Questions on PA Law Regarding 12-year Time Limitation to Sue Developers/Flippers

[NPID123]

Hi all- we have a primary home, and a secondary modest vacation home both in Pennsylvania, and both of which are experiencing issues due to developer improper construction.

Issue 1 (the bigger issue): We bought our modest vacation home in the Poconos PA area from a developer who rehabbed/flipped a house then sold it to us. Part of that rehab involved that developer redoing the main structural beam of the house. Well, now 5 years later it turns out they didn't do it properly (the span is too long and they didn't use enough concrete footers/columns to support the main beam along that long span) and now the beam is sagging and the house along with it. So, we are left with what will be a very expensive repair (cost to be likely $5-10k) due to a sagging house/main beam. Developer was under an LLC with an LLC name that doesn't appear to be tied to just this specific property, but not sure if the LLC is still active.

Issue 2: On our main home we're having water intrusion when it rains, from what we are told by contractors was an improper vinyl siding and drain box installation. House was built in 2012, sold to previous owners of the home, and then those owners sold it to us. Cost to fix will probably be at least $2k. The original developer was under an LLC, but not sure if the LLC is still active.

I've read the following article regarding similar issues many in PA and other states face when buying newly developed homes: http://archive.is/0rKgw , and that article references the following 12 year rule in PA: https://www.legis.state.pa.us/cfdocs/legis/LI/consCheck.cfm?txtType=HTM&ttl=42&div=0&chpt=55&sctn=36&subsctn=0

That being said, my questions are:
1) Does this law apply to just homes where the buyer agreed to purchase and then the home was built, or does it also cover homes already constructed/developed/rehabbed and then sold to buyers after? Does it apply to rehabbers, and not just ground-up home developers?
2) Does this law apply to buyers who did not buy directly from the developer, but second hand, even if it can be proven that the issues are related to developer improper construction?
3) Based on the first two questions, does it sound like I have legal recourse, and if so, what's the best way to go about this? Does it matter if the developer's LLC is no longer active?

Personally, I'd rather have the developers hire contractors to fix the issues rather than going through the court process, but would like to understand what my rights/leverage are first.

Thanks so much for any advice you can provide.

 

[xylene]

VACAY HOUSE

the span is too long and they didn't use enough concrete footers/columns to support the main beam along that long span)

Do you mean they didn't do it to code?

How was this conclusion determined and who exactly arrived at it?

MAIN HOUSE

Cost to fix will probably be at least $2k.

You'd be spending more than that to sue.

 

[NPID123]

VACAY HOUSE



Do you mean they didn't do it to code?

How was this conclusion determined and who exactly arrived at it?

MAIN HOUSE



You'd be spending more than that to sue.

On the vacation house main beam, I'll have to research the code, but I imagine it's not up to code as the experts I've had look at it have said it was "improper" and it's quite obvious what is causing the issues.

On the $2k+ rain leak issue, again, I don't plan to sue (as I mentioned) but if I have rights here, then I have leverage to ask the seller to fix it (as he doesn't want to end up in court either).

 

[Taxing Matters]

That being said, my questions are:
1) Does this law apply to just homes where the buyer agreed to purchase and then the home was built, or does it also cover homes already constructed/developed/rehabbed and then sold to buyers after? Does it apply to rehabbers, and not just ground-up home developers?

It applies to actions against "any person lawfully performing or furnishing the design, planning, supervision or observation of construction, or construction of any improvement to real property." So it includes not just the general contractor who originally built the home, but also architects, engineers, subcontractors, etc. It also applies to projects to any improvement to the home, which means that improvements made after the home was built are subject to the 12 year statute of limitation (SOL).

2) Does this law apply to buyers who did not buy directly from the developer, but second hand, even if it can be proven that the issues are related to developer improper construction?

It applies to any damages that result from "Any deficiency in the design, planning, supervision or observation of construction or construction of the improvement." Those damages do not have to be suffered by the original buyer of the property or even by any owner of the property. If a guest on the property was injured because of it, that injured person could sue within the 12 year period allowed.

3) Based on the first two questions, does it sound like I have legal recourse, and if so, what's the best way to go about this? Does it matter if the developer's LLC is no longer active?

I can't tell if the problems you have fall within a "deficiency in the design, planning, supervision or observation of construction or construction of the improvement." Note that problems like material failure, etc., aren't covered by this. You'd need to see a PA attorney for an opinion on whether you have a good claim to bring, who it is that you might sue, and whether it might be barred by the SOL. If the LLC is defunct and has no assets, getting a judgment against it won't do you much good. But the individual persons who committed the negligence you could still sue. The LLC form of business does not protect people against liability for their own negligence.

Start by contacting the builders that did the work that is causing the problems and see what they say about fixing it.

 

[NeilTheCop]

On the vacation house main beam, I'll have to research the code, but I imagine it's not up to code as the experts I've had look at it have said it was "improper" and it's quite obvious what is causing the issues.

Check with your local city/county office and get a copy of the permit that should have been obtained.
Don't know exactly where you live so I just pulled up the Akron PA site to give you an idea.
http://www.akron-pa.com/bldingprmts.html