House Bill 1338, dubbed the Homeowner Protection Act of 2007, would prohibit homebuilders from forcing buyers to sign contracts with certain provisions if they want the property.
Under the bill, the provisions in the contracts designed to protect builders from lawsuits would be voided if there is fraud or gross negligence. The homeowner also would not be able to waive home-repair costs that are currently allowed by state law.
"I think very few homes are bad, but when they are and a homeowner can't get a remedy, it's devastating," said Rep. Jack Pommer, D-Boulder, who sponsored the bill. "Homebuyers may have invested their current and future income and sometimes need legal intervention to make sure that their basic rights are available."
But opponents contended that homeowners and homebuilders should have the right to sign contracts with each other free of governmental interference.
"People should ... have some cognizance of what they're signing," said Rep. David Balmer, R-Centennial.
Opponents also predicted the bill would increase housing costs, making homes too expensive for many people.
The bill passed second reading and faces a third reading in the House before moving to the Senate. If it becomes law, it will apply to lawsuits filed on or after the date of the bill's passage.
But lobbyists, especially those for the Colorado Association of Home Builders and the Denver Metro Chamber of Commerce, have been out in force opposing the bill.
Four years ago, homebuilders said their insurance rates had skyrocketed because of the number of lawsuits being filed against them.
They persuaded the legislature to pass a bill that, among other things, instituted hard caps on the amount of damages that could be awarded in lawsuits against them.
Pommer's bill doesn't increase those caps or institute a new legal remedy, he said.
Staff writer Karen Crummy can be reached at 303-954-1594 or
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