Abstract

http://ssrn.com/abstract=1541709
 


 



Pay it Forward: A Proactive Model to Resolving Construction Defects and Market Failure


Debra Pogrund Stark


The John Marshall Law School

Andrew Cook


affiliation not provided to SSRN

2003

Valparaiso University Law Review, Vol. 38, No. 1, 2003

Abstract:     
This article first describes the extent and nature of the defects that are increasingly occurring with newly built and converted condominiums and detached single-family homes. The article then reviews the existing common law and statutory protections in the United States. The article then focuses on two states' attempts to provide more than the typical protections currently, and generally, available to new homeowners against construction defects and evaluates the effectiveness of these protections in practice. Finally, the article proposes model legislation that addresses the identified problems through an attempt to discover and then require the type of ex ante proactive bargain that the parties would have struck if they were truly of equal bargaining power and sophistication. The proposal adopts those features from the most innovative state statutes and local ordinances examined within this article and keeps in mind the need to avoid requirements that will create undue expense on developers, expenses that the developer may pass along to home purchasers in the form of higher housing costs. The proposal also contains a description of the basic warranty that would be required for all new homes, provides a procedure for handling the claims, and offers a source for repayment of these claims. This article also proposes a more expansive warranty that would not be mandatory, but that the developer and the new home buyer could agree to for an additional charge.

Number of Pages in PDF File: 35

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Date posted: February 1, 2010 ; Last revised: February 2, 2010

Suggested Citation

Stark, Debra Pogrund and Cook, Andrew, Pay it Forward: A Proactive Model to Resolving Construction Defects and Market Failure (2003). Valparaiso University Law Review, Vol. 38, No. 1, 2003. Available at SSRN: http://ssrn.com/abstract=1541709

Contact Information

Debra Pogrund Stark (Contact Author)
The John Marshall Law School ( email )
315 South Plymouth Court
Chicago, IL 60604
United States
Andrew Cook
affiliation not provided to SSRN ( email )
Feedback to SSRN


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