to fix home. Builder given chance to fix home.

Law

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Overview of Right to CureOverview of Right to Cure

This law is designed to resolve This law is designed to resolve construction disputes before they land in construction disputes before they land in court.court.

In effect since October 1, 2006.In effect since October 1, 2006. The builder has two specific duties under The builder has two specific duties under

the law at the time the home is sold the law at the time the home is sold (contracted for).(contracted for).

Right to CureRight to Cure

Builder must give a Builder must give a noticenotice and a and a brochurebrochure to all buyers before the contract to all buyers before the contract is completed.is completed.

The content of the notice is spelled out in The content of the notice is spelled out in the law. A copy is downloadable from the law. A copy is downloadable from welcomehomewisconsin.com website.welcomehomewisconsin.com website.

The brochure is produced by the The brochure is produced by the Wisconsin Department of Commerce. Wisconsin Department of Commerce.

Right to Cure ClaimsRight to Cure Claims

Step One: Notice of Claim – Step One: Notice of Claim –

At least 90 working days before commencing At least 90 working days before commencing an action against a contractor or window or an action against a contractor or window or door supplier or manufacturer, a claimant door supplier or manufacturer, a claimant must deliver a must deliver a writtenwritten notice of the alleged notice of the alleged defect to the contractor.defect to the contractor.

Right to Cure ClaimsRight to Cure Claims

Step TwoStep Two: : Contractor’s Response - Contractor’s Response -

A contractor has 15 working days (or 25 working days if it A contractor has 15 working days (or 25 working days if it involves a defect involving a window or door supplier) to involves a defect involving a window or door supplier) to provide the claimant with a written: provide the claimant with a written:

(1) offer to repair or remedy the defect; (1) offer to repair or remedy the defect; (2) offer to settle the claim with a monetary payment; (2) offer to settle the claim with a monetary payment; (3) offer of a combination of (1) and (2); (3) offer of a combination of (1) and (2); (4) statement that the contractor rejects the claim and the reasons (4) statement that the contractor rejects the claim and the reasons

for rejecting the claim; or for rejecting the claim; or (5) proposal to inspect the alleged defect or perform any necessary (5) proposal to inspect the alleged defect or perform any necessary

testing.testing.

Right to Cure ClaimsRight to Cure Claims

Step Three: Claimant’s Response – Step Three: Claimant’s Response –

If the contractor rejects the claim, the claimant If the contractor rejects the claim, the claimant may proceed to a lawsuit. The claimant must may proceed to a lawsuit. The claimant must serve written notice on the contractor within serve written notice on the contractor within 15 working days if he or she either accepts 15 working days if he or she either accepts any offer or rejects an offer. any offer or rejects an offer.

Right to Cure ClaimsRight to Cure Claims

Step Four: Contractor’s Supplemental Step Four: Contractor’s Supplemental Response – Response –

If the claimant rejects the offer, the contractor If the claimant rejects the offer, the contractor has five working days to provide a written has five working days to provide a written supplemental offer or a notice that no supplemental offer or a notice that no additional offer will be made.additional offer will be made.

Right to Cure ClaimsRight to Cure Claims

Step Five: Claimant’s Response – Step Five: Claimant’s Response –

If the contractor has provided the claimant If the contractor has provided the claimant written notice that no additional offer will be written notice that no additional offer will be made, the claimant may commence a lawsuit made, the claimant may commence a lawsuit or other action against the contractor. If the or other action against the contractor. If the claimant has received a supplemental offer claimant has received a supplemental offer from the contractor, the claimant must from the contractor, the claimant must respond within 15 working days.respond within 15 working days.

Right to Cure – Other AspectsRight to Cure – Other Aspects Claimants may accept settlement offers, accept Claimants may accept settlement offers, accept

them in part, or reject offers, doing so via detailed them in part, or reject offers, doing so via detailed written notice.written notice.

Remedies to claims may involve repairs, Remedies to claims may involve repairs, monetary payment, or a combination of repairs monetary payment, or a combination of repairs and payments.and payments.

The contractor has the right to inspect and, as The contractor has the right to inspect and, as appropriate, test alleged defects. Access must be appropriate, test alleged defects. Access must be provided in a timely fashion for inspections, tests, provided in a timely fashion for inspections, tests, and repairs.and repairs.

DefinitionsDefinitions

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

DefinitionsDefinitions ““ContractorContractor” means a person that enters into ” means a person that enters into

a written or oral contract with a consumer to a written or oral contract with a consumer to construct or remodel a dwelling.construct or remodel a dwelling.

““DwellingDwelling” means any premises or portion of ” means any premises or portion of a premises that is used as a home or a place a premises that is used as a home or a place of residence and that part of the lot or site on of residence and that part of the lot or site on which the dwelling is situated that is devoted which the dwelling is situated that is devoted to residential use. “Dwelling” includes other to residential use. “Dwelling” includes other existing structures on the immediate existing structures on the immediate residential premises such as driveways, residential premises such as driveways, sidewalks, swimming pools, terraces, patios, sidewalks, swimming pools, terraces, patios, fences, porches, garages, and basements.fences, porches, garages, and basements.

DefinitionsDefinitions

““Construction defectConstruction defect,” in those cases when ,” in those cases when the contractor or supplier has provided a the contractor or supplier has provided a warranty to a consumer, means the definition of warranty to a consumer, means the definition of “defect” in the warranty. In all other cases, “defect” in the warranty. In all other cases, “construction defect” means a deficiency in the “construction defect” means a deficiency in the construction or remodeling of a dwelling that construction or remodeling of a dwelling that results from any of the following: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 3. Failure to follow accepted trade

standards for workmanlike construction.standards for workmanlike construction.

Right to Cure ResourcesRight to Cure Resources

Copy of Notice – Included in registration Copy of Notice – Included in registration packet and the modular contract from WI packet and the modular contract from WI Housing Alliance.Housing Alliance.

Copy of Brochure – Included in packetCopy of Brochure – Included in packet

Q & AQ & A

Who does the law apply to?Who does the law apply to? YOU! YOU!

What if I don’t give the notice?What if I don’t give the notice? The law is unclear about penalties. However, The law is unclear about penalties. However,

the statute does say the contractor SHALL the statute does say the contractor SHALL deliver the notice and brochure. deliver the notice and brochure. Nothing Nothing good comes from ignoring the lawgood comes from ignoring the law..