How Does A Condo Association Or Unit Owner File A DC Condo Warranty Claim?

For years, developers, Associations and residential condominium Unit Owners have lived with and operated under a very vague limited structured warranty law contained within the District of Columbia Condominium Act (“Act”).

Since the previous limited warranty language was vague, developers, Associations and owners created their own course of dealing when making or responding to warranty claims.

The DC Council recently enacted legislation that provides a more concrete process and instruction to both the public and developers.

The new process includes the following:

• A failure to comply to with the District of Columbia building codes when constructing a condominium creates a rebuttable presumption of a structural defect under certain circumstances;

• Confirms if damage to a unit or common element occurs because of a structural defect, the developer is also responsible for repairing that damage as well;

• Requires the warranty collateral (bond, letter of credit, cash) be posted at the time of issuance of the Condominium Registration Order rather than at the time of the sale of the first unit;

• Proactively requires settlement companies to collect the warranty collateral if the collateral is not posted with the District of Columbia before the first sale;

• Limits developer’s warranty to ten percent (10%) of the hard costs of construction;

• Perhaps most importantly, specifies a warranty claim process with deadlines for both the developer and Association/Unit Owners to bring the process to closure.

 If you are a Board Member or Unit Owner preparing to make a claim or are a developer preparing to respond to one, be sure to speak with your advisors regarding the next (new) steps.

The material on this website is not offered as legal advice on any matter and should not be used as a substitute for seeking professional legal advice.