Notice and right to repair or replace; tolling of time limits; admissible evidence; definition

  1. Before filing a dwelling action, the purchaser shall give written notice by certified mail, return receipt requested, to the seller specifying in reasonable detail the basis of the dwelling action.  A seller who receives notice under this subsection shall promptly forward a copy of the notice to the last known address of each construction professional who the seller reasonably believes is responsible for an alleged defect that is specified in the notice. The seller’s notice to each construction professional may be delivered by electronic means.
  2. After receipt of the notice described in subsection A of this section, the seller and the seller’s construction professional may inspect the dwelling to determine the nature and cause of the alleged construction defects and the nature and extent of any repairs or replacements necessary to remedy the alleged construction defects.  The purchaser shall ensure that the dwelling is made available for inspection not later than ten days after the purchaser receives the seller’s and the seller’s construction professional’s request for an inspection. The seller and the seller’s construction professional shall provide reasonable notice to the purchaser before conducting the inspection.  The inspection shall be conducted at a reasonable time.  The seller and the seller’s construction professional may use reasonable measures, including testing, to determine the nature and cause of the alleged construction defects and the nature and extent of any repairs or replacements necessary to remedy the alleged construction defects. If the seller or the seller’s construction professional conduct testing pursuant to this subsection, the seller or the seller’s construction professional shall restore the dwelling to its condition before the testing.
  3. Within sixty days after receipt of the notice described in subsection A of this section, the seller shall send to the purchaser a good faith written response to the purchaser’s notice by certified mail, return receipt requested.  The response may include the seller’s and the seller’s construction professional’s notice of intent to repair or replace any alleged construction defects, to have the alleged construction defects repaired or replaced at the seller’s or seller’s construction professional’s expense or to provide monetary compensation to the purchaser. The written notice of intent to repair or replace shall describe in reasonable detail all repairs or replacements that the seller and the seller’s construction professional intend to make or provide to the dwelling and a reasonable estimate of the date by which the repairs or replacements will be made.  This subsection does not prohibit the seller from offering monetary compensation or other consideration instead of or in addition to a repair or replacement. The purchaser may accept or reject an offer of monetary compensation or other consideration, other than repair or replacement and, if rejected, may proceed with a dwelling action on completion of any repairs or replacements the seller and the seller’s construction professional intend to make or provide.  The parties may negotiate for a release if an offer involving monetary compensation or other consideration is accepted.
  4. If the seller does not provide a written response to the purchaser’s notice within sixty days, the purchaser may file a dwelling action.
  5. If the response provided pursuant to subsection C of this section includes a notice of intent to repair or replace the alleged construction defects, the purchaser shall allow the seller and the seller’s construction professional a reasonable opportunity to repair or replace the alleged construction defects or cause the alleged construction defects to be repaired or replaced pursuant to the following:
    1. The purchaser and the seller or the seller’s construction professional shall coordinate repairs or replacements within thirty days after the seller’s notice of intent to repair or replace was sent pursuant to subsection C of this section. If requested by the purchaser, repair or replacement of alleged construction defects undertaken by the seller shall be performed by a construction professional selected by the seller and consented to by the purchaser, whose consent shall not be unreasonably withheld, that was not involved in the construction or design of the dwelling. A contractor or subcontractor that was not involved in the construction or design of the dwelling and that performs any repair or replacement of the alleged construction defect pursuant to this section is liable only to the seller or purchaser who contracted for the contractor’s or subcontractor’s services for the contractor’s or subcontractor’s scope of work and that contractor or subcontractor may be named in an amended notice pursuant to subsection I of this section or in the corresponding dwelling action.
    2. Repairs or replacements shall begin as agreed by the purchaser and the seller or the seller’s construction professional, with reasonable efforts to begin repairs or replacements within thirty-five days after the seller’s notice of intent to repair or replace was sent pursuant to subsection C of this section. If a permit is required to perform the repair or replacement, reasonable efforts shall be made to begin repairs or replacements within ten days after receipt of the permit or thirty-five days after the seller’s notice of intent to repair or replace was sent pursuant to subsection C of this section, whichever is later.
    3. All repairs or replacements shall be completed using reasonable care under the circumstances and within a commercially reasonable time frame considering the nature of the repair or replacement, any access issues or unforeseen events that are not caused by the seller or the seller’s construction professional.
    4. The purchaser shall provide reasonable access for the repairs or replacements.
    5. The seller is not entitled to a release or waiver solely in exchange for any repair or replacement made pursuant to this subsection, except that the purchaser and seller may negotiate a release or waiver in exchange for monetary compensation or other consideration.
    6. At the conclusion of any repairs or replacements, the purchaser may commence a dwelling action or, if the contract for the sale of the dwelling or the community documents contain a commercially reasonable alternative dispute resolution procedure that complies with section 12-1366, subsection C, may initiate the dispute resolution process including any claim for inadequate repair or replacement.
  6. During the notice and repair or replacement process, and for thirty days after substantial completion of the repair or replacement, the statute of limitations and statute of repose, including section 12-552, applicable to the purchaser, including any construction professional involved in the construction or design, are tolled as to the seller and the seller’s construction professional who were involved in the construction or design of the dwelling for all alleged construction defects described in reasonable detail in the written notice sent to the seller pursuant to subsection A of this section.
  7. The statute of limitations and statute of repose, including section 12-552, that apply to the seller’s claim for indemnity or contribution against any construction professional is tolled from the date the seller receives the notice required by this section until nine months after the purchaser’s service of the civil complaint or arbitration demand on the seller.
  8. All parties’ conduct during the repair or replacement process prescribed in subsections B, C, D and E of this section may be introduced in any subsequent dwelling action.  Any repair or replacement efforts undertaken by the seller or the seller’s construction professional are not considered settlement communications or offers of settlement and are admissible in evidence.
  9. A purchaser may amend the notice provided pursuant to subsection A of this section to include alleged construction defects identified in good faith after submission of the original notice. The seller and the seller’s construction professional shall have a reasonable period of time to conduct an inspection, if requested, and thereafter the parties shall comply with the requirements of subsections B, C, D and E of this section for the additional alleged construction defects identified in reasonable detail in the notice.
  10. Subject to Arizona rules of court, during the pendency of a dwelling action the purchaser may supplement the list of alleged construction defects to include additional alleged construction defects identified in good faith after filing of the original dwelling action that have been identified in reasonable detail as required by this section.  The court shall provide the seller and the seller’s construction professional a reasonable amount of time to inspect the dwelling to determine the nature and cause of the additional alleged construction defects and the nature and extent of any repairs or replacements necessary to remedy the additional alleged construction defects and, on request of the seller or the seller’s construction professional, sufficient time to repair or replace the additional alleged construction defects. The parties shall comply with the requirements of subsections B, C, D and E of this section for the additional alleged construction defects identified in reasonable detail in the notice.
  11. The service of an amended notice identifying in reasonable detail the alleged construction defects during the pendency of a dwelling action shall relate back to the original notice of alleged construction defects for the purpose of tolling applicable statutes of limitations and statutes of repose, including section 12-552.
  12. By written agreement of the seller and purchaser, the time periods provided in this section may be extended.
  13. For the sale of a dwelling that occurs within the statutory period set forth in section 12-552, the escrow agent, as defined in section 6-801, shall provide notice to the purchaser of the provisions of this section and sections 12-1361 and 12-1362. This subsection does not create a fiduciary duty or provide any person or entity with a private right or cause of action or administrative action.
  14. A purchaser who files a contested dwelling action under this article must file an affidavit with the purchaser’s complaint, under penalty of perjury, that the purchaser has read the entire complaint, agrees with all of the allegations and facts contained in the complaint and, unless authorized by statute or rule, is not receiving and has not been promised anything of value in exchange for filing the dwelling action.
  15. If the seller does not comply with the requirements of this section and the failure is not due to any fault of the purchaser or as a result of an unforeseen condition, including an unforeseen weather condition or government delay, the purchaser may commence a dwelling action.
  16. If the purchaser fails to comply with the requirements of this section before bringing a dwelling action, the dwelling action shall be dismissed. If the dwelling action is dismissed after the statute of limitations or statute of repose, including section 12-552, applicable to the purchaser, any subsequent dwelling action brought by the purchaser is time barred as to the seller and the seller’s construction professional involved in the construction or design of the dwelling.
  17. For the purposes of this section, “reasonable detail” includes all of the following:
    1. An itemized list that describes each alleged construction defect with sufficient detail to allow the seller or seller’s construction professional to identify the alleged construction defect.
    2. The location that each alleged construction defect has been observed by the purchaser in each dwelling that is the subject of the notice.
    3. The impairment to the dwelling that has occurred as a result of each of the alleged construction defects or is reasonably likely to occur if the alleged construction defects are not repaired or replaced.
    4. The street address for each dwelling that is the subject of the notice.

