Condo construction is expected to increase, thanks to the new construction-defects reform bill. The bill changes laws and restrictions placed on builders, the repercussions of which have discouraged condo builders from developing for-sale condos in the past.
Designed to keep homeowners safe, construction-defect laws have historically placed full financial responsibility on condo builders, meaning a defect as small as a toilet being a few inches out of place could result in the entire complex suing the builders for defects. With such a high financial risk, most builders have opted for constructing rental properties and apartments instead of for-sale condos.
The result is a city that’s hurting for lower-cost housing. The lack of new builds is definitely felt, especially for those looking for affordability. The new bill seeks to incentivize new builds while continuing to protect homeowner rights. The compromise bill will, in fact, offer even higher protection to owners. It will require the majority of unit owners to vote before any construction-defects lawsuits are filed, instead of the HOA making the decision. Previous law only necessitated a majority of HOA board members to vote. Condo owners will now be required to be alerted to the potential impacts of a lawsuit on their selling or refinancing options. The bill does not stand in the way of individual owners with legitimate construction issues from pursing legal remedy, rather it protects condo builders from being sued by the HOA for illegitimate construction-defect issues.
HB 1279 was passed unanimously at the beginning of April by the Colorado House of Representatives. Sponsored by Democratic Rep. Alec Garnett of Denver and Republican Rep. Lori Saine of Dacono, the bill received no disagreement from House members.
Those backing the bill believe it to be crucial to encouraging new condo builds and a vital step for this booming city. The HOA coalition is in agreement, finding the bill to be a positive step towards creating more attainable housing options for Colorado residents while continuing to pursue its primary function of protecting homeowners and their right to pursue or not pursue litigation for legitimate construction-defect issues.
Those backing HB 1279 are encouraged by the positive and accepting response to the compromise bill-reform and hopeful for the opportunities it could create for more accessible housing opportunities for Colorado residents and newcomers.
Denver’s housing market is booming. It’s hot, it’s popular, and it seems that everyone learned Denver’s once well-kept secret…that it’s the best. With so many people moving to this great city, inventory has been low and demand has been high. Looking at the housing market, one might feel discouraged and wonder if it is even worth it to buy right now. We’re here to assure you – it is! Despite the high demand and low inventory of the Denver housing market, it is possible to find a home you love as you make this wonderful city your permanent home (until the next adventure, that is)!
FIND AN AGENT
It is vital to find a great real estate agent who is knowledgable about the market, a real estate expert, and someone dedicated to their clients. The right real estate agent will fight tirelessly for their clients, finding you the right home. Madison & Company Properties has over 140 truly incredible, highly recommended, and vetted Realtors® who can help you find your new home. Check out our website to find a Madison Realtor® who is right for you!
PATIENCE IS A VIRTUE
Finding the right home probably won’t happen overnight. It’s important to take time to learn about different neighborhoods, and know what you want going into it. Have a list of must-haves, really-wants, and can-live-withouts. Be flexible, you might get the giant backyard but no wrap-around patio, or there are the perfect number of rooms, but you wish the kitchen had a different layout. No matter the housing market, it is almost impossible to find a home that is 100% perfect (unless you design and build yourself!), but you can find the 100% right home. And remember – you can always paint, redesign, or renovate!
When purchasing a home, it is important to know your budget and what you can afford. Before even beginning to look for homes, find a mortgage broker and get pre-qualified on your mortgage loan.
YOU’LL LOSE A FEW
And it will be okay. Bidding wars happen, folks come in with a bajillion dollars over asking price and you get bumped. It happens to everyone, and it will all work out in the end. This is one of the reasons it is important to hire a Realtor®, it is their job to negotiate, help you find the best home, and work with the seller to make sure everything is in line.
Content attribution: Principal Homebuyers
Enjoy!! Let us know which events you go to, we’d love to hear about your summer!
MAY 8th, 2017
Madison & Company Properties
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