Firm News

Potential Construction Defect Liabilities Arising From Condo Conversions and Renovations

By Burg Simpson

April 1, 2019  

Burg Simpson’s construction defect attorneys, Ronald M. Sandgrund, Leslie A. Tuft, and Jennifer A. Seidman, recently co-authored an article about potential construction defect liabilities arising from apartment-to-condo conversions which was published in the April 2019 edition of the Colorado Lawyer. “Mitigating Potential Condo Conversion and Renovation Construction Defect Liabilities – Part 1,” is the beginning of this two-part article in which the authors discuss how many Colorado real estate developers have tended to construct rental apartment units in lieu of for-sale condominiums and townhomes following the 2007–09 Great Reces­sion. As the Colorado home ownership market has improved, converting and selling apartments as condo units has become an attractive option, but may create po­tential construction defect liabilities for developers, builders, and other construction professionals.

Part 2 of the article will examine how construction professionals may seek to mitigate their liability risks for conversion of rental properties to condos and other “for sale” residential units, but explains that Colorado’s Homeowner Protection Act (which Burg Simpson attorney Ron Sandgrund helped write) and recent court decisions generally do not allow developers to avoid liability to homeowners for defective construction and renovations when claims are timely brought.

Ronald Sandgrund (of counsel), Leslie Tuft (senior associate attorney), and Jennifer Seidman (of counsel) work with the Construction Defect Group of Burg Simpson Eldridge Hersh & Jardine, P.C. The group represents commercial and residential property owners, homeowner associations and unit owners in construction defect, product liability, and insurance coverage.

Click here to read the article.

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