HB2620 - 452R - House Bill Summary

House of Representatives

HB 2620

purchaser dwellings; opportunity to repair

Sponsors: Representatives Nelson, Cooley, Leff, Pearce et. al

DPA	Committee on Commerce and Economic Development
DPA	Caucus and COW
X	Third Read
	As Passed the House

HB 2620 outlines the requirements for proper notice and provides an opportunity for repairs prior to a purchaser filing any dwelling action against a seller.

Current Status

HB 2620 was amended in the Commerce and Economic Development Committee to eliminate the submission of documents, include the escrow agent in the requirements, and clarify the response to the purchaser. The Committee of the Whole adopted the provisions of the CED amendment and further amended the bill to require the purchaser's response to include the basis for rejecting an offer and stipulate that the seller's failure to respond in good faith shall preclude an assertion of noncompliance with the bill's provisions.

History

In addition to filing a civil lawsuit, currently the purchaser of a single family home or a condominium unit may file a complaint against the prime contractor and any subcontractors, architects, engineers, or related construction personnel. The complaint must be filed at the Office of the Registrar of Contractors within two years of the completion of the home or repairs. Statute outlines the procedures for the complaint process, including notice and the opportunity to be heard.

Prior to filing any civil action, HB 2620 outlines the proper notice requirements and provides an opportunity for the seller to make repairs prior to the purchaser filing a civil lawsuit.

Provisions

· Defines association, community documents, dwelling, dwelling action, purchaser, and seller.

· Specifies time limits and notification processes that must take place between the seller and purchaser prior to filing a dwelling action.

· Authorizes the seller to inspect the dwelling after receiving the notification of defects to determine the extent and cause of the defects. If testing is involved, the seller must restore the dwelling to its pre-testing condition.

· Outlines the content and process for the seller to follow in sending a written response to the purchaser.

· States that if the seller does not provide the required written response to the purchaser’s notice within 30 days, the purchaser may file a dwelling action without waiting for the required period.

· Mandates a purchaser to respond to the seller’s response or offer within thirty days. The purchaser may accept the offer at this time.

· Prohibits including a purchaser’s notice, a seller’s response (if made in good faith), or a purchaser’s response made to a seller’s offer, in any dwelling action.

· Creates an admissible and rebuttable presumption that the purchaser’s damages could have been mitigated for the following:

Failure to provide notice to the seller of any defect.
Failure to allow an inspection.
Failure to provide a good faith response to the seller’s offer.

· Asserts that the purchaser’s written notice of defect is valid for 120 days after the seller receives the notice. Allows the seller and purchaser to extend the time periods in writing.

· Adds that if a purchaser files a dwelling action without following the required steps, the court may stay the action for 120 days to allow the parties to comply.

· Outlines the excluded claims and actions.

· Clarifies that the article does apply to dwelling actions undertaken by homeowners associations.

Amendments

HB 2620 was amended in the Commerce and Economic Development Committee:

· Eliminates language requiring the purchaser to submit nonprivileged reports or other documents with the written notice.

· Directs the Escrow Agent to provide disclosure regarding the provisions contained in the bill.

· Clarifies that if the seller makes an offer for monetary compensation, then the dollar amount of the offer shall be included in the response to the purchaser.

The Committee of the Whole adopted the provisions of the CED Committee amendment and further amended the bill:

· Requires the purchaser to respond in writing, stating the basis for rejecting the offer.

· Stipulates that without good cause, if the seller fails to respond in good faith, then the seller cannot assert that the purchaser did not comply with the notice provision.

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· 45th Legislature