SB 800: GUIDE TO REQUIREMENTS AND RESPONSE STRATEGIES

                                                             Author...
damages homeowners may recover for, (2) imposes a                        Civil Code Introduction
mandatory claim and repai...
A strict timeline must be adhered to by both sides unless                        repairs.25 In addition the builder must i...
submitted in writing along with support for the               builders liability to the functionality standards defined in...
Under SB 800 it’s mandatory the claimant follow the pre-        Homeowner’s Options and Safeguards
litigation procedures s...
alternative contractor which could potentially complicate
and draw out the resolution.

The homeowner has the option to ca...
References:


Allen, Darin T. (2006), Construction Briefings: Construction Defects Litigation and The “Right to Cure” Revo...
APPENDIX A

FUNCTIONALITY STANDARDS SUBJECT TO A STATUTE OF LIMITATIONS LESS THAN 10 YEARS



FUNCTION                    ...
APPENDIX B

SB 800 Timeline




SB 800: Guide to Requirements and Response Strategies   Page 9 of 9
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Technical Journal: SB800 Guide To Requirements And Response Strategies

  1. 1. SB 800: GUIDE TO REQUIREMENTS AND RESPONSE STRATEGIES Author: Jon T Petrich Abstract: Senate Bill 800 (SB 800) became law for California in September of 2002 and is now codified as California Civil Code §§895, et seq. California civil code sections §§895 - 945.5: “Requirements for Actions for Construction Defects” was brought about by plaintiffs’ attorneys in aid to recover costs for construction defects which had not necessarily caused property damage or physical injury at time of claim. SB 800 aims to resolve disputes prior to litigation thus foregoing expensive lawyer contingency fees awarding greater value of repair to the homeowner for construction defects. With the passing of Civil Code §§895, it is essential the “builder” and homeowner understand their rights and responsibilities, and for their representatives to understand how to protect them. This paper will clarify important items such as requirements to initiate SB 800 and it will provide timelines which all parties must adhere to. The paper will also demonstrate the powers and protections which both the “builder” and homeowner possess under the law. Further response strategies to settlement of “unmet standards” will also be explored. Introduction and Background second reason California courts have denied the ability to file suit was due to tort law. i.e. Subsequent homeowners SB 800 (Civil Code §§895-945.5) known as the “Fix IT” could only sue if the discovered latent defects caused or “Right to cure” law was enacted by the California personal injury or secondary property damage.3 legislature at the end of 2002 in an effort to reduce the amount of defect litigation within the state. Unnecessary SB 800 is a non retroactive law which applies only to defect litigation had directly caused a virtual collapse in original residential real estate construction (single family the insurance market for home construction thus residential, condominiums, and townhouses, but not increasing the rising cost of housing in California.1 In condominium conversions, apartments or remodels) addition to higher real estate costs, the excessive litigation intended to be sold as an individual unit, whether or not costs and insurance premiums were passed to the the unit is attached. SB 800 is only valid for new consumer by way of housing shortage.2 residential units where the purchase agreement (not close of escrow) between the builder and homebuyer occurred Before SB 800 was enacted, California didn’t have a clear on or after January 1st, 2003.4 In order for custom homes legal definition of what a construction defect was. Only to apply to SB 800, the custom homebuilder must be new homeowners or original purchasers were protected selling real estate (land and house). If the homebuilder is by their home warranties which would allow them to file only performing the construction of the home, the builder, a claim for latent defects discovered within a ten year in this case, will be in a construction contract with the period. Upon settlement, the original homeowner was homeowner and will not be subject to the statute.5,6 faced with an unsatisfactory amount of money to make sufficient repairs. The homeowner was awarded the The statute applies to both original homeowners and leftover money from the builder’s insurance company subsequent buyers.7 The new law establishes extensive only after the lawyer’s contingency fee was paid. If the new rights, obligations, and remedies to both sides. In original homeowner sold his or her house before the ten general, the new statute (1) defines construction year statute of limitations had been exhausted, the builder functionality standards (CC §§896-897) expanding