Bill > HB2304

This bill amends existing law to increase the supply of condominiums by expanding the types of condominium buildings that can be subject to an express warranty of quality and express warranty insurance coverage, which can replace implied warranties of quality. Specifically, it allows developers (referred to as "declarants" or "dealers") to opt out of implied warranties of quality for new or converted buildings with 12 or fewer units and up to four stories, provided they offer an express warranty of quality and insurance coverage that meets certain requirements. These requirements include purchaser acknowledgment of the express warranty, coverage for unit owners, subsequent purchasers, and the unit owners association for common areas, and minimum coverage periods for workmanship, materials, systems, and structural defects. The bill also clarifies that this option is available for condominiums created on or after the effective date of the section.