Definition of "Builder"

Title 7 was amended by Assembly Bill 903 ("AB 903") effective January 1, 2004.

Assembly Bill 903 made changes to Title 7 that appear minor but may have a significant impact on some Builders. The major change was to modify the definition of "Builder" as used in Title 7. See revised California Civil Code Section 911.

The term "Builder" includes an Affiliated General Contractor.  Before the enactment of AB 903, the term "Builder" referred to the party who entered into a contract to convey the residence to a buyer (really the "seller"). AB 903 includes the general contractor in the definition of "Builder" if the general contractor is "a partner, member of, subsidiary of, or otherwise similarly affiliated with the builder." We refer to such a general contractor as an "Affiliated General Contractor."

The importance of the definition of the term "Builder" is that it identifies who must comply with Title 7. A "Builder" is required to provide certain documentation to buyers. Any entity that is a "Builder" is required to provide documentation, notices and otherwise comply with Title 7. If a Builder uses an Affiliated General Contractor, the Affiliated General Contractor must comply with Title 7.

The Affiliated General Contractor should sign the Master Dispute Declaration and other documentation so as to be in compliance with Title 7 and to be entitled to enforce the Binding Resolution Process (arbitration or judicial reference procedure) and other aspects of the Builder's Title 7 implementation program.