the was relieved of any liability. Historically, California courts have denied subsequent owners the ability to file 3 action for latent defects under the laws of contract, which Purchasers, Privies, and Predicaments: A Defect in California’s are between the builder and original homeowner. The Construction Defect Law, p.278 4 California Civil Code §938 5 CBIA: SB 800: The Homebuilder “FIX IT” Construction Dispute 1 CBIA: SB 800: The Homebuilder “FIX IT” Construction Dispute Resolution Law – A Summary Compliance Guide for the California Resolution Law – A Summary Compliance Guide for the California Homebuilding Industry, Appendix C 6 Homebuilding Industry, p.2 Construction Defect Litigation: The Playing Field Has Changed. A 2 Construction Briefings: Construction Defects Litigation and The Navigational Guide to Senate Bill 800, p.2 “Right to Cure” Revolution, p.1 7 California Civil Code §945 SB 800: Guide to Requirements and Response Strategies Page 1 of 9
  2. 2. damages homeowners may recover for, (2) imposes a Civil Code Introduction mandatory claim and repair procedure, (3) establishes Legislative Counsel’s Digest regulations for pre-litigation of unmet building standards Section 1: Declaration (CC §§910-938), (4) overhauls the statute of limitations Section 2: Section §43.99 for new residential construction (CC §895, 896, & 900), Section 3: Title 7 – Requirements for Actions for and (5) provides limited immunity for third parties Construction Defects providing quality review of plans and construction.8 The Ch. 1: Definitions (CC §895) new law is not intended to supersede any other existing Ch. 2: Actionable Defects i.e. functionality standards legislation already in place. Civil Code 1375, commonly (CC §§896 – 897) known as the Calderon Process is still actionable for This section contains 45 standards under seven attached units sold before and after January 1st, 2003 and different sections. The sections include: water will remain in effect until July 1st, 2010.9 The claimant is instruction (18 standards), structural (4 standards), required to follow both SB 800 and the Calderon Process soils (3 standards), fire protection (3 standards), if the issues at hand are between the owners, plumbing and sewer (1 standard), electrical systems homeowner’s association, and their builders.10 In the (1 standard), and other (15 standards). SB 800 further event SB 800 and the Calderon process are applicable, the notes the above standards are intended to address Calderon Process pre-litigation procedures will come into every function or component of a structure. In the effect after the SB 800 pre-litigation procedures have event of failure to address a certain component or been completed. SB 800 states that the substantially function of the structure or surrounding land, the similar requirements between the two statutes do not have issue shall be actionable if it causes damage.14 to be repeated.11 As stated above, both the Calderon Ch. 3: Obligations (CC §§900 – 907). Process and SB 800 procedures will have to be used in Addresses mandatory one year warranty for fit and conjunction for applicable settlements until July 1st, 2010. finish items, a builder’s option for an Enhanced Protection Agreement, and the homeowner’s SB 800 does not apply to any action concerning fraud, or maintenance obligations. personal injury.12 Select statutes of limitations under the Ch. 4: Pre-Litigation Procedure (CC §§910 – 938) new law have been altered. The new statute of limitations Ch. 5: Procedure (CC §§941 – 945.5) ranges from 1 year to 10 years, where as in the past only a poorly defined 10 year statute existed. All functionality A deficiency within the functionality standards can come standards located in Chapter 2 of the statute still have a about as a design deficiency (condition causing the ten year period unless otherwise stated. For a list of building or system to not function properly), a material functionality standards subject to a statute of limitations deficiency (use of inferior materials or components), a less than 10 years, refer to Appendix A. construction deficiency (poor quality of workmanship), or a geotechnical problem (incorrect accounting of soil SB 800 helps the construction community and conditions resulting in damage to the foundation system). homeowners resolve construction defect claims outside of court, also known as nonadversarial procedures (pre- Requirements to Initiate Civil Code §§895 – 945.5 litigation, pre-arbitration). Section §910 of SB 800 specifically states that the claimant “homeowner” must Chapter 4 of SB 800 (CC §§910 - 938) only requires the follow the pre-litigation procedures of the statute claimant or his legal representative to provide a written assuming the builder opted to enforce the statute in the notice to the builder noting the construction of the real first place. Only after these procedures have failed or not estate