Real estate developers and builders serve a critical role in the modern economy. They turn unused land into habitable properties where people can live and enjoy their lives. They also take land and vastly increase its overall worth by creating structures and other improvements on the property.
Developers and builders usually do everything in their power to provide an excellent product to their customers while also keeping their own costs low enough to ensure a decent profit margin. Unfortunately, even with redundant checks and expert architects involved in the project, mistakes can happen.
If there are consistent defects that impact a number of homes in one development or every home built based on a certain plan, your company will likely need to take legal steps to protect itself from the fallout of those defects or mistakes.
California law gives consumers the right to take action against developers
The laws in California protect consumers from defects in new construction by allowing them to bring action against the builders involved. Homeowners can potentially seek compensation for the amount to repair the defects, as well as any provable losses they suffered associated with those defects.
In some circumstances, the best option for developers or builders who find an issue is to be proactive about the problem. Sitting down to talk with an attorney who understands construction defect law will help you find a solution. Offering your previous clients or customers free repairs to address the defect may be the simplest way to correct the problem. That way, your company reduces its liability and improve its reputation.
However, that may not be an option if you only became aware of the defect when a consumer filed suit. In that scenario, your attorney could help you negotiate a mutually beneficial solution with the parties taking legal action. They could also help you navigate the court proceedings to minimize the impact on your business.
Could the defect be the responsibility of a third party?
Sometimes, the legal root of a building defect is more complex than it appears to be. Perhaps you purchased fixtures from a company that later turned out to have a defect. The defect is then the ultimate responsibility of the manufacturer, not your company.
However, you may still have to correct the defects with your properties before the issue with the supplier or manufacturer gets resolved. In situations where you rely on an outside professional for services, ranging from consultations about traffic for new developments to proper drainage for communal areas, that individual or their professional insurance may provide you with some compensation for the costs to your company.
An attorney who understands construction and development cases can help you explore your situation more fully and find a solution that will help protect your business.