It is common for folks to ask me why all the new buildings going up are apartments and not condos. One of the biggest reasons is that the insurance required to cover condo construction is costly. A new bill proposed by Mark Meek (a Representative from Gladstone and a Realtor himself) attempts to tackle this problem by decreasing construction defects and limiting owner’s rights to sue developers.
Bill 3432 requires more training and oversight during construction and changes the time period and method by which homeowners may sue due to defects. This two-pronged approach makes a lot of sense and has garnered support in both the developer community and the affordable housing community. The result would be lower costs to builders, which could then be passed onto future homeowners. As condos continue to present an affordable option for folks entering the market, the theory is that this will address one facet of the housing shortage.
The legal community is not thrilled with this option, as it shortens the length of time that owners of these units have to sue the builder (from 10 years to 6) and requires a majority of the homeowners to vote to sue. As with any legislation, it will probably not please everyone, but it is a novel approach to providing more options to home buyers in today’s market.
To follow this bill, go to House Bill 3432>>