violates any one of the standards set forth in led to a resolution between the two parties can the Chapter 2 to initiate the pre-litigation procedure under the claimant file an action against the “builder”. statute.15 The homeowner only needs to demonstrate to the builder, in accordance with the specific functionality standard, that the home doesn’t meet the applicable SB 800 Layout standard. No showing of causation or damages is SB 800 has several distinct sections. To aid the reader the required to meet the burden of proof regarding the sections are outlined below. A complete copy of SB 800 violation set forth.16 SB 800 can not be initiated for the can be downloaded if needed.13 purpose of sole recovery due to a defective manufactured SB 800 contains Civil Code §43.99, §§895 – 945.5 and is product where the manufacturer is the sole defendant.17 If laid out in the following manner. the builder is included in the claim solely for a defect in a manufactured product, SB 800 will apply to the claim 8 Design Professionals’ Practice Update – California Law: New against the builder. Residential Construction Defects Law, p.1 9 Attached Housing: Its Unique Approach, p.1 10 Getting a Fix on the Right to Repair: Builders Must Be Careful When Altering SB 800’s Pre-Litigation Procedures, p.2 14 California Civil Code §897 11 15 California Civil Code §935 California Civil Code §910(a) 12 16 California Civil Code §942 California Civil Code §941(e) 13 17 http://www.dre.cahwnet.gov/sb800.htm California Civil Code §896(g)(3)(E) SB 800: Guide to Requirements and Response Strategies Page 2 of 9
  3. 3. A strict timeline must be adhered to by both sides unless repairs.25 In addition the builder must inform the each side of the party agrees upon an alternate, less claimant of the right to request up to three alternative stringent timeline. It is essential that all requests and contractors from which to choose repairs to be responses be done on paper and recorded. All performed by. The alternative contractors cannot be correspondence shall include the representatives of both owned or controlled by the builder. parties. Failure to comply by either party could release  The builder’s offer to repair must also come with an the opposition from further obligations under the pre- offer to mediate if the claimant chooses. If the litigation procedures. The following outline highlights mediation fails, the homeowners shall allow the builder the timeline requirements set forth by Chapter 4: Pre- to proceed with the proposed repairs as presented.26 litigation Procedure (CC §§910 – 938). A graphical  Alternatively the builder may elect to offer the representation of SB 800’s timeline has been included in homeowner a cash offer settlement. The homeowner Appendix B for the reader to refer to alongside the can either accept the builder’s offer or reject it and file bulleted descriptions below.18 for action. In which case, standards beside pre-  Within 30 days of request by the claimant, the builder is litigation standards contained in Chapter 4 of the statute required to provide access to an extensive amount of shall still apply.27 documents including plans, specifications, maintenance  Assuming no cash offer was presented, the homeowner and preventative maintenance recommendations from has 30 days to respond and approve the builder’s offer both the builder and manufacturer, warranties, etc.19 enabling the builder to proceed with the repair.28 Select documents listed above are required to be  If the homeowner elects to have an alternate contractor disclosed to the homeowner at time of original sale as perform the work, the builder is entitled to an additional well.20 In addition, the builder is required to keep 20 days to perform a noninvasive inspection with the certain documents maintained and recorded for 10 contractor candidates.29 years. If practical, it is recommended the builder  The builder must provide a list of optional contractors provide all documents to the owner upon sales purchase to the owner within 35 days of request to opt for an on digital storage. This way the purchaser has already alternative contractor to perform the work.30 been provided with many of the documents required  Within 20 days of receiving the list of alternates, the before they are needed. owner shall authorize either the original builder or an  Upon receiving the claim, the builder must respond to alternative contractor to perform the repairs.31 the claimant, acknowledging the notice was received.  If a repair resolution has resulted from the above Response must occur within 14 days. options, the repairs shall commence on a mutually  The builder has an additional 14 days after convenient date within a) 14 days of homeowner acknowledging receipt of claimant’s notice to complete acceptance of the builder’s offer, b) within 14 days of an inspection and / or testing of the unmet functionality selection of an alternate contractor, c) within 7 days of standards.21 The builder is required to give sufficient mediation completion, if one occurred, or d) within 5 notice to third parties so they can attend the inspection days after a permit is obtained if one is required. Due if the builder intends to hold them responsible. 