- 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:
- Any dispute among or between owners to which the association is not a party.
- 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.
- 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.
- 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.
- 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.
- 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.
- Informal disposition may be made of any contested case.
- 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.
- 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:
- The corporation has specifically authorized the officer, employee or contractor of the corporation to represent it.
- 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.
Section: Miscellaneous Statutes
Administrative adjudication of complaints
Pursuant to title 41, chapter 6, article 10, an administrative law judge shall adjudicate complaints regarding and ensure compliance with:
- Title 33, chapter 9 and condominium documents.
- Title 33, chapter 16 and planned community documents.
Indemnity agreements in construction and architect-engineer dwelling contracts void; definitions
- 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.
- 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.
- 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.
- 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.
- This section applies to all construction contracts and architect-engineer professional service contracts involving a dwelling entered into between private parties.
- This section does not apply to:
- 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.
- Agreements entered into by agricultural improvement districts under title 48, chapter 17.
- An agreement for indemnification of a surety on a payment or performance bond by its principal or indemnitors.
- An agreement between an insurer under an insurance policy or contract and its named insureds.
- 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.
- 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.
- A public service corporation’s rules, regulations or tariffs that are approved by the corporation commission.
- For the purposes of this section:
- “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.
- “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.
- “Dwelling” has the same meaning prescribed in section 12-1361.
View all Miscellaneous Statutes statutes.
Parties; representation
- Any natural person, corporation, partnership, association, marital community or other organization may commence or defend a small claims action, but an assignee or other person not a real party to the original transaction giving rise to the action may not commence an action except as a personal representative duly appointed pursuant to a proceeding as provided in title 14.
- In a small claims action:
- An individual shall represent himself.
- Either spouse or both may represent a marital community.
- An active general partner or an authorized full-time employee shall represent a partnership.
- A full-time officer or authorized employee shall represent a corporation.
- An active member or an authorized full-time employee shall represent an association.
- Any other organization or entity shall be represented by one of its active members or authorized full-time employees.
- An attorney-at-law shall not appear or take any part in the filing or prosecution or defense of any matter designated as a small claim.
- For an association as defined in section 33-1202 or 33-1802 that has employees or that is contracted with a corporation, limited liability company, limited liability partnership, sole proprietor or other lawfully formed and operating entity that provides management services to the association, the employees of the association and the management company and its officers and employees may lawfully act on behalf of the association and its board of directors by:
- Recording a notice of lien or notice of claim of lien of the association against an owner’s property in a condominium or planned community if all of the following apply:
- The association employee or the management company is specifically authorized in writing by the association to record notices of lien or notices of claim of lien on behalf of the association and the officer or employee is a certified legal document preparer as prescribed in the Arizona code of judicial administration.
- The association is the original party to the lien and the lien right is not the result of an assignment of rights.
- The lien right exists by operation of law pursuant to section 33-1256 or 33-1807 and is not the result of obtaining a final judgment in an action to which the association is a party.
- Appearing on behalf of the association in a small claims action if all of the following apply:
- The employee of the association or the management company is specifically authorized in writing by the association to appear on behalf of the association.
- The association is an original party to the small claims action.
- Recording a notice of lien or notice of claim of lien of the association against an owner’s property in a condominium or planned community if all of the following apply:
- Notwithstanding subsection B of this section, at any time before the hearing, the parties may stipulate by written agreement to the participation of attorneys in actions designated as small claims.
- This section is not intended to limit or otherwise interfere with a party’s right to assign or to employ counsel to pursue the party’s rights and remedies subsequent to the entry of judgment in a small claims action.
- Attorneys-at-law may represent themselves in propria persona.
- The prevailing party in a small claims action may assign a monetary judgment to another person that is licensed in this state to collect debts and that may appear in the small claims court as the prevailing party only for the purpose of enforcing the judgment. A person that is assigned a judgment for collection does not represent the prevailing party but shall be treated by the small claims court as the prevailing party for all actions that relate to enforcing the judgment.
Political signs; printed materials; tampering; violation; classification
- It is a class 2 misdemeanor for any person to knowingly remove, alter, deface or cover any political sign of any candidate for public office or in support of or opposition to any ballot measure, question or issue or knowingly remove, alter or deface any political mailers, handouts, flyers or other printed materials of a candidate or in support of or opposition to any ballot measure, question or issue that are delivered by hand to a residence for the period commencing forty-five days before a primary election and ending fifteen days after the general election, except that for a sign for a candidate in a primary election who does not advance to the general election, the period ends fifteen days after the primary election.
