Sanchez Law, PLLC

How construction defects lead to mold and what to do about it

2025-01-21T12:58:02Z

Mold can be a construction defect, mainly caused by faulty building practices that allow moisture to seep into your home. Mold thrives in damp environments, and construction issues like poor ventilation, improper sealing or leaks can create the perfect conditions for mold growth.

Understanding mold growth

Mold only needs three things to grow: nutrients, a suitable place and moisture. In Florida, where humidity is high, controlling moisture is crucial to prevent mold. Common construction defects that may contribute to mold growth include:

Improper roof or window installation
Faulty air conditioning systems
Inadequate drainage
Substandard plumbing
Poor quality materials

You can usually see or smell indoor mold growth. If you notice water stains or warping, is crucial to act immediately. Mold exposure can cause nasal congestion, allergies or asthma attacks.

Seeking help

If you suspect mold is due to construction defects, start by reviewing construction records, contracts and inspection reports for any deviations from plans. Consult with experts, such as structural engineers, to determine if construction defects caused the mold. Gather witness statements from contractors or workers involved in the building process to uncover any shortcuts or issues.

Taking legal action

If you have evidence of construction defects, consult a construction litigation attorney. They can help you file a claim and represent you in court to seek compensation for damages and repairs. Mold cases often involve complex evidence, so legal guidance is crucial. Homeowners should remain vigilant for signs of mold and address moisture problems promptly. If you suspect construction defects are to blame, seek expert opinions and legal assistance to protect your home and health.

Constructing resilience: Florida’s building code against hurricanes

2024-12-20T12:03:28Z

Florida's building code protects homes and buildings from hurricane damage. These strict rules have helped reduce destruction during recent storms. However, some residents face challenges when rebuilding after a hurricane.

Why Florida's building code matters

Florida's building code is one of the toughest in the United States. It was created after Hurricane Andrew caused extensive damage in 1992. The code has been updated many times since then to make buildings more robust and safer during hurricanes. Some important features of the code include:

Stronger roofs that can withstand high winds
Impact-resistant windows and doors
Better ways to connect walls, roofs, and foundations
Rules for building houses higher off the ground in flood-prone areas

These rules apply to new construction and major renovations. They help protect buildings from wind, rain, and flooding during hurricanes.

How the code has improved hurricane resistance

Recent hurricanes have shown that Florida's building code is working. Newer homes built to the latest standards often suffer less damage than older buildings. Some key improvements include:

More inspections during construction to ensure quality
Stricter rules for how many nails are used in essential connections
Requirements for hurricane-resistant glass in windows and doors
Guidelines for elevating houses in low-lying areas

These measures have helped many Florida homes and businesses survive recent storms with less damage. If homeowners suspect a contractor did not comply with these building requirements, they should seek immediate legal advice. Prompt action is crucial, as building code violations can compromise the safety and integrity of the structure, potentially leading to increased vulnerability during hurricanes.

Challenges for rebuilding after hurricanes

While the building code has improved safety, it can create challenges for some homeowners after a hurricane. One major issue is the "50% rule." This rule says that if repairs cost more than 50% of a building's value, the entire structure must be brought up to current code standards. This can make rebuilding too expensive for some people, especially those living in older homes. They may have to elevate their entire house or make other costly changes. Florida's building code is crucial in protecting people and property during hurricanes. While it has improved safety, it also presents challenges for some residents. As Florida faces future storms, finding ways to balance protection, affordability, and community needs will be necessary.

Non-disclosure of property defects: What Florida buyers need to know

2024-12-20T12:02:56Z

When purchasing a property in Florida, it's crucial to understand that sellers must disclose any known defects that might affect the property's value or desirability. This requirement helps ensure buyers have all the necessary information to make informed decisions. The disclosure process aims to promote transparency and fairness in real estate transactions. However, despite these requirements, some sellers intentionally or unintentionally fail to disclose significant defects, leading to disputes and legal challenges after the sale.