22 diligence on obtaining a permit is required from the  SB 800 states that all property shall be restored to pre- builder.32 existing condition within 48 hours of inspection.23  SB 800 states that “Every effort shall be made to  The builder may opt to perform a second inspection if complete the repair within 120 days.”33 It is essential deemed necessary. Request to do so must be within the builder accounts for unforeseen circumstances three days following the initial inspection. The second which could cause delays or complications in the repair inspection follows all the same rules as the initial and process. If the builder fails to complete the repair must be completed within 40 days of the initial within the time specified the claimant has the right to inspection.24 proceed to file an action.34 All repairs can be viewed  Within 30 days of the initial inspection, or if requested, and documented if requested.35 second inspection, the builder may offer to make  If the builder elects, he has the option to choose to make some but not all repairs. Doing so would prompt 18 The timeline assumes the maximum time limits are exhausted in each a future mediation. Reasons for partial repair must be phase through the process. If response or completion to certain items occurs before the maximum time, the occurrences within each subsequent step will be shifted accordingly. The time limits of SB 800 25 must be adhered to in the prescribed manners of the statute. It should be California Civil Code §917 26 noted the description below and timeline in Appendix B are simplified. California Civil Code §919 27 The reader should take caution and refer to the full length “Pre- California Civil Code §929(a) Litigation Procedures” written in SB 800 (CC §§910 – 938) for a fully 28 California Civil Code §918 29 detailed timeline. California Civil Code §918 19 30 California Civil Code §912(a -i) California Civil Code §918 20 A list of these documents can be found in CBIA’s Compliance Guide 31 California Civil Code §918 21 32 California Civil Code §916(a) California Civil Code §921(a) 22 33 California Civil Code §916(e) California Civil Code §921(b) 23 34 California Civil Code §916(a) California Civil Code §925 24 35 California Civil Code §916(c) California Civil Code §922 SB 800: Guide to Requirements and Response Strategies Page 3 of 9
  4. 4. submitted in writing along with support for the builders liability to the functionality standards defined in reasons.36 Chapter 2. In addition to following imposed maintenance  Upon completion of repair, the builder cannot obtain a guidelines, homeowners are required to follow duties, release or waiver giving him indemnification against including proper notification and permission to repair to repairs. The claimant has additional protection upon the builder. Mediation hurdles are mandated in the law to completion of repair to file an action to claim help resolve disputes which may arise through the course inadequate repair and / or violation of the applicable of repair. In addition, SB 800 sets forth options for the standard.37 builder to opt-out of provisions if chosen.  Upon completion of repair, if no mediation has already occurred through the process one is required before any The builder has the ability to enforce an “Enhanced action can be filed.38 Protection Agreement” (EPA)41 instead of the functionality standards found in Chapter 2.42 An EPA is a SB 800 sets forth a procedure which is both vigorous and contractual document by which the builder gives the strict. It is imperative the builder work closely with his or homebuyer equal or greater protections than the her comprehensive general liability insurance in place. functionality standards. The EPA must provide The claim notification time period stated above is short protections for all standards for times equal to or greater and must be adhered to. Insurance company responses than time periods SB 800 mandates in Chapter 2. An and claim adjuster availability could have a negative EPA might be beneficial for some builders to help meet impact on the process if efficient communication isn’t insurance requirements. An EPA could also prove practiced. Insurance company adjustors are required to beneficial if the builder feels it necessary to further define attend the inspections and mediations. An additional functionality terms contained in his or her own impact could arise depending on the additional insured contractual warranty providing further clarity. The carriers of sub-contractors. builder must offer the EPA to the homebuyer no later than the close