- This section does not apply to the removal, alteration, defacing or covering of a political sign or other printed materials by the candidate or the authorized agent of the candidate in support of whose election the sign or materials were placed, by a person authorized by the committee in support of or opposition to a ballot measure, question or issue that provided the sign or printed materials, by the owner or authorized agent of the owner of private property on which such signs or printed materials are placed with or without permission of the owner or placed in violation of state law or county, city or town ordinance or regulation.
- Notwithstanding any other statute, ordinance or regulation, a city, town or county of this state shall not remove, alter, deface or cover any political sign if the following conditions are met:
- The sign is placed in a public right-of-way that is owned or controlled by that jurisdiction.
- The sign supports or opposes a candidate for public office or it supports or opposes a ballot measure.
- The sign is not placed in a location that is hazardous to public safety, obstructs clear vision in the area or interferes with the requirements of the Americans with disabilities act (42 United States Code sections 12101 through 12213 and 47 United States Code sections 225 and 611).
- The sign has a maximum area of sixteen square feet, if the sign is located in an area zoned for residential use, or a maximum area of thirty-two square feet if the sign is located in any other area.
- The sign contains the name and telephone number or website address of the candidate or campaign committee contact person.
- If the city, town or county deems that the placement of a political sign constitutes an emergency, the jurisdiction may immediately relocate the sign. The jurisdiction shall notify the candidate or campaign committee that placed the sign within twenty-four hours after the relocation. If a sign is placed in violation of subsection C of this section and the placement is not deemed to constitute an emergency, the city, town or county may notify the candidate or campaign committee that placed the sign of the violation. If the sign remains in violation at least twenty-four hours after the jurisdiction notified the candidate or campaign committee, the jurisdiction may remove the sign. The jurisdiction shall contact the candidate or campaign committee contact and shall retain the sign for at least ten business days to allow the candidate or campaign committee to retrieve the sign without penalty.
- A city, town or county employee acting within the scope of the employee’s employment is not liable for an injury caused by the failure to remove a sign pursuant to subsection D of this section unless the employee intended to cause injury or was grossly negligent.
- Subsection C of this section does not apply to commercial tourism, commercial resort and hotel sign free zones as those zones are designated by municipalities. The total area of those zones shall not be larger than three square miles, and each zone shall be identified as a specific contiguous area where, by resolution of the municipal governing body, the municipality has determined that based on a predominance of commercial tourism, resort and hotel uses within the zone the placement of political signs within the rights-of-way in the zone will detract from the scenic and aesthetic appeal of the area within the zone and deter its appeal to tourists. Not more than two zones may be identified within a municipality.
- A city, town or county may prohibit the installation of a sign on any structure owned by the jurisdiction.
- Subsection C of this section applies only during the period commencing seventy-one days before a primary election and ending fifteen days after the general election, except that for a sign for a candidate in a primary election who does not advance to the general election, the period ends fifteen days after the primary election.
- This section does not apply to state highways or routes, or overpasses over those state highways or routes.
Applicability; claims and actions
- This article does not apply:
- To personal injury claims.
- To death claims.
- To claims for damage to property other than a dwelling.
- To common law fraud claims.
- To proceedings brought pursuant to title 32, chapter 10.
- To claims solely seeking recovery of monies expended for repairs to alleged defects that have been repaired by the purchaser.
- A dwelling action brought by an association is also subject to title 33, chapter 18.
- After the repair or replacement process has been completed as prescribed by section 12-1363, this article does not affect either party’s ability to enforce any commercially reasonable alternative dispute resolution procedures contained in the contract for the sale of the dwelling or an association’s community documents. The seller’s election to enforce any commercially reasonable alternative dispute resolution procedures contained in the contract for the sale of the dwelling or an association’s community documents does not negate, abridge or otherwise reduce the seller’s right to repair or replace any alleged construction defects pursuant to section 12-1363. If the contract for the sale of a dwelling contains the procedures, the procedures shall conspicuously appear in the contract in bold and capital letters and a disclosure statement in at least twelve-point font, bold and capital letters shall appear on the face of the contract and shall describe the location of the alternative dispute resolution procedures within the contract.
