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Development Law Group Update: Residential Developers — Notice of Procedure
4/28/2009
In 2003 the Oregon legislature passed Oregon Laws 2003, chapter 660 relating to construction defect claims (the "Right to Repair Law"). That act required developers to deliver the following statutory form of notice of the procedure contained in the Right to Repair Law:
OREGON LAW CONTAINS IMPORTANT REQUIREMENTS YOU MUST FOLLOW BEFORE YOU MAY COMMENCE ARBITRATION OR A COURT ACTION AGAINST ANY CONTRACTOR, SUBCONTRACTOR OR SUPPLIER FOR CONSTRUCTION DEFECTS. BEFORE YOU COMMENCE ARBITRATION OR A COURT ACTION YOU MUST DELIVER A WRITTEN NOTICE OF ANY CONDITIONS YOU ALLEGE ARE DEFECTIVE TO THE CONTRACTOR, SUBCONTRACTOR OR SUPPLIER YOU BELIEVE IS RESPONSIBLE FOR THE ALLEGED DEFECT AND PROVIDE THE CONTRACTOR, SUBCONTRACTOR OR SUPPLIER THE OPPORTUNITY TO MAKE AN OFFER TO REPAIR OR PAY FOR THE DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER MADE BY THE CONTRACTOR, SUBCONTRACTOR OR SUPPLIER. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER STATE LAW. FAILURE TO MEET THOSE DEADLINES OR FOLLOW THOSE PROCEDURES WILL AFFECT YOUR ABILITY TO COMMENCE ARBITRATION OR A COURT ACTION.
In 2007 the legislature amended the Right to Repair Law to delete the statutory notice and instead instructed the Construction Contractors Board (the "CCB") to adopt by rule a consumer notice form designed to inform a property owner of the actions the property owner should take to protect the owner in a residential repair, remodeling or construction project (ORS 701.330). In response, the CCB adopted a Notice of Procedure (click here to download).
While there is no harm in continuing to give the old statutory notice form, each purchaser of a newly constructed residential dwelling should be required to sign a Notice of Procedure at the time the purchase agreement is entered into. If you have any questions, please contact:
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