SB 800 and how it affects new construction homeowners.

SB 800, which was signed into law in September 2002, made significant changes in the construction litigation laws and established warranties on new construction. Note that this includes only new construction where the purchase agreement was signed by the seller on or after January 1, 2003 and it does not apply to condo conversions.

This new law does not create an environment where a homeowner can file a lawsuit immediately. It sets forth a pre-litigation procedure that must be followed.

Damages are limited as well, and for the most part apply to reasonable charges for correcting the situation, reasonable relocation and storage expenses, as well as lost business income if the home was used as a principal place of business.

Building standards were set forth in SB 800 in order to attempt to "address every function or component of a structure". Some of these standards are as follows:

Water: No seepage through, beyond or around a door.

Structural: No significant cracks or vertical displacements of foundations, load bearing components and slabs.

Plumbing: Plumbing and sewer systems should operate properly.

General Construction: Installation of manufactured products (i.e. windows, doors, roofs, plumbing, fireplaces, electrical fixtures, HVAC units, countertops, cabinets, paint, appliances) shall not interfere with the products useful life.

There is a general 10-year statute of limitations for constuction defects under the new law. The table below shows the statute of limitations in years for certain types of defects as set forth under this new law:

** or longer depending on manufacturers warranty

Source: California Association of Realtors

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