Looking to New Developments in Construction Defects

Colorado’s condominium market is expected to see quick corrections post-construction defect reform

After Colorado’s construction defects laws were changed earlier this year, many involved in the world of construction litigation said it was time to take a wait-and-see approach before moving forward.

Now, only a few months into the new era, the real estate market looks as if the change to state regulations and case law provided the needed correction to condo construction in the state. Several new developments are already in the works, and more are expected to come soon.

In April, the Colorado legislature passed House Bill 1279, a last-ditch effort to approve a construction defects bill after multiple years of trying and failed efforts earlier in the session. The bill was passed April 19 as a bipartisan effort that satisfied major concerns on both sides of the issue, though putting much control back in the hands of developers and those on the defense side of construction defects litigation.

Prior to the legislation, construction defects claims could be brought against a developer with HOA approval but without requiring all homeowners to sign off on it. The bill required majority approval for claims and also set a mandatory notice provision on construction defects claims where not only must all home owners in a community be notified of potential claims, but the developers must be notified as well and given an opportunity to respond and provide disclosures on expected impacts on the unit’s value.

To read this story and other complete articles featured in the September 4, 2017 print edition of Law Week Colorado, copies are available for purchase online.