ARIZONA STATE SENATE
Phoenix, Arizona
Purpose
Outlines a procedure for notice of an alleged defect by a buyer and opportunity to repair the alleged defect by the seller before the filing of a purchaser dwelling action.
Currently, a purchaser of a single family home or a condominium unit may file a complaint with the Office of the Registrar of Contractors against a prime contractor or subcontractor, architect, engineer or other construction personnel within two years of completion of the home or repairs to the home.
H.B. 2620 provides an opportunity for the seller to make repairs prior to the purchaser filing a civil lawsuit and outlines proper notice requirements and time frames.
There is no anticipated fiscal impact to the state general fund associated with this legislation.
1. Specifies required time limits and notification processes for the seller and purchaser prior to filing a dwelling action.
2. Allows the seller to inspect the dwelling after receiving notification of defects to determine the extent and cause of defects.
3. Requires seller to restore dwelling to its pre-testing condition if testing is involved.
4. Outlines requirements and time frames for the seller’s response to the notice, which shall include any repair or replacement that the seller is offering to provide and a reasonable date for completion.
5. Outlines requirements for the purchaser’s response to a seller’s offer, which shall include any basis for the purchaser’s rejection.
6. Prohibits the inclusion of a purchaser’s notice, a seller’s response (if made in good faith), or a purchaser’s response made to a seller’s offer, in any dwelling action.
7. Creates a rebuttable presumption that the purchaser’s damages could have been mitigated if a purchaser failed to provide notice to a seller of any defect, failed to allow a reasonable inspection requested by a seller, or failed to provide a good faith, written response to a seller’s offer.
8. Allows a court to stay action for 120 days, if a purchaser files a dwelling action without first complying with this act.
9. Outlines excluded claims and actions.
10. Applies provisions to homeowners’ association dwelling actions.
11. Contains definitions.
12. Provides for a general effective date.
House Action
CED 3/18/02 DPA 6-2-2
3rd Read 4/9/02 46-7-6-1
Prepared by Senate Staff
April 15, 2002