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From the Hotline
by Christopher A. Combs
Copyright 2004, all rights reserved. The following is for informational purposes only and is not intended as definitive legal or tax advice. You should not act upon this information without seeking independent legal counsel. If you desire legal, tax or other professional advice, please contact your attorney, tax advisor or other professional consultant.


Builder Warranties and Home Inspection Prior to Warranty Expiration

Question: My husband and I bought a new home in Anthem almost one year ago. We have not had any problems yet, but there are a few minor things that we have noticed that we will bring to the builder’s attention prior to the one-year anniversary. Is it necessary, or a good idea, to get a home inspection prior to the one-year anniversary for things that my husband and I may not see?

Answer: An inspection by a competent home inspector is an excellent idea before the one-year anniversary (which I assume is the time period for your builder’s express warranty for construction defects). You need to know, however, that your builder’s liability for construction defects extends beyond the builder’s express warranty, inasmuch as a builder in Arizona has liability by implied warranty for construction defects. The time period for any breach of this implied warranty by the builder is six years after discovery of the construction defect, but no more than eight years after completion of the home. In other words, if a homeowner discovers a construction defect after three years, and the builder refuses to repair the construction defect, the homeowner will only have five years to file a lawsuit against the builder for the cost to repair the construction defect. The protection of this implied warranty cannot be waived and is available not only to the original purchaser of the home, but to all subsequent purchasers of the home. Note: The Registrar of Contractors has jurisdiction over construction defects up to two years after completion of the home. The Registrar of Contractors cannot award monetary damages, however, but can only take administrative action such as revocation of the builder’s license.


Phoenix attorney Christopher A. Combs is a partner with the firm of Combs Law Group, P.C. Reprinted with permission from Arizona Realtor Digest, 2004.


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