Limits on regulation of vacation rentals and short-term rentals; state preemption; civil penalties; transaction privilege tax license suspension; definitions

  1. A city or town may not prohibit vacation rentals or short-term rentals.
  2. A city or town may not restrict the use of or regulate vacation rentals or short-term rentals based on their classification, use or occupancy except as provided in this section.  A city or town may regulate vacation rentals or short-term rentals as follows:
    1. To protect the public’s health and safety, including rules and regulations related to fire and building codes, health and sanitation, transportation or traffic control and solid or hazardous waste and pollution control, if the city or town demonstrates that the rule or regulation is for the primary purpose of protecting the public’s health and safety.
    2. To adopt and enforce use and zoning ordinances, including ordinances related to noise, protection of welfare, property maintenance and other nuisance issues, if the ordinance is applied in the same manner as other property classified under sections 42-12003 and 42-12004.
    3. To limit or prohibit the use of a vacation rental or short-term rental for the purposes of housing sex offenders, operating or maintaining a sober living home, selling illegal drugs, liquor control or pornography, obscenity, nude or topless dancing and other adult-oriented businesses.
    4. To require the owner of a vacation rental or short-term rental to provide the city or town an emergency point of contact information for the owner or the owner’s designee who is responsible for responding to complaints or emergencies in a timely manner in person if required by public safety personnel, over the phone or by email at any time of day before offering for rent or renting the vacation rental or short-term rental. In addition to any other penalty pursuant to this section, the city or town may impose a civil penalty of up to $1,000 against the owner for every thirty days the owner fails to provide contact information as prescribed by this paragraph. The city or town shall provide thirty days’ notice to the owner before imposing the initial civil penalty.
    5. To require an owner of a vacation rental or short-term rental to obtain and maintain a local regulatory permit or license pursuant to title 9, chapter 7, article 4.  As a condition of issuance of a permit or license, the application for the permit or license may require an applicant to provide only the following:
      1. Name, address, phone number and email address for the owner or owner’s agent.
      2. Address of the vacation rental or short-term rental.
      3. Proof of compliance with section 42-5005.
      4. Contact information required pursuant to paragraph 4 of this subsection.
      5. Acknowledgment of an agreement to comply with all applicable laws, regulations and ordinances.
      6. A fee not to exceed the actual cost of issuing the permit or license or $250, whichever is less.
    6. To require, before offering a vacation rental or short-term rental for rent for the first time, the owner or the owner’s designee of a vacation rental or short-term rental to notify all single-family residential properties adjacent to, directly and diagonally across the street from the vacation rental or short-term rental.  Notice shall be deemed sufficient in a multifamily residential building if given to residents on the same building floor.  A city or town may require additional notification pursuant to this paragraph if the contact information previously provided changes. Notification provided in compliance with this paragraph shall include the permit or license number if required by the city or town, the address, and the information required pursuant to paragraph 4 of this subsection.  The owner or the owner’s designee shall demonstrate compliance with this paragraph by providing the city or town with an attestation of notification compliance that consists of the following information:
      1. The permit or license number of the vacation rental or short-term rental, if required by the city or town.
      2. The address of each property notified.
      3. A description of the manner in which the owner or owner’s designee chose to provide notification to each property subject to notification.
      4. The name and contact information of the person attesting to compliance with this paragraph.
    7. To require the owner or owner’s designee of a vacation rental or short-term rental to display the local regulatory permit number or license number, if any, on each advertisement for a vacation rental or short-term rental that the owner or owner’s designee maintains. A city or town that does not require a local regulatory permit or license may require the owner or owner’s designee of a vacation rental or short-term rental to display the transaction privilege tax license required by section 42-5042 on each advertisement for a vacation rental or short-term rental that the owner or owner’s designee maintains.
    8. To require the vacation rental or short-term rental to maintain liability insurance appropriate to cover the vacation rental or short-term rental in the aggregate of at least $500,000 or to advertise and offer each vacation rental or short-term rental through an online lodging marketplace that provides equal or greater coverage.
  3. A city or town that requires a local regulatory permit or license pursuant to this section shall issue or deny the permit or license within seven business days of receipt of the information required by subsection B, paragraph 5 of this section and otherwise in accordance with section 9-835, except that a city or town may deny issuance of a permit or license only for any of the following:
    1. Failure to provide the information required by subsection B, paragraph 5, subdivisions (a) through (e) of this section.
    2. Failure to pay the required permit or license fee.
    3. At the time of application the owner has a suspended permit or license for the same vacation rental or short-term rental.
    4. The applicant provides false information.
    5. The owner or owner’s designee of a vacation rental or short-term rental is a registered sex offender or has been convicted of any felony act that resulted in death or serious physical injury or any felony use of a deadly weapon within the past five years.
