New Construction Law Effects Every Homeowner
Source: Ventura County Star
When Governor Gray Davis signed Senate Bill 800 on September 20, 2002, he effectively added Title 7 to the California Civil Code. Title 7 consists of a lengthy and complex set of rules which applies to all new residential homes purchased on or after January 1, 2003. Specifically, Title 7 sets forth extensive procedures for homeowners who are seeking to recover damages for building and construction defects.
Under Title 7, the term "homeowner" includes owners of single family homes, condominiums, town homes, and even homeowners associations. Title 7 applies to work performed by builders, developers, subcontractors, suppliers and design professionals, such as architects. Thus, if you are a homeowner who has been wronged by any of these construction professionals, Title 7 will likely dictate the procedure you must follow in order to obtain any recovery.
The main purpose of Title 7 is to provide affordable housing to Californians by minimizing the amount of lawsuits that are filed against homebuilders. Title 7 attempts to achieve this goal by requiring homeowners who find evidence of a construction defect, such as a roof leak, to allow the builder to fix the defect before the homeowner can file a lawsuit. Although this concept sounds simple, the actual process of identifying a particular defect, notifying the builder, and making sure the defect is fixed by the builder in a timely and proper fashion is full of the legal technicalities of Title 7.
The complicated nature of the procedures set forth in Title 7 create the potential for unscrupulous builders to take advantage of unwary homeowners who do not understand their rights under the law. Builders often have attorneys at their disposal who may be familiar with certain Title 7 "loopholes" which may allow a builder to avoid the Title 7 process. If the builder is able to avoid Title 7, the homeowner may lose his or her ability to seek compensation for certain types of defects and building code violations.
Homeowner associations, their boards of directors and property managers need to be aware of the specific issues faced by condominium projects and other common interest developments when defects arise in the association’s common areas. For instance, a hot issue currently surrounding homeowner associations with respect to Title 7 involves determining when the project was actually sold.
Because condominium projects are often transferred from the developer to the association over an extended period of time, it is often difficult to pin down the exact date that the project could be considered to be sold to the association. This date is important to determine because Title 7 will only apply if the project was sold on or after January 1, 2003. The association’s attorneys should be familiar with the issue of sale date, as well as the additional association-specific effects of Title 7.
Although the full ramifications of Title 7 are yet to be determined, it is abundantly clear that Title 7 is a complex set of rules that should not be tackled without legal assistance. Please do not hesitate to contact our office if you think your home or homeowner association is experiencing problems with construction defects. Our attorneys are more than happy to review your construction contracts and answer any additional questions you may have regarding Title 7, and its applicability to your particular situation.
We here at Domine Adams, LLP are readily available to answer any questions and to offer assistance to anyone who thinks they may have been wronged by an insurance company. Please do not hesitate to contact us.
The above information is intended for general information only. For specific legal advice, contact your legal counsel.
