California Construction Defects FAQ

California's SB 800, codified in Civil Code sections 895-945.5, is the Right to Repair Act that establishes building standards for residential construction and creates a pre-litigation process for resolving construction defect claims. Enacted in 2002, SB 800 applies to new residential construction sold after January 1, 2003, including single-family homes, condominiums, and townhomes. The law defines specific building standards that constitute the minimum quality of residential construction, covering areas like water intrusion, structural components, soils, fire protection, plumbing, electrical systems, and more. When these standards are violated, homeowners have causes of action against builders. The Act requires homeowners to provide builders with notice and an opportunity to repair before filing a lawsuit, creating a structured process intended to resolve disputes without litigation. Builders who comply with the repair procedures and make adequate repairs can avoid lawsuits, while homeowners who reject reasonable repair offers may have their damages limited.

California Civil Code sections 896-897 categorize construction defects into numerous specific standards that builders must meet. Water and moisture protection standards cover issues like roof leaks, window and door water intrusion, stucco failures, and drainage problems. Structural standards address load-bearing components, foundations, and framing that must meet building codes. Soil-related standards cover compaction, grading, and drainage that affect the structure. Fire protection standards ensure proper fire-stopping and separation. Plumbing and sewer standards address leaks, drainage, and proper installation. Electrical standards cover code-compliant wiring and systems. The law also covers issues with manufactured products, hardscape (patios, driveways), irrigation systems, untreated wood posts, painting, and cracks in various materials. Each category has specific performance standards and different warranty periods ranging from one to ten years depending on the defect type. Violation of any applicable standard gives homeowners grounds for a construction defect claim.

California construction defect claims have varying limitation periods depending on the type of claim and defect. Under SB 800, the statute of limitations is governed by Civil Code section 941, which sets deadlines based on when the homeowner discovered or should have discovered the defect. Most claims must be brought within the applicable warranty period plus one year. For patent defects (obvious problems), the limitations period generally runs from the close of escrow. For latent defects (hidden problems), the period runs from discovery. Common law claims have separate limitations: negligence claims have a four-year statute of limitations under Code of Civil Procedure section 337, while the overall statute of repose in Civil Code section 941 provides that no action may be brought more than ten years after substantial completion of construction. Breach of contract claims typically have a four-year limitation. The discovery rule can toll these periods until the homeowner knew or should have known about the defect and its cause.

Before filing a construction defect lawsuit, homeowners must follow the pre-litigation procedures in Civil Code sections 910-938. The process begins when the homeowner serves a written notice of claim on the builder describing the claimed defects. The builder then has 14 days to acknowledge receipt and may request to inspect the property within 14 days of that acknowledgment. After inspection, the builder has 30 days to provide a written response offering to repair, offering a cash settlement, or disputing the claim. If the builder offers repairs, the homeowner has 30 days to authorize the repair work. The builder must then complete repairs within the time specified in the repair plan. If the homeowner rejects a reasonable repair offer, their recovery in subsequent litigation may be limited to the cost of the offered repairs. If the builder fails to respond or complete repairs, the homeowner may proceed directly to litigation. This process typically takes 150-180 days to complete before a lawsuit can be filed.

Yes, homeowners can sue builders for construction defects in California, but must generally follow the SB 800 pre-litigation procedures first. Claims can be brought under multiple legal theories. SB 800 creates statutory claims for violation of building standards, with strict liability for certain defects. Breach of contract claims arise when construction fails to meet contract specifications or implied warranties of merchantability and fitness. Negligence claims can be brought against builders, subcontractors, architects, and engineers whose careless work caused defects. Fraud claims may apply if the builder concealed known defects or made false representations. Breach of express warranty claims arise from written warranties provided by builders. In condominium and homeowner association properties, the HOA typically has standing to sue on behalf of all owners for defects in common areas, while individual owners can sue for defects within their units. Damages can include repair costs, diminution in property value, loss of use, relocation expenses, and in some cases attorney fees.

