Establishes notice and settlement procedures before an owner may file a suit under this cause of action. An example of a structural defect is a cracked foundation while workmanship or habitation problems would include leaky plumbing, improperly installed windows or faulty insulation.
Structural defects are far more serious, but less common than habitation or workmanship defects.
As a matter of current legal practice, individuals or homeowners associations may sue homebuilders for such defects under a number of different causes of action including strict liability, negligence, negligent misrepresentation and fraud. The traditional and most common cause of action in Arizona, however, is a breach of contract relating to an implied warranty of habitability. This legislation seeks to codify this cause of action and preempt large scale lawsuits against homebuilders brought by homeowners associations. Proponents of S.B. 1401 argue that neighboring California has been deluged by such suits, the result of which is less affordable housing and higher insurance rates. Provisions Implied Warranty 1.