The Effects of a Defective Construction Lawsuit on the Value of Condominiums: A Case Study

摘要

At least eighteen lawsuits have been filed by attorneys representing condominium home owners' associations (HOAs) in Colorado in the last five years. The lawsuits allege construction defects representing 20%-65% of the combined value of the units in the projects. This article discusses one of these lawsuits; it examines the expected trends of sale prices in the project before, during, and after the settlement and compares those to the actual trend of sale prices.