  4. A city or town that requires a local regulatory permit or license pursuant to this section shall adopt an ordinance to allow the city or town to initiate an administrative process to suspend a local regulatory permit or license for a period of up to twelve months for the following verified violations associated with a property:
    1. Three verified violations within a twelve-month period, not including any verified violation based on an aesthetic, solid waste disposal or vehicle parking violation that is not also a serious threat to public health and safety.
    2. One verified violation that results in or constitutes any of the following:
      1. A felony offense committed at or in the vicinity of a vacation rental or short-term rental by the vacation rental or short-term rental owner or owner’s designee.
      2. A serious physical injury or wrongful death at or related to a vacation rental or short-term rental resulting from the knowing, intentional or reckless conduct of the vacation rental or short-term rental owner or owner’s designee.
      3. An owner or owner’s designee knowingly or intentionally housing a sex offender, allowing offenses related to adult-oriented businesses, sexual offenses or prostitution, or operating or maintaining a sober living home, in violation of a regulation or ordinance adopted pursuant to subsection B, paragraph 3 of this section.
      4. An owner or owner’s designee knowingly or intentionally allowing the use of a vacation rental or short-term rental for a special event that would otherwise require a permit or license pursuant to a city or town ordinance or a state law or rule or for a retail, restaurant, banquet space or other similar use.
    3. Notwithstanding paragraphs 1 and 2 of this subsection, any attempted or completed felony act, arising from the occupancy or use of a vacation rental or short-term rental, that results in a death, or actual or attempted serious physical injury, shall be grounds for judicial relief in the form of a suspension of the property’s use as a vacation rental or short-term rental for a period of time that shall not exceed twelve months.
  5. A city or town that requires sex offender background checks on a vacation rental or short-term rental guest shall waive the requirement if an online lodging marketplace performs a sex offender background check of the booking guest.
  6. Notwithstanding any other law, a city or town may impose a civil penalty of the following amounts against an owner of a vacation rental or short-term rental if the owner receives one or more verified violations related to the same vacation rental or short-term rental property within the same twelve-month period:
    1. Up to $500 or up to an amount equal to one night’s rent for the vacation rental or short-term rental as advertised, whichever is greater, for the first verified violation.
    2. Up to $1,000 or up to an amount equal to two nights’ rent for the vacation rental or short-term rental as advertised, whichever is greater, for the second verified violation.
    3. Up to $3,500 or up to an amount equal to three nights’ rent for the vacation rental or short-term rental as advertised, whichever is greater, for a third and any subsequent verified violation.
  7. A vacation rental or short-term rental that fails to apply for a local regulatory permit or license in accordance with subsection B, paragraph 5 of this section, within thirty days of the local regulatory permit or license application process being made available by the city or town issuing such permits or licenses, must cease operations.  In addition to any fines imposed pursuant to subsection F of this section, a city or town may impose a civil penalty of up to $1,000 per month against the owner if the owner or owner’s designee fails to apply for a regulatory permit or license within thirty days after receiving written notice of the failure to comply with subsection B, paragraph 5 of this section.
  8. If multiple verified violations arise out of the same response to an incident at a vacation rental or short-term rental, those verified violations are considered one verified violation for the purpose of assessing civil penalties or suspending the regulatory permit or license of the owner or owner’s designee pursuant to this section.
  9. If the owner of a vacation rental or short-term rental has provided contact information to a city or town pursuant to subsection B, paragraph 4 of this section and if the city or town issues a citation for a violation of the city’s or town’s applicable laws, regulations or ordinances or a state law that occurred on the owner’s vacation rental or short-term rental property, the city or town shall make a reasonable attempt to notify the owner or the owner’s designee of the citation within seven business days after the citation is issued using the contact information provided pursuant to subsection B, paragraph 4 of this section.  If the owner of a vacation rental or short-term rental has not provided contact information pursuant to subsection B, paragraph 4 of this section, the city or town is not required to provide such notice.
  10. This section does not exempt an owner of a residential rental property, as defined in section 33-1901, from maintaining with the assessor of the county in which the property is located information required under title 33, chapter 17, article 1.
  11. A vacation rental or short-term rental may not be used for nonresidential uses, including for a special event that would otherwise require a permit or license pursuant to a city or town ordinance or a state law or rule or for a retail, restaurant, banquet space or other similar use.
  12. For the purposes of this section:
    1. “Online lodging marketplace” has the same meaning prescribed in section 42-5076.
    2. “Transient” has the same meaning prescribed in section 42-5070.
    3. “Vacation rental” or “short-term rental”:
      1. Means any individually or collectively owned single-family or one-to-four-family house or dwelling unit or any unit or group of units in a condominium or cooperative that is also a transient public lodging establishment or owner-occupied residential home offered for transient use if the accommodations are not classified for property taxation under section 42-12001. 
      2. Does not include a unit that is used for any nonresidential use, including retail, restaurant, banquet space, event center or another similar use.
    4. “Verified violation” means a finding of guilt or civil responsibility for violating any state law or local ordinance relating to a purpose prescribed in subsection B or K of this section that has been finally adjudicated.

