AN ACT
ENTITLED, An Act to
provide for notice and opportunity to remedy residential construction defects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. Terms used in this Act mean:
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. Terms used in this Act mean:
(1) "Action," any civil lawsuit or action in contract or tort for damage or indemnity brought
against a construction professional to assert a claim for damage or the loss of use of real
or personal property caused by a construction defect. The term does not include a
counterclaim, cross-claim, or civil action in tort alleging personal injury or wrongful death
resulting from a construction defect;
(2) "Construction defect," a deficiency in or arising out of the supervision, construction, or
remodeling of a residence that results from any of the following:
(a) Defective materials, products, or components used in the construction or
remodeling of a residence;
(b) Violation of the applicable building, plumbing, or electrical codes in effect at the
time of the construction or remodeling of a residence; or
(c) Failure to construct or remodel a residence in accordance with contract
specifications or accepted trade standards;
(3) "Construction professional," a builder, contractor, or subcontractor performing or
furnishing the supervision of the construction or remodeling of any residence, whether
operating as a sole proprietor, partnership, corporation, or other business entity;
(4) "Home owner," any person, company, firm, partnership, corporation, or association who
contracts with a construction professional for the remodeling, construction, or
construction and sale of a residence. The term includes a subsequent purchaser of a
residence from any home owner;
(5) "Residence," a single-family house or a unit in a multi-unit residential structure in which
title to each individual unit is transferred to the owner under a condominium or
cooperative system;
(6) "Serve" or "service," personal delivery or delivery by certified mail to the last known
address of the addressee.
Section 2. Prior to commencing an action against the construction professional for a construction defect, a home owner shall:
Section 2. Prior to commencing an action against the construction professional for a construction defect, a home owner shall:
(1) Serve on the construction professional a written notice describing the alleged construction
defect; and
(2) Allow the construction professional, within thirty days after service of the notice, to
inspect the alleged construction defect and serve on the home owner a written offer to
repair the construction defect or compensate the owner by monetary payment.
The home owner may not commence an action against the construction professional for a
construction defect until thirty days after the notice is served on the construction professional or until
the construction professional refuses to remedy the alleged construction defect, whichever occurs
first. Upon service of the notice, the statute of limitations set forth in chapter 15-2A is suspended for
the thirty-day period or until the refusal, whichever occurs first. If the home owner commences an
action against the construction professional without complying with the requirements of this section,
the action shall be stayed until the home owner has complied with such requirements. No home
owner is required to serve another written notice for any additional defects discovered after the home
owner has served an initial written notice of a construction defect pursuant to this section. The
provisions of this Act do not apply to the initiation of a counterclaim or cross-claim in any action
that is already properly commenced.
An Act to provide for notice and opportunity to remedy residential construction defects.
An Act to provide for notice and opportunity to remedy residential construction defects.
|
I certify that the attached Act originated in the
HOUSE as
Bill
No.
1196
____________________________ Chief Clerk ____________________________ Speaker of the House
Attest:
____________________________ Chief Clerk
____________________________
Attest:
____________________________ Secretary of the Senate
House
Bill
No.
1196
File No. ____ Chapter No. ______ |
Received at this Executive Office this _____ day of _____________ ,
20____ at ____________ M.
By _________________________ for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
____________________________ Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State
Filed ____________ , 20___
____________________________ Secretary of State
By _________________________ |
