MO SB727

Creates the "Unfair Home Improvement Loans Act" (Section 407.724) prohibiting lenders from extending mortgage credit without regard to repayment ability, requiring payment through consumer-payable instruments or escrow, and mandating Truth in Lending Act notices on certain mortgages; violations are Class A misdemeanors with restitution required.

Establishes statutory warranties for new dwelling sales: 3-year warranty against faulty workmanship and materials, 5-year warranty for plumbing/electrical/heating/cooling systems, and 10-year warranty against major construction defects; warranties survive sale to subsequent owners.

Requires home improvement contractors to provide 2-year warranties against faulty workmanship and defective materials, plus 10-year warranty against major construction defects; applies to plumbing, electrical, heating, and cooling system installations.

Limits vendor and contractor liability by excluding coverage for damage from normal wear and tear, owner negligence, acts of God, secondary losses, and defects in owner-supplied materials; requires written notice of defects within 6 months of discovery.

Allows warranty exclusion or modification only by written agreement in 10-point bold type signed by the buyer/owner; violations subject to $1,000 penalty; provides right to recover reasonable attorney's fees and possible punitive damages for willful or deceitful breaches; claims must be filed within 2 years of discovery.