There are law firms that specialize in this of course. Very lucrative practice area.
-At year nine an atty will approach an HOA and proposes to conduct forensic testing for construction defects.
-And oh, by the way, the atty has a forensic construction firm he works with.
-If the HOA says everything seems fine, no thanks, the atty will tell them that if they fail to do the forensic investigation they may be personally liable in the event a construction defect appears after year ten. (The HOA President at a TH project i built told me this and explained it was the reason they voted to retain the atty who approached them and the forensic firm.)
-Forensic investigation commences
-Voila, the forensic testing firm and their friendly atty that have a substantial monetary interest to find construction defects, finds alleged construction defects! (Forensic firm would fall out of favor with the atty if they didn't come through. So they always come through.)
-Atty files suit against the developer. Developer tenders claim to his OCIP carrier
-Atty and OCIP carrier settle.
-Insurance obviously becomes much more expensive for condo and TH projects causing the production of condos and THs to fall precipitously, and becoming much more expensive if they do get developed.