of escrow.43 If any provision of the enhanced Furthermore, the builder should practice good file protection agreement is later found to be unenforceable as documentation and handling practices in the event SB 800 not meeting the minimum standards of Chapter 2, the is initiated. In cases of large projects such as builder may still use the functionality standards found in condominium complexes, the above timelines might SB 800 as a fallback alternative.44 prove to be impossible to adhere to. In which case, opting out of SB 800 procedures might show to be more realistic In addition to an EPA, the builder may additionally elect by initiating an Enhanced Protection Agreement and / or to enforce a uniquely drafted “alternative contractual an alternative contractual nonadversarial procedure. nonadversarial procedure” instead of the nonadversarial Attorneys should be consulted when creating these project statutory procedures set forth in Chapter 4 of SB 800.45 specific documents. By doing so, the builder is taking a substantial risk by possibly losing the nonadversarial statutory procedures of Builder’s Options and Safeguards Chapter 4 as well as the notice, repair, and mediation procedures under SB 800 if the alternative procedures are Under SB 800 the definition of a “builder” is a developer, deemed unenforceable. While simplifying the repair builder, general contractor, contractor, or original seller process and modifying some of the procedural steps of SB who, at the time of sale, was also in the business of 800 could sound beneficial to the builder, the more building, developing, constructing, or selling residential conservative approach is for a builder not to opt out of SB units to the public for property purchase.39 Contractors 800.46 If the builder’s contractual provisions are deemed who work on the property but are not a partner, member, invalid, the claimant my bypass the SB 800 procedures or subsidiary of the “builder” are not defined as the and proceed directly to litigation. Once the builder has “builder”. All nonaffiliated contractors are treated the chosen to enforce an alternative contractual same as subcontractors, material suppliers, individual nonadversarial procedure the builder cannot subsequently product manufacturers, and design professionals.40 return to SB 800’s pre-litigation procedures of Chapter 4. The builder’s decision is binding. Notification to the SB 800 grants builders important protections which homebuyer must be given when the sales agreement is weren’t in place before implementation of the statute. executed, no later. The law gives the builder an absolute right to repair problems that may arise in a home. By introducing alternatives to litigation, SB 800 is aimed to reduce costs and solve problems quickly. The statute limits the 41 California Civil Code §§900 - 907 42 California Civil Code §§896 - 897 36 43 California Civil Code §924 California Civil Code §903 37 44 California Civil Code §926 California Civil Code §903 - 904 38 45 California Civil Code §928 California Civil Code §§910 - 938 39 46 California Civil Code §911(a) Getting a Fix on the Right to Repair: Builders Must Be Careful When 40 California Civil Code §911(b) Altering SB 800’s Pre-Litigation Procedures, p.3 SB 800: Guide to Requirements and Response Strategies Page 4 of 9
  5. 5. Under SB 800 it’s mandatory the claimant follow the pre- Homeowner’s Options and Safeguards litigation procedures set out in Chapter 4 before filing an SB 800 grants homeowners important protections and action.47 As mentioned earlier, lawsuits have greatly hurt rights which weren’t in place before implementation of builders and their insurance companies and thus their the statute. The homeowner now has a defined set of revenues. If the claimant does not adhere to the quality standards which the home must adhere to. As requirements of SB 800, the builder may bring a motion mentioned above, the new statute sets mandatory to stay any subsequent court action.48 alternatives to litigation, reducing costs and solving problems quickly. By doing so the builder’s general If the builder so chooses, instead of making an offer to liability insurance has a lower monetary liability granting repair, a cash only offer can be made. If the offer is the owner higher return upon resolution, cutting out the accepted, the builder may obtain a release from the costs of lawyers and litigation. Finally, successors-in- claimant. Having a release alleviates the builder from any interest or non-original homeowners now have power to further liability under the builder’s affirmative defenses. resolve claims assuming action is initiated before the The homeowner does have the ability to reject the offer particular statute of limitation’s period has run. and proceed with filing an action.49 A cash offer option must be thought out carefully by the builder and his The statute sets forth powerful protections