Overview
Taylor Morrison is headquartered in Scottsdale, Arizona, and operates extensively throughout the Phoenix metropolitan area and Tucson. Arizona is the company's home market, and the AV Homes acquisition added active-adult communities in the state.
Arizona's Purchaser Dwelling Act establishes specific pre-litigation requirements for construction defect claims, and the state's recognition of an implied warranty of habitability provides a legal framework that may limit certain provisions in the Taylor Morrison purchase agreement. In 2024, Taylor Morrison filed a regulatory complaint against an Arizona home inspector who documented defects in its homes; the complaint was dismissed.
How Arizona Law Affects Your Contract
The following analysis examines how Taylor Morrison's documented contract patterns interact with Arizona consumer protection law.
Implied Warranty of Habitability in Arizona
Arizona courts recognize an implied warranty of habitability and workmanlike quality for new construction (Columbia Western Corp. v. Vela, 122 Ariz. 28, 1979). Taylor Morrison's habitability waiver clause (HAB-001) may be subject to challenge in Arizona, as this warranty is considered a fundamental protection for homebuyers.
Purchaser Dwelling Act Notice Requirement
Arizona's Purchaser Dwelling Act (A.R.S. §§ 12-1361 through 12-1366) requires homeowners to provide written notice to the builder at least 90 days before filing a construction defect lawsuit. The builder has the right to inspect the property and offer repairs during this period.
SBTR Complaint Against Home Inspector
In 2024, Taylor Morrison filed a complaint with Arizona's State Board of Technical Registration (SBTR) seeking disciplinary action against a home inspector whose social media posts documented construction defects in Taylor Morrison homes (WAR-002). The Board found no verifiable violations and declined to take disciplinary action, issuing only a non-disciplinary letter of concern. This incident illustrates the tension between the builder's warranty provisions and buyers' right to independent inspection.
Arbitration Enforceability
Mandatory arbitration clauses are generally enforceable in Arizona. Taylor Morrison's broad arbitration provision (ARB-001) and class action waiver (CLA-001) will typically be upheld unless the specific terms are found to be unconscionable. The non-assignability clause (MPS-001) may further limit subsequent purchasers' ability to invoke contract terms.
Desert Climate and Material Substitution
Arizona's extreme heat and arid climate create specific construction challenges. Taylor Morrison's material substitution clause (MAT-001) should be evaluated to ensure substituted materials are rated for desert conditions, including thermal expansion, UV degradation, and performance on expansive soils.
Arizona Legal History
Selected cases and investigations involving Taylor Morrison in Arizona.
Arizona SBTR Complaint Against Home Inspector
Taylor Morrison filed a complaint seeking disciplinary action and video removal against a home inspector who documented construction defects in Taylor Morrison homes on social media. The Board found no verifiable violations and declined to take disciplinary action.
Relevant Arizona Laws
Requires homeowners to provide written notice to the builder at least 90 days before filing a construction defect lawsuit, with the builder having an opportunity to inspect and offer a repair.
Arizona courts recognize an implied warranty that new homes will be constructed in a workmanlike manner and be fit for habitation.
Prohibits deception, fraud, and misrepresentation in the sale of goods and services, including residential real estate. Provides for actual damages and attorney fees.
Arizona Key Facts
- 1Arizona requires 90 days' written notice to the builder before filing a construction defect lawsuit.
- 2The statute of limitations for construction defect claims is generally 8 years from substantial completion.
- 3Arizona courts recognize an implied warranty of habitability for new construction.
- 4Mandatory arbitration clauses are generally enforceable in Arizona.
- 5Arizona's Registrar of Contractors (ROC) licenses and regulates residential builders.
- 6Buyers should verify a builder's ROC license status before signing a purchase agreement.
What Arizona Buyers Should Know
- Understand Arizona's 90-day notice requirement. Arizona requires 90 days' written notice to the builder before filing a construction defect lawsuit. This is among the longest notice periods in the country and must be complied with before pursuing legal action.
- Know that Arizona recognizes a habitability warranty. Arizona courts recognize an implied warranty of habitability for new construction. This may limit the enforceability of Taylor Morrison's contractual provisions that attempt to waive this protection.
- Hire an independent inspector despite builder resistance. Taylor Morrison filed a regulatory complaint against an Arizona home inspector in 2024; the complaint was dismissed. Arizona law generally permits independent inspections. Document any resistance from the builder in writing.
- Verify the builder's ROC license and check complaint history. Arizona requires residential builders to be licensed with the Registrar of Contractors. Verify Taylor Morrison's license status and review any complaints filed with the ROC.
- Consider Arizona's Consumer Fraud Act for deceptive conduct. The Arizona Consumer Fraud Act (A.R.S. § 44-1521 et seq.) prohibits deception and misrepresentation in consumer transactions. This statute may provide remedies if you were misled during the sales process or about warranty coverage.