Notification; right to file a complaint with the registrar of contractors
- A written contract for the sale of a newly constructed dwelling between a buyer of a newly constructed dwelling and the seller responsible for the original construction of the dwelling shall contain, or provide separate notice of, the following provision:
- Under Arizona Revised Statutes section 32-1155, a buyer of a dwelling has the right to file a written complaint against the homebuilder with the Arizona registrar of contractors within two years after the close of escrow or actual occupancy, whichever occurs first, for the commission of an act in violation of Arizona Revised Statutes section 32-1154, subsection A.
- The notice required in subsection A of this section shall be prominently displayed and appear in at least ten point bold type.
- The buyer of the dwelling is not deemed to have received the notice required pursuant to subsection A of this section unless the buyer initials the notice provision.
Dwelling actions; contested issues; attorney fees and taxable costs; expert witness fees; definitions
- In a contested dwelling action, the court or tribunal may award the prevailing party with respect to a contested issue reasonable attorney fees and taxable costs. A purchaser is deemed the prevailing party with respect to a contested issue if the relief obtained by the purchaser for that contested issue, exclusive of any fees and taxable costs, is more favorable than the repairs or replacements and offers made by the seller before the purchaser filed a dwelling action pursuant to section 12-1363. The seller is deemed the prevailing party with respect to a contested issue if the relief obtained by the purchaser for that contested issue, exclusive of any fees and taxable costs, is not more favorable than the repairs or replacements and offers made by the seller before the purchaser filed a dwelling action pursuant to section 12-1363.
- An award of attorney fees pursuant to this section is limited to the amount of fees actually and reasonably incurred with respect to the contested issue for which the party has been deemed the prevailing party. In determining whether the fees actually incurred with respect to a contested issue are reasonable, the court or tribunal shall consider all of the following:
- The repairs, replacements or offers made by the seller, if any, before the purchaser filed the dwelling action pursuant to section 12-1363.
- The purchaser’s response to the seller’s repairs, replacements or offers made or proposed, if any, before the purchaser filed the dwelling action pursuant to section 12-1363.
- The relation between the fees incurred over the duration of the dwelling action and the value of the relief obtained with respect to the contested issue.
- The amount of fees incurred in responding to any unsuccessful motions, claims and defenses during the duration of the dwelling action.
- This section does not alter, prohibit or restrict present or future contracts that may provide for attorney fees or expert witness fees.
- Notwithstanding any other law, in a contested dwelling action that involves a single purchaser, the court or tribunal may award the prevailing party with respect to the contested issue reasonable expert witness fees. The determination of the prevailing party and the reasonableness of the expert witness fees shall be made using the same criteria used in determining the award of attorney fees pursuant to subsections A and B of this section. This subsection does not apply to a dwelling action that involves more than one purchaser or an action that is consolidated with any other dwelling action. The expert witness fees prescribed in this subsection are in addition to the taxable costs authorized by section 12-332.
- For the purposes of this section:
- “Contested issue” means an issue that relates to an alleged construction defect and that is contested by a purchaser following the conclusion of the repair and replacement procedures prescribed in section 12-1363.
- “Purchaser” means any person or entity, including the current owner of the dwelling, who files a dwelling action during the time period described in section 12-552.
Notice and right to repair or replace; tolling of time limits; admissible evidence; definition
- 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.
- 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.
- 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.
- If the seller does not provide a written response to the purchaser’s notice within sixty days, the purchaser may file a dwelling action.
- 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:
- 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.
- 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.
- 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.
- The purchaser shall provide reasonable access for the repairs or replacements.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- By written agreement of the seller and purchaser, the time periods provided in this section may be extended.
- 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.
- 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.
- 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.
- 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.
- For the purposes of this section, “reasonable detail” includes all of the following:
- 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.
- The location that each alleged construction defect has been observed by the purchaser in each dwelling that is the subject of the notice.
- 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.
- The street address for each dwelling that is the subject of the notice.
Dwelling action; notice of intent to repair or replace; jurisdictional prerequisite; insurance; bifurcated trial; legislative intent
- Except with respect to claims for alleged construction defects involving an immediate threat to the life or safety of persons occupying or visiting the dwelling, a purchaser must first comply with this article before filing a dwelling action.
