Letters to homeowners are an advertising ploy, not a statement of fact.

Here we go again!

Another law firm has decided to mass-mail new construction homeowners in the Valencia area regarding potential construction defects.

What does this mean? Is your builder guilty of major widespread construction defects that need to be addressed in a class-action lawsuit?

If you’ll look closely at these "Important Homeowner Newsletters" recently mailed by the Irvine law firm Kasdan Simonds Riley et al, you’ll find that both the envelope and the letter have the word "advertisement" on them. Although they make every effort to make these letters look very important and official, in reality they are simply soliciting your business.

We’ve seen these before… every time a new development passes its one-year anniversary the smash-and-bash attorneys start looking for people who are willing to play their game.

The letter states that "they have received reports of construction defects such as stucco cracking, slab cracking, moisture transmission through foundations and flooring causing damage to flooring material and efflorescence reflecting potential chemical attack and premature deterioration of the concrete". Are these really construction defects, or are they the result of the normal settling of the home?

According to Jeff Pope of JPI Inspection Service, "New home builders, in most cases, deliver quality homes to their customers. However, building the perfect home simply isn’t possible." Jeff states that "hairline cracks in slabs, sidewalks and stucco siding are a normal result of the settling process in new home construction."

In California, lawsuits over building defects scared off insurers and so decimated the multifamily housing construction industry the state was forced to pass a new law effective in 2003 that regulates how defect claims must proceed.

The Governor recently signed Senate Bill 800 which changes the law governing construction defects and provides:
• That any action seeking recovery of damages for residential construction, defects shall be governed by new detailed standards.
• For a ten-year statute of limitations , with certain exceptions.
• That builders shall provide a one-year, or more, express warranty covering certain building components.
• For mandatory procedures prior to the filing of a construction defect lawsuit including the builder’s right to attempt a repair, inspections and exchanges of documentation and mediation, pursuant to various time frames set by the bill.
• Statutory affirmative defenses for:
a. unforeseen acts of nature,
b. a homeowner’s failure to minimize or prevent damages,
c. a homeowner’s, failure to maintain,
d. defects not caused by the builders,
e. defects barred by the statute of limitations,
f. defects subject to a valid release, and
g. the extent that a builder’s repair was successful in correcting the defect

Remember that if you’re involved in a construction defect lawsuit and decide to sell your home, you will need to disclose all of the details of the lawsuit to your potential buyer. Quite often lenders are hesitant to lend on properties that have pending construction defect lawsuits, so you may have a harder time selling your home.

Of course your first action should be to contact your builder’s customer service department if you think that your home has a defect that they should correct. Mistakes do happen in mass-produced tract homes, and often a mistake (or defect) will show up in several homes within a development, since it’s likely that one subcontractor did the same thing in several homes. If the customer service rep assigned to your development doesn’t give you satisfactory answers, then ask to talk with a supervisor to see if you can resolve any outstanding items. It’s always better to attempt to resolve these issues directly with the builder rather than getting a third party involved.

You’ll find that often the builder or subcontractor will go beyond what is required for the initial complaint. In my development, some homes were a bit shy of the required level of attic insulation initially, and the subcontractor voluntarily increased the insulation level while they were out here to correct the original shortage. All I had to do was ask for the extra insulation, and they elected to throw it in free of charge to compensate for their initial mistake.

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