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The Pros and Pitfalls of Hiring a Licensed Versus an Unlicensed Contractor

The Pros and Pitfalls of Hiring a Licensed Versus an Unlicensed Contractor

  • Posted: Apr 19, 2023
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The Pros and Pitfalls of Hiring a Licensed Versus an Unlicensed Contractor

Licensed Unlicensed Contractor IV.jpg

One of the most important questions property managers ask contractors is, “Are you a licensed contractor?” Why is it so important to know if a contractor is licensed and how do you discern a licensed contractor from an unlicensed contractor?

Let’s break this down. In Florida, contractors are required to have a license issued by the Construction Industry Board of the Florida Department of Business and Professional Regulation (DBPR) to legally operate their business throughout the state. Additionally, local building departments require an occupational license for businesses to legally perform construction services within their jurisdiction

Contractors must have special qualifications to acquire a license. Their processes and workmanship must meet specific industry standards. Licensure ensures that contractors know, and will follow, local laws and building codes.

How do you know if a contractor is licensed in the State of Florida?

Florida Statute 489 defines the requirements for all Florida-licensed contractors to legally perform contracting services in Florida. The Construction Industry Licensing Board of the DBPR is tasked with overseeing licensing. The Board regulates Florida’s construction industry, creating and enforcing rules for licensed contractors and processing licensing applications. The Board also addresses complaints against licensed contractors.

License numbers are assigned to contractors for different services they provide. For example, Beachfront’s general contractor license number is #CGC1531681. Our roofing license number is #CCC1333373. If ever in doubt, you can contact the DBPR at www.myfloridalicense.com for questions about your contractor and its licensing status. In fact, you can verify a license online given a company’s name, city or county, license number or license type. Additionally, you can contact the Florida Division of Financial Services (DFS) at www.myfloridacfo.com to confirm a contractor has all of its workers compensation insurance current.

Need another way to gauge a contractor’s licensing status? Observe its sales, marketing, and operations processes. Licensed contractors submit a legally binding estimate and contract for projects with their state license numbers attached. They have all of their sales and marketing pieces properly adorned with their company name and license information including, but not limited to, proposals, advertising, vehicle signage, and company uniforms. A licensed contractor’s staff typically work as W-2 employees and not as 1099 employees. Licensed contractors will submit for permits per Florida law for all work performed over $2,500.

What are the pros of hiring a licensed contractor?

First, a licensed contractor is vetted by the DBPR Construction Industry Board and is required to have all its workers’ compensation and general liability insurance to legally perform contracting services. Additionally, a licensed contractor must provide the DBPR with a bond, Federal Employment Identification Number (F-EIN) and credit reports for both personal and business financials to prove it is financially responsible.

Second, licensed contractors stand behind their work and issue a workmanship warranty, not only a limited material warranty. They are professional, executing projects to meet schedules on or under budget. Licensed contractors provide valuable references for customers, vendors and material suppliers. There are many pros to working with a licensed contractor, but one of the most important reasons is they can be held liable in a court of law for negligence, breach of contract or any other matter requiring a court’s authority to assist.

How can you spot unlicensed contractors?

It’s easy! Look at their bid estimates or contracts. If a contractor’s business name doesn’t match the exact business name as licensed by the DBPR, that’s a red flag that the contractor is unlicensed. If it can’t produce the correct state license information, occupational license information, workers compensation documents or associated employee names and employment information, so a customer can verify with the DBPR and DFS, the contractor is most likely unlicensed.

Here’s an example of how some unlicensed contractors operate: 

XYZ Waterproofing & Painting, Inc. is a licensed general contractor with a main office in Tampa, Florida. XYZ Waterproofing & Painting, Inc. is also a licensed roofing contractor with an office in Ocala, Florida. Both services and offices are registered with the DBPR.

A new contractor, XYZ Painting & Waterproofing, LLC (notice the twist on the company name) opens an office in West Palm Beach, Florida and performs general contracting and roofing services. However, the LLC is not legally licensed by the DBPR Construction Industry Board. Because its name is so similar to the Inc., the LLC operates as if it “shares” the general contractor and roofing licenses across the general name of “XYZ.” In fact, it does not.

Unfortunately, contractors like XYZ Painting & Waterproofing, LLC operate without recourse until a savvy customer, attorney, permit office or consultant does some background work with the DBPR to unveil the illegal, fraudulent and unscrupulous business practices. Do not depend on your material vendors or suppliers to vet contractors because they are in the business of selling products not ensuring your contractor is actually licensed or not.

