3 days ago
Can a homebuilder decide what to exclude from a home warranty in Arizona?
Question: We bought a new home on a view lot near North Mountain. After we moved in, we immediately began having problems with the sprinkler system and other exterior water lines. We have a two-year written warranty from our homebuilder, so we expected that our homebuilder would do the necessary repairs. When we contacted them, our homebuilder's representative came to our home. He showed us language in our two-year written warranty that specifically excluded 'exterior' water lines. Why would 'interior' water lines be warranted, but not 'exterior' water lines? Is that language enforceable?
Answer: Probably not. Under ARS 12-552 a homebuilder by law impliedly warrants ALL construction of a new home for eight years. A homebuilder, however, can acquire an insurance policy which has limited coverage, but that doesn't limit the homebuilder's ARS 12-552 warranty. Note: Under English common law, a homebuilder of a castle or a cottage gave a lifetime warranty. After an Arizona homebuilder was held liable for defective stucco 12 years after the home was built, the Arizona Legislature passed ARS 12-552 with the eight-year limitation of liability.
This article originally appeared on Arizona Republic: Can a homebuilder make exclusions in a home warranty in Arizona?
