{"id":369107,"date":"2016-04-04T10:47:12","date_gmt":"2016-04-04T15:47:12","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/construction-defects\/legal-liability-for-construction-defects.html"},"modified":"2024-05-05T02:33:09","modified_gmt":"2024-05-05T07:33:09","slug":"legal-liability-for-construction-defects","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/construction-defects\/legal-liability-for-construction-defects.html","title":{"rendered":"Legal Liability for Construction Defects"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Legal Liability for Construction Defects<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw Staff<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/robert-rafii-esq\/\">Robert Rafii, Esq.<\/a>\n                | Last reviewed\n        <time>\n                            May 05, 2024\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n\n<p>Home construction defects are problems or mistakes you find in the work done on your home, including\u00a0issues with the workmanship, design, materials, engineering, and more. The typical\u00a0<a href=\"https:\/\/www.findlaw.com\/realestate\/construction-defects\/construction-defects-basics.html\">construction defect case<\/a> is based\u00a0on contracts between:<\/p>\n<ul>\n<li>The homeowner and real property developer<\/li>\n<li>The homeowner and the contractor or subcontractors<\/li>\n<li>The contractor and their suppliers, architects, and engineers<\/li>\n<li>You and anyone involved in building your home<\/li>\n<\/ul>\n<p>Homeowners bring construction defect lawsuits to fix the situation\u00a0and\/or\u00a0get money for the damage. The goal is to find the person responsible for the defect in your property.<\/p>\n<p>After you determine who is responsible, you can bring a legal claim. These usually involve causes of action (claims) for:<\/p>\n<ul>\n<li><a href=\"#Negligence\">Negligence torts\u00a0<\/a>(civil wrongs involving carelessness)<\/li>\n<li><a href=\"#Contract\">Breach of contract<\/a><\/li>\n<li><a href=\"#Warranty\">Breach of warranty<\/a><\/li>\n<li><a href=\"#Strict\">Strict liability<\/a><\/li>\n<li>In some cases,\u00a0<a href=\"#Fraud\">fraud<\/a>\u00a0or\u00a0<a href=\"#Misrepresentation\">negligent misrepresentation<\/a><\/li>\n<\/ul>\n<h2><b><a id=\"Negligence\"><\/a>Negligence<\/b><\/h2>\n<p>The law requires developers, general contractors, and subcontractors to use reasonable care in\u00a0the\u00a0construction\u00a0process.\u00a0Think of it this way: If a reasonably careful person in the same role as the construction professional would have done the same thing in similar circumstances, they\u00a0were probably using\u00a0reasonable care.\u00a0<\/p>\n<p>If not, you might have a negligence claim for the value of the\u00a0property that was damaged\u00a0and any resulting personal injury. You\u00a0will need to\u00a0show that the contractor did something that didn&#8217;t meet their profession&#8217;s standards. Or perhaps they committed an omission, failing to perform construction in a\u00a0workmanlike\u00a0manner.<\/p>\n<p>In some cases, you\u00a0may be able to\u00a0prove that they didn&#8217;t\u00a0have the knowledge\u00a0necessary to do the work.\u00a0For example, suppose a developer\u00a0doesn&#8217;t\u00a0have the proper degree or license to do their job correctly, but a company hires them anyway and puts them on a job.\u00a0In that case, the company can be held negligent for damage the developer causes.<\/p>\n<p>The duty of care extends to anyone who could be hurt by the construction defect. This includes\u00a0future purchasers of the house or property.\u00a0For example, even if an issue occurs\u00a010\u00a0years later, the original builder could still get in trouble.<\/p>\n<p>Developers and general contractors are responsible for the\u00a0<a href=\"https:\/\/www.findlaw.com\/injury\/accident-injury-law\/negligence.html\">negligence<\/a>\u00a0of their subcontractors.<\/p>\n<h2><b><a id=\"Contract\"><\/a>Breach of Contract Claims<\/b><\/h2>\n<p>Real estate owners can sue the builder\/developer for not living up to the language in their contract. In construction defect litigation, a breach of contract usually involves:<\/p>\n<ul>\n<li>Breaking an obligation in the construction contract<\/li>\n<li>Not following purchase or sale documentation<\/li>\n<li>Not following the escrow instructions<\/li>\n<\/ul>\n<p>Typically, this is more than the builder not following the plans and specifications.