What are the pitfalls of using an unlicensed contractor? 

First, contractors who do not meet the standards for licensure may not follow municipal building codes or may cut corners and deliver subpar work. In some instances, failure to follow building codes can result in issues with structural safety. At other times, a less-skilled contractor may perform tasks on the job site that void product warranties. In addition to decreasing the value of a property, bad workmanship often results in rework, wasting time and money.

In addition to rework, there are other financial consequences to hiring an unlicensed and/or uninsured contractor. If a contractor doesn’t have general liability insurance, its customer can be held responsible for any damages incurred during the course of a project on that customer’s or a neighbor’s property. For example, if you hire an unlicensed painting contractor and a painter accidentally sprays paint on a neighbor’s structure, then you are liable for damages to your neighbor’s structure. If an unlicensed contractor destroys power, sewer or water lines during the course of a project, that contractor’s customer is responsible to fix the power, sewer or water lines.

Similarly, if an unlicensed contractor doesn’t have workers’ compensation to cover its employees, a customer can be held responsible for any damages resulting from a workplace injury. If a roofer that works for an unlicensed contractor falls from the roof, the customer can be held responsible for all of the roofer’s medical bills as well as lost wages when the roofer is unable to work.

Unfortunately, being sued for damages or injuries for work performed by an unlicensed contractor is all too real. And there is limited legal recourse to the customer who knowingly hires an unlicensed contractor or allows a licensed contractor to use unlicensed subcontractors. In addition to financial responsibility for damages and injuries, customers can incur expensive legal fees trying to locate, serve and process any legal case against an unlicensed contractor and actually collect on any financial award ordered by a court.

Finally, Florida’s construction lien law allows some unpaid contractors, subcontractors, and materials suppliers to file liens against customer properties even if a customer has made payment for a project in full. What does that mean? In layman’s terms, if you pay your contractor and the contractor doesn’t pay its subs and suppliers, you can be liable to make additional payments to your contractor’s subs and suppliers. If you don’t, they can file a lien against you to secure payment.

Unlicensed contracting, depending on the situation, is often considered a felony in Florida. Where the crime occurs will dictate how it is handled. Yet not every county or city law enforcement agency handles unlicensed construction activity. All too often, a local law enforcement agency will defer victims to the DBPR to file a complaint. Unfortunately, as with most governmental agencies, DBPR’s law enforcement officers sometimes carry 200 to 300 cases per officer, so timeliness to follow up on a complaint is gravely diminished.

Special Notes:  Unlicensed contracting is a serious problem throughout Florida. If you suspect unlicensed construction activity, please contact the DBPR. Rewards are available to individuals who identify an unlicensed contractor. Always have your attorney review every contract for construction work. Call references—material suppliers and previous customers—for any contractor you hire for construction work in Florida. A reputable and legally licensed contractor will have no problem with you doing this. There are many reasons to use a licensed contractor but none are more important than avoiding costly legal battles.

About Jim:   Jim is a licensed Florida roofing contractor (CCC1329933) and Virginia roofing tradesman.  Jim has over 20 years of general construction sales experience throughout Florida and specializes in liquid applied fluid systems for commercial, industrial and high-rise residential waterproofing and roofing systems.  Jim is a Certified Applicator for brand-name manufacturers such as Sherwin Williams, GACO Western, HENRY, Tropical Roofing Products, Karnak, and Carlisle.

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Update: ‘Veto SB 360, Governor DeSantis. It makes residents in older condo buildings less safe.’

Update: ‘Veto SB 360, Governor DeSantis. It makes residents in older condo buildings less safe.’

UPDATE:

So Governor DeSantis signed SB 360 into law which effectively eviscerates many property owners’ rights to pursue contractors and developers for latent defects. A latent defect is one which is not readily apparent to the naked eye which is often the case with concrete restoration and roofing projects. This is a slap in the face to the millions of Floridians struggling right now to pay large special assessments to fund these projects. Why would people who profess to care about the safety of older multifamily buildings vote to pass SB 360? The developers’ lobby certainly achieved their goals. Too bad the people who will now pick up the tab for defective construction are the ones least able to pay for it-Florida homeowners.

 


‘Veto SB 360, Governor DeSantis. It makes residents in older condo buildings less safe.’

