California

Current Law Summary: SB800 (codified as Civil Code §§895, et seq) is the most far-reaching, complex law regulating construction defect litigation, right to repair, warranty obligations and maintenance requirements transference in the country. In essence, to afford protection against frivolous lawsuits, builders shall do all the following:

A homeowner is obligated to follow all reasonable maintenance obligations and schedules communicated in writing to the homeowner by the builder and product manufacturers, as well as commonly accepted maintenance practices. A failure by a homeowner to follow these obligations, schedules, and practices may subject the homeowner to the affirmative defenses.

A builder, under the principles of comparative fault pertaining to affirmative defenses, may be excused, in whole or in part, from any obligation, damage, loss, or liability if the builder can demonstrate any of the following affirmative defenses in response to a claimed violation:

  • an unforeseen act of nature

  • homeowner's unreasonable failure to minimize or prevent those

  • To the extent it is caused by the homeowner or his or her agent,
    employee, subcontractor, independent contractor, or consultant by
    virtue of their failure to follow the builder's or manufacturer's
    recommendations, or commonly accepted homeowner maintenance
    obligations. In order to rely upon this defense as it relates to a builder's
    recommended maintenance schedule, the builder shall show that the
    homeowner had written notice of these schedules and recommendations
    and that the recommendations and schedules were reasonable at the time
    they were issued.

  • alterations, ordinary wear and tear, misuse, abuse, or neglect, or by the
    structure's use for something other than its intended purpose.

  • the time period for filing actions bars the claimed violation.
  • as to a particular violation for which the builder has obtained a valid
    release.

  • the builder's repair was successful in correcting the particular violation
    of the applicable standard.

Builder Compliance Requirement: Builders must supply maintenance and warranty documentation. Although, the Act is designed to reduce litigation and resolve construction defect claims to the satisfaction of all parties; nevertheless, the builder must be aware of the requirements for providing notice and other documentation to homeowners throughout the selling process.

Legislative Ammendments to SB800: The California legislature recently adopted amendment to clarify some ambiguities in the construction defect claim laws. Most importantly Builders need provide notices and required information at the time of sale, not upon occupancy. This includes any maintenance obligations and schedules.

Compendia Can Help: The maintenance and warranty manuals provided by Compendia satisfy the tenets of SB800. Moreover, they provide a value-add resource that improves customer satisfaction leading to repeat and referral business. And outsourcing this resource-consuming task to Compendia increases internal efficiencies that allow you to focus on your core competencies…building homes!