<\/p>\n<p>When such claims\u00a0are made, courts often look to the &#8220;doctrine of substantial performance.&#8221;\u00a0If the builder\u00a0made an effort\u00a0to complete the contract but\u00a0didn&#8217;t\u00a0meet all requirements, the court will consider the contract complete.\u00a0The homeowner will not be required to pay the\u00a0full\u00a0contract price. Typically, the homeowner needs to pay the contract price minus the reduced market value of the home (caused by the error).<\/p>\n<p>For example:<\/p>\n<ul>\n<li>A builder has a contract price of $100,000 to build a condominium.<\/li>\n<li>The builder accidentally has a subcontractor do bad plumbing work.<\/li>\n<li>The reduced value\u00a0is caused\u00a0by the failure of the builder to follow the plans and specifications listed in the contract.<\/li>\n<li>The bad plumbing is estimated to lose $25,000 of market value for the home.<\/li>\n<li>You only have to pay the builder $75,000\u00a0for building\u00a0your home.<\/li>\n<\/ul>\n<p>If you win a breach of contract case, you may be able to collect attorney fees if your construction project agreement provides for them.<\/p>\n<h2><b><a id=\"Warranty\"><\/a>Breach of Warranty<\/b><\/h2>\n<p>Breach\u00a0of warranty is like\u00a0breach\u00a0of contract.\u00a0But instead of a contract not being followed, a breach of warranty means\u00a0the warranty\u00a0was not\u00a0followed.<\/p>\n<p>The contract may have\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/consumer-transactions\/what-are-express-and-implied-warranties.html\">warranties about the property&#8217;s condition<\/a>\u00a0in case of defective products. An example is a warranty saying a washing machine will work for five years.\u00a0If\u00a0the washer breaks after three years, the company must uphold the warranty.\u00a0Often, this means replacing the broken item for free.<\/p>\n<p>If the property damage relates to a breach of an\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/consumer-transactions\/what-are-express-and-implied-warranties.html\">express warranty<\/a>, the principles of the contract apply.<\/p>\n<p>Courts say that builders and sellers of new construction are responsible for:<\/p>\n<ul>\n<li>What\u00a0is implied\u00a0in the contract or warranty<\/li>\n<li>Reasonably designing and constructing the structure<\/li>\n<\/ul>\n<p>All builders and\u00a0vendors\u00a0have to work under the theory that\u00a0a home was built\u00a0to be:<\/p>\n<ul>\n<li>Sold to public buyers<\/li>\n<li>Used for a specific purpose (such as living in it or renting it out)<\/li>\n<\/ul>\n<p>Privity of contract (a direct legal relationship)\u00a0is not always required\u00a0under this particular theory of liability.<\/p>\n<p>In some states, homebuyers may waive warranties. Builders may also disclaim\u00a0<a href=\"https:\/\/www.findlaw.com\/consumer\/consumer-transactions\/what-is-an-implied-warranty-.html\">implied warranties<\/a>. If disclaimers are involved, they work against the seller\/developer.\u00a0This\u00a0means they work in favor of the homeowner. Typically, waivers are difficult to enforce.<\/p>\n<h2><b><a id=\"Strict\"><\/a>Strict Liability Claims<\/b><\/h2>\n<p>The\u00a0<a href=\"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/what-is-the-implied-warranty-of-habitability.html\">implied warranty of habitability<\/a>\u00a0puts strict liability, or responsibility, on the general contractor. In a strict liability case, the property owner does not have to prove the general contractor or developer was negligent in\u00a0constructing\u00a0the new home.<\/p>\n<p>However, they must prove:<\/p>\n<ul>\n<li>The contractor or developer was involved in the mass production of housing<\/li>\n<li>A defect in the house exists<\/li>\n<li>The defect caused damage or injury<\/li>\n<li>The contractor or developer caused or created the defect<\/li>\n<\/ul>\n<h2><b><a id=\"Fraud\"><\/a>Fraud<\/b><\/h2>\n<p>Fraud means the developer\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations\/fraudulent-misrepresentation.html\">intentionally misrepresented<\/a>\u00a0the quality of construction.