This One Law Destroyed California's Condo Market

A California law that killed condo development over the last 20 years might finally be on its way out. In 2003, California passed a condo defect liability law, basically to protect buyers if something went wrong in a newly built condo. You had 10 years to sue the developer. Sounds reasonable in theory, but it led to an onslaught of litigation, some of it legitimate, many of these cases not legitimate at all, causing expenses for developers, including insurance premiums, legal fees, et cetera, to skyrocket. So much so that shortly after the law's passage, condo construction construction in California has fallen by about 90%. Recognizing the damage this has done, the California Assembly recently unanimously approved a bill that would give developers the right to repair alleged defects before any suit could be filed, and they could even be released from liability subject to quality control certifications and certain inspections. I think this is a great idea. It accomplishes the goal of working in safe building systems without siphoning funds that should go toward repairs into lawyers' pockets. Let me know what you think of the proposed law in the comments and follow me for more San Francisco real estate.