Commonly undisclosed property defects

There are several defects that sellers might not disclose, whether by oversight or deliberate intent:

Water damage: Issues such as leaks, flooding or mold growth can be hidden or minimized because they are costly to repair.
Structural problems: Cracks in the foundation, faulty wiring or roof issues are significant concerns that can be overlooked or concealed.
Pest infestations: Termite or rodent problems may not be visible during a general inspection.
Zoning and permit issues: Unauthorized modifications or additions to the property that do not comply with local regulations can create complications for new owners.
Environmental hazards: The seller may overlook or not mention the presence of asbestos, lead paint or other hazardous materials.

A professional inspection may initially miss any of these issues or others.

Holding sellers accountable for non-disclosure

If a buyer eventually discovers undisclosed defects after purchasing a property, they have several options for holding the seller accountable:

Negotiation: The buyer can attempt to negotiate with the seller for repairs or financial compensation to cover the defect's impact.
Mediation: Mediation can be an effective way to resolve disputes without going to court, allowing both parties to reach a mutually agreeable solution.
Legal action: If negotiations and mediation fail, the buyer can file a lawsuit for breach of contract or fraud, seeking compensation for damages caused by the undisclosed defects.
Rescission of the sale: In severe cases, the buyer may seek to rescind the sale, effectively undoing the transaction and returning the property to the seller.

The nature of the defect may lead to other solutions.

The importance of hiring a real estate attorney

Navigating the complexities of property defect disputes can be challenging. Therefore, it is crucial for buyers to engage a real estate attorney with experience in litigation. An attorney can provide invaluable guidance, help gather evidence and represent the buyer's interests in negotiations or court proceedings. By protecting their interests, buyers can pursue the best possible outcome in non-disclosure cases. Taking this proactive step can save time, reduce stress and potentially avoid significant financial losses.

Did a business partner violate their fiduciary duty?

2024-10-17T10:30:06Z

Fiduciary duty is a legal and ethical obligation that one party, known as the fiduciary, owes to another party, typically a partner, shareholder or client. In the context of business partnerships, fiduciary duties include acting in the partnership's best interest, exercising loyalty and maintaining good faith. The core principles of fiduciary duty ensure that all partner's actions should intend to benefit the business and its stakeholders.

Common examples of fiduciary duty violations

Violations of fiduciary duty can take many forms, some of which may constitute criminal activities. Common examples include:

Self-dealing: When a partner uses their position to benefit personally at the expense of the business, such as securing contracts for their own company.
Embezzlement: Misappropriating business funds for personal use is a breach of fiduciary duty and a criminal offense.
Conflict of interest: Engaging in activities that directly compete with the business or have a conflicting interest.
Misrepresentation or fraud: Providing false information or withholding critical facts that affect business decisions.
Negligence: Failing to perform duties with the due care expected, resulting in harm to the business.

Resolving violations between partners

When a fiduciary duty violation occurs, partners have several options for resolution:

Internal resolution: Attempt to resolve the issue internally through open communication and negotiation. It can prevent the need for legal action.
Mediation: Engage a neutral third-party mediator to facilitate discussions and help reach a mutually acceptable solution.
Arbitration: Agree to arbitration, where an arbitrator hears both sides and makes a binding decision.
Litigation: If other methods fail, filing a lawsuit may be necessary. A court can enforce remedies such as financial compensation or removal of the violating partner.

Handling violations that also involve third parties

When handling violations involving customers or third parties, it is essential to approach the situation with a transparent, structured process that emphasizes fairness and effective communication. Begin by thoroughly investigating the incident to gather all relevant facts and perspectives, ensuring the investigation is impartial and comprehensive. Once the investigation is complete, communicate the findings to the involved parties, clearly explaining any violations identified and the rationale behind the conclusions reached. Maintaining an open line of communication with the affected customers or third parties is crucial, as well as addressing their concerns and questions promptly and respectfully. If corrective actions are necessary, outline the specific steps that will be taken to rectify the situation, including any measures to prevent future occurrences. Throughout the process, document all actions and communications meticulously to maintain a detailed record of the handling of the violation. By following these guidelines, you can manage violations involving customers or third parties effectively, maintaining trust and upholding the integrity of your organization.

