House Bill 1161 limits monetary and repair awards to property owners who sue builders. The law also will affect governments, irrigation companies and owners of commercial buildings.
Builders say that they expect their insurance bills to drop, thanks to the bill.
Under the new law, if a builder acts fraudulently, the owners "treble damages" are limited to $250,000. Treble damages will be barred in injuries resulting from construction defects.
Also, if a builder were convicted of shoddy workmanship, the property owner would get the fair market value of the property without the defect or the reasonable cost to repair the defect, whichever is less.
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