Limits on regulation of vacation rentals and short-term rentals; state preemption; civil penalties; transaction privilege tax license suspension; definitions

  1. A county may not prohibit vacation rentals or short-term rentals.
  2. A county may not restrict the use of or regulate vacation rentals or short-term rentals based on their classification, use or occupancy except as provided in this section. A county may regulate vacation rentals or short-term rentals within the unincorporated areas of the county as follows:
    1. To protect the public’s health and safety, including rules and regulations related to fire and building codes, health and sanitation, transportation or traffic control and solid or hazardous waste and pollution control, if the county demonstrates that the rule or regulation is for the primary purpose of protecting the public’s health and safety.
    2. To adopt and enforce use and zoning ordinances, including ordinances related to noise, protection of welfare, property maintenance and other nuisance issues, if the ordinance is applied in the same manner as other property classified under sections 42-12003 and 42-12004.
    3. To limit or prohibit the use of a vacation rental or short-term rental for the purposes of housing sex offenders, operating or maintaining a sober living home, selling illegal drugs, liquor control or pornography, obscenity, nude or topless dancing and other adult-oriented businesses.
    4. To require the owner of a vacation rental or short-term rental to provide the county with contact information for the owner or the owner’s designee who is responsible for responding to complaints or emergencies in a timely manner in person if required by public safety personnel, over the phone or by email at any time of day before offering for rent or renting the vacation rental or short-term rental. In addition to any other penalty pursuant to this section, the county may impose a civil penalty of up to $1,000 against the owner for every thirty days the owner fails to provide contact information as prescribed by this paragraph. The county shall provide thirty days’ notice to the owner before imposing the initial civil penalty.
    5. To require an owner of a vacation rental or short-term rental to obtain and maintain a local regulatory permit or license.  As a condition of issuance of a permit or license, the application for the permit or license may require an applicant to provide only the following:
      1. Name, address, phone number and email address for the owner or owner’s agent.
      2. Address of the vacation rental or short-term rental.
      3. Proof of compliance with section 42-5005.
      4. Contact information required pursuant to paragraph 4 of this subsection.
      5. Acknowledgment of an agreement to comply with all applicable laws, regulations and ordinances.
      6. A fee not to exceed the actual cost of issuing the permit or license or $250, whichever is less.
    6. To require, before offering a vacation rental or short-term rental for rent for the first time, the owner or the owner’s designee of a vacation rental or short-term rental to notify all single-family residential properties adjacent to, directly and diagonally across the street from the vacation rental or short-term rental.  Notice shall be deemed sufficient in a multifamily residential building if given to residents on the same building floor.  A county may require additional notification pursuant to this paragraph if the contact information previously provided changes. Notification provided in compliance with this paragraph shall include the permit or license number if required by the county, the address, and the information required pursuant to paragraph 4 of this subsection.  The owner or the owner’s designee shall demonstrate compliance with this paragraph by providing the county with an attestation of notification compliance that consists of the following information:
      1. The permit or license number of the vacation rental or short-term rental, if required by the county.
      2. The address of each property notified.
      3. A description of the manner in which the owner or owner’s designee chose to provide notification to each property subject to notification.
      4. The name and contact information of the person attesting to compliance with this paragraph.
    7. To require the owner or owner’s designee of a vacation rental or short-term rental to display the local regulatory permit number or license number, if any, on each advertisement for a vacation rental or short-term rental that the owner or owner’s designee maintains.  A county that does not require a local regulatory permit or license may require the owner or owner’s designee of a vacation rental or short-term rental to display the transaction privilege tax license required by section 42-5042 on each advertisement for a vacation rental or short-term rental that the owner or owner’s designee maintains.
    8. To require the vacation rental or short-term rental to maintain liability insurance appropriate to cover the vacation rental or short-term rental in the aggregate of at least $500,000 or to advertise and offer each vacation rental or short-term rental through an online lodging marketplace that provides equal or greater coverage.
  3. A county that requires a local regulatory permit or license pursuant to this section shall issue or deny the permit or license within seven business days of receipt of the information required by subsection B, paragraph 5 of this section and otherwise in accordance with section 11-1602, except that a county may deny issuance of a permit or license only for any of the following:
    1. Failure to provide the information required by subsection B, paragraph 5, subdivisions (a) through (e) of this section.
    2. Failure to pay the required permit or license fee.
    3. At the time of application the owner has a suspended permit or license for the same vacation rental or short-term rental.
    4. The applicant provides false information.
    5. The owner or owner’s designee of a vacation rental or short-term rental is a registered sex offender or has been convicted of any felony act that results in death or serious physical injury or any felony use of a deadly weapon within the past five years.
