Enforceability Status
Express warranty exclusion clauses in Arizona new construction contracts are generally enforceable. Arizona's Purchaser Dwelling Act (A.R.S. section 12-1361 et seq.) establishes a pre-litigation process for residential construction defect claims but permits builders to define warranty terms contractually. Arizona courts enforce warranty limitations that are conspicuous and not unconscionable.
Legal Analysis
Arizona law permits builders to establish the scope and duration of express warranties in residential construction contracts. The Arizona version of the UCC (A.R.S. Title 47, Ch. 2) governs warranty disclaimers for goods, requiring that exclusions be conspicuous. For real property, Arizona courts look to contract principles and the specific terms agreed upon by the parties.
The Purchaser Dwelling Act (A.R.S. §§ 12-1361 to 12-1366) requires homeowners to provide written notice of alleged defects and allow the builder an opportunity to inspect and repair before filing suit. This statutory framework applies regardless of the builder's express warranty terms and provides a baseline process for defect resolution.
Arizona courts have upheld express warranty limitations in construction contracts. In Nastri v. Wood Bros. Homes, Inc. (Ariz. App. 1981), the court recognized that builders may limit warranty obligations through express contract terms, provided the buyer had reasonable notice and opportunity to review the limitations.
Arizona does not have a broad statutory implied warranty of habitability for new construction that overrides express warranty terms. However, the Arizona Consumer Fraud Act (A.R.S. § 44-1521 et seq.) may provide remedies if warranty exclusions are presented in a misleading manner or if the builder makes affirmative representations that conflict with the exclusion terms.
Relevant Arizona Law
Establishes a mandatory pre-litigation notice and repair process for residential construction defect claims, requiring a nine-month notice period before filing suit.
Prohibits deceptive or misleading practices in consumer transactions, which may apply to warranty representations in builder contracts.
Governs express and implied warranties in sales transactions, including provisions for exclusion and modification of warranties.
Related Cases
The court recognized the enforceability of express warranty limitations in residential construction contracts where the buyer had adequate notice of the terms.
Builders in Arizona Using This Clause
What Arizona Buyers Should Know
- Understand the Pre-Litigation Notice Requirement Arizona law requires homeowners to provide written notice to the builder and wait nine months before filing a construction defect lawsuit. This applies to all construction defect claims, not just warranty claims.
- Review Warranty Exclusions for Desert Climate Items Arizona builder warranties commonly exclude damage from soil expansion, settling, exterior cracking due to temperature extremes, and landscaping. These exclusions may cover significant issues common in the Arizona climate.
- Compare Express Warranty to Statutory Rights The Purchaser Dwelling Act provides a process for defect claims independent of the builder's warranty. Even after the express warranty expires, you may have statutory rights for defects discovered within the applicable limitations period.
- Document Pre-Closing Conditions Arizona builder warranties often exclude conditions that were visible at closing. Conduct a thorough walkthrough and document all conditions in writing before closing to preserve your ability to make warranty claims.