Protect your business’s future

If you suspect a business partner has violated their fiduciary duty, it is crucial to seek professional legal assistance. A board-certified expert attorney specializing in business litigation can provide the guidance and representation needed to protect your interests. Don't hesitate to reach out and secure the professional support you need to safeguard your business.

Common causes of construction delays and what to do if your contractor is late

2024-10-02T15:01:59Z

Construction projects are complex undertakings, and even though a schedule is typically set out prior to the start of the project, it rarely goes according to plan. Sometimes, this is not an issue for a homeowner. However, sometimes, it can be. When this happens, it is essential to understand why delays occur and what you can do about it.

Frequent reasons for construction delays

Understanding the typical reasons for construction delays can help empower you as the homeowner and help you take proactive measures to avoid delays in a project. Common reasons for construction delays can include:

Inclement weather, such as heavy rain, snow or extreme temperatures.
Problems with the supply chain, which can lead to a lack of necessary materials.
A lack of skilled labor due to the unexpected loss of employees
Changes to the design of the project, which can extend the time needed to complete the job
Delays in securing permits and approvals from local authorities
Unexpected site conditions. For example, when a contractor discovers a hazard on the site.

If you find yourself in any of the above situations or are experiencing a delay in your project for any other reason and the contractor you hired is late in delivering your project, there are steps you can take.

1. Legal Advice

First, seek legal advice to ensure you have as much information as possible about your rights and obligations under the construction agreement. A construction law attorney can guide you in handling a delay based on your circumstances. Review the contract thoroughly with them.

2. Open Dialogue

After discussing the situation with your attorney, open a dialogue with your contractor to learn more about the delay. You may already know the reason, but learning the details is critical to solving the problem.

3. Keep Records

To have a record of everything in case you need it later, document as much as you can about the delay, including all communications with your contractor, any subcontractors, and changes to the project (whether you or someone else initiated them).

4. Negotiations

Negotiate solutions with your contractor. Your attorney can also play a role in these negotiations because they are typically skilled in this area and have worked with contractors many times. Establish a revised timeline and discuss potential solutions to mitigate further delays. While delays in construction projects are frustrating, they are very common. It is important to be informed about what is normal and what is not, your rights and responsibilities and how to manage these challenges effectively.

Common signs of poor workmanship in Florida construction

2024-09-03T16:26:08Z

Poor workmanship refers to the substandard quality of work performed during a construction project. It can involve using harmful materials or lousy work practices, even both. Poor workmanship can be a big problem for owners or managers of large Florida buildings.

What is poor workmanship?

Poor construction practices, such as using low-quality materials, can cause construction defects. This could mean weak concrete, flimsy steel or cheap insulation for large buildings. These materials might not be strong enough or last long, leading to problems like cracks, leaks, or higher energy bills among other serious issues. Another sign of poor workmanship is a lack of skill among workers, which leads to sloppy construction. This can include:

Uneven floors
Crooked walls
Faulty electrical work
Poorly installed windows and doors
Inadequate waterproofing or fireproofing

Weak structures, bad electrical work and poor fireproofing can lead to accidents or even building collapses. These problems can be more complex and expensive to fix in large buildings than in small homes. Poor workmanship can disrupt business operations in commercial buildings. For example, tenants might leave if the heating or plumbing doesn’t work right, leading to a loss of rental income. A sturdy and safe building is crucial in Florida, where hurricanes and intense storms are expected. The Florida Construction Defect Statute allows owners or subsequent purchasers to negotiate or litigate against a contractor or supplier for defects in a construction. As the procedures can be complicated, seeking legal advice to follow the specific rules and understand how to claim damages is crucial. A construction law attorney can ensure you know all the steps, deadlines and documentation required for your case. Owners of large buildings know that construction problems can lead to safety hazards, high costs and interruptions. If you find any defects, getting legal help right away can guide you through the steps to fix them.

