SB1346 - 452R - House Bill Summary

House of Representatives

SB 1346

Arizona correctional industries; technical correction

Sponsors: Senator Guenther: Representatives Cannell, Carruthers

X	Committee on Natural Resources and Agriculture
	Caucus and COW
	Third Read
	As Passed the House

The proposed strike-everything amendment to SB 1346 provides an opportunity for the seller of a home to make repairs prior to the purchaser filing a lawsuit. It also outlines the timelines for proper written notices and stipulations for their contents.

History

In addition to filing a civil lawsuit, currently the purchaser of a single family home or a condominium unit may file a complaint against the prime contractor and any subcontractors, architects, engineers, or related construction personnel. The complaint must be filed at the Office of the Registrar of Contractors within two years of the completion of the home or repairs. Statute outlines the procedures for the complaint process, including notice and the opportunity to be heard.

A Strike-Everything amendment will be offered to SB 1346 with the following provisions:

· Defines association, community documents, dwelling, dwelling action, purchaser, and seller.

· Specifies time limits and outlines the notification process that must take place between the seller and purchaser prior to filing a dwelling action.

· Authorizes the seller to inspect the dwelling after receiving the notification of defects in order to determine the extent and cause of the defects. If testing is involved, the seller must restore the dwelling to its pre-testing condition.

· Outlines the content and process for the seller to follow in sending a good faith, written response to the purchaser.

· States that, if the seller does not provide the required written response to the purchaser’s notice within 90 days, the purchaser may file a dwelling action without waiting the required period.

· Requires the purchaser to provide a good faith, written response to the seller within 30 days. The purchaser may either accept the offer or provide a written response that outlines the basis for rejecting the offer.

· Prohibits a purchaser’s notice, a seller’s response (if made in good faith), or a purchaser’s response to a seller’s offer from being included in any dwelling action.

· Allows the following actions to be included in any dwelling action as evidence that a purchaser’s damages could have been resolved or reduced:

Failure to provide a notice to the seller of the purchaser’s damages.
Failure to allow the seller to reasonably inspect the damages.

Failure to provide a good faith, written response to a seller’s offer to resolve the damages.

· Asserts that the purchaser’s written notice of defect is valid for 120 days after the seller receives the notice and allows the seller and purchaser to extend the time period in writing.

· Authorizes the court to stay an action for 120 days if a purchaser files a dwelling action without first complying with the required steps to allow the parties to comply.

· Directs the Escrow Agent to provide disclosure regarding the provisions contained in the bill.

· Outlines the excluded claims and actions.

· Clarifies that the article applies to dwelling actions undertaken by homeowners' associations.

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· 45th Legislature