\u00a0This\u00a0often involves false statements or false advertisements. An example is saying &#8220;scratch-proof flooring&#8221; when the floors scratch easily.<\/p>\n<p>To win the case, your attorney must show the developer or design professional had no intention of following the design plans and specifications as promised.<\/p>\n<h2><b><a id=\"Misrepresentation\"><\/a>Negligent Misrepresentation<\/b><\/h2>\n<p>In negligent misrepresentation cases, homeowners need to prove:<\/p>\n<ul>\n<li>The developer asserted something to the homeowner<\/li>\n<li>The developer had no reason to believe the information was true<\/li>\n<\/ul>\n<p>An example\u00a0could be a developer saying their plumbing will never break. Once it breaks, the homeowner is upset, and the developer has nothing to back up their claim.<\/p>\n<h2><b>Beware of the Statute of Limitations and Repose<\/b><\/h2>\n<p>Statutes of repose bar recovery after a certain deadline.\u00a0<a href=\"https:\/\/www.findlaw.com\/state\/statutes-of-limitations.html\">Statutes\u00a0of limitations<\/a>\u00a0disallow you from filing a lawsuit for your legal issue if you&#8217;ve waited too long after discovering it.\u00a0Sometimes, even if you didn&#8217;t timely discover an issue but a reasonable person in your shoes would have\u00a0discovered\u00a0it sooner, it could cause your case to be barred. Having a legal expert on your side can help you avoid these problems.<\/p>\n<h2><b>Have Your Construction Defect Claim Reviewed by an Attorney<\/b><\/h2>\n<p>Owning a home is a big responsibility. There are always ongoing maintenance concerns and high costs. The last thing you\u00a0need to\u00a0worry about is a construction defect caused by someone else&#8217;s mistake.<\/p>\n<p>If you believe someone&#8217;s carelessness caused a defect in your home,\u00a0you may want to file\u00a0a claim with their insurance company and\u00a0a court of law.\u00a0A\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/housing-construction-defects\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">construction law attorney<\/a>\u00a0can help you get started by giving\u00a0valuable legal advice.<\/p>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                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8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\"\n                              stroke-linejoin=\"round\"><\/path>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3418\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" 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class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of date<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--negative-other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"fl-section-sidebar\"><div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Many real estate processes can be handled on your own or with the help of a realtor\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Some tenant or neighbor disputes may need the help of local police\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Complex real estate issues (such as construction defects or illegal landlord actions) may need the support of an attorney\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <p>Buying or selling a home, facing foreclosure, or mortgage loan issues can benefit from legal expertise. An attorney can offer tailored advice and help prevent common mistakes.<\/p>\n\n            <\/div>\n                            <div class=\"fl-editors-summary-content-link fl-flex\" data-testid=\"fl-editors-summary-content-link\">\n                <i class=\"fa fa-angle-right medium\" aria-hidden=\"true\"><\/i>\n                <p class=\"find-attorney\"><a href=\"https:\/\/lawyers.findlaw.com\/real-estate-law\/#USER_GEO\/?fli=esum:FL43\" target=\"_blank\" rel=\"noopener\">Find a local attorney<\/a><\/p>\n\n            <\/div>\n            <\/div>\n<\/div>\n\n\n\n<div class=\"email-subscription fl-mb30\">\n    <div class=\"email-subscription-header\">\n        <div class=\"email-subscription-header-content\">\n            <h3 class=\"fl-callout-sm fl-no-margin\">Stay Up-to-Date With How the Law Affects Your Life<\/h3>\n        <\/div>\n        <div class=\"email-subscription-header-image fl-flex fl-items-end\">\n            <img decoding=\"async\"\n                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