- A seller and the seller’s construction professional who receive a written notice of claim pursuant to section 12-1363 have a right pursuant to section 12-1363 to repair or replace any alleged construction defects after sending or delivering to the purchaser a written notice of intent to repair or replace the alleged construction defects. The seller and the seller’s construction professional do not need to repair or replace all of the alleged construction defects. A purchaser may not file a dwelling action until the seller and the seller’s construction professional have completed all intended repairs and replacements of the alleged construction defects.
- If a seller or a seller’s construction professional presents a notice received pursuant to section 12-1363 to an insurer that has issued an insurance policy to the seller or the seller’s construction professional that covers the seller’s or the seller’s construction professional’s liability arising out of a construction defect or the design, construction or sale of the property that is the subject of the notice, the insurer must treat the notice as a notice of a claim subject to the terms and conditions of the policy of insurance. An insurer must work cooperatively and in good faith with the insured seller or the seller’s construction professional within the time frames specified in this article to effectuate the purpose of this article. This subsection does not affect the coverage available under the policy of insurance or create a cause of action against an insurer whose actions were reasonable under the circumstances, notwithstanding its inability to comply with the time frames specified in section 12-1363.
- Subject to Arizona rules of court, the identified construction professionals shall be joined as third-party defendants, if feasible. Subject to Arizona rules of court, for each construction defect found to exist, the trier of fact in any dwelling action filed pursuant to this article shall first determine if a construction defect exists and the amount of damages caused by the defect and identify each seller or construction professional whose conduct, whether by action or omission, may have caused, in whole or in part, any construction defect. The purchaser has the burden of proof to demonstrate the existence of a construction defect and the amount of the damages caused by the construction defect. The trier of fact shall thereafter determine the relative degree of fault of any defendant or third-party defendant. The trier of fact shall allocate the pro rata share of liability based on relative degree of fault. The seller has the burden to prove the pro rata share of liability of any third-party defendant. The determination of whether a construction defect exists, the amount of damages caused by the construction defect and who may have caused, in whole or in part, the construction defect shall be bifurcated from and take place in a separate phase of the trial or alternative dispute resolution process from the determination of the relative degree of fault of any defendant or third-party defendant, unless the court finds that bifurcation is not appropriate.
- The legislature finds and determines that given the complexity and multiparty nature of dwelling actions, it is important to provide a streamlined process for the resolution of construction defect claims and indemnification claims between the seller and the construction professionals that is efficient, economical and convenient for the parties involved. The legislature further finds and determines that for the majority of dwelling actions, bifurcation of the issues of the existence of a defect and causation from the issue of apportionment of fault is more efficient, fair and convenient for the parties. It is the legislature’s intent that the bifurcation process prescribed in subsection D of this section does not alter the seller’s liability under the seller’s implied warranty to the purchaser. It is the legislature’s intent that the bifurcation process prescribed in subsection D of this section be used and that the issues of existence of a construction defect, damages, causation and apportionment of fault be tried in one trial unless the court finds that the circumstances of the particular case at issue render bifurcation inappropriate.
Definitions
In this article, unless the context otherwise requires:
- “Association” means either of the following:
- The unit owners’ association organized under section 33-1241.
- A nonprofit corporation or unincorporated association of owners created pursuant to a declaration to own and operate portions of a planned community and which has the power under the declaration to assess association members to pay the costs and expenses incurred in the performance of the association’s obligations under the declaration.
- “Community documents” means the declaration, bylaws, articles of incorporation, if any, and rules, if any.
- “Construction codes” means the building, plumbing, electrical, fire, mechanical or other codes or ordinances, including the international residential code however denominated, as adopted, amended and enforced by the city, town or county in which the dwelling is located.
- “Construction defect” means a material deficiency in the design, construction, manufacture, repair, alteration, remodeling or landscaping of a dwelling that is the result of one of the following:
- A violation of construction codes applicable to the construction of the dwelling.
- The use of defective materials, products, components or equipment in the design, construction, manufacture, repair, alteration, remodeling or landscaping of the dwelling.
- The failure to adhere to generally accepted workmanship standards in the community.
- “Construction professional” means an architect, contractor, subcontractor, developer, builder, builder vendor, supplier, engineer or inspector performing or furnishing the design, supervision, inspection, construction or observation of the construction of any improvement to real property.
