Are Home and Property Renovations Complicated Legal Matters?

A home or property renovation can be an exciting and rewarding project, but that does not mean that the project is without stress, complications, or legal issues. When you allow professionals into your home to tear things down and rebuild, it introduces the possibility of accidents, potentially harming individuals or pieces of property. With so many dangerous tools and supplies on hand, not to mention the thousands of dollars involved in every renovation, there is no shortage of ways for things to go awry.

Potential examples of hazards or legal liabilities that may occur during a home renovation project include the following:

  • Abandonment of projects in the middle of completion
  • Criminal activity by a contractor
  • Failure of general contractor to pay subcontractors
  • Fires, flooding, and weather-related damage
  • Negligent workplace injuries
  • Property or mechanic’s lien for disputed payments

The decision to renovate your home comes with many legal considerations. New renovation must comply with Arizona building codes, zoning laws, and permit requirements. Additionally, if you hire contractors or subcontractors to do the job, you must understand your legal relationship with these professionals. For example, who is liable for damages if a contractor is injured? And if a contractor damages your property, who is liable for that?

An experienced attorney can help you identify legal issues, risks, and potential liabilities to protect you and your interests. Our legal team has extensive experience representing the interests of homeowners in Phoenix, AZ, and we would be proud to represent your legal case of property damage that occurred during a home renovation. To learn more about our legal services and how we may assist you, please contact our Phoenix law firm to request a consultation today.

What is a Contractor Agreement?

When working with professionals, it is important to consider the scope, payment terms, and other key details of a home renovation contractor agreement. You must fully comprehend the agreement and its terms before signing the legal document. In Arizona, contractor agreements should include detailed descriptions of the work, information on the materials to be used, and an expected completion date for the renovation project. The contractor agreement should also detail payment schedules and penalties for late payments or incomplete work. It would also be wise to have your contractor agreement address the potential for disputes, injuries, or property damage during the renovation project.

Suppose litigation or any legal dispute arises between the property owner and the contractor or subcontractor. In that case, the contractor agreement will be valuable evidence for resolving such a conflict. For example, if the contractor or subcontractor does substandard work, damages your property, or fails to complete the project on time, the contractor agreement could be used to help hold them legally accountable.

What is Typically Protected by a Property Coverage Policy?

Most property insurance policies provide a certain level of protection for common risks such as vandalism, theft, fire, and certain types of water damage. Your coverage usually includes your dwelling, personal property, and other structures on your land, such as a garage or shed. Many policies, though not all, also offer liability coverage, which can protect you if someone is injured on your property.

Being covered by a property insurance policy does not automatically guarantee compensation when you file a claim. Many policies have limits, deductibles, and other terms or conditions that may apply.

Additionally, your insurance policy may contain certain exclusions. Common hidden exclusions include natural disasters, mold and rot, wear and tear, vermin, sub-limits, business activities, intentional acts, acts of terrorism, vacant properties, government actions, and nuclear hazards.

What Are Mistakes People Commonly Make When Renovating Property?

Home renovation and other construction or real estate projects are complicated, with many moving parts, entities involved, and money being exchanged. The more complex and ambitious the project, the more ways it could go wrong.

Common mistakes that people make during renovation projects include the following:

  • Acting as your own general contractor
  • Failure to buy builder’s risk insurance or add endorsements to homeowner’s policies
  • Failure to establish clear instructions about what may happen should the contractor fail to finish the job
  • Failure to protect your interests against a contractor’s failure to pay subcontractors
  • Insufficient insurance coverage
  • Failing to read the language of a contractor’s insurance policy carefully
  • Failure to check to ensure that you have hired legitimate and licensed contractors
  • Failing to conduct due diligence on the contractors you seek to hire
  • Not conducting a thorough background check on all workers involved in your renovation project
  • Failing to ensure workers’ compensation insurance for all contractors, subcontractors, and employees involved in the project
  • Insufficient umbrella liability coverage

What Are Construction Defects and What Causes Them?

Under Arizona law, construction defects are defined as deficiencies in the design, manufacturing, repair, alteration, remodeling, construction, or landscaping of a dwelling that are due to the violation of construction codes, the use of defective materials, or a failure to adhere to generally accepted workmanship standards. In many cases, these construction defects are not readily visible or noticeable at the start, making them latent defects. Patent defects are more visible.

Common examples of construction defects and property damage during renovations include the following:

  • Buckled driveways, infrastructure failures, and sinkholes
  • Cracks in the foundation
  • Damage to motor vehicles
  • Damage to personal valuables
  • Dangerously constructed balconies and decks
  • Faulty wiring, which may result in fires or electrocutions
  • Leaky windows and doors
  • The growth of mold and mildew
  • Wall and siding defects
  • Water intrusion

If construction defects or property damage occurs during a renovation, you must address these issues. If you later decide to sell your home, you must disclose any known issues to potential buyers. Failure to disclose any known issue could result in you being liable for damages.

Who is Liable for a Construction Defect or Property Damage?

The construction contract determines the liability of the contractor involved in the project. So long as contractors adhere to the terms of the contractor agreement, they are generally not held responsible for construction flaws or property damage. However, suppose the contractor is aware or otherwise should have been aware that the construction renovation plan is inadequate in some way. In that case, they may be held liable for mistakes that occur.

The construction contract similarly determines the liability of subcontractors. However, if a subcontractor damages property or does subpar work, the contractor is typically the party that takes legal action against them. So long as the subcontractor performs their duties according to the parameters of the construction contract, they will typically not be held accountable for defects or property damage.

If a contractor or subcontractor damages your property or does subpar work, it is essential that you retain professional legal counsel to hold them accountable for the damage. Without professional legal representation, at-fault parties can avoid responsibility for their actions and commit the same errors in the future, harming other homeowners and property owners.

Contact our Phoenix law office today to schedule your free, no-obligation case evaluation with our legal team.

Ask for a Consultation with Our Legal Team Today

Renovations are projects with many moving parts, multiple parties, money on the table, and no shortage of potential hazards. Suppose a mistake occurs and your property is damaged or defective before or after the contractors arrive for the project. It may be difficult to hold them accountable for damages without the help of an experienced attorney.

Our law firm has experience with Arizona law and helping homeowners and other property owners with complex litigation and disputes including construction defects and property damage. To learn more about how we may assist you during this difficult legal situation, please contact our team to discuss your project and concerns today.

480-568-1327. Expect Real Results.