to the claimant representative. As noted above, failing to make the during the pre-litigation procedures found in Chapter 4. correct monetary offer could result in a costly litigation. Giving the homeowner an established influence over the repairs and dispute resolution, forces the builder to In addition to commonly accepted maintenance practices, provide satisfactory workmanship in a diligent manner. the homeowner is responsible for following all reasonable maintenance obligations and maintenance schedules The homeowner may proceed with the filing of an action issued by the builder and product manufacturers, which if a builder fails to acknowledge receipt of notice for any are required to be given to the homebuyer at time of claim within the prescribed time, elects to not follow the sale.50 The builder has an opportunity to submit a pre-litigation process, fails to request inspections within thorough yet reasonable list of maintenance guidelines to the specified time, or fails to make an offer or otherwise the homeowner upon which SB 800 mandates adherence strictly comply within the guidelines set forth in Chapter under the builder’s affirmative defenses. 4.52,53,54 The builder must also adhere to the allotted time given to conduct inspections and testing. If the builder SB 800 gives the builder seven “Affirmative Defenses” fails to do so, the homeowner may proceed to formal and states the builder may be excused, in whole or in part, litigation.55 from any obligation, damage, loss, or liability if the builder can demonstrate any of these defenses. After the inspection(s), the builder has an option to offer a 1. Unforeseen act of nature. repair for the violations. If repairs are the source of the 2. Homeowner’s unreasonable failure to minimize or resolution, the homeowner is required to be notified of the prevent damages including timely notice to the builder right to request up to three additional contractors from after the discovery of violation has been made. which to select from to do the repairs.56 The goal of SB 3. Homeowner or agent failure to follow the builder’s or 800 is to give the owner the sole option and discretion of manufacturer’s maintenance recommendations or who will conduct the repairs. The option of having an commonly accepted homeowner maintenance alternate contractor perform the repairs is strongly obligations cautioned. SB 800 does not define which contractors 4. Homeowner or third party alterations, ordinary wear insurance is liable for repairs made if alternate contractors and tear, misuse, abuse or neglect, or use of structure are performing the work. Ambiguity within the law could for other than its intended purpose. also shun an alternative contractor from wanting to get 5. The time period for filing actions bars the claimed involved. violation. i.e. The claim was issued after the statute of limitations expired. Upon completion of repairs, the statute gives the 6. The builder has obtained a valid release from the homeowner the additional right to proceed with the filing homeowner. of an action for violation of the applicable standard and / 7. The builder’s repair was successful in correcting the or to claim inadequate repair.57 If an alternative particular violation of the applicable standard. contractor was chosen for repairs, the statute does not As to causes of action to which this statute does not apply, define if original builder is liable in addition to the all applicable affirmative defenses are preserved.51 52 47 California Civil Code §915 California Civil Code §910 53 48 California Civil Code §920 California Civil Code §930(b) 54 49 California Civil Code §930(a) California Civil Code §929 55 50 California Civil Code §916(d) California Civil Code §907 56 51 California Civil Code §945.5 California Civil Code §§917 - 918 57 California Civil Code §926 SB 800: Guide to Requirements and Response Strategies Page 5 of 9
  6. 6. alternative contractor which could potentially complicate and draw out the resolution. The homeowner has the option to call for mediation upon being presented with the offer to repair if a dispute should arise over the repair procedure. SB 800 gives the homeowner the option to split the cost of the mediator which would enable the mediator to be jointly chosen.58 If repair was chosen as the means to resolution and the builder fails to complete all repairs within the time specified in the repair plan, the claimant can file an action.59 Many unforeseen factors can exist throughout repairs. If the builder requests, it may behoove the claimant to agree to extend the 120 day limitation due to the fact that the repair timeline in place may be logistically difficult for the builder to complete in a quality-like manner.60 Finally, if subsequent claims of unmet standards are discovered during the procedures of a current claim, the newly found construction defects will be administered separately