Builders can shield themselves from litigation relating to natural and environmental hazards with Property I.D. hazard reports.
Sergio Siderman, senior vice president of the Los Angeles firm, says a few home builders think disclosures aren't necessary because they build new construction, but they're mandatory in most states, especially because builders know the land and would be held to a higher standard in court.
"Our reports are a good tool for builders and developers on the front end because they get a good look at what's under the topsoil and what they will or will not be able to do with the property prior to purchasing the land," Siderman says. "On the back end, it shields builders and developers from liability arising from or relating to hazards addressed in our report."
Each report is insured for $20 million. If a homeowner thinks property characteristics have been misrepresented, claims are filed directly with Property I.D., without a deductible and in lieu of litigation against the home builder or seller. Siderman says no lawsuit has been successfully filed against the firm.
"We take 100% responsibility for any failures or lack of disclosures with respect to natural and environmental hazards," he says. "Upon handing the report to a potential buyer, builders are removing all liability they may have borne and handing it to us."
Visit www.propertyid.com for more information.