Laws Governing House-Flippers in AZ

According to Arizona law, investors may be liable for warranty obligations to buyers for construction remodel or improvements for up to nine (9) years after closing. This means that investors could be on the hook for warranty obligations for a significant amount of time after the sale of a property.

An implied warranty is a legal agreement between two parties that is created without any written agreement. The most notable example of an implied warranty is the warranty that the construction completed be done in a good, workman-like manner. This warranty is imposed by the courts and generally only applies to residential homes, not to commercial parties.

The implied warranty in Arizona lasts for nine years. If the defect is not discovered until the eighth year after substantial completion, the action may be brought within one year thereafter.

Contractors who work on remodeling or repairing a property, impliedly warrant that the work will be done in a professional and workmanlike manner. This warranty also extends to the habitability of the property. This means that the contractor promises that the property will be livable and in a condition that meets the standard of what would be expected by a reasonable person. This warranty is implied, even if the contractor does not have a contractual relationship with the person who will be living in the property.

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