People buying luxury or high-end real estate including bespoke homes and build-to-suit condominiums expect their properties to come with the best features and amenities. Those hiring construction firms to remodel or expand existing properties also expect white-glove treatment.
Unfortunately, construction companies and contractors sometimes disappoint the property owners who hire them. Clients and customers may feel disappointed with the quality of the finished product and may want to take legal action. What do property owners need to know about construction defect lawsuits in the luxury real estate sector?
There are many potential defects
High-end residential units may occupy spaces with beautiful views and difficult construction requirements. Therefore, water incursion could be an issue. Property owners may also notice structural issues that affect their use of the home, as companies may focus more on appearances or exciting design features than basic construction standards.
Issues with materials and finishes can also arise. Standards for high-end buyers are different. Minor construction defects often have minimal impact on starter home and midsize family properties. However, those on the high-end market generally expect turnkey properties in pristine condition.
Additionally, they may make purchasing decisions based largely on the perceived prestige of the property. Specific finishes, such as quartz countertops, can be crucial to buyers in the luxury sector.
If a construction firm fails to use prestige materials in accordance with a client’s specifications or if the finished work looks unprofessional, clients may have a much harder time when they eventually want to sell the property. Homeowners who intend to sell the property can sustain massive financial setbacks if the property does not appeal to buyers capable of affording the home.
How can homeowners respond?
Construction companies may have insurance that covers certain errors and property issues. If the defect relates to material failures, there could be warranties that the property owner can enforce.
Those dealing with construction defects or material substitutions may have grounds to take legal action based on their contract with the construction company. If the finished product does not align with contractual standards, owners can ask the courts to compensate them or order the business to re-do the work.
The best solution is proactive prevention. Including the right terms in the project contract and hiring well-reviewed and trusted professionals as architects, contractors and construction firms can make a major difference. So can inspecting the property throughout the construction project. Owners may be able to identify issues before they spiral out of control.
Pursuing a construction defect claim because of poorly-executed work, use of inappropriate materials or other issues may lead to compensation for property owners for repair costs and lost property value. Property owners who take timely action may be able to seek financial compensation or ask the courts to order for corrections to be made to their property.