Dive Brief:
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Lakewood, CO, has become the first city to refuse to comply with a nine-year-old state construction-defects law that makes it easy for homeowners to sue builders over property flaws.
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The city’s action will require the consent of the majority of owners in a condominium building before their association can sue over construction defects. It also gives builders and developers the right to repair any damage before a suit could be filed.
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Homeowners opposed the local change, saying it weakens consumer protections for condo owners. But builders have said the state law has forced them to pay for so much extra insurance that it’s no longer affordable to build in that market.
Dive Insight:
Lakewood’s move comes at a time when construction-defect suits are rapidly increasing in states that have the consumer-protection laws, like Texas, Florida, New York, Colorado, and California.