Enforceability Status
Colorado's Construction Defect Action Reform Act (CDARA) and the Homeowner Protection Act of 2007 provide statutory protections that significantly limit a builder's ability to contractually eliminate monetary liability for construction defects.
Legal Analysis
Colorado's Construction Defect Action Reform Act (Colo. Rev. Stat. sections 13-20-801 to 13-20-807) establishes a comprehensive framework for construction defect claims, including mandatory pre-suit notice and opportunity-to-repair procedures. CDARA provides statutory remedies that courts have generally treated as establishing minimum protections for homeowners.
The Colorado Homeowner Protection Act of 2007 (Colo. Rev. Stat. section 6-1-1103) specifically addresses attempts by builders to limit homeowner rights through contract provisions. The Act restricts builders from requiring homeowners to waive certain statutory or common law rights as a condition of purchase. This legislation was enacted in direct response to builder practices of using contract terms to limit buyer remedies.
Colorado courts have recognized the implied warranty of suitability in new home construction since Carpenter v. Donohoe (1964). Combined with strong consumer protection statutes including the Colorado Consumer Protection Act (Colo. Rev. Stat. sections 6-1-101 to 6-1-115), liability limitation clauses that attempt to eliminate all monetary damages face significant enforceability barriers in Colorado.
Relevant Colorado Law
Establishes the framework for construction defect claims including mandatory notice-and-cure procedures and defines recoverable damages.
Restricts builders from requiring homeowners to waive statutory or common law rights as a condition of purchasing a home.
Prohibits deceptive trade practices and provides consumer remedies including treble damages for willful violations.
Related Cases
Established the implied warranty of suitability in new home construction in Colorado, holding that builders impliedly warrant that homes are built in a workmanlike manner and suitable for habitation.
Builders in Colorado Using This Clause
What Colorado Buyers Should Know
- Understand the Homeowner Protection Act limits on waivers Colorado law specifically restricts builders from requiring buyers to waive statutory or common law rights as a condition of purchase. A liability limitation clause may conflict with this protection.
- Know your CDARA pre-suit rights CDARA establishes a mandatory notice-and-cure process for construction defect claims. These statutory rights and remedies exist independently of contractual liability limitations.
- Preserve evidence and follow statutory notice procedures Document all defects thoroughly and provide written notice to the builder in compliance with CDARA requirements. Proper notice preserves your statutory rights regardless of contract terms.
- Seek legal counsel experienced in Colorado construction defects Colorado's construction defect laws are complex and evolving. An attorney can assess whether the liability limitation in your contract is enforceable given the Homeowner Protection Act and other statutory protections.