New law cuts time to bring construction defect claims
Last year, Gov. Ron DeSantis signed Senate Bill 360 into law; it significantly reduced the time for owners to bring claims for construction defects. The time deadlines to bring claims for construction defects are referred to as “statute of limitations” and “statute of repose.” The statute of repose is the absolute deadline to bring claims, which SB 360 reduced from 10 years to seven years for construction defect claims.
SB 360 also insidiously changed the starting point for when that clock starts running. While it used to start from the latest of certain dates, the new statute of repose starts running at the earliest of the following:
issuance of a temporary certificate of occupancy,
issuance of a certificate of occupancy, issuance of a certificate of completion, or the date of abandonment of construction if not completed.
Think of it like a race, where the end is the deadline to file construction defect claims. SB 360 not only moved the finish line closer but also moved the starting line closer to the finish line, thereby making the race much shorter.
If you live in a multibuilding community or a multiphase community, SB 360 outlines that each building stands on its own to determine when the clock starts running. In other words, for the owners in the first building completed in a multibuilding or multiphase community, their clock starts when one of the above triggering events occurs.
This means that if you bought a property that was issued a temporary certificate of occupancy months or years earlier, that is when your seven-year clock would start, regardless of when the first owner purchased the property or been able to move in.
The new law is in effect immediately. However, there is a grace period for some owners. If your property was already outside the seven-year period, but timely under the prior statute of repose law, then you have until July 1 to file a construction defect claim. If you do not file by July 1, 2024, your claim could be barred forever.
One of the main issues with this new law is that construction defects take time to manifest. Unfortunately, most defects are not obvious to the untrained eye and allow for water intrusion into walls that could go unnoticed for eight to 10 years after construction has been completed. It is important to get a licensed engineer or architect to perform an inspection of the property before time runs out. If you live in a condominium or townhome community, you should consult with your general counsel or experienced construction defect attorneys to have a licensed professional perform an independent evaluation of the community within seven years of the completion of the first building.