It’s No Fun Paying Twice

2023-01-23T22:51:45Z

When an owner in a construction project does not comply with the proper payment rules under §713.06 Fla. Stats., he/she may be required to pay subcontractors or suppliers twice for the same work performed. Here is an example: The agreement between the contractor and owner provides for periodic payments (“draw requests”) based on completion of specified work at each phase of construction. During the construction of the owner’s home or commercial building the owner receives in the mail a Notice to Owner from a few subcontractors and suppliers. Each time the owner pays the contractor, the owner receives paper work from the contractor including a partial release of lien from the contractor. Half way through construction, the contractor and owner begin to disagree on several construction matters and the contractor refuses to return to work. Shortly thereafter the owner is served with several claims of lien from subcontractors and suppliers. Well, the owner should not worry because he/she paid the contractor for all work performed and received release of lien documents signed by the contractor each time – right? Unfortunately the owner may have to pay twice for some of the work performed and paid for. Why? Because §713.06 gives an owner protection under the proper payment defense ONLY if the owner obtains from any subcontractor or supplier who sent the owner a “Notice to Owner” a release of lien signed by those subcontractors and suppliers. You may ask, “Why can’t the owner sue the contractor”? The answer is that the owner can. However, the owner still has a lien or liens on his/her property and has to pay the lienors the amount of the lien in order to satisfy the liens. AND–the contractor may not be financially strong and the owner’s suit will ultimately collect nothing from the contractor? The good news: it is simple to protect yourself. At minimum, never pay a contractor without receiving a release of lien from every trade from whom you have received a Notice to Owner. My recommendation is that you obtain from your contractor, a list of all trades (i.e. subcontractors, suppliers, laborers, etc.) before commencement of the job. Then each time the contractor delivers to you a draw request, require of him a list of all trades who performed work on the job for which that specific draw request is made. Then you can require not only releases from the trades who served you with a Notice to Owner, and the contractor, but you can also require releases from ALL trades who performed work on the job. This is especially beneficial since sometimes you may receive a Notice to Owner after you have made payment to the contractor; or you may have paid the contractor a larger amount of the contract price than the amount of total work performed. By obtaining lien releases from all trades you further ensure you will not pay twice. If your contractor advises that he cannot obtain releases from his trades until you pay him, then simply require that he deliver his release and list of trades who have performed work at the time you pay him; AND require that all other releases are delivered to you within 10 business days of your payment. Further, DO NOT pay another draw if you have not received all prior releases. The proper payment defense is your friend if you just remember – get your releases when you pay the contractor. How to Start Your Real Estate Project

CONSTRUCTION LAW

The Construction Project: Who’s Responsible When Something Goes Wrong? Part 3

CONSTRUCTION LAW

The Construction Project: Do We Have a Team? Part 2

CONSTRUCTION LAW

The Construction Project: Do We Have a Team? Part 1

How to Start Your Real Estate Project

2022-12-01T15:42:29Z

Good Design, Good Designers and the Correct Budget Process

There are many decisions that a property owner or developer (let’s call them owner) must make when creating a plan to build a residential or commercial building(s) on land they own. None are more important than the determination of the project budget and the selection of the design team.

The Budget

Whichever approach the owner employs to determine the amount of the project budget, the ability to achieve the budget target and the quality of the completed product, will be significantly affected by the process the owner adopts to:

Assemble a good design team to include architects, engineers, interior and landscape designers
Ensure intentional costs fall within the targeted budget and avoid unintentional costs which can increase total project costs dramatically
Follow a process of maximizing good design and quality building materials by making selections with the design team that are thoroughly vetted; and minimizing total project costs by requiring detailed, complete construction documents and rigorous bidding

Good Design, Good Budget, Better Return on Investment

Good designers create attractive, functional and livable buildings with great curb appeal – all of which inevitably enhance the value of the property. Good designers also produce detailed and complete drawings which are essential for successful bidding and the avoidance of unintentional costs. It is almost always the case that people prefer to occupy and visit appealing projects; and those projects therefore enjoy greater occupancy rates and resale values than inferior designs and lesser quality buildings in otherwise comparable locations.

