Denver Condos and the Construction Defects Law

[Mitch H.]

This has been discussed in fragments other places here, but I thought as the buying season gets going (and I see a slew of <$200K condos hit the market) it would be wise to have a contained chat on what peoples opinions are.

Synopsis: There has been legislation in the past that allows HOA's to sue Developers for Construction Defects. Supposedly this has caused a sharp decline in Condo construction in recent years as Developers are wary of the risks. There is a possibility that this legislation will change in the near or medium term future.

As a potential condo buyer in a market where Condos are part of the urban landscape, there are concerns.

Will the law change in favor of condo development?

When will the law change?

When will Condo development ramp back up?

Will it put downward pressure on existing condo prices?

Will it put downward pressure on existing condos in ALL price ranges?

Should I buy a condo right now if I plan on selling in 5 years? 10 years? Buy and Hold?