Real estate sales and construction often lead to disputes ending up in court. Mr. Levin represents buyers; sellers; owners; contractors and sub-contractors in cases involving breach of contract; failure to disclose construction defects; breach of warranty; defective construction; design defects; failure to pay; mechanic's liens; fraud and other issues.
Real Estate Sale and Construction Law FAQs
- When can the seller of a home have liability to the purchaser for failure to disclose a defect in the home?
To prevail on a claim for fraudulent misrepresentation, a buyer is required to prove (1) that the seller made a false representation; (2) that the seller had knowledge that the representation was false; (3) that the seller intended to induce the buyer to rely on the representation; (4) that the buyer justifiably relied on the representation; and (5) that the buyer was damaged. A misrepresentation occurs when the seller affirmatively makes a false statement. In addition, the failure to disclose a material fact which in good conscience should have been disclosed is a misrepresentation. In the context of the sale of real estate, a seller must disclose to the buyer known latent defects, and the failure to do so constitutes a fraudulent misrepresentation.
- Are there any implied warranties that are included in the sale of a newly built residence?
Yes. Implied warranties for a new home exist in a sale by a builder-vendor to a consumer. Three warranties apply to the sale of a new home: (1) the builder-vendor has complied with applicable building codes; (2) the home is built in a workmanlike manner; and (3) the home is fit for habitation. The implied warranties discussed above do not apply to the sale of a used home by someone who is not a builder.
- Can the builder of a residence be held liable to a subsequent purchaser for defective construction?
Yes, under certain circumstances. Assuming the case is filed within the statute of limitations, a subsequent purchaser can maintain a negligence action against the original builder in a case where latent defects exist which the subsequent purchaser was unable to discover prior to purchase.
- How does the Colorado Consumer Protection Act apply to sale of a newly built residence?
The Colorado Consumer Protection Act requires developers to provide homebuyers with a plain-language summary soils report at least two weeks prior to closing on a residential sale so that homebuyers can evaluate the risks of expansive soils under new homes.
Serving clients in Eagle County (Vail, Avon, Edwards, Eagle, Gypsum); Garfield County (Glenwood Springs, Carbondale); Pitkin County (Aspen); Summit County (Breckenridge, Frisco, Dillon, Silverthorne) and Lake County (Leadville).