Unintentional Costs

In order to achieve the best possible project budget, the owner must recognize that added costs are not limited to choosing more expensive materials or larger square footage. Added costs can occur unintentionally because:

he construction documents, including plans, specifications and shop drawings are not clear, are incomplete, or are inconsistent with other drawings. As a result, the contractor, owner and subcontractors engage in disputes during construction regarding change orders; the project budget is increased and the completion date is delayed.
The designers do not recommend alternative selections for materials and hence selections of very pricey items for which there are less expensive, equally acceptable alternatives are not available to bid.
The owner’s representative does not require several bids from either the contractor or each subcontractor and supplier; or employs the use of allowances without detailed analysis of the assumptions inherent in the allowances.

How to Start

The process of building a residential or commercial project should start with an architect or where appropriate, a design-build contractor. Phase One of the process is to obtain conceptual exterior elevations and interior floor plans. Armed with conceptual plans, the owner should add the interior design and landscape architect/designer to the design process Once the owner has provided the architect and interior designer with general ideas of building material selections, (e.g. flooring, cabinetry, countertops, plumbing, appliances and woodwork preferences), and the landscape designer has received input regarding site design, the owner can obtain a rough estimate of total project costs. This rough estimate provides the owner with feedback to better understand what the budget will likely amount to, at minimum, and information to develop a plan for final decisions and bidding.

Now, It’s Time to Build

Once the owner, design team and contractor have designed an attractive, functional, livable building, with curb appeal; and selected the best bids for the final budget, the parties can move into the construction phase of the project knowing they have enhanced the value of the project before it is even built. Starting a new business? Don’t forget the legal details!It’s No Fun Paying Twice

Starting a new business? Don’t forget the legal details!

2022-12-01T15:43:12Z

Normally, when a business individual or group decides to start a new business, it is because they have a concept that, based upon prior experience and coupled with some source of working capital, they believe will be successful. This is an exciting moment. However, in order to enhance the likelihood of success, the new business owners must address several legal items concurrently with or immediately after creating the company’s business plan in order to avoid disputes and limit liability in the future. A legal to-do list consists of:

Administrative items
Choice of operating entity
Documentation of the respective rights, responsibilities, and duties of the owners and managers.

Administrative When starting a business, a checklist should be created of required start up items. Examples:

Licenses, permits, trademarks – virtually all companies are regulated by a state, county or municipality and require a permit or license
Insurance – all businesses should be insured for Hazard and Liability. Some also require Worker’s Compensation
Bank account – you will need a Federal tax ID number from the IRS; and possibly a copy of your articles of organization
An accountant – As soon as possible you should hire a company accountant. Accountants are very helpful with many areas of advice and will be essential for both yearly tax returns and advising your bookkeeper/comptroller.
Leases – If you are leasing your company offices, pay careful attention to the term of the lease, the obligations you will be required to pay in addition to base rent; and whether a personal guarantee will be required.
Payroll services – Oftentimes this type of a service is very helpful to a new company.
First year matters – Two items to calendar are the Annual Report filing with the Secretary of State, along with the filing fee before May 1st; and the annual meeting of the shareholders/members which should be properly noticed and scheduled each year; and with written minutes prepared to memorialize all decisions made.

Choice of Operating Entity For most privately owned businesses with more than one owner, the choice is either a Sub-S Corporation or a limited liability company. I like limited liability companies for ease of creation, flexibility of membership rights and responsibilities, favorable tax treatment, simple operating structure and excellent asset protection from creditors. Documentation of Owner’s Rights and Management Structure Whether you choose a limited liability company or a Sub-S Corp, you should enter into an agreement, before commencing business, between the owners. In a limited liability company the document is called an operating agreement; in a Sub-S Corp, a shareholders’ agreement. The operating agreement should clearly set forth what each owner (they are called members in an LLC) is required to contribute to the company by way of cash, property and/or services. The management of a limited liability company is by a manager or managers. If there is more than one manager, the operating agreement should specify how disagreements between managers are resolved. If one member holds a majority of the ownership, the operating agreement should clearly state which decisions can be made with a majority vote, and which require the vote of 100% of the voting members. If one of the members is essentially the financial partner, the operating agreement should clearly define what the financial obligations are of that member; and conversely, what de facto control the financial partner has over the company. Ensuring that the administrative checklist is completed; the proper entity is selected and created; and an operating agreement which clearly defines ownership and management rights, responsibilities and duties is signed by all parties, contributes greatly to the likelihood of success and avoidance of company and ownership problems and disputes in the future. The Construction Project: Who’s Responsible When Something Goes Wrong? Part 3 How to Start Your Real Estate Project

