Governor Doug Ducey signed into law an important piece of legislation related to Arizona’s construction defect claims. The new law, effective a few years ago in the summer of 2015, is meant to limit the number of construction defect lawsuits brought by homeowners. However, the definition of construction defect has been expanded and the repeal of ARS § 12-1364 – Attorney Fees provisions has removed the “successful party” entitlement to attorney fees. 

The new law also includes definitions of seller and construction professional, and sellers now have the right to repair alleged construction defects. Homeowners cannot “unreasonably withhold” consent to have any one construction professional performing the repair work, and the homeowner must provide a reasonable estimate of the time and cost of the repair work. Finally, the new law allows for the recovery of expert fees and taxable costs.

How to Define the Key Terms

House Bill 2578 provides a definition of construction defect in the state of Arizona. A construction defect is now defined as a material deficiency in the design, construction, manufacture, repair, alteration, remodeling or landscaping of a dwelling. This definition is misleading as it hinges on the presence of a material deficiency, which is defined as a deficiency that actually impairs either the structural integrity, functionality or appearance of a dwelling. If a material deficiency is found to exist, then a construction defect is said to exist.

That is why it is so important to hire trusted home pros, so that you don’t find yourself “on the hook” for hard-to-predict liabilities! Give the team at Checklist Inspections a call, we have 1,000+ 5-star reviews for our inspection services – let us worry about the details!