FAQ - WORKMANSHIP WARRANTY DURATION (FOR ARIZONA) - NEW CONSTRUCTION DEFECT CLAIMS
QUESTION: Is it true that
the builder who builds a new home or remodels or repairs a home only has to
stand behind his or her work for only two years in Arizona?
ANSWER: No. The builder in Arizona must sand behind his or her product for a minimum of 6 years, but no more than 8 years if first discovered after the 6th year, or else he or she is in breach of the implied warranties in contract set forth, above. He or she is also liable in a joint claim of negligence for 2 years AFTER DISCOVERY.
DISCUSSION: There are three relevant statutes of limitations. The first, torts, like negligence, is governed by ARS 12-542, and is a two year statute.
The second, contract, is six years pursuant to ARS 12-548, but subject to discovery and the ultimate repose statutes above, which has yet to be totally tested.
The third is ARS 12-552, which provides a limitation of eight years after substantial completion of improvement to real property. However, if the injury occurs in the eighth year (or was not discovered until then), an action may be brought within one year after the date of the injury or discovery of the latent defect. The cases above seem to extend that to be from the time the cause of action accrued by the failure of the component, though this is still not entirely clear in Arizona. This section covers implied warranties in contract.