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Post-construction disputes: What to do about building defects

On Behalf of | Jan 14, 2025 | Commercial Real Estate

Developers are liable for defects or flaws in the building’s quality, workmanship, or elements. Unfortunately, these inadequacies may only become apparent after construction is complete.

Cosmetic flaws may not be a major cause for concern. However, issues with the building’s structural integrity, drainage or foundation pose a huge risk to its longevity and the safety of inhabitants. With that in mind, taking legal action may be necessary. Here is some important information that can help you proceed.

What can you file against the developer?

There are several ways you can pursue legal action against a developer. For example, you can file a claim or lawsuit for:

  • Breach of contract
  • Breach of warranty
  • Negligence and professional negligence
  • Fraud or misrepresentation

The complaints you should bring forth in your suit will depend on your contractual agreement and the nature of the defect. For example, if the building has significant structural problems due to poor design, you may be able to sue the architect or engineers for professional negligence.

What evidence do you need?

Proper documentation is essential in situations like this as the strength of your case will depend on it. Make sure to gather the following:

  • Purchase agreements and contracts
  • Building plans and specifications
  • Inspection reports
  • Communication records
  • Photo and video evidence of the defects
  • Expense reports
  • Repair and maintenance records

It is crucial to gather this evidence as early as possible. Doing so will help preserve proof for your case, even after you repair the defects.

What is the statute of limitations?

Latent defects may not be immediately apparent. They may appear after a few months from the building’s turnover or when a flaw ultimately causes damage. In such cases, the statute of limitations is generally up to three years, according to the Mississippi Code.

This is why it is crucial to conduct a thorough inspection after the building is complete. Otherwise, the statute of limitations may pass, or the developer might argue that the defect is caused by regular wear and tear.

Do you need legal counsel?

Seeking legal recourse against a negligent developer can be a complex and lengthy process. Luckily, you do not have to do it alone. An experienced commercial real estate attorney can help you pursue the compensation you deserve and protect your business interests moving forward.

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