Places limitations on a home owner's ability to sue a construction
contractor for construction defects. Provisions differ by state but typically
require home owners to give the contractor notice of the issue and an
opportunity to repair the faulty work prior to filing a lawsuit. These laws
include varying provisions for inspection and arbitration disputes. Further, in
some states, a builder can argue that the home owner caused or contributed to
the loss by failing to maintain the property in accordance with written
instructions provided by the builder. The effect of these laws is to make it
more difficult for a home owner to sue a builder, but the theory is that the
resources will be channeled into repair of the defective home itself rather
than litigation. Currently, more than half of the states have a right to repair
law, and several more are considering this type of legislation.