Becker Shareholder Donna DiMaggio Berger, Esq’s op-ed in Miami Herald explores how the Florida Legislature passed a bill that will make it harder for you to hold contractors accountable for defective work. Why she says the Governor should veto this bill right now. Read the entire article below.

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Last year, the Florida Legislature passed SB 4-D with the stated purpose of safeguarding the millions of Floridians living in older multifamily buildings. Known as the Condo Safety Law, SB 4-D requires periodic engineering inspections for buildings three stories and higher and mandates that associations reserve funds to pay for ongoing maintenance and repair projects.

How then, did the Florida Legislature this session pass SB 360, a bill that extinguishes homeowner rights and destroys developer/contractor accountability for the work they perform?

Certainly our legislators must understand that thousands of Floridians are struggling to pay massive special assessments to fund mandated maintenance and repair projects? Why would those same legislators determine that Floridians should not be able to receive the value of those multimillion-dollar projects? It is hoped that Gov. DeSantis will understand that SB 360 undermines both the physical and fiscal security of millions of Floridians.

Safe buildings start with the developers who build them and the contractors who repair them. It’s a simple concept. If the governor signs SB 360 into law or allows it to pass into law without his signature, nearly every Florida community association, at some point, will feel the following impacts:

  • The deadline by which a community association must take legal action against contractors and developers for latent or hidden construction defects will be shortened from 10 years to seven. Ultimately, this will compromise homeowner warranty protection because latent defects are defects that cannot be seen. This includes foundation issues, most structural defects, and leaks behind stucco and under roofs, for both new construction and renovations.

Many condominiums and cooperatives in Florida are moving forward with concrete renovations and repairs, roof replacements and other work deemed necessary in their engineering reports. SB 360 will prevent associations from holding negligent contractors liable for their defective work product and poor performance.

  • Developers and contractors could maintain control of an association long enough to run out the clock on the applicable statutes of limitations. Currently, the deadline for a developer to turn over control of a condominium association to the owners is seven years, at the latest. Even under the current 10-year statute of repose, boards must move quickly to preserve their associations’ rights. Under SB 360’s new shortened seven-year statute of repose, it would be virtually impossible to protect the association’s rights against a developer who decides to retain control of the association for up to seven years since the statutes only empower associations to bring those causes of action after the community is turned over from the developer to the owners.

Under SB 360’s new shortened seven-year statute of repose, it would be virtually impossible to protect the association’s rights against a developer who decides to retain control of the association for up to seven years since the statutes only empower associations to bring those causes of action after the community is turned over from the developer to the owners.

  • The new triggering action to start the clock running on the statutes of limitation would no longer be the issuance of a final certificate of occupancy and “actual possession by the owner” but instead will be the issuance of a temporary certificate of occupancy. A temporary certificate of occupancy is issued many months or even years before an owner closes and takes possession of the home. Naturally, an owner living in a unit is in a better position to notice and report construction defects than someone who has not yet closed and moved in.
  • Developers and contractors would no longer be required to meet the minimum standards imposed by The Florida Building Code when an owner brings a private cause of action.

Unfortunately, SB 360 has been sent to the governor. It is now up to him to determine whether this new law making it more difficult to hold developers and contractors accountable makes sense with the heightened safety standards imposed on community associations.

If SB 360 becomes law, the net effect will be the imposition of a massive financial burden on the people who are least able to afford it — individual association members.

Donna DiMaggio Berger is a shareholder in Becker’s Community Association Practice in Fort Lauderdale, Florida and is a member of the College of Community Association Lawyers.

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“Condominium Board Member Certification”  April 17 at 2pm Est | Live on Zoom

“Condominium Board Member Certification” April 17 at 2pm Est | Live on Zoom

“Condominium Board Member Certification”

April 17 at 2pm Est | Live on Zoom

This webinar covers the essentials of condominium board membership, and is updated regularly to remain current with legislative amendments to Florida’s Condominium Act. In addition, this webinar satisfies Florida’s requirement for new condominium board members. It also serves as an excellent refresher course. Licensed CAMS will receive two (2) CE credits as IFM or ELE. Course: 9630075
Enroll for Condo Cert

 

“HOA Board Member Certification”

April 24 at 2pm Est | Live on Zoom

This webinar covers the essentials of HOA board membership, and is updated regularly to remain current with the latest legislative amendments. In addition, this webinar satisfies Florida’s requirement for new HOA board members. It also serves as an excellent refresher course. Licensed CAMS will receive two (2) CE credits as IFM or ELE. Course: 9630140

Enroll for HOA Cert

 

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Apr 19 Free Lunch & Learn: How To Select A Contractor. | Sponsored by KBRLegal

Apr 19 Free Lunch & Learn: How To Select A Contractor. | Sponsored by KBRLegal

This one-hour class will guide association members, CAMs, and building managers through the process of how to select a contractor for an upcoming commercial project. It starts with knowing your stakeholder, creating an RFP, hosting a pre-bid meeting, evaluating the quotes, and ends with making your contractor recommendation.

