Land Use & Zoning
Colorado's 'Construction Defect Reform Act' (SB 14-220 and subsequent legislation) affects real estate development by:
AA. Requiring all new homes to carry a 20-year warranty
BB. Reforming the process for construction defect claims in condominiums, which had previously discouraged condo construction by making litigation easier to initiate✓ Correct
CC. Only applying to commercial construction
DD. Requiring all defect claims to be arbitrated in federal court
Explanation
Colorado passed construction defect reform legislation partly because HOA boards could initiate construction defect lawsuits without full homeowner votes, making builders reluctant to build condominiums. Reforms required a majority homeowner vote before filing construction defect litigation. This has affected the condominium market in Colorado, with fewer new condo developments during periods of stricter litigation rules.
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