DENVER-
Developers wouldn’t be able to ask home buyers to waive their right to sue for construction defects under a bill given initial approval by the Senate on Monday.
The measure (House Bill 1338) comes four years after the passage of a law that limited how much money homeowners can win in court.
Backers of the new proposal say some homebuilders are forcing home buyers to sign contracts that make it difficult or impossible to sue.
Sen. Jennifer Veiga, D-Denver, said some contracts permit lawsuits only if homeowners discover a defect within a year of buying the home or if the damage forces them to move.
“The worst ones pretty much take everything away,” Veiga said of the contract waivers.
But Sen. Shawn Mitchell, R-Broomfield, said homebuilders should be able to define what things they are guaranteeing in a home rather than leave it up to the courts. If home builders are offering unfair warranties, he said, buyers can shop around for better ones or buy insurance protecting them from construction defects.
The Democratic-controlled Senate split on party lines, and all amendments offered by Republicans failed. The measure must pass another vote before being sent to the governor.
Lobbying on the issue has been intense, and one lobbyist is accused of orchestrating misleading phone calls about the measure before it was introduced. Legislative leaders have ordered an ethics investigation.
