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Eighty-one percent of recently surveyed respondents by the Community Associations Institute say poor workmanship is the most common type of deficiency in the construction of condominiums. The poor workmanship, they say, resulted in plumbing leaks, electrical or mechanical problems, or cracks in foundation walls, according to a recent report by the Community Associations Institute.<\/p>\n
\nRead more<\/strong>: Condo Builders Put on Brakes Fearing Lawsuits<\/span><\/p>\n<\/blockquote>\n
Most of the construction deficiencies cited\u201457.3 percent\u2014are in the development of new condominiums compared to only 17.7 percent problems cited in the construction of townhomes or single-family homes, the report says.<\/p>\n
What\u2019s more, the warranty period had expired in nearly half of all communities experiencing a construction deficiency. Further, it often takes more than a year for the majority\u201462.3 percent\u2014of communities to file a suit to recover damages. Community associations that are unable to recover damages often have to turn to special assessments to make the repairs or do not repair the deficiency at all, the report found.<\/p>\n
Not surprisingly, those defects can affect resale value. Thirty-five percent of respondents reported construction deficiencies negatively impacting their property value and ability to resell the home.<\/p>\n
CAI completed the survey because they say community associations \u201chave been under attack in state legislatures and municipalities by legislation and ordinances that have sought to strip associations\u2019 ability to seek relief from damages due to legitimate deficiencies found in the construction of homes, units, or common areas.\u201d The bills add steps associations must take before filing a lawsuit and, in some cases, limit the definition of a construction defect to those only causing physical, bodily harm, CAI says.<\/p>\n
The majority of defects are not serious, and don\u2019t often require a lawsuit, according to Ross Feinberg, author of \u201cConstruction Defect Litigation,\u201d published by CAI. In a 2017 study conducted by CAI, the majority of claims\u201444 percent\u2014were resolved outside of court. The majority of claims are resolved with direct negotiation.<\/p>\n
\u201cThe process for associations to recover damages from a building deficiency is far more complex than filing a lawsuit,\u201d says Dawn M. Bauman, CAI senior vice president of government & public affairs.\u00a0 \u201cAssociations must determine whether the cost and time to pursue claims outweigh the repair costs.\u201d<\/p>\n
CAI\u2019s report found that it took more than a year for nearly two-thirds of communities to recover damages, and only one-third reported the damages paid were enough to cover the repair.<\/p>\n
\u201cMarket forces are dictating whether condominiums are being built, not warranties,\u201d Bauman says. \u201cLaws are present in states that make associations weigh the breadth of filing a warranty claim before doing so. Reducing consumer protections by watering down the statutory warranties will not reduce purchase prices, but will increase the post-sale cost of homeownership.\u201d<\/p>\n
Source: Community Associations Institute<\/em><\/p>\n<\/div>\n
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