Construction Defects
- ⇒ Purpose of Disclosure
The purpose of disclosures relating to construction defects is to make the buyer aware of any construction defects in the property.
- ⇒ Who must provide the disclosure?
If there is a construction defect, the contractor must disclose the information in understandable language that is underlined and in bold-faced type with capital letters. If the property is or has been the subject of a construction defect claim or lawsuit, the seller must provide the following information to the buyer:
- copies of all notices given to contractor
- expert opinions obtained by claimant
- terms of settlement or order of judgment
- detailed report of all repairs
- ⇒ When is it due?
Construction defects must be disclosed to the buyer before purchase of the residence. If the property is or has been the subject of a defect claim or lawsuit, the information must be disclosed 30 days before close of escrow, or if escrow is less than 30 days, then immediately upon signing the sales agreement. If a claim is made while in escrow, the disclosure must be made within 24 hours of notice of complaint.
- ⇒ Additional Information
If the property is located within a common-interest community and is the subject of a defect claim or lawsuit, this information must be disclosed in the buyer’s resale package (see Common-Interest Communities).
For more information:
NRS: 40.640, 40.688
The purpose of construction defect disclosures is to inform buyers of any known construction defects in a property. Contractors must disclose any defects in clear, bold language. If the property has been subject to a construction defect claim or lawsuit, the seller must provide copies of notices, expert opinions, settlement terms, and repair reports to the buyer.
These disclosures must be made before the purchase of the residence. If a claim arises during escrow the information must be disclosed within 24 hours. For properties in common-interest communities, this information must also be included in the buyer’s Resale Package.