NOR encourages non-litigious settlement of construction disputes while preserving the right of home owners to sue if issues cannot be resolved. The legislation ensures that home owners and home owner association boards notify builders and developers that a problem exists, and provide a chance for the complaint to be addressed, before filing a costly lawsuit.
The number of lawsuits filed annually by Colorado’s top construction defect law firms has declined dramatically under the new law, according to data obtained from the Colorado State Judicial Administrator. During the five years prior to the passage of NOR legislation in 2003, 556 construction defect lawsuits were filed in the state, including 140 in 2002 and 80 in the first four months of 2003. So far this year, just 22 have been filed.
Amendment 34 would have encouraged lawsuits over construction disputes and raised the cost of housing for Colorado home buyers. It also included a troublesome “no limits” clause that would have vastly expanded the list of parties who could be sued in a construction dispute to include Realtors®, advertising media and previous owners of a property. Amendment 34 was rejected by 77% of Colorado voters in Tuesday’s election.
“We are pleased that Colorado said ‘no’ to higher insurance premiums and home prices,” said Rayburn. “Notice and Opportunity to Repair legislation is good for consumers and builders, and we hope that the groundswell of grassroots support for this common-sense approach encourages other states to follow suit.”
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