What is the California Right To Repair Act (SB-800)?

General Background

1. Think of the California Right To Repair Act (SB-800) as laws protecting a homeowner from buying a “lemon” home.

2. These laws are for new build / new construction residential homes.

3. This Act is governed by California Civil Code Sections 895- 945.5 with the intent of encouraging parties to resolve construction defect disputes in the context of residential housing prior to litigation.

4. Fun fact: there does not need to be actual property damage in order to obtain remedies under this act - the only “defect” can be bad work or a defective product itself.

First Step

Okay - so you, the homeowner, discover property damage and/or defective work performed at your new home, now what?

Pursuant to California Civil Code Section 910, you serve the Builder of the home with a Notice of Claim Pursuant to California Civil Code Sections 896-897, which can look something like this:

Next Steps / Summary of the California Right to Repair Act

The Builder has 14 days to respond to the Homeowner’s Notice of Claim. (CC §913). 

After, the Builder has 14 days from its response to the Homeowner’s Notice of Claim to complete an initial inspection of the home. (CC §916(a)). The Builder also must provide written proof of Builder’s insurance to cover any damage caused by inspection. Additionally, all costs of Builder inspection and testing, including any damage caused by the Builder inspection, shall be borne by the Builder. The Builder must restore the property within 48 hours of inspection to pre-inspection condition. The Builder also must provide notice to the affect subcontractors. (CC §916(e)).

In the Homeowner’s Notice of Claim, the Homeowner can request the Builder’s plans, if they do, the Builder has 30 days after the written request to provide plans, specifications, maps or HVAC plans, and available engineering calculations. (CC §912).

The Builder can request second inspection of building. This is optional. (3 days from initial inspection). If second inspection IS requested by the Builder, the Builder has 40 days from the Builder’s initial inspection to conduct the second inspection. (CC §916(c)).

At any time, the Builder shall provide copies of all relevant plans, specifications, mass or rough grading plans, final soils reports, Bureau of Real Estate public reports, and available engineering calculations, that pertain to a homeowner's residence specifically or as part of a larger development tract. The request shall be honored if it states that it is made relative to structural, fire safety, or soils provisions of this title. However, a Builder is not obligated to provide a copying service, and reasonable copying costs shall be borne by the requesting party. (CC §912(a)).

If second inspection is not conducted, 30 days from the Builder’s inspection, the Builder is to make an offer of repair and submit repair plan. Offer to repair must advise claimant of his or her right to request up to three additional contractors from which to select to do the repair. (CC §917). The Homeowner must accept offer to repair, accept/reject cash offer, mediate, or request alternative contractors within 30 days from the Builder’s offer. (CC §918). If the Homeowner rejects offer or fails to make an offer to repair or cash offer, homeowner may proceed with filing its legal action. If the Homeowner accepts offer to repair, Builder must schedule repair work to begin based on mutually acceptable dates within either:

• 14 days of acceptance;

• If an alternative contractor is selected by the homeowner, within 14 days of the selection (see below) ; or

  • o   Within 20 days from request, Builder must have alternative contractors complete their inspection of the building

    o   Within 35 days from request, Builder must provide Homeowner with names of alternative builders

    o   Within 20 days from presentation of contractors, Homeowner must accept or reject offer or request mediation (CC § 918)

• If a mediation occurs, within 7 days of mediation, or

• Within 5 days after a permit is obtained  if one is required – builder shall act with reasonable diligent in obtaining such permit  (CC § 921 (a))

• Every effort must be made to complete the repairs within 120 days (CC § 921 (b))

If second inspection is conducted, 30 days from the Builder’s inspection, the Builder is to make an offer of repair and submit repair plan. Offer to repair must advise claimant of his or her right to request up to three additional contractors from which to select to do the repair. (CC §917). The Homeowner must accept offer to repair, accept/reject cash offer, mediate, or request alternative contractors within 30 days from the Builder’s offer. (CC§918). See above timeline regarding Homeowner’s rights.

Also, nothing stops the Builder from making only a cash offer and no repair. (CC §929).

The Homeowner Can File a Civil Complaint If…

1. If Builder fails to adhere to the above timelines; (CC §920);

2. If Builder fails to make an offer; (CC §920);

3. If Homeowner rejects cash offer (CC §929);

4. If the Builder fails to complete the repair within the time or manner specified in the repair plan (CC §920, 925);

5. If at the completion of the repairs, the repairs are inadequate (CC §926); or

6. If mediation after repair is unsuccessful (CC §928).

Statute of Limitations

Virtually all construction defect claims arising from new construction since January 1, 2003 are covered by the Right to Repair Act.

The Act provides for a blanket 10-year statute of repose, unless a shorter statute is expressly provided for a particular functionality standard - (CC §941(a).

Questions?

PLEASE DO NOT HESITATE TO REACH OUT TO DM LAW IF YOU HAVE ANY QUESTIONS OR NEED HELP WITH A CONSTRUCTION DEFECT MATTER!