Colorado Court of Appeals Expands and Protects Homeowner Association Rights
Colorado provides important implied warranties to homeowners, recognizing that more knowledgeable developers should provide well-built homes and stand by their work. Burg Simpson’s construction defect attorneys have creatively and successfully argued in many cases that homeowners associations also have standing to assert implied warranty claims for common area defects and to recover the entire cost to repair these defects. However, builders and developers often disputed, unsuccessfully, whether or to what extent homeowners associations may recover for breach of implied warranties when a community’s common areas suffer from construction defects.
In a recent case and a win for Colorado’s homeowners’ associations, the Colorado Court of Appeals expanded protections for homeowners associations and homeowners in common interest communities. Specifically, in Brooktree Village Homeowners Association v. Brooktree Village, LLC, 2020 COA 165 (Nov. 2020), the court clarified and/or held that:
- The homeowners association had standing to pursue a breach of implied warranty claim for common area defects even though the developer and builder never owned the common areas.
- The homeowners association had standing to pursue a breach of implied warranty claim for all common area defects where two or more unit owners purchased units directly from the developer or builder.
- The homeowners association could recover the entire cost to repair common area defects even though fewer than half of the owners purchased homes directly from the developer or builder.
- The builder would be liable for breach of implied warranty even if the builder was not the home’s seller.
The court’s holdings are consistent with arguments our construction defect attorneys have made for years. It will strengthen future arguments and will support our work to help homeowners associations and homeowners properly and permanently repair their communities’ construction defects.
Burg Simpson is a national leader in construction defect litigation, fighting exclusively for the rights of homeowners and homeowner associations.
In 2021, Burg Simpson Eldredge Hersh & Jardine, P.C. was recognized by Best Law Firms® and U.S. News & World Report when they named Burg Simpson’s Construction Defect Department “Metropolitan Tier One,” the highest available ranking.
The award-winning attorneys that comprise Burg Simpson’s Construction Defect department have successfully represented condominium and townhome associations and the owners of single-family homes for over 25 years. With decades of experience, the Burg Simpson team has the far-reaching knowledge in all aspects of the construction industry and the expertise necessary to navigate this complex area of law.
Our construction defect lawyers begin each case by thoroughly evaluating the details of the matter and creating a sound legal strategy to obtain the best possible result. If you have a construction defect issue, our attorneys will vigorously advocate on your behalf and work to protect and enforce your legal rights.
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