Coverage Obligations
This section describes how Classic Homes determines whether a condition constitutes a construction defect and our obligations to remedy such defects.
About This Limited Warranty
Throughout the Classic Homes Limited Warranty, the words "you" and "your" refer to the homeowner and/or homeowners association. The words "we", "us" and "our(s)" refer to Classic Homes.
This limited warranty establishes an agreed method for determining when a construction defect exists and a clear understanding of our responsibilities for remedying any such construction defect. This limited warranty also helps distinguish a construction defect that is our responsibility from those minor imperfections that can reasonably be expected in a home or the common elements or result from normal wear and tear or are routine homeowner or homeowners association maintenance responsibilities.
Coverage Limit
The final purchase price of the home is our limit of liability. It is the most we will pay or expend for all covered construction defects regardless of the number of requests for warranty performance made against this limited warranty. Once our limit of liability has been paid, no further requests for warranty performance can be made against this limited warranty.
Warranty Coverage
Coverage under this limited warranty is expressly limited to construction defects which may occur during the limited warranty period and are reported by you in accordance with the notification requirements.
During the limited warranty period, we warrant the home and the common elements will be free of construction defects. To be eligible for coverage we must receive written notice from you of the alleged construction defect as soon as it is reasonably possible after you have become aware or should have become aware of a construction defect but in no event later than thirty (30) days after the expiration of the coverage.
Our Coverage Obligations
All notices of alleged construction defect and complaints under this limited warranty must be made by you in writing. Telephone or face-to-face discussions will not protect your rights under this limited warranty.
In the event you allege a construction defect occurs during the warranty period, upon receiving written notice from you, we, or a third party designated by us or acting on our behalf, will inspect, investigate and/or test (including destructive testing) the alleged defect to determine if a construction defect exists.
Upon confirmation of a construction defect, we, or a third party designated by us or acting on our behalf, will:
- Repair or replace the construction defect, or
- Pay to you the actual amount it would cost us to repair or replace the construction defect
The decision to repair, replace, or to make payment to you is at ours or our authorized representative's sole option.
Standards for Determining a Defect
In the event you believe that a flaw or imperfection in the home or the common elements constitutes a construction defect, the following factors will be considered by us in determining whether the condition constitutes a construction defect:
- Any performance standards or guidelines that were provided to you at or prior to closing on the home
- Absent such standards, the Residential Construction Performance Guidelines published by the National Association of Home Builders shall apply
- Absent a specific standard, normal and accepted building practices and standards in use in the region shall apply
Consideration Factors
We will also consider whether the magnitude of the flaw or imperfection:
- Materially affects the structural integrity of the home or common elements
- Has an obvious and material negative impact on the appearance of the home or common elements
- Jeopardizes the life or safety of the occupants
- Results in the inability of the home or the applicable common elements to provide the functions that can reasonably be expected
Additional Considerations
- Whether a condition is the result of normal wear and tear (conditions that are normal wear and tear, or are caused by normal wear and tear are not construction defects)
- Whether the condition was caused by failure to perform normal or routine maintenance
- Whether the condition was caused by the homeowner or their representatives after taking possession
- Whether the condition resulted from changes, additions, alterations or other actions by the homeowner
Legal Framework
This limited warranty does not affect any substantive rights or remedies you or we may have under the Construction Defect Action Reform Act, C.R.S. 13-20-801 et seq. or applicable law. Nothing in this limited warranty is intended to constitute a waiver of, or limitation on, the legal rights, remedies or damages provided to you or us by:
- Construction Defect Action Reform Act, C.R.S. 13-20-801 et seq.
- Colorado Consumer Protection Act, Article 1, Title 6, C.R.S., as described in the Construction Defect Action Reform Act
This limited warranty does include an election by you and us to resolve all claims, disputes and controversies by binding arbitration as stated in the Arbitration section.
This limited warranty is the only express warranty given by us to you. Any express warranties other than this limited warranty, including any oral or written statement or representation made by us or any other person that is contrary to or inconsistent with the terms of this limited warranty are hereby disclaimed by us and waived by you.