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Law and Legislation
There are many statutes which have to do with construction defect claims. We have listed some of the main statutes below. Every situation is different, so please feel free to contact us should you have any questions.
Selected Statutes of Limitation (California)
There are two primary statutes of limitation which homeowners and homeowner associations in California should be aware of. The three and the ten-year statutes. The way to measure when a statute begins running is from one of three benchmarks. (Give us a call if you are in Nev, Az, or any other state)
* When a Notice of Completion was filed
* When the final was given on the building permit
* When the homeowner took up residence, whichever is earliest.
The Three-Year (patent) Statute of Limitations (CCP 338)
This statute states that you have three years to file a claim from when you first notice a problem such as a leaky roof or window, cracked stucco, drainage problems and such. But, remember it's three years within the overall ten-year statute discussed below. Therefore, once you note a defective condition, the statute starts running.
The Overall (latent) Ten-Year Statute of Repose (CCP 337.15)
This statute states that you have ten years from when a Notice of Completion was filed, when the final was given on the building permit or when the homeowner took up residence, whichever is earliest, to file a claim for defective construction even if the defect is latent in nature ( i.e. not readily observable). If you discover a problem in year eleven, you're most likely too late.
Senate Bill SB800 (California)
In California, if your home closed escrow after January 1, 2003, you will be subject to a pre-litigation procedure which is commonly known as SB800 or the "right to repair" procedure. We have outlined the procedure below. Please give a call if you fall in this category for more information.
| CIVIL CODE SECTION |
NUMBER OF DAYS FROM PRECEDING EVENT |
ACTION REQUIRED |
|
| 913 |
14 days from service of Notice of Commencement |
Builder to acknowledge receipt of Notice of Commencement of Proceeding |
|
| 912(a) |
30 days from service of Request for Production by HOA |
Builder to produce plans, reports, DRE documents, maintenance documents, warranties and other documents |
|
| 916(a) |
14 days from Builder's acknowledgement of receipt of Notice |
Builder to acknowledge receipt of Notice of Commencement of Proceeding |
|
| 916(a) |
2 days from completion of testing |
Builder to restore structures to pre-existing conditions |
|
| 916(c) |
3 days from Builder's completion of initial testing |
Builder to request additional inspections and testing |
|
| 916(c) |
40 days from completion of initial testing |
Builder to complete second round of inspections and testing |
|
| 917,919 |
30 days from initial, or if requested, second inspections and testing |
Builder to make written offer to repair, provide names of proposed repair contractors and offer to mediate |
|
| 918 |
30 days from Homeowner/ HOA's receipt of BuilderвЂs offer to repair |
Homeowner/HOA to authorize Builder or alternative contractor to perform repairs |
|
| 919 |
15 days from Builder's offer to repair and mediate |
Mediation to take place, limited to 4 hours |
|
| 921(a) |
14 days from Homeowner/ HOA's acceptance of offer to repair; or 7 days from mediation; or 5 days after issuance of building permit |
Repairs to be commenced |
|
| 921(b) |
120 days from commencement of repairs |
Builder to make every effort to complete repairs |
|
| 927 |
100 days after completion of pre-litigation procedure |
Tolling of statues of limitation / repose ends |
|
| 929 |
After completion of repairs and prior to filing action |
Homeowner/HOA shall request mediation if there has been no prior mediation |
|
| 929 |
15 days from request for mediation |
Mediation to take place, limited to 4 hours |
California Civil Code Section 1134
This Code section sets out the required disclosure when a converter of an apartment building to condos wishes to sell a unit. For more information on condominium conversions, please see Condominium Conversions.
This code section says that the Owner or Subdivider shall do the following:
Deliver to the prospective buyer a written statement listing all substantial defects or malfunctions in the major systems in the units and common areas or;
Provide a written statement disclaiming knowledge of any such substantial defects or malfunctions. (The disclaimer may be delivered only after the owner or subdivider has inspected the unit and the common areas and has not discovered a substantial defect or malfunction which a reasonable inspection would have disclosed.)
"Major systems" include, but are not limited to the roofs, walls, floors, heating, air conditioning, plumbing, electrical systems or components of a similar or comparable nature and recreational facilities.
Written statement shall be delivered personally or by mail to the prospective buyer or agent.
Any person who willfully fails to carry out the requirements of this section shall be liable in the amount of actual damages suffered by the buyer.
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