Wednesday, April 19, 2023

Meet the sponsors at 11:30 a.m.

Class begins at 12 p.m.

 

Capriccio Ristorante

2424 N University Drive, Pembroke Pines, FL 33024

1 Credit OPP/ELE

Course #9631934 | Provider #0007984

 

Register on Eventbrite by April 18. Space is limited.

Lunch is generously sponsored by: SFPMA Members.

Bashor & Legendre, LLP

Centennial Bank

Kaye Bender Rembaum

M.A. Construction Group

Rainbow Roofing Solutions

United Claims Specialists

Wayne Automatic Fire Sprinklers, Inc.

WeDry USA

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Presented by Castle Group Season 4, Episode 7 of ‘Association Leadership’ Florida’a Newest Insurance Laws

Presented by Castle Group Season 4, Episode 7 of ‘Association Leadership’ Florida’a Newest Insurance Laws

Presented by Castle Group

Season 4, Episode 7 of ‘Association Leadership’

Florida’a Newest Insurance Laws

Wednesday, April 19, 2023 | 12 Noon to 1:00pm Est.

Webinar live via Zoom

REGISTER NOW

Castle Group invites you to join us for Season 4, Episode 7 of Association Leadership. This week’s discussion is on Florida’s newest insurance laws- how they could affect your association, and the proposed legislative changes to the milestone, structural integrity, and reserve study requirements.
Castle Group CFO Craig Vaughan will host the live webinar. He will be joined by Attorneys Jeffrey A. Rembaum & Michael S. Bender- Kaye Bender Rembaum, P.L.- Board Certified Specialists in Condominium and Planned Development Law.

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Allstate Resource Management sponsored:  10th Annual Make-A-Wish Polen Capital Golf Tournament at The Boca Raton

Allstate Resource Management sponsored: 10th Annual Make-A-Wish Polen Capital Golf Tournament at The Boca Raton

Allstate Resource Management sponsored:

10th Annual Make-A-Wish Polen Capital Golf Tournament at The Boca Raton

This past weekend, Allstate Resource Management sponsored the 10th Annual Make-A-Wish Polen Capital Golf Tournament at The Boca Raton! The event raised over $570,000!

Our Vice-President/Golf Enthusiast, Andy Fuhrman, enjoyed the day on the green and was joined by Norman Wedderburn, the President/CEO of Make-A-Wish Southern Florida.

Thanks to Allstate Resource Management and other amazing sponsors, the Make-A-Wish Polen Capital Golf Tournament has granted more than 300 heartfelt wishes for the brave and deserving children battling critical illnesses in our local community.

 

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Cohen Law Group’s – Make-A-Wish Fundraiser – Please donate today. Thank you for your support!

Cohen Law Group’s – Make-A-Wish Fundraiser – Please donate today. Thank you for your support!

We are asking SFPMA Members to Show their Support.

Cohen Law Group’s
Make-A-Wish Fundraiser

We are raising money for Make-A-Wish to help grant wishes for children with critical illnesses.
It’s truly amazing what wishes can do.

Link to Make a Donation- https://secure2.wish.org/site/TR/WishYourWay/Make-A-WishSouthernFlorida?px=7266942&pg=personal&fr_id=4725

A wish renews hope, uplifts spirits and encourages the belief in the impossible. Make-A-Wish grants thousands of unique wishes each year. A wish begins with hope. And hope begins with you.

Last year, Cohen Law Group raised over $25,000 to grant 5 wishes and this year our goal is $35,000.

Together, we can grant more wishes.
Please donate today. Thank you for your support!

Cohen Law Group will be matching Donations to Make-A-Wish!


At Cohen Law Group, It’s About Justice!
It’s more than a slogan, it’s our firm’s mantra. We are zealous in protecting your rights. We offer 24-hour availability through our answering service. Call us today.
(407) 478-4878

 

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The State of Florida Property Management Association and Educational Providers bring, in person and online events every month.

