{"id":901217,"date":"2023-05-25T10:01:56","date_gmt":"2023-05-25T16:01:56","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=901217"},"modified":"2023-05-25T10:01:59","modified_gmt":"2023-05-25T16:01:59","slug":"implied-warranty-of-workmanship-and-habitability-cannot-be-waived","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/implied-warranty-of-workmanship-and-habitability-cannot-be-waived\/","title":{"rendered":"Arizona\u2019s Implied Warranty of Workmanship and Habitability Cannot Be Disclaimed or Waived Under Any Circumstance"},"content":{"rendered":"\n<p>Jason Feld and Stephanie Wilson | <a href=\"https:\/\/kahanafeld.com\/2023\/04\/28\/arizonas-implied-warranty-of-workmanship-and-habitability-cannot-be-disclaimed-or-waived-under-any-circumstance\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Kahana Feld<\/a><\/p>\n\n\n\n<p>Arizona residential construction and single-family home production is growing at a rapid pace. And just as fast as the homes are sold, homeowners are constantly seeking warranty repairs from their homebuilders. Despite having strong purchase documents with express warranty language, the Arizona Supreme Court in\u00a0<a href=\"https:\/\/law.justia.com\/cases\/arizona\/supreme-court\/2022\/cv-21-0205-pr.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><em>Zambrano v. M &amp; RC, II LLC,<\/em>\u00a0254 Ariz. 53 (2022)<\/a>\u00a0adopted a bright line rule that regardless of the contract, the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/implied-warranty-workmanship-habitability-arizona\/\" target=\"_blank\" rel=\"noreferrer noopener\">implied warranty of workmanship and habitability<\/a> (\u201cimplied warranty\u201d) cannot be disclaimed or waived under any circumstance. \u00a0The Arizona Supreme Court opinion provides clear guidance of the law in this area on the scope of the implied warranty in contracts between homebuyers and builder\/vendors, specifically on the issue of whether an express warranty can negate and effectively waive the common law implied warranty \u2013 which is a definitive violation of public policy.<\/p>\n\n\n\n<p>The&nbsp;<em>Zambrano&nbsp;<\/em><em>decision<\/em><em>&nbsp;<\/em>involved a licensed real estate broker who bought a new single family home for herself in a newly constructed master planned community in Surprise, AZ. Zambrano entered into a valid sales contract with Scott Homes (homebuilder) which contained a stand-alone 45-page pre-printed form express warranty.&nbsp;The express warranty was to be the&nbsp;<strong><em>\u201conly warranty applicable to the home.\u201d<\/em><\/strong>&nbsp;&nbsp;The contract further clarified that the buyer was expressly disclaiming (and, thus, waiving) the implied warranty.&nbsp;The sales documents and express warranty were signed and authorized by Zambrano. A short time later, the home developed alleged \u201cdesign and construction defects\u201d that were \u201ceither time barred or outside the coverage\u201d of the express warranty. Zambrano filed suit for the alleged defects based on the implied warranty. Scott Homes filed summary judgment based on the Zambrano\u2019s waiver and disclaimer of the implied warranty in the purchase agreement. The trial court granted summary judgment and the matter was appealed up to the Arizona Supreme Court.<\/p>\n\n\n\n<p>The Arizona Supreme Court decided the issue if an express warranty can essentially trump the common law implied warranty. The Court adopted a bright line rule holding that any disclaimer or waiver of the implied warranty&nbsp;<strong><em>is unenforceable as matter of law and as a matter of public policy<\/em><\/strong><em>.&nbsp;<\/em>The Court further held that the implied warranty could not be disclaimed or waived unless and until the Arizona legislature expressly declared it to be a right that buyers could waive or disclaim. The Court concluded that \u201c[e]enforcing the disclaimer and waiver here would grievously injure homebuyers and the public welfare as doing so would likely spell the end of the implied warranty . . . .\u201d&nbsp;&nbsp; The Court acknowledged that it had \u201cconsidered leaving open the possibility that a sophisticated homebuyer in some settings could negotiate to waive the implied warranty,\u201d but rejected \u201cthat idea.\u201d&nbsp;&nbsp;The Court observed that \u201cit would be next to impossible for courts to decide whether a homebuyer was sophisticated enough\u201d and the Court nevertheless concluded that \u201ceven sophisticated homebuyers need the protection offered by the implied warranty.\u201d&nbsp;<\/p>\n\n\n\n<p>Interestingly, the dissent relied upon long-established public policy behind the freedom to contract and a \u201csophisticated\u201d homebuyer who \u201cseeks to purchase a customized home that presents specific risks for which the homebuyer prefers to negotiate unique coverage in an express warranty.\u201d The dissent went further to state \u201ca homebuyer who prefers a contractual term that is less protective than the implied warranty as to one section or component of the home, in exchange for greater and broader protection in another area of the home,\u201d and a homebuyer who \u201cnegotiate[s] a reduced purchase price in exchange for a warranty more limited than the implied warranty.\u201d&nbsp;However, the majority of the Court emphatically deferred any change in the law on circumventing the common law and public policy implications of implied warranty to the legislature.<\/p>\n\n\n\n<p>The major take-away is that without legislative intervention, the implied warranty cannot be waived, disclaimed or modified under any circumstances in Arizona irrespective of a valid contract and express warranty.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\" target=\"_blank\" rel=\"noreferrer noopener\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jason Feld and Stephanie Wilson | Kahana Feld Arizona residential construction and single-family home production is growing at a rapid pace. And just as fast as the homes are sold, homeowners are constantly seeking warranty repairs from their homebuilders. Despite having strong purchase documents with express warranty language, the Arizona Supreme Court in\u00a0Zambrano v. M&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/implied-warranty-of-workmanship-and-habitability-cannot-be-waived\/\">Continue reading <span class=\"screen-reader-text\">Arizona\u2019s Implied Warranty of Workmanship and Habitability Cannot Be Disclaimed or Waived Under Any Circumstance<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,153,224,9313],"class_list":["post-901217","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-arizona","tag-construction-contract","tag-implied-warranty-of-workmanship-and-habitability","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Arizona\u2019s Implied Warranty of Workmanship and Habitability Cannot Be Disclaimed or Waived Under Any Circumstance - Advise &amp; 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