  4. A county that requires a local regulatory permit or license pursuant to this section shall adopt an ordinance to allow the county to initiate an administrative process to suspend a local regulatory permit or license for a period of up to twelve months for the following verified violations associated with a property:
    1. Three verified violations within a twelve-month period, not including any verified violation based on an aesthetic, solid waste disposal or vehicle parking violation that is not also a serious threat to public health or safety.
    2. One verified violation that results in or constitutes any of the following:
      1. A felony offense committed at or in the vicinity of a vacation rental or short-term rental by the vacation rental or short-term rental owner or owner’s designee.
      2. A serious physical injury or wrongful death at or related to a vacation rental or short-term rental resulting from the knowing, intentional or reckless conduct of the vacation rental or short-term rental owner or owner’s designee.
      3. An owner or owner’s designee knowingly or intentionally housing a sex offender, allowing offenses related to adult-oriented businesses, sexual offenses or prostitution, or operating or maintaining a sober living home, in violation of regulation or ordinance adopted pursuant to subsection B, paragraph 3 of this section.
      4. An owner or owner’s designee knowingly or intentionally allowing the use of a vacation rental or short-term rental for a special event that would otherwise require a permit or license pursuant to a county or a state law or rule or for a retail, restaurant, banquet space or other similar use.
    3. Notwithstanding paragraphs 1 and 2 of this subsection, any attempted or completed felony act, arising from the occupancy or use of a vacation rental or short-term rental, that results in a death, or actual or attempted serious physical injury, shall be grounds for judicial relief in the form of a suspension of the property’s use as a vacation rental or short-term rental for a period of time that shall not exceed twelve months.
  5. A county that requires sex offender background checks on a vacation rental or short-term rental guest shall waive the requirement if an online lodging marketplace performs a sex offender background check of the booking guest.
  6. Notwithstanding any other law, a county may impose a civil penalty of the following amounts against an owner of a vacation rental or short-term rental if the owner receives one or more verified violations related to the same vacation rental or short-term rental property within the same twelve-month period:
    1. Up to $500 or up to an amount equal to one night’s rent for the vacation rental or short-term rental as advertised, whichever is greater, for the first verified violation.
    2. Up to $1,000 or up to an amount equal to two nights’ rent for the vacation rental or short-term rental as advertised, whichever is greater, for the second verified violation.
    3. Up to $3,500 or up to an amount equal to three nights’ rent for the vacation rental or short-term rental as advertised, whichever is greater, for a third and any subsequent verified violation.
  7. A vacation rental or short-term rental that fails to apply for a local regulatory permit or license in accordance with subsection B, paragraph 5 of this section, within thirty days of the local regulatory permit or license application process being made available by the county issuing such permits or licenses, must cease operations. In addition to any fines imposed pursuant to subsection F of this section, a county may impose a civil penalty of up to $1,000 per month against the owner if the owner or owner’s designee fails to apply for a regulatory permit or license within thirty days after receiving written notice of the failure to comply with subsection B, paragraph 5 of this section.
  8. If multiple verified violations arise out of the same response to an incident at a vacation rental or short-term rental, those verified violations are considered one verified violation for the purpose of assessing civil penalties or suspending the regulatory permit or license of the owner or owner’s designee pursuant to this section.
  9. If the owner of a vacation rental or short-term rental has provided contact information to a county pursuant to subsection B, paragraph 4 of this section and if the county issues a citation for a violation of the county’s applicable laws, regulations or ordinances or a state law that occurred on the owner’s vacation rental or short-term rental property, the county shall make a reasonable attempt to notify the owner or the owner’s designee of the citation within seven business days after the citation is issued using the contact information provided pursuant to subsection B, paragraph 4 of this section.  If the owner of a vacation rental or short-term rental has not provided contact information pursuant to subsection B, paragraph 4 of this section, the county is not required to provide such notice.
  10. This section does not exempt an owner of a residential rental property, as defined in section 33-1901, from maintaining with the assessor of the county in which the property is located information required under title 33, chapter 17, article 1.
  11. A vacation rental or short-term rental may not be used for nonresidential uses, including for a special event that would otherwise require a permit or license pursuant to a county ordinance or a state law or rule or for a retail, restaurant, banquet space or other similar use.
  12. For the purposes of this section:
    1. “Online lodging marketplace” has the same meaning prescribed in section 42-5076.
    2. “Transient” has the same meaning prescribed in section 42-5070.
    3. “Vacation rental” or “short-term rental”:
      1. Means any individually or collectively owned single-family or one-to-four-family house or dwelling unit or any unit or group of units in a condominium or cooperative that is also a transient public lodging establishment or owner-occupied residential home offered for transient use if the accommodations are not classified for property taxation under section 42-12001. 
      2. Does not include a unit that is used for any nonresidential use, including retail, restaurant, banquet space, event center or another similar use.
    4. “Verified violation” means a finding of guilt or civil responsibility for violating any state law or local ordinance relating to a purpose prescribed in subsection B or K of this section that has been finally adjudicated.

