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Is concealment of construction defects an example of fraud?

On Behalf of | Oct 25, 2022 | Civil Litigation

As a business owner or residential tenant, construction defects can affect you whether you purchase a new construction or a long-existing property. If you discover a defect after months or years of concealment, it only escalates the potential costs and dangers.

If a contractor makes the decision to conceal a defect for the sake of meeting a deadline or cutting costs, they are guilty of fraud. You can protect yourself and your investments by knowing how to respond when such defects come to light.

What can you do if you discover a concealed defect?

You have the right to take legal action against contractors, real estate sellers or inspectors who conceal defects that affect the value of your property. Cracks, water damage and septic leaks are just a few examples of defects for which you can seek compensation. Keep in mind that the statute of repose protects contractors from legal action if a defect goes unnoticed for an extended period of time.

What is the statute of repose?

The statute of repose is a common name for a Colorado law that limits actions against contractors, architects and other professionals involved in the construction process. It states that there can be no action against protected individuals regarding a project six years after substantial completion. A defect brought to light within year five or six after completion can extend the statute by up to two additional years.

Construction defects affect you as a property owner in that they entail you will receive less than what you pay for. Fraudulently concealing these defects adds to the morally questionable nature of allowing a defect to go unrepaired.

Photo of Attorney Phillip A. Geigle