I purchased a condo unit in a new development and after closing, I learned of a significant error in the installation of plumbing in my bathroom, which was completely hidden from view. I had my lawyer review the contract and per the warranty, the developer is obligated to fix it, but they are saying that it's impossible to fix. The contract further stipulates that any disagreements must be resolved by an arbitrator at the AAA. The plumbing flaw is significant enough that it will make it very difficult for me to sell. Several people I've spoken to have told me that they wouldn't purchase a condo unit with such a plumbing flaw. I intend on pursuing monetary compensation through arbitration, but I'm wondering what the appropriate amount would be. If the unit is not sellable, should I pursue 100% of the purchase price? How can I convince an arbitrator that it's not sellable? Any guidance here would be appreciated.
Submitted by eggman2001 on Wed, 09/21/2011 - 11:29
Posted in
Remedies in Condominium arbitration
You don't give a lot of facts, but I find it hard to believe there is a plumbing problem that cannot be fixed. The problem may require an expensive re-work of the system, and the developer may not be eager to cover the cost of the repair, but most plumbing issues are fixable.
Arbitration is usually more formal than mediation and, depending on your documents, may be binding. It can be like a mini trial, with more formal rules of evidence. You may also face issues regarding who you should sue and under what theory. For example, in addition to any express warranty you may have from the developer, Massachusetts law creates an implied warranty of habitability that extends to condominium unit owners who purchase a unit from the developer. In certain cases, buyers may also have a claim against the architect.
For those reasons, assuming your current attorney is not an experienced litigator, you should locate a MA attorney who can help you. She will request appropriate remedies. In a trial or in an arbitration, plaintiffs may request multiple, and different, remedies. For example, you might request an order requiring the developer to make the repair. In the alternative, you might request reimbursement for the cost of a repair you already performed. And, in the highly unlikely event that the problem is not fixable and renders the house unihabitable (perhaps based on housing codes), you could ask for the cost of the home as damages.