Study: Condos Have Greatest Level of Construction Woes

When it comes inadequate (or worse) construction practices, the majority of deficiencies occur in new condominium developments rather than townhomes and single-family homes, according to a new study released by the Community Associations Institute (CAI).

 

The CAI study, “Protecting Homebuyers and Homeowners from Construction Deficiencies in Condominiums and Preserving Property Values Survey," concluded that 81 percent of respondents identified poor workmanship as the most common type of construction deficiency, resulting in plumbing leaks, electrical or mechanical problems, and cracks in foundation walls. Thirty-five percent of respondents complained that construction deficiencies created a negative impact a homeowner’s property value and hampered resale efforts.

 

In a press statement, the CAI said it was is promoting its study to highlight how community associations have been “under attack in state legislatures and municipalities by legislation and ordinances aimed at stripping associations’ ability to seek relief from damages due to legitimate deficiencies found in the construction of homes, units, or common areas.” CAI also insisted that supporters of these legislative efforts were arguing that “frivolous lawsuits filed by associations and the costs associated with them make building affordable condominiums too risky.”

 

But that is not say that community associations did not press their cases in court–44 percent of these lawsuits were resolved in out-of-court settlements.