unless agreed to otherwise. If the subsequently discovered claim is for a violation with respect to a standard which has already been initiated, the process does not need to be reinitiated.61 Conclusion Although some issues remain to be resolved with SB 800, which will most likely be solved through future litigation, the law contains several clear intentions. Homeowners who have discovered construction defects must first follow the claim procedures prescribed by SB 800 before proceeding with a formal litigation. Builders can accept and follow the regulations of SB 800, create their own alternative resolution procedures which are hopefully enforceable, or ignore SB 800 altogether possibly finding themselves in a traditional lawsuit. Finally, if the builder does choose to take advantage of SB 800, the builder must follow it strictly. The law gives important protections and rights to both the builder and homeowner. Through strategical consideration, the powers each party possesses should prove to help resolve claims in a successful manner. Hopefully the attributes of the new law will create a catalyst to assist in a plateau of insurance costs for contractors, while still allowing homeowners to have access to affordable housing. 58 California Civil Code §919 59 California Civil Code §925 60 California Civil Code §930(a) 61 California Civil Code §932 SB 800: Guide to Requirements and Response Strategies Page 6 of 9
  7. 7. References: Allen, Darin T. (2006), Construction Briefings: Construction Defects Litigation and The “Right to Cure” Revolution, Thomson / West, No. 2006 – 03, retrieved September 14th, 2007. Website: www.arb-forum.com/rcontrol/documents/ArticlesByFORUMStaff/200603AllenConstruction.pdf. Dale, G., Carpenter, K., Cammarota, N., & Dellinger, K., CBIA: SB 800: The Homebuilder “FIX IT” Construction Dispute Resolution Law – A Summary Compliance Guide for the California Homebuilding Industry, CBIA, 3rd Edition, retrieved September 14th, 2007. Website: www.cbia.org/documents/member/SB%20800%20booklet%203rd%20ed.pdf. Gerris, S., & Marks, D. (2003), Construction Defect Litigation: The Playing Field Has Changed. A Navigational Guide to Senate Bill 800, CEB Real Property Law Reporter, 1 – 3, retrieved September 14th, 2007. Website: www.thoits.com/resources/gfx/cdl.pdf. Gruen, Jan A. (2007), Attached Housing: Its Unique Approach, retrieved September 14th, 2007. Website: http://www.builderarchitectbayarea.com/articles/january_2007_attached_housing.php. Jackson, B., Gotshall-Maxon, L., Matkins Leck Gamble, A., & Natsis, M (2003), Getting a Fix on the Right to Repair: Builders Must Be Careful When Altering SB 800’s Pre-Litigation Procedures, Allen Matkins Leck Gamble Mallory & Natsis LLP, retrieved September 14th, 2007. Website: http://library.findlaw.com/2003/Apr/14/132847.html. Poulson, Wade W. (2006), Purchasers, Privies, and Predicaments: A Defect in California’s Construction Defect Law, Thomas Jefferson Law Review, Vol. 28:277, retrieved September 14th, 2007. Website: www.tjeffersonlrev.org/28- 2/Poulson.pdf. Sciaroni, R., & Melton, D. (2003), Design Professionals’ Practice Update – California Law: New Residential Construction Defects Law, Long & Levit LLP, Issue No. 1, retrieved September 14 th, 2007. Website: www.longlevit.com/updates/DPLUpdate/DPU1.pdf. SB 800: Requirements For Actions For Construction Defects, United States Senate, Secretary of State Department, (2002). SB 800: Guide to Requirements and Response Strategies Page 7 of 9
  8. 8. APPENDIX A FUNCTIONALITY STANDARDS SUBJECT TO A STATUTE OF LIMITATIONS LESS THAN 10 YEARS FUNCTION STATUTE OF LIMITATIONS SB 800 CODE SECTION Deterioration of building surfaces 5 years from Close of Escrow 896(g)(10) due to paint or stain (COE) Plumbing and Sewer Systems 4 years from COE 896(e) Electrical Systems 4 years from COE 896(f) Cracks in exterior pathways, 4 years from COE 896(g)(1) driveways, hardscape, sidewalls, sidewalks, and patios Unreasonable corrosion of 4 years from COE 896(g)(9) untreated steel fences and adjacent components Decay of untreated wood posts 2 years from COE 896(g)(8) Landscaping 2 years from COE 896(g)(12) Dryer ducts 2 years from COE 896(g)(14) Manufactured products: (including but 1 year unless manufacturer 896(g)(3) not limited to windows, doors, roofs, specifies a greater period plumbing products, and fixtures, fireplaces, electrical fixtures, HVAC units, countertops, cabinets, paint, appliances, and any other product that is completely manufactured offsite.) Noise for attached units 1 year from original occupancy of 896(g)(6) adjacent unit Operation of irrigation & drainage 1 year from COE 896(g)(7) systems Fit and finish warranty 1 year 900 SB 800: Guide to Requirements and Response Strategies Page 8 of 9
  9. 9. APPENDIX B SB 800 Timeline SB 800: Guide to Requirements and Response Strategies Page 9 of 9

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