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Lennar homes plagued by leaking windows
Owners of newly built Lennar homes with leaky windows are protesting over having to sign non-disclosure agreements in order to have the windows replaced.
MINNEAPOLIS (FOX 9) - Owners of newly built Lennar homes with leaky windows are protesting over having to sign non-disclosure agreements in order to have the windows replaced. The dispute reveals the legal hoops new homebuyers may need to navigate even when protected by warranties and state law.
What we know:
Lennar, the region’s largest home builder, has acknowledged "a window manufacturing issue" causing potential leaking in nearly 200 new homes in the Twin Cities metro region.
The FOX 9 Investigators confirmed the affected homes were recently built in at least two new, northwest suburban Lennar subdivisions — Haven Ridge in Monticello and Skye Meadows in Rogers.
What they're saying:
Lennar and the window manufacturer, Walsh Windows & Doors out of Duluth, insist the leaky windows can be repaired.
"Virtually all homeowners – 95% – accepted our remedy. A small number, however, have refused to accept this solution," a Lennar spokesperson said in a statement.
The holdouts say they are skeptical the fix, which involves adding permanent cement bonding, will hold and prevent water intrusion.
The FOX 9 Investigators obtained video of engineering tests showing water seeping through repaired windows after approximately eight minutes.
"There shouldn't be water coming into the house, period," said Beth Fischer whose family moved into their home in Monticello last December.
Local perspective:
Fischer said repair crews discovered black mold growing beneath the surface of several faulty window frames shortly after spotting what appeared to be moisture bubbling up on an interior window jamb.
"We were living with this mold growing in our house for months," said Fischer. "My kids were sleeping inches away from this black mold growing."
The Fischers documented the water issues in their home and shared the pictures with the FOX 9 Investigators.
"We should not as new homeowners have to deal with this much stress with a brand-new build," Fischer said.
Lennar eventually replaced the windows with ones from the same manufacturer. Fischer claims she and her husband still have to wipe up water that continues to leak into the house after heavy rainfall.
They demanded replacement windows from a different manufacturer. However, Lennar will only do so if they sign a non-disclosure agreement (NDA) that would prevent the family from talking about their experience.
The FOX 9 Investigators obtained a copy of the contract and verified the non-disclosure requirement.
"You can't talk about, you can't even say the name, ‘Lennar’ without being fined thousands of dollars," explained Fischer. "So, they are putting us in a predicament. They are bullying us is what they are doing."
Late Thursday, Lennar released another statement saying they only require non-disclosure agreements when they take "extraordinary measures above and beyond warranty repairs — as we [Lennar] have offered these homeowners."
Why you should care:
Lennar has built the most new homes in the Twin Cities for nearly 20 years.
The company reported gross revenue over $1-billion after closing sales of more than 2,000 single and multifamily homes across the region in 2024, according to data from Housing First Minnesota. That is more than double its nearest competitor.
Lennar declined interview requests from the FOX 9 Investigators.
"The safety and comfort of our homeowners is our top priority. Immediately after becoming aware of a window manufacturing issue, the manufacturer and Lennar offered to repair or in some cases replace affected windows," a spokesperson said in a statement.
Homeowners frustrated with Lennar’s response to the leaking windows are now protesting the company.
At least 18 residents placed matching "For Sale by Owner" signs in their front yards along the same street in Monticello to alert prospective home buyers.
"If they [prospective buyers] ask, ‘what's up with the signs?’ We tell them. This is what is going on. We show them the emails. We show the pictures," said Daivd Nagel. "And they go, ‘wow, this is insane!’ I wish somebody did that for me."
Nagel, who moved into his new home in April, refuses to sign an NDA for new windows. He believes the company owes his family new windows with no strings attached.
"People need to stop buying these problems and let these companies walk away with it," said Nagel.
Dig deeper:
A local attorney experienced in residential and commercial real estate says non-disclosure and non-disparagement clauses are common in construction contracts involving a builder and a homeowner over significant, corrective repairs including the installation of new windows.
"If I [Lennar] am going to give you something, you know, which I may or may not be responsible for giving you, and you are going to take it, you are going to have to give me something in return," said David McGee. "In return, you are not going to talk about this. You are not going to put signs out. You are not going to bad mouth me on social media. So, that is the trade."
McGee previously represented community associations in litigation against Lennar but is not connected to the current Lennar construction.
He said the number of homes dealing with the issue in the two developments in the northwest metro stands out from typical disputes.
"First impression, that is a serious problem," said McGee. "I mean, the most important thing about any home is to keep the outside from coming inside. And in this context, the outside is coming inside through these windows."
By the numbers:
Minnesota homeowners who purchase brand-new houses in Minnesota have safeguards under state law often referred to as 1-2-10 warranty protections.
One is the first full year of new homeownership when the customer is entitled to coverage for all workmanship and material failures, which McGee said would include leaking windows.
Two years of coverage for plumbing, electrical, HVAC and other related mechanics.
A 10-year warranty covering major structural defects including the stud walls, rafters, foundation and footings.
Several homeowners have retained an attorney fearing the warranties will not protect them if they move forward with repairs that don’t hold up or sign contracts with non-disclosure agreements.
What's next:
The homeowners who retained an attorney may need to seek resolution through arbitration, as required under Lennar contracts.
McGee recommends anyone who had Walsh windows installed in the past year to have them inspected.
"I think it would make good sense to have a contractor come out and take a look at the windows," McGee said. "Do some investigation because window leaks or any leak of any kind doesn't get better. I mean, if it's continuing to leak, it's going to get worse. It's not going to get better."