- “Dwelling” means a single or multifamily unit designed for residential use and common areas and improvements that are owned or maintained by an association or by members of an association. A dwelling includes the systems, other components and improvements that are part of a single or multifamily unit at the time of construction.
- “Dwelling action” means any action involving a construction defect brought by a purchaser against the seller of a dwelling arising out of or related to the design, construction, condition or sale of the dwelling.
- “Material deficiency” means a deficiency that actually impairs the structural integrity, the functionality or the appearance of the dwelling at the time of the claim, or is reasonably likely to actually impair the structural integrity, the functionality or the appearance of the dwelling in the foreseeable future if not repaired or replaced.
- “Purchaser” means any person or entity who files a dwelling action.
- “Seller” means any person, firm, partnership, corporation, association or other organization that is engaged in the business of designing, constructing or selling dwellings, including construction professionals. Seller does not include a real estate broker or real estate salesperson as defined in section 32-2101 who provides services in connection with the resale of a dwelling following its initial sale.
Nuisance; applicability; residential property used for crime; action to abate and prevent; notice; definitions
- Residential property that is regularly used in the commission of a crime is a nuisance, and the criminal activity causing the nuisance shall be enjoined, abated and prevented.
- If there is reason to believe that a nuisance as described in subsection A of this section exists, the attorney general, the county attorney, the city attorney, an association of homeowners or property owners established by a recorded contract or other declaration, including a condominium association as defined in section 33-1202 and a planned community association as defined in section 33-1802, or a resident of a county or city who is affected by the nuisance may bring an action in superior court against the owner, the owner’s managing agent or any other party responsible for the property to abate and prevent the criminal activity.
- The court shall not assess a civil penalty against any person unless that person knew or had reason to know of the criminal activity.
- An injunction that is ordered pursuant to this article shall be necessary to protect the health and safety of the public or prevent further criminal activity.
- An order shall not affect the owner’s interest in the property unless all of the following apply:
- The owner is a defendant in the action.
- The owner knew of the criminal activity.
- The owner failed to take reasonable, legally available actions to abate the nuisance.
- If the owner, the owner’s managing agent or the party responsible for the property knows or has reason to know of the criminal activity and fails to take reasonable, legally available actions to abate the nuisance, a governmental authority may abate the nuisance. The court may assess the owner for the cost of abating the nuisance. On recording with the county recorder in the county in which the property is located, the assessment is prior to all other liens, obligations or encumbrances except for prior recorded mortgages, restitution liens, child support liens and general tax liens. A city, town or county may bring an action to enforce the assessment in the superior court in the county in which the property is located.
- For purposes of this section, an owner, the owner’s managing agent or the party responsible for the property is deemed to know or have reason to know of the nuisance if the owner, the owner’s managing agent or the party responsible for the property has received notice from a governmental authority of documented reports of criminal offenses occurring on the residential property.
- A law enforcement agency, a city attorney, a county attorney, the attorney general or any other person who is at least twenty-one years of age may serve the notice provided for in subsection G of this section, either personally or by certified mail. If personal service or service by certified mail cannot be completed or the address of the person to be notified is unknown, notice may be served by publishing the notice three times within ten consecutive days in a newspaper of general circulation in the county in which the property is located. In all cases a copy of the notice shall be posted on the premises where the nuisance exists.
- The notice shall be printed in at least twelve-point type in substantially the following form:
- Notice
- This is formal notice that the property at (insert address and unit number if applicable) has had (insert number of) arrests or (insert number of) documented reports of alleged criminal activity and is considered a nuisance under section 12-991, Arizona Revised Statutes. A copy of the police report numbers is attached. Police reports are available at (insert applicable police agency).
- Within five business days you must begin to take action that is legally available to you to abate the nuisance from the property. If you fail to do so, a restraining order to abate and prevent continuing or recurring criminal activity will be pursued.
- If you fail to cooperate to abate the nuisance, the appropriate authorities will abate the nuisance and their costs will be a lien on the property.
- You may contact (local agency) in order to obtain information on how to abate the nuisance.
- For the purposes of this article:
- “Owner” means a person or persons or a legal entity listed as the current title holder as recorded in the official records of the county recorder in the county in which the title is recorded.
- “Owner’s managing agent” means a person, corporation, partnership or limited liability company that is authorized by the owner to operate and manage the property.