State Representative Jack Pommer (D-Boulder) says consumers need better protection of their legal rights.
"All of those rights are waived, the minute the homebuyer signs that (purchasing) contract," said Pommer.
Supporters of the bill say builders are offered too much protection at the expense of homebuyers, leaving some consumers no choice but to go to court for defective work.
"The people who can't get the home fixed, ultimately go to court, are the ones who really suffer a great deal," said Pommer.
Homebuilders are concerned the measure would only cause frivolous lawsuits and increased insurance costs, leading to higher home prices.
"It would really take away the incentive for homebuilder to offer express warranty and instead make every issue a jump ball in court," said Scott Levin, a lawyer representing several homebuilders in Colorado.
The chairman of Oakwood Homes in Colorado also testified before a State House Committee on Wednesday, saying he's worried about the effect on insurance liability.
"The cost and impact of not having a defining insurance product, would be devastating," says Pat Hamill, chairman and CEO of Oakwood Homes.
http://www.9news.com/money/article.aspx?storyid=66765
The Colorado Association of Home Builders says more than 90 percent of builder and homeowner disputes have been resolved before going to court.