Colorado Association of REALTORS: Construction Defects Update

Several members of the Homeownership Opportunity Alliance (HOA) briefed a CAR committee at the convention last week. CAR is a member of the HOA, the alliance which has fought to introduce legislation to remedy construction defect issues in state statute.

A 2015 appeals court case (Vallagio v. Metropolitan Homes) had given the HOA hope because the court sided with the builder, who had required construction defect arbitration in its original covenants. The condominiums’ homeowners association owners later removed that clause and sued the builder.

It was thought the precedent set in the case would help push reform legislation. Unfortunately, the case was appealed to the Colorado Supreme Court, creating uncertainty about the ultimate judgment and delaying the HOA’s ability to introduce legislation in 2016.

Briefs were due to the Supreme Court yesterday (9/26/2016), but no one knows when the court will make its ruling. The HOA wants Vallagio to be upheld because this would increase the likelihood of a successful legislative effort in 2017.

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