BUSINESS LAW

Business Law Entities

The Construction Project: Who’s Responsible When Something Goes Wrong? Part 3

2022-12-01T15:43:20Z

Given the obvious roles of the owner, contractor and design professionals, how are risks in a construction project legally allocated? It seems so simple: the owner tells the design professional what they want to build and the design professionals prepare drawings and specifications indicating and illustrating the owner’s desires. The owner then gives the drawings to the contractor who provides a price and a time frame for commencement and completion. What can go wrong? A lot, unfortunately. To illustrate, consider who bears the risk in the event: 1.)…the contractor builds the building in accordance with the plans and specifications but defects are discovered. 2.)…the shop drawings and product data given to the contractor by the sub-contractors are inconsistent with the plans and specifications prepared by the architect and engineer and materials are installed that neither the owner nor architect approved. 3.)…the sub-contractor provides the contractor a bid which is too low and is based on a misunderstanding, and it is not discovered until construction is underway. 4.)…the contractor commences construction and discovers certain site conditions which will require additional work and a modification of the drawings and will significantly increase the job costs. 5.)…a subcontractor delays work significantly and claims a material or labor shortage. 6.)…the contractor tells the owner that the plans and specifications were ambiguous or did not even address a certain question in the field and the contractor plans to tender to the owner a change-order increasing the job costs. In the event the parties have not entered into construction agreements which specify who bears the risk of any of the above examples (and the examples can go on and on), then the parties will be in a dispute in the middle of construction. That may delay completion, and possibly result in litigation. Owner-contractor agreements and owner-design professional agreements are instruments for the allocation of risks between the parties involved in a construction project. The parties should ensure that they understand the risks and allocate them in a rational manner to the party in the most logical or best position to control, manage or avoid the risk completely; or insure the risk or otherwise bear the loss. Equally, agreements negotiated to allocate risks in an unreasonable or irrational manner, are likely to result in litigation. In the next and final article, I will discuss provisions in construction agreements which enhance communication and dispute resolution between the parties in the event a problem arises during construction. The Construction Project: Do We Have a Team? Part 2 Starting a new business? Don’t forget the legal details!

CONSTRUCTION LAW

Sanchez Law, PLLC

How construction defects lead to mold and what to do about it

Understanding mold growth

Seeking help

Taking legal action

Constructing resilience: Florida’s building code against hurricanes

Why Florida's building code matters

How the code has improved hurricane resistance

Challenges for rebuilding after hurricanes

Non-disclosure of property defects: What Florida buyers need to know

Commonly undisclosed property defects

Holding sellers accountable for non-disclosure

The importance of hiring a real estate attorney

Did a business partner violate their fiduciary duty?

Common examples of fiduciary duty violations

Resolving violations between partners

Handling violations that also involve third parties

Protect your business’s future

Common causes of construction delays and what to do if your contractor is late

Frequent reasons for construction delays

1. Legal Advice

2. Open Dialogue

3. Keep Records

4. Negotiations

Common signs of poor workmanship in Florida construction

What is poor workmanship?

It’s No Fun Paying Twice

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The Construction Project: Who’s Responsible When Something Goes Wrong? Part 3

The Construction Project: Do We Have a Team? Part 2

The Construction Project: Do We Have a Team? Part 1

How to Start Your Real Estate Project

Good Design, Good Designers and the Correct Budget Process

The Budget

Good Design, Good Budget, Better Return on Investment

Unintentional Costs

How to Start

Now, It’s Time to Build

Starting a new business? Don’t forget the legal details!

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