Lien for labor; professional services or materials used in construction, alteration or repair of structures; preliminary twenty day notice; exceptions

  1. Except as provided in sections 33-1002 and 33-1003, every person who labors or furnishes professional services, materials, machinery, fixtures or tools in the construction, alteration or repair of any building, or other structure or improvement, shall have a lien on such building, structure or improvement for the work or labor done or professional services, materials, machinery, fixtures or tools furnished, whether the work was done or the articles were furnished at the instance of the owner of the building, structure or improvement, or his agent.
  2. Every contractor, subcontractor, architect, builder or other person having charge or control of the construction, alteration or repair, either wholly or in part, of any building, structure or improvement is the agent of the owner for the purposes of this article, and the owner shall be liable for the reasonable value of labor or materials furnished to his agent.
  3. A person who is required to be licensed as a contractor but who does not hold a valid license as such contractor issued pursuant to title 32, chapter 10 shall not have the lien rights provided for in this section.
  4. A person required to give preliminary twenty day notice pursuant to section 33-992.01 is entitled to enforce the lien rights provided for in this section only if he has given such notice and has made proof of service pursuant to section 33-992.02.
  5. A person who furnishes professional services but who does not hold a valid certificate of registration issued pursuant to title 32, chapter 1 shall not have the lien rights provided for in this section.
  6. A person who furnishes professional services is entitled to enforce the lien rights provided for in this section only if such person has an agreement with the owner of the property or with an architect, an engineer or a contractor who has an agreement with the owner of the property.

Indemnity agreements in construction and architect-engineer dwelling contracts void; definitions

  1. Notwithstanding section 32-1159, a covenant, clause or understanding in, collateral to or affecting a construction contract or architect-engineer professional service contract involving a dwelling that purports to insure, to indemnify or to hold harmless the promisee from or against liability for loss or damage is against the public policy of this state and is void only to the extent that it purports to insure, to indemnify or to hold harmless the promisee from or against liability for loss or damage resulting from the negligence of the promisee or the promisee’s indemnitees, employees, subcontractors, consultants or agents other than the promisor.
  2. Notwithstanding subsection A of this section, a contractor who is responsible for the performance of a construction contract may fully indemnify a person for whose account the construction contract is not being performed and who, as an accommodation, enters into an agreement with the contractor that allows the contractor to enter on or adjacent to its property to perform the construction contract for others.
  3. Any additional insured endorsement furnished pursuant to an agreement or collateral to a construction contract involving a dwelling does not obligate the insurer to indemnify the additional insured for the percentage of fault that is allocated to the additional insured. This subsection does not limit an insurer’s duty to defend an additional insured pursuant to the terms and conditions of an additional insured endorsement.
  4. A covenant, clause or understanding in, collateral to or affecting a construction contract or architect-engineer professional service contract that requires the promisor to defend the promisee is limited to defending claims arising out of or related to the promisor’s work or operations.
  5. This section applies to all construction contracts and architect-engineer professional service contracts involving a dwelling entered into between private parties.
  6. This section does not apply to:
    1. An agreement to which this state or a political subdivision of this state is a party, including an intergovernmental agreement and an agreement governed by sections 34-226 and 41-2586.
    2. Agreements entered into by agricultural improvement districts under title 48, chapter 17.
    3. An agreement for indemnification of a surety on a payment or performance bond by its principal or indemnitors.
    4. An agreement between an insurer under an insurance policy or contract and its named insureds.
    5. An agreement between an insurer under an insurance policy or contract and its additional insureds, except that this type of agreement is subject to the limitations of subsections A, B and C of this section.
    6. An agreement between an insurer and its insureds under a single insurance policy or contract for a defined project or workplace, except that such agreement may not require or allow one or more insureds under the agreement to indemnify, to hold harmless or to defend any other insured under the agreement beyond the limitations of subsections A, B and C of this section.
    7. A public service corporation’s rules, regulations or tariffs that are approved by the corporation commission.
  7. For the purposes of this section:
    1. “Architect-engineer professional service contract” means a written or oral agreement relating to the survey, design, design-build, construction administration, study, evaluation or other professional services furnished in connection with any actual or proposed construction, alteration, repair, maintenance, moving, demolition or excavation of any structure, street or roadway, appurtenance or other development or improvement to land.
    2. “Construction contract” means a written or oral agreement relating to the actual or proposed construction, alteration, repair, maintenance, moving, demolition or excavation of any structure, street or roadway, appurtenance or other development or improvement to land.
    3. “Dwelling” has the same meaning prescribed in section 12-1361.

View all Miscellaneous Statutes statutes.

Identifying common areas; definition

  1. The county assessor shall identify common areas for valuation under this article.
  2. In general, common areas consist of improved or unimproved real property that is intended for the use of owners and residents of a residential subdivision or development and invited guests of the owners or residents and include common beautification areas and common areas used as an airport.  Areas that do not qualify as common areas shall be valued using standard appraisal techniques. The following are not considered to be common areas:
    1. Common elements of a condominium, as defined in section 33-1202.
    2. A golf course, as defined in section 42-13151 and valued pursuant to article 4 of this chapter.
  3. Property must meet all of the following requirements to be considered a common area:
    1. The property must be owned by a nonprofit homeowners’ association, community association or corporation.
    2. The association or corporation must be organized and operated to provide for the maintenance and management of the common area property.
    3. All residential property owners in the development must be required to be and must actually be members of the association or corporation, or must be obligated to pay mandatory assessments to maintain and manage the common areas.
    4. All members of the association or residential property owners in the development, their immediate families and, if provided by rules of the association or corporation, guests must have a right to use and enjoy the common areas.  This right must be appurtenant to and pass with title to each lot and parcel. The association or corporation may assess fees for particular uses of individual common areas.
    5. The common areas must be deeded to the association or corporation.
  4. For purposes of this section “airport” means runways and taxiways that are used primarily by residents of the residential subdivision but that may be designated as a reliever airport by the federal aviation administration and that receives no public funding.