The State of Florida Property Management Association and Educational Providers bring, in person and online events every month.

The State of Florida Property Management Association and Educational Providers bring, in person and online events every month.

EVENTS: BOARD MEMBERS & MANAGERS FIND COURSES, SEMINARS, WEBINARS, RADIO SHOWS, YOUTUBE LIVE, EVENTS ALL OVER FLORIDA.
In our efforts to bring educational courses to our industry in a safe way, Educational Members provide many courses online through Zoom, Radio and Video presentations. Take advantage of these online Courses many are approved by the State of Florida where after watching, joining and taking part in will give you credits and certifications for the Courses. These lively, interactive and informational courses are approved for board member certification and property manager continuing education credits. (ECU Credits) some are held in a Video setting while others are online through Zoom and other platforms. SFPMA is happy to bring to you these Educational Resources for you to take part in.
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Raleigh’s First Citizens Bank will buy Silicon Valley Bank

Raleigh’s First Citizens Bank will buy Silicon Valley Bank

Raleigh’s First Citizens Bank is buying most of Silicon Valley Bank, the tech-focused financial institution which collapsed earlier this month. First Citizens will acquire all deposits and loans of the former Silicon Valley Bank in exchange for company stock worth up to $500 million, the Federal Deposit Insurance Corporation (FDIC) announced Sunday.

The FDIC had controlled Silicon Valley Bank since it failed following a bank run on March 10. In the agreement, all Silicon Valley depositors will automatically transfer to First Citizens, and on Monday, the 17 former Silicon Valley branches will open as First Citizens Bank locations.

“First Citizens has a proud history of growing organically and through strategic acquisitions that build our core capabilities in a careful and deliberate manner,” First Citizens CEO Frank Holding Jr. said in a statement Monday. “This transaction leverages our solid foundation to add significant scale, geographic diversity, compelling digital capabilities and most importantly, meaningful solutions for customers throughout their lifecycle.” Holding added the deal will “accelerate” the company’s expansion goals in California and the Northeast. First Citizens and the FDIC entered a loss-share agreement which ensures both parties will share in the potential recovery and losses on loans, the government and bank announced.

“We welcome the news, which comes at no cost to taxpayers,” White House Press Secretary Karine Jean-Pierre said. “The banking system is safe,” Jean-Pierre added. “Americans can be confident, and we have seen deposits stabilize at regional banks throughout the country, and in some cases outflows have modestly reversed. What we have done these past 14 days has worked.” The FDIC had given bidders until Friday night to make offers for Silicon Valley Bank.

WHAT IS FIRST CITIZENS BANK?

According to a Federal Reserve database, First Citizens was the 30th largest bank in the country by consolidated assets at the end of last year. It operates 582 branches and offices nationwide, 60% of which were in North Carolina or South Carolina.

It is the Carolinas’ fourth largest bank, behind Bank of America, Truist, and Wells Fargo, and employs more than 2,000 in the Triangle area, according to Wake County Economic Development.

First Citizens was founded in Johnston County in 1898, and for most of the past century, it’s been helmed by three generations of the Holding family.

The company’s headquarters are in the North Hills neighborhood of Raleigh. Silicon Valley isn’t the first major purchase First Citizens has made in recent years.

In January 2022, its parent company First Citizens BancShares purchased New York-based CIT Group for approximately $2.2 billion. According to First Citizens spokesperson Angela English, First Citizens has bought more than 20 FDIC-backed banks since 2009.

In its purchase of Silicon Valley, First Citizens will take on $110 billion in assets, $56 billion in deposits, and $72 billion in loans, the company said Monday. During an investor call Monday, Holding recognized his bank “is not well known for expertise in the digital innovation economy.” In the industry, First Citizens has been viewed as a more traditional bank, far from the profile of Silicon Valley Bank, which geared its services toward early-stage technology startups. But Holding pointed out “our home market in Raleigh” is a leader in innovation.

“We are committed to continuing to help innovators, enterprises, and investors move bold ideas forward,” he said. “This acquisition positions First Citizens to support that growth both for Silicon Valley’s markets and right here in our own backyard in the Research Triangle Park by combining First Citizens’ traditional relationship banking, creativity and ability with the strengths, relationships, and expertise of legacy SVB.”


