The law, which went into effect in April 2023, shortens the statute of repose from 10 years to seven years, based on several triggering events, and modifies the events that trigger the applicable four year statute of limitations. The new law also adds language specifically claims relating to model homes and multi-building developments.
The new law modifies section 95.11, Florida Statutes, in several ways. First, the triggers for the start of the four year statute of limitations are modified as follows (strikes are deletions, underlines are additions):
with the time running from the date of actual possession by the owner, the date the authority having jurisdiction issues of the issuance of a temporary certificate of occupancy, a certificate of occupancy, or a certificate of completion, or the date of abandonment of construction if not completed, or the date of completion of the contract or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is earliest latest; except that, when the action involves a latent defect, the time runs from the time the defect is discovered or should have been discovered with the exercise of due diligence.
For clarity, a statute of limitations imposes a deadline by which a claim must be brought, in this case, four years for a claim based on defective construction. However, because the statute of limitations, in some cases, may not start running until the defect is discovered, Florida also has a statute of repose applicable to construction defect claims, to provide a hard cut off deadline during which claims can be brought.
The new law changes Florida’s statute of repose, shortening it from 10 years to seven years, as follows:
In any event, the action must be commenced within 7 10 years after the date the authority having jurisdiction issues a temporary certificate of occupancy, of actual possession by the owner, the date of the issuance of a certificate of occupancy, or a certificate of completion, or the date of abandonment of construction if not completed, or the date of completion of the contract or termination of the contract between the professional engineer, registered architect, or licensed contractor and his or her employer, whichever date is earliest latest. However, counterclaims, cross-claims, and third-party claims that arise out of the conduct, transaction, or occurrence set out or attempted to be set out in a pleading may be commenced up to 1 year after the pleading to which such claims relate is served, even if such claims would otherwise be time barred. With respect to actions founded on the design, planning, or construction of an improvement to real property, if such construction is performed pursuant to a duly issued building permit and if the authority having jurisdiction a local enforcement agency, state enforcement agency, or special inspector, as those terms are defined in s. 553.71, has issued a temporary final certificate of occupancy, a certificate of occupancy, or a certificate of completion, then as to the construction which is within the scope of such building permit and certificate, the correction of defects to completed work or repair of completed work, whether performed under warranty or otherwise, does not extend the period of time within which an action must be commenced. If a newly constructed single-dwelling residential building is used as a model home, the time begins to run from the date that a deed is recorded first transferring title to another party. Notwithstanding any provision of this section to the contrary, if the improvement to real property consists of the design, planning, or construction of multiple buildings, each building must be considered its own improvement for purposes of determining the limitations period set forth in this paragraph. Completion of the contract means the later of the date of final performance of all the contracted services or the date that final payment for such services becomes due without regard to the date final payment is made.