Homeowners’ association dwelling actions; conditions

  1. Notwithstanding any provision to the contrary in title 10, chapter 39 or chapter 9 or 16 of this title and in addition to any requirements prescribed in the community documents of a homeowners’ association, a homeowners’ association may file a homeowners’ association dwelling action only after all of the following have occurred:
    1. The board of directors has provided full disclosure in writing to all members of the association of all material information relating to the filing of the action. The material information shall include a statement that describes the nature of the action and the relief sought including any demands, notices, offers to settle or responses to offers to settle made either by the association or the seller and the expenses and fees that the association anticipates will be incurred, directly or indirectly, in prosecuting the action including attorney fees, consultant fees, expert witness fees, court costs and impacts on the values of the dwellings that are the subject of the action and those that are not. The material information described by this paragraph shall be distributed to all members before the meeting described in paragraph 2 of this subsection occurs.
    2. The association has held a meeting of its members and board of directors for which reasonable and adequate notice was provided to all members in the manner prescribed in section 33-1248 or 33-1804, as applicable.
    3. The board of directors of the homeowners’ association authorizes the filing of the action pursuant to the procedures prescribed in the community documents.  At the time of commencing a dwelling action or amending a complaint to add a cause of action for a construction defect, the homeowners’ association has an affirmative duty to demonstrate compliance with the procedures prescribed in the community documents and the requirements of this section.
    4. The association provides the seller with notice of the alleged construction defects and the right to repair or replace the alleged construction defects pursuant to section 12-1363.
  2. If the notice required by subsection A, paragraph 2 of this section is provided to the homeowners’ association’s members less than sixty days before the expiration of a statute of limitations affecting the right of the association to bring a homeowners’ association dwelling action, the statute of limitations is tolled for sixty days. The homeowners’ association may meet the remaining requirements of subsection A of this section during the tolling period.
  3. Notwithstanding any provision to the contrary in title 10, chapter 39 or in chapter 9 or 16 of this title and in addition to any requirements prescribed in the community documents of a homeowners’ association, the board of directors of a homeowners’ association or its authorized representative shall disclose in writing to the members of the association a plan that describes the manner in which the proceeds of a homeowners’ association dwelling action, whether obtained by way of judgment, settlement or other means, have been or will be allocated. The plan shall be disclosed within thirty days after the association receives the proceeds of any homeowners’ association dwelling action. The plan is not binding on the homeowners’ association, but the board of directors or its authorized representative must disclose any material changes to the plan to the members of the association within thirty days of making the changes.
  4. A homeowners’ association shall prepare and preserve for a period of five years records that are adequate to demonstrate its compliance with this section.
  5. A director who acts in good faith pursuant to this chapter is not liable for any act or failure to act pursuant to this chapter. In any action filed against a director arising out of any act or failure to act pursuant to this chapter, a director is presumed in all cases to have acted in good faith. The burden is on the party challenging a director’s conduct to establish by clear and convincing evidence facts that rebut the good faith presumption.
  6. In any contested dwelling action, the seller has standing to assert a failure of the homeowners’ association to comply with the procedures prescribed by the community documents and the requirements of this section. 

Hearing; rights and procedures

  1. For a dispute between an owner and a condominium association or planned community association that is regulated pursuant to title 33, chapter 9 or 16, the owner or association may petition the department for a hearing concerning violations of condominium documents or planned community documents or violations of the statutes that regulate condominiums or planned communities. The petitioner shall file a petition with the department and pay a filing fee in an amount to be established by the commissioner.  The filing fee shall be deposited in the condominium and planned community hearing office fund established by section 32-2199.05. On dismissal of a petition at the request of the petitioner before a hearing is scheduled or by stipulation of the parties before a hearing is scheduled, the filing fee shall be refunded to the petitioner.  The department does not have jurisdiction to hear:
    1. Any dispute among or between owners to which the association is not a party.
    2. Any dispute between an owner and any person, firm, partnership, corporation, association or other organization that is engaged in the business of designing, constructing or selling a condominium as defined in section 33-1202 or any property or improvements within a planned community as defined in section 33-1802, including any person, firm, partnership, corporation, association or other organization licensed pursuant to this chapter, arising out of or related to the design, construction, condition or sale of the condominium or any property or improvements within a planned community.
  2. The petition shall be in writing on a form approved by the department, shall list the complaints and shall be signed by or on behalf of the persons filing and include their addresses, stating that a hearing is desired, and shall be filed with the department.
  3. On receipt of the petition and the filing fee the department shall mail by certified mail a copy of the petition along with notice to the named respondent that a response is required within twenty days after mailing of the petition showing cause, if any, why the petition should be dismissed.
  4. After receiving the response, the commissioner or the  commissioner’s designee shall promptly review the petition for hearing and, if justified, refer the petition to the office of administrative hearings. The commissioner may dismiss a petition for hearing if it appears to the commissioner’s satisfaction that the disputed issue or issues have been resolved by the parties.
  5. Failure of the respondent to answer is deemed an admission of the allegations made in the petition, and the commissioner shall issue a default decision.
  6. Informal disposition may be made of any contested case.
  7. Either party or the party’s authorized agent may inspect any file of the department that pertains to the hearing, if the authorization is filed in writing with the department.
  8. At a hearing conducted pursuant to this section, a corporation may be represented by a corporate officer, employee or contractor of the corporation who is not a member of the state bar if:
    1. The corporation has specifically authorized the officer, employee or contractor of the corporation to represent it.
    2. The representation is not the officer’s, employee’s or contractor of the corporation’s primary duty to the corporation but is secondary or incidental to the officer’s, employee’s or contractor of the corporation’s, limited liability company’s, limited liability partnership’s, sole proprietor’s or other lawfully formed and operating entity’s duties relating to the management or operation of the corporation.

