Legal Question in Construction Law in California
Definition of a developer
is the first owner of one single family home built by a contractor and then sold of a single home liable as a developer would be for 10 years the same as the contractor? Is this first owner a ''developer'' under california construction case law?
Does the owner of a rental home, who has contracted to licensed contractors it's enlargement and remodel, rents the home for 2 years and then subsequently sells it become liable for the ten year statute applicable to defect liability [same as a builder or contractor]?
2 Answers from Attorneys
Re: Definition of a developer
When you sell a home, you are responsible to disclose all known or should have known facts regarding the property that may in some manner affect the enjoyment and/or value of the property. See CAR disclosure forms. You are not likely to be considered the contractor. You may hold them responsible. Call to discuss, maybe there are more facts I should know about in order to completely respond to your concerns. Don Holben 800-685-6950
Re: Definition of a developer
There is a good discussion by the Court of Appeal in the case Ranchwood Communities Limited Partnership v. Jim Beat Construction Company, decided in 1996 and reported at 49 Cal.App. 1397, see esp. pp. 1413-1414. The case tends to define who is a developer by contrasting a developer's role with that of a contractor.
I found no statutory definition of 'developer' in your context in the California Codes.
After skimming what the Court said and comparing it with your facts, it looks doubtful that the strict liability applied to developers of mass housing construction projects could be applied to you, but look up the case and decide for yourself. If the legal language leaves things unclear, have a consultation with a local real-estate lawyer.
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