- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Construction Defects: Builder and Developer Liability Period
Posted on 12/30/19 at 11:03 am
Posted on 12/30/19 at 11:03 am
Let's say I'm going to develop a neighborhood. And I am going to build some spec homes in the neighborhood to get things going. I am also going to sell lots to builders and individuals.
Can someone explain what contingent liability I have as the developer? If a builder buys a lot from me and builds a crappy house, can I get sucked into the legal liability?
Also, talking about the homes that I spec build to sell. How long of a period am I responsible for defects in materials or workmanship in the homes?
Thanks for your input!
Can someone explain what contingent liability I have as the developer? If a builder buys a lot from me and builds a crappy house, can I get sucked into the legal liability?
Also, talking about the homes that I spec build to sell. How long of a period am I responsible for defects in materials or workmanship in the homes?
Thanks for your input!
4
Posted on 12/30/19 at 12:28 pm to No Colors
quote:
Can someone explain what contingent liability I have as the developer? If a builder buys a lot from me and builds a crappy house, can I get sucked into the legal liability?
If you are just selling lots then I wouldn't think you would be responsible for any issues caused by a builder. Aside from anything to do with the land itself (drainage, roads, etc)
quote:
so, talking about the homes that I spec build to sell. How long of a period am I responsible for defects in materials or workmanship in the homes?
Most of the time I see 1 year period for the builder to cover any issues. But I could see the liability entending further if it was something done improperly that wasn't uncovered for a longer period of time. i.e. anything that wasn't done to code to begin with.
Posted on 12/30/19 at 1:13 pm to No Colors
In Louisiana there are two warranty periods by law.
1. Protects the home buyer from ANY defect due to quality of materials or workmanship for 1 year.
2. Protects the home buyer from any MAJOR structural defect for 5 years.
But to answer your question about how to prevent someone from building a crappy house, generally a developer will require a deposit and not return it to the builder until the new house meets the development’s standards as laid out in the HOA agreements. Additionally they will generally have an “architectural committee” approve the house plans before they allow construction to start.
The prior mentioned deposit is to ensure they actually build what the committee approved and to its standards.
1. Protects the home buyer from ANY defect due to quality of materials or workmanship for 1 year.
2. Protects the home buyer from any MAJOR structural defect for 5 years.
But to answer your question about how to prevent someone from building a crappy house, generally a developer will require a deposit and not return it to the builder until the new house meets the development’s standards as laid out in the HOA agreements. Additionally they will generally have an “architectural committee” approve the house plans before they allow construction to start.
The prior mentioned deposit is to ensure they actually build what the committee approved and to its standards.
This post was edited on 12/30/19 at 2:09 pm
Posted on 12/30/19 at 9:08 pm to No Colors
I suggest you hire an attorney.
Posted on 12/30/19 at 9:12 pm to No Colors
quote:
Can someone explain what contingent liability I have as the developer? If a builder buys a lot from me and builds a crappy house, can I get sucked into the legal liability?
Yes, you will more than likely be named in the lawsuit. If you.didnt do anything wrong, then you just be dismissed like nothing ever happened.
Everyone gets sued in construction, its why I laugh at all these dumbass contractor threads asking why it costs so much to build a house.
ETA: like the above mentioned, hire a good lawyer.
This post was edited on 12/30/19 at 9:14 pm
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News