For sale signs; restrictions unenforceable

  1. A covenant, restriction or condition contained in any deed, contract, security agreement or other instrument affecting the transfer or sale of any interest in real property shall not be applied to prohibit the indoor or outdoor display of a for sale sign and a sign rider by a property owner on that person’s property, including a sign that indicates the person is offering the property for sale by owner.  The size of a sign offering a property for sale shall be in conformance with the industry standard size sign, which shall not exceed eighteen by twenty-four inches, and the industry standard size sign rider, which shall not exceed six by twenty-four inches.
  2. This section applies to any covenant, restriction or condition without regard to the date the covenant, restriction or condition was created, signed or recorded.  This section does not apply to timeshare property and timeshare interest as defined in section 33-2202.
  3. This section does not apply to a covenant, restriction or condition in a deed, contract, security agreement or other instrument affecting the transfer or sale of an interest in real property that does not prohibit or restrict the display of a for sale sign or a sign rider on the real property.

False documents; liability; special action; damages; violation; classification

  1. A person purporting to claim an interest in, or a lien or encumbrance against, real property, who causes a document asserting such claim to be recorded in the office of the county recorder, knowing or having reason to know that the document is forged, groundless, contains a material misstatement or false claim or is otherwise invalid is liable to the owner or beneficial title holder of the real property for the sum of not less than five thousand dollars, or for treble the actual damages caused by the recording, whichever is greater, and reasonable attorney fees and costs of the action.
  2. The owner or beneficial title holder of the real property may bring an action pursuant to this section in the superior court in the county in which the real property is located for such relief as is required to immediately clear title to the real property as provided for in the rules of procedure for special actions. This special action may be brought based on the ground that the lien is forged, groundless, contains a material misstatement or false claim or is otherwise invalid. The owner or beneficial title holder may bring a separate special action to clear title to the real property or join such action with an action for damages as described in this section. In either case, the owner or beneficial title holder may recover reasonable attorney fees and costs of the action if he prevails.
  3. A person who is named in a document which purports to create an interest in, or a lien or encumbrance against, real property and who knows that the document is forged, groundless, contains a material misstatement or false claim or is otherwise invalid shall be liable to the owner or title holder for the sum of not less than one thousand dollars, or for treble actual damages, whichever is greater, and reasonable attorney fees and costs as provided in this section, if he wilfully refuses to release or correct such document of record within twenty days from the date of a written request from the owner or beneficial title holder of the real property.
  4. A document purporting to create an interest in, or a lien or encumbrance against, real property not authorized by statute, judgment or other specific legal authority is presumed to be groundless and invalid.
  5. A person purporting to claim an interest in, or a lien or encumbrance against, real property, who causes a document asserting such claim to be recorded in the office of the county recorder, knowing or having reason to know that the document is forged, groundless, contains a material misstatement or false claim or is otherwise invalid is guilty of a class 1 misdemeanor.

Enforceability of private covenants; amendment of declaration; definitions

  1. An owner of real property may enter into a private covenant regarding that real property and the private covenant is valid and enforceable according to its terms if all of the following apply:
    1. The private covenant is not prohibited by any other existing private covenant or declaration affecting the real property and does not violate any statute governing the subject matter of the private covenant that is in effect before September 26, 2008.
    2. The owner of the real property affected by the private covenant and any person on whom the private covenant imposes any liability or obligation have consented to the private covenant.
    3. Any consent requirements contained in the express provisions of any existing private covenant or declaration affecting the real property have been met.
  2. A private covenant is deemed not to constitute an amendment to any existing private covenant or declaration unless the private covenant expressly violates an express provision of the existing private covenant or declaration.
  3. Except during the period of declarant control, or if during the period of declarant control with the written consent of the declarant in each instance, the following apply to an amendment to a declaration:
    1. The declaration may be amended by the association, if any, or, if there is no association or board, the owners of the property that is subject to the declaration, by an affirmative vote or written consent of the number of owners or eligible voters specified in the declaration, including the assent of any individuals or entities that are specified in the declaration.
    2. An amendment to a declaration may apply to fewer than all of the lots or less than all of the property that is bound by the declaration and an amendment is deemed to conform to the general design and plan of the community, if both of the following apply:
      1. The amendment receives the affirmative vote or written consent of the number of owners or eligible voters specified in the declaration, including the assent of any individuals or entities that are specified in the declaration.
      2. The amendment receives the affirmative vote or written consent of all of the owners of the lots or property to which the amendment applies.
    3. Within thirty days after the adoption of any amendment pursuant to this subsection, the association or, if there is no association or board, a property owner that is authorized by the affirmative vote on or the written consent to the amendment shall prepare, execute and record a written instrument setting forth the amendment.
    4. Notwithstanding any provision in the declaration that provides for periodic renewal of the declaration, an amendment to the declaration is effective immediately on recordation of the instrument in the county in which the property is located.
  4. Subsection C of this section does not apply to a condominium as defined in section 33-1202 or a timeshare plan or association as defined in section 33-2202.
  5. For the purposes of this section:
    1. “Declaration” means any instrument, however denominated, that establishes restrictive covenants on the development or use of real property.
    2. “Private covenant” means any uniform or nonuniform covenant, restriction or condition regarding real property that is contained in any deed, contract, agreement or other recorded instrument affecting real property.