On February 17, 2015, the Lone Tree City Council passed by a unanimous vote, an ordinance aimed at encouraging construction of condominium housing within the city limits.  The ordinance essentially strips the ability of any association to seek redress from a building for defective construction, thus placing the burden on implementing repairs within a condominium community on the owners within the community.

In support of these types of ordinances, cities are claiming that no condominium units are being built because of large scale defect lawsuits and that the only way to encourage building of condominium units is to protect the builder from this liability.   These ordinances ignore the fact that in all construction defect cases, there are substantial claimed defects created by the builder.

This ordinance:

  •  Removes the right of an association to amend its declaration to remove arbitration provisions, thus precluding an association’s ability to access the courts to resolve these disputes;
  • Requires extensive notice to the owners regarding the defect and impact on property values;
  • Requires a majority of all owners’ approval prior to investigating and pursuing any alleged construction defects; and
  • Provides the builder a right to implement a repair of the claimed defect.

With the passage of this ordinance, Lone Tree has given renewed emphasis to the maxim Caveat Emptor as buyers must examine, judge, and test the Unit themselves when purchasing a new home in Lone Tree, as their rights to redress are severely limited. 

David A. Firmin, Esq.
3 responses to “New Home Buyers in Lone Tree – Beware
  1. And soon, all of us in the state will have to “beware.” Or, at least, be aware, right?, because there won’t be much we can do about it. But, hey, we can look forward to a ton of new, affordable condo developments, right?
  2. So happy that I’m not a homeowner there. Property values will surely plunge. Are realtors/sales agents required to disclose this type of adverse situation to prospective buyers?
  3. Is this Ordinance in conflict with CCIOA and/or the Colorado Construction Defect Reform Act; and if so, what is the effect?
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