California provides multiple warranty protections for new home buyers. Under SB 800, builders must meet specific building standards for varying warranty periods: one year for fit and finish items like paint, stucco, and tile; two years for plumbing, electrical, and mechanical systems; four years for structural framing; five years for drainage, irrigation, and certain water intrusion issues; and ten years for structural systems and load-bearing components. Additionally, California Civil Code section 1797 requires residential builders to provide a fit and finish warranty. The implied warranty of merchantability under Commercial Code principles applies to homes sold by merchant builders. Express warranties in purchase contracts or separate warranty documents are also enforceable. Many builders also purchase third-party warranty insurance that provides additional coverage. These warranties run with the property and benefit subsequent purchasers during the warranty period. Builders cannot waive or limit implied warranties, though SB 800 does allow builders to provide an enhanced repair procedure in lieu of certain default procedures.

Multiple parties can be liable for construction defects in California. The builder or general contractor bears primary responsibility for overall construction quality and is directly liable to homeowners under SB 800. Subcontractors who performed defective work are liable to the general contractor through indemnity provisions and may be directly liable to homeowners for negligence. Design professionals including architects and engineers can be liable if defects result from faulty design or specifications, though their liability is generally based on professional negligence standards. Product manufacturers can be liable for defective building products under strict product liability and warranty theories. Developers who sold the homes have liability as the original seller. In some cases, real estate brokers or agents who concealed known defects can be liable. Joint and several liability may apply, making any responsible party liable for the entire damage amount, though California's Proposition 51 limits non-economic damages to each defendant's proportionate share. Builders typically carry insurance and have indemnity agreements with subcontractors to allocate liability.

California homeowners can recover several categories of damages for construction defects. The primary measure is the cost of repair to fix the defective conditions and bring the home up to proper standards. If repair is not practical, the diminution in property value (difference between the home's value as promised and as delivered) may be recovered instead. Consequential damages include costs necessarily incurred due to the defects, such as temporary housing during repairs, storage fees, damaged personal property, and increased utility costs from inefficient systems. Loss of use damages compensate for inability to fully enjoy the property. In cases involving fraud or intentional misconduct, punitive damages may be available to punish wrongful conduct. Under some theories, particularly breach of contract with attorney fee provisions or statutory claims, prevailing homeowners can recover attorney fees. Interest on damages from the date of loss may also be recoverable. Expert witness fees, investigation costs, and litigation expenses are typically included in overall damage calculations.

Construction defect claims for condominiums and planned developments in California involve special procedures under Civil Code sections 6000 and 6150. The homeowner association typically has exclusive standing to sue on behalf of all owners for defects in common areas, while individual owners retain the right to sue for defects within their separate interest units. Before filing suit, the HOA board must provide all members with notice of the proposed legal action, the reasons for it, and a summary of expected costs. The HOA must hold a meeting to discuss the matter, and members may vote to pursue alternative dispute resolution. These notice and meeting requirements are designed to ensure member awareness and participation. Settlement proceeds for common area repairs belong to the HOA, while individual unit settlements go to affected owners. Insurance coverage for HOA claims comes from the builder's liability policies, which often have specific provisions for condominium projects. Many construction defect cases involving condominiums are resolved through settlement after the pre-litigation process establishes the scope and cost of repairs.

If you discover a construction defect in your California home, take several immediate steps to protect your rights. First, document the defect thoroughly with photographs, videos, and written descriptions noting when you first observed it. Keep records of any related damage such as water stains, mold, or cracking. Review your warranty documents and purchase contract to understand coverage periods and any notice requirements. Notify your builder in writing as soon as possible, as warranty periods run from close of escrow and delay can prejudice your claim. Keep copies of all correspondence. If the defect involves immediate health or safety hazards, take reasonable steps to prevent further damage or injury, as failure to mitigate damages can reduce your recovery. Consider hiring a qualified construction expert or inspector to evaluate the full scope of the problem, as many defects have hidden aspects that require professional assessment. Consult with a construction defect attorney to understand your rights under SB 800 and applicable warranty periods. Acting promptly is critical because statutes of limitations can bar claims, and early investigation often reveals defects more clearly before repairs or deterioration obscure evidence.