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Legal changes affect Arizona construction transactions


New developments happen often in the construction world. More energy-efficient building methods are developed, advancements are made in heating and cooling systems, and new building designs emerge. Similarly, legal developments also occur that may affect Arizona construction law and the transactions that occur between buyer and seller.

An Arizona legislative amendment, effective July 3, 2015, affects procedural requirements regarding remedying construction defects. Under the law now in effect, a seller is allowed to repair or replace alleged construction defects, after receipt of the buyer's initial notice, and after notifying the buyer of their intent to do so.

A buyer cannot file a dwelling action until the seller has finished all the repairs that he or she intended to complete, though the seller does not have to repair all the alleged construction defects. Additionally, if a seller notifies the buyer that he or she intends to repair or replace certain alleged defects, the buyer must allow the seller to do so within a reasonable time period. This includes coordinating repairs or replacements 30 days after the seller's notice was sent.

How the buyer and seller navigate their relationship with each other could prove important, as their conduct may be evidence in the event a dwelling action results following the conclusion of any repairs or replacements by the seller.

Negotiations are common between builder and homeowner, and it is important that both sides have the opportunity to create the product that was intended in the initial contract negotiations. If you believe you may be facing a potential construction dispute over possible construction defects, it may be beneficial to seek legal counsel to ensure that you follow the necessary, and legally required, steps so that a project is properly completed and your rights are protected in a construction transaction.

Source: The National Law Review, "2015 Arizona Legislative Amendments Affecting Real Estate Lending," May 13, 2015

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