When a newly built condo has construction defects, owners' ability to sue the builder is often limited by fine print and deadlines. This bill addresses condominium construction-defect claims and the legal actions owners can bring.
In short: Addresses condominium construction-defect claims and related legal actions.
Introduced — no action Mixed
Modifies the statutes of limitation related to construction defects and establishes a process condominium unit owners' association must follow when taking legal actions related to construction defects.
For homeowners: Mixed, but the dominant effect favors builders: halving the construction-defect statute of limitations from eight to four years and adding pre-suit hurdles (engineer inspection, advance developer notice, and a two-thirds member vote) make it slower and harder for a condo association to recover for defects. The genuine owner-side pieces are the two-thirds vote giving individual owners a say and mandated notice/disclosure of the action.
What the bill actually does, point by point — from the Arizona Legislature’s official fact sheet.
- Reduces from eight years to four years the time an action or arbitration based in contract can occur for the substantial completion of real property. (Sec. 1)
- Reduces from eight years to four years the time a municipality or county can take action or arbitrate against a person after an improvement to real property for the county or municipality has been accepted for ownership if the action or arbitration is based on municipal or county code, ordinance, other legal requirement, or a permit required as a condition of development. (Sec. 1)
- Modifies the statute of limitations for construction defect claims when a defect is discovered in the fourth year after substantial completion of an improvement. (Sec. 1)
- Requires the board of a condominium unit owners' association to obtain a vote of two-thirds approval from unit owners before the board can institute, defend or intervene in litigation or administrative proceedings relating to the development, design, engineering, construction or improvements of real property. (Sec. 2)
- Requires before holding a vote, the board to obtain an inspection from a professional engineer to identify alleged construction defects, describe the physical conditions of the claims and describe any modifications, maintenance or repairs to the units that were performed by the unit owners of the association. (Sec. 2)
- Requires the association to provide written notice of the inspection to the condominium developer no later than five days before the inspection. (Sec. 2)
- Allows the condominium developer or their designee to attend the inspection. (Sec. 2)
- Requires before the vote that the association delivers by certified mail written notices of anticipated commencement of a construction defect action to unit owners, the condominium developer and the construction professionals the action is against. (Sec. 2)
- Requires the notice to the unit owners to call for a meeting held between 15 to 30 days after the mailing date of the notice. (Sec. 2) 10. Requires the notice to unit owners include: a) A description of the construction defect action; b) A description of alleged defects; c) The relief sought and a good faith estimate of benefits and risks involved; d) A copy of the inspection report by the professional engin
The A.R.S. sections this bill amends, adds, or repeals — taken from the bill text. Click one to read the current law.
Official bill page (azleg.gov) → Full bill text → Fact sheet / summary → Bill history (LegiScan) →
Organizations and industry insiders who registered a position on this bill through the Legislature’s public Request to Speak system — simply where each stood: For, Against, or Neutral. Individual homeowners are not listed. Whether this bill helps or hurts homeowners is our own read, shown by its label above — a group’s position doesn’t set our call. Each row links to that entity’s report card and to the source at azleg.gov.