CO SB156

Arbitrators in construction defect cases must follow Colorado substantive law regarding claims, defenses, and remedies; failure to do so grounds courts to vacate or refuse to confirm the award.

Mediation or arbitration requirements in governing documents for construction defect claims cannot be removed or amended by later changes to the documents.

Before filing a construction defect claim, the association must submit the matter to mediation before a neutral third party and obtain written consent from owners holding a majority of votes in the association.

The executive board must provide unit owners at least 60 days advance notice before serving a claim, including detailed disclosure of projected costs, duration, expected recovery amounts, attorney fees, and financial impacts.

Property sale disclosures in common interest communities must notify purchasers that governing documents may require binding arbitration of certain disputes; effective January 1, 2018.