Stuart D. Morse & Associates, L.L.C. Stuart D. Morse & Associates, L.L.C.
Colorado Insurance Defense And Business Litigation Attorneys
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Do Colorado construction defect laws deter new condo development?

According to one commentator, condos or townhomes should comprise around one-quarter of all home units in a healthy economy. In Colorado, however, that percentage is unusually low, around two or three percent. A recent article explores possible causes.

According to some commentators, builders in Colorado are building apartments to avoid the exposure to litigation that comes with condo construction. Condo owners have legal standing to bring a construction defect lawsuit against developers; renters do not.

Yet there may be another, purely financial explanation. Apartment building owners have a steady stream of rent income. In Denver, in particular, the market of supply and demand sustains high rent prices. It simply might be more profitable to own an apartment, rather than condo building.

Regarding litigation exposure, there are some laws that offer protections to builders. For example, one law requires that homeowners cannot file a construction defect lawsuit without first giving builders an opportunity to inspect and remedy the alleged defect. Other proposals, not yet law, include requiring mandatory mediation or other alternative dispute resolution techniques in construction defect lawsuits.

Our Colorado law firm focuses on construction defect litigation. Although claims may arise in any stage of the building process, we have found that parties are generally open to early resolution of disputes. A court battle is sometimes best viewed as a last resort, after other approaches have failed. We work with our clients to clearly define the construction defect, identify who may be at fault, and work together toward solutions. Quality developers and builders shouldn’t be afraid to stand behind their product.

Source: The Gazette, “Step towards construction defect litigation reform taken with Colorado governor's signature,” Peter Marcus, May 23, 2017

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