Overview
Dream Finders Homes operates in Colorado with active communities in the Denver and Boulder metropolitan areas. Colorado is a significant market for DFH, and it is also where the company has faced its most notable construction defect litigation, including a $6.4 million arbitration award and a $12 million settlement.
Colorado's Construction Defect Action Reform Act (CDARA) and the 2023 Homeowner Protection Act (HB 23-1121) create a legal framework that restricts builders from using certain contract provisions that limit homeowner remedies. The Parkes at Stonebridge arbitration ruling noted that express waivers of construction defect rights are void as against public policy under Colorado law.
How Colorado Law Affects Your Contract
The following analysis examines how Dream Finders Homes's documented contract patterns interact with Colorado consumer protection law.
Construction Defect Action Reform Act (CDARA)
CDARA (C.R.S. §§ 13-20-801 through 13-20-807) requires written notice to the builder and a 75-day inspection/repair period before filing a construction defect lawsuit. This pre-litigation requirement applies to Dream Finders purchases in Colorado regardless of the contract's dispute resolution provisions.
Homeowner Protection Act (HB 23-1121)
Enacted in 2023, Colorado's Homeowner Protection Act (C.R.S. § 13-20-808) limits the enforceability of certain contract provisions that restrict homeowner rights in construction defect claims. This legislation may affect the enforceability of Dream Finders' arbitration, class action waiver, and warranty limitation clauses in Colorado.
Implied Warranty Waivers Void Under Colorado Public Policy
In the Parkes at Stonebridge arbitration (2024), the arbitrator noted that express waivers or limitations on construction defect rights are void as against public policy under Colorado law. Dream Finders' contractual waiver of implied warranties (HAB-001) is likely unenforceable in Colorado.
Arbitration Provisions Under Colorado Law
Mandatory arbitration clauses in residential construction contracts are subject to scrutiny under Colorado law. Dream Finders has used arbitration in Colorado, including in the Parkes at Stonebridge and Silver Meadows matters. The 2023 Homeowner Protection Act may further restrict the enforceability of certain arbitration terms.
Colorado Consumer Protection Act (CCPA)
The CCPA (C.R.S. § 6-1-101 et seq.) prohibits deceptive trade practices in consumer transactions. If Dream Finders or Jet HomeLoans engaged in misleading practices during the sales process, this statute may provide a remedy for affected buyers.
Colorado Legal History
Selected cases and investigations involving Dream Finders Homes in Colorado.
The Parkes at Stonebridge Townhome Owners Association in Longmont, Colorado won a $6,413,204 arbitration award against Dream Finders for construction defects in a 92-unit townhome community built between 2018 and 2021. Defects included crumbling driveways, heaving sidewalks, and sagging garage awnings. The arbitrator found DFH liable for negligence, breach of contract, breach of express warranty, and breach of implied warranty (source: PR Newswire; Boulder County District Court filings).
The Silver Meadows Townhome Owners Association alleged construction and development defects. DFH successfully compelled arbitration. The parties settled for $12.0 million, including a $4.0 million insurance carrier payment, with DFH denying any admission of liability (source: DFH SEC 10-K filing).
Dream Finders sued Weyerhaeuser over defective TJI Joists with a harmful Flak Jacket coating affecting 38 homes. The District Court awarded DFH $14,650,000 in combined damages. Weyerhaeuser appealed (source: Colorado Court of Appeals; DFH SEC 10-K filing).
Relevant Colorado Laws
Establishes procedures for construction defect claims, including notice requirements and the builder's right to inspect and repair before litigation.
Prohibits deceptive trade practices in consumer transactions, including misrepresentations in the sale of new homes.
Enacted in 2023, this act limits the enforceability of certain contract provisions that restrict homeowner rights in construction defect claims.
Colorado Key Facts
- 1Colorado's CDARA requires written notice to the builder and a 75-day inspection/repair period before filing suit.
- 2The statute of limitations is 2 years from discovery of a defect, with a 6-year statute of repose from substantial completion.
- 3Colorado's 2023 Homeowner Protection Act restricts builders from using contract provisions that limit homeowner remedies.
- 4Mandatory arbitration clauses in residential construction contracts are subject to scrutiny under Colorado law.
- 5HOA construction defect claims in Colorado require a majority vote of homeowners before filing suit.
- 6Colorado does not have a separate statutory implied warranty of habitability for new construction; protections arise from common law and CDARA.
What Colorado Buyers Should Know
- Comply with CDARA's 75-day notice requirement. Colorado law requires written notice to the builder and a 75-day inspection/repair period before filing a construction defect lawsuit. Document all defects with photographs, dates, and written descriptions.
- Know that warranty waivers may be void under Colorado public policy. The Parkes at Stonebridge arbitration ruling indicated that express waivers of construction defect rights are void as against public policy under Colorado law. Dream Finders' warranty limitations may not be enforceable.
- Understand the 2023 Homeowner Protection Act. Colorado's Homeowner Protection Act restricts builders from using contract provisions that limit homeowner remedies for construction defects. Review your Dream Finders contract with an attorney to identify provisions that may be affected.
- Be aware of the 6-year statute of repose. Colorado has a 2-year statute of limitations from discovery of a defect and a 6-year statute of repose from substantial completion. Document defects promptly and consult an attorney to ensure timely filing.
- Hire an independent inspector given DFH's Colorado litigation history. Dream Finders has faced significant construction defect litigation in Colorado, including a $6.4 million arbitration award and a $12 million settlement. Request inspections at pre-drywall, pre-closing, and final walkthrough stages.