Exciting news in the banking industry as First Citizens Bank announced its acquisition of Silicon Valley Bank. This comes on the heels of First Citizens BancShares’ purchase of CIT Group in January 2022 for roughly $2.2 billion. The acquisition of CIT included Community Association Bank (CAB), a major player in the community association banking space, which has since been re-branded as part of First Citizens Bank. This move further solidifies First Citizens Bank’s position as a leading financial institution.

 

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Florida Legislature Considering Bills Proposing Changes to Condo Safety Reforms, Construction Defect Lawsuits

Florida Legislature Considering Bills Proposing Changes to Condo Safety Reforms, Construction Defect Lawsuits

Florida Legislature Considering Bills Proposing Changes to Condo Safety Reforms, Construction Defect Lawsuits

As the 2023 Florida legislative session gets underway, there are several bills impacting associations and real estate

Senate Bill 154 and House Bill 1395

Perhaps the most important of these are Senate Bill 154 and House Bill 1395, which deal with issues such as inspections and condominium association financial reserves that were addressed in the condo safety reform law that was passed last May with the adoption of Senate Bill 4D during a special legislative session. Under the new law, inspections are required for buildings that have been occupied for 30 years — or 25 years if they are within three miles of a coastline. After these initial inspections, the buildings will have to go through the process again every 10 years.

Flalegislature-300x169If adopted, the new bills could result in changes to the time by which buildings, including those within three miles of a coastline, will have to be inspected. The two bills include different timeframes by which the initial milestone inspection may have to be performed (e.g., SB 154 triggering all such inspections at 30 years with discretion for local officials and authorities having jurisdiction to compel some at 25 years depending on “local circumstances, including environmental conditions such proximity to salt water”; or HB 1395 requiring the initial inspections at 25 years for all buildings regardless of proximity to salt water).

 

SB 154 also includes provisions that would allow local officials to extend inspection deadlines if building owners have entered into contracts with architects or engineers but the inspections cannot be finished in time.

HB 1395 further proposes to increase the types of professionals that may perform phase 1 of the milestone inspections from architects and engineers to also include general contractors licensed under Chapter 489, Florida Statutes, with at least five years of experience in building/constructing threshold buildings, or as a building code administrator or licensed building code inspector.

The bills also include changes to portions of the statutes governing the financial reserves studies and requirements that were implemented under last year’s law. Some of the changes provided in SB 154 include clarification as to which building components must be included as part of the required reserve funding. It would also allow reserve studies to “recommend that reserves do not need to be maintained for any item for which an estimate of useful life and an estimate of replacement cost or deferred maintenance expense cannot be determined.” The bill’s sponsor says that provision could apply to building foundations.

HB 1395 includes different proposed changes pertaining to the structural integrity reserve items, such as providing for modified deadlines to the December 31, 2024, deadline established under last year’s reforms.

These are just a sampling of the various changes being considered by the legislature this session. As is usually the case with the legislative process, the provisions of SB 154 and HB 1395 will likely undergo various changes and may become mirror images of each other via lawmakers’ negotiations resulting in a final version that may be voted into law. Condominium association stakeholders should keep an eye on these bills given that their adoption by the legislature could surely result in significant changes to the monumental laws adopted last year affecting condominium associations in Florida.

House Bill 85

The legislature is also considering changes to the state’s statute of repose for construction defect lawsuits, which is used to determine how long a party has to file a claim for latent construction defects after a structure or improvement has been completed.

Currently, the state’s 10-year period of repose starts to run from the latest of these four events: 1) the date of actual possession by the owner, 2) the date of the issuance of a certificate of occupancy, 3) the date of abandonment of construction if not completed, or 4) the date of completion of the contract or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer. After the 10-year period expires, a claim for latent defects can no longer be brought.

If adopted, House Bill 85 would revise the triggering events for the period of repose for suits brought for latent construction defects to the earliest of: 1) the issuance of a temporary certificate of occupancy, 2) the date of the issuance of a certificate of occupancy, 3) or the date of issuance of a certificate of completion, or 4) the date of abandonment if construction is not completed.

The repose period would start to run seven years from the earliest of the foregoing four events. These changes, if adopted, could have significant changes to the time frame within which an association may assert a claim against parties responsible for construction defects.

As the legislative session unfolds and reaches its conclusion on May 5th, our firm’s attorneys will continue to monitor these and other bills impacting the state’s community associations and real estate industry.

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