Frequently Asked Questions Maryland
- It depends on several factors
The Maryland Code §10-203 implied warranty applies to all newly constructed homes and would likely cover any significant defects. Keep in mind, though, that the warranty period under the statutory §10-203 warranty is only two years for structural defects and one year for other defects.
If your home is part of a condominium project. If it is, there is your homeowners association may also have a three year warranty as to construction quality of the common areas.
Even after the warranty period, if you discover a hidden defect that existed during the warranty period, you may be able to assert the claim several years after the end of the warranty period. You should consult an experienced lawyer to examine the facts of your case.
- If a defect is significant, the existence of that defect is a material fact.And if that defect was or should have been known to the developer during construction or at any other time prior to sale of the dwelling, sale of the dwelling without disclosing the defect may violate the Consumer Protection Act.
- Because some condo projects are developed by companies established solely for a particular development, it can be hard to identify assets to satisfy a warranty claim. The DC Condo Act requires a developer of new condo units, including the new construction portion of a conversion project, to post a bond for 10% of the construction costs with the D.C. government. Unit owners or associations can make a claim against the bond by sending the required materials to the DC Department of Housing and Community Development (DHCD). The DHCD determines liability and its ruling may be appealed to the Office of Administrative Hearings.
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- Condo Act warranty rights are lost unless notice of the defect is given to the developer within the warranty period and legal proceedings to enforce them are commenced within one year after expiration of the warranty period.
While the §10-203 warranty does not require notice to the builder within the warranty period, it does requires that legal proceedings to enforce the §10-203 warranty be commenced within two years after expiration of the warranty or within two years of “discovery” of the defect, whichever is first.
An action under the Consumer Protection Act must be commenced within three years after the violation was or should have been discovered.
- The fact that a developer entity no longer has tangible assets doesn’t necessarily mean a
claimant cannot obtain a recovery. Most developers have liability insurance, and the insurance may cover some or all of a developer’s construction defect liability. Also, the developer’s contractors may have assets, and those contractors’ own insurance policies may cover some or all of their liability for the defects.
- Depending on the strength of the case, yes.
- A It depends on the terms of our attorney-client agreement. However, we normally seek to recover on the client’s behalf some or all of those expert fees and costs from the developer. If we include a claim that the developer’s conduct violated the Consumer Protection Act, we would also include a claim for an award of attorney fees to our client, as under that Act the court has the power to make an attorney fee award to a prevailing plaintiff.
A A claimant will have a right to a jury trial unless there is an enforceable arbitration clause in sales agreements or other applicable documents requiring the arbitration of all claims. However, most claims are resolved before trial because most claims settle before the scheduled trial date.