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Residential real estate dispute results in award

When a community is built in California, those who move into it have certain expectations regarding the quality of construction. Unfortunately, if certain structures fail to to live up to expectations, a residential real estate dispute could result. An out-of-state homeowner's association has recently prevailed in an arbitrated dispute with the company that developed the community.

Issues initially arose in 2014. A homeowner noticed that water was backing up through her sump pump, causing her basement to flood. An investigation revealed that several homes were connected to a system that was intended to divert groundwater away from the homes' foundations and out of the community. Unfortunately, the system, that reportedly serves 1,200 homes, was failing.

The HOA attempted to pay for maintenance but ultimately turned to D. R. Horton, the parent company of KDB Homes, the developer that built the homes. The company would not pay for maintenance, prompting the HOA to explore its legal options. After two weeks of hearings, the arbitrator ruled in favor of the HOA, awarding them $13.5 million to cover water damage.

Many residential real estate disputes in California and other areas of the country can be settled through negotiations. However, when parties cannot come to an agreement, there is often no other choice than to pursue litigation. Fortunately, experienced attorneys can help those with such disputes fully understand their options and take appropriate action. While some people may be reluctant to turn to litigation, doing so may be the only way to ensure a fair resolution to a dispute.

Source: bizjournals.com, "Aurora HOA wins $13.5 million award in dispute with Texas homebuilder", Molly Armbrister, April 11, 2017

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