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Articles Posted in construction defect

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The California “Right to Repair Act” is not the exclusive remedy for construction defects, especially if there has been actual property damage.

The California Legislature enacted a comprehensive law covering the requirements for lawsuits regarding construction defects. Its application is limited to new residential units where the purchase agreement with the buyer was signed by the seller on or after January 1, 2003. The “Right to Repair Act” (Civil code section 895…

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Construction defect claims in California common interest communities can be forced to arbitration by including FAA arbitration clause in CC&Rs. Association damages claim decided by arbitrator, not jury

California Construction defect claims in common interest communities are subject to a number of California statutes. The California Supreme Court recently decided that a developer can bypass all these statutes by including in the CC&Rs a provision requiring arbitration under the rules of the Federal Arbitration Act. This benefits developers…

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Court says No to Benefit of the Bargain Damages for Mutual Mistake

Under California law, “benefit of the bargain” damages for breach of a real estate contract is the difference between the actual value of what the plaintiff got and what he expected to receive. If Joe breaches his contract to buy a house from Sam for $100,000, and Sam later sells…

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New Home Construction Defects- California procedure for making claims, & What to Do Before You Sue

California law provides a scheme for pre-lawsuit resolution of construction defect claims from new home buyers (Civil Code section 895+).  It requires the builder to provide documentation of the law, and also give the buyer a name and address upon whom to make claims.  If the builder follows these rules,…

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