SB1450 - 572R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 12-552, Arizona Revised Statutes, is amended to read:

START_STATUTE12-552. Actions involving development of real property design, engineering and construction of improvements

A. Notwithstanding any other statute and except as prescribed by subsections B and f of this section, an action or arbitration based in contract may not be instituted or maintained against a person who develops or develops and sells real property, or performs or furnishes the design, specifications, surveying, planning, supervision, testing, construction or observation of construction of an improvement to real property more than eight years after substantial completion of the improvement to real property.

B. Notwithstanding any other statute, for real property regulated under title 33, chapter 9, an action or arbitration based in contract may not be instituted or maintained against a person that develops or develops and sells real property, or performs or furnishes the design, specifications, surveying, planning, supervision, testing, construction or observation of construction of an improvement to real property more than five years after substantial completion of the improvement to real property.

B. C. Notwithstanding any other statute, a municipality or a county may not institute or maintain an action or arbitration against a person who develops or develops and sells real property or performs or furnishes the design, specifications, surveying, planning, supervision, testing, construction or observation of construction of an improvement to real property that is dedicated to the municipality or county more than eight years after the improvement to real property has been accepted by the municipality or county for ownership, operation and maintenance if the action or arbitration is based on either:

1. A municipal or county code, ordinance or other legal requirement.

2. A permit that is required as a condition of development.

C. D. The limitations of subsection B C of this section do not apply to an action or arbitration that is based on a claim of a wilful, reckless or concealed violation of a municipal or county requirement.

D. E. Subsection B C of this section does not limit any immunity or defense that is available to a municipality or county pursuant to chapter 7, article 2 of this title.

E. F. Notwithstanding subsection A or B C of this section, in the case of injury to real property or an improvement to real property, if the injury occurred during the eighth year after the substantial completion or, in the case of a latent defect, was not discovered until the eighth year after substantial completion, an action to recover damages for injury to the real property may be brought within one year after the date on which the injury to real property or an improvement to real property occurred or a latent defect was discovered, but an action may not be brought more than nine years after the substantial completion of the improvement.

G. Notwithstanding subsection B of this section, in the case of injury to real property or an improvement to real property regulated under title 33, chapter 9, if the injury occurred during the fifth year after the substantial completion or, in the case of a latent defect, was not discovered until the fifth year after substantial completion, an action to recover damages for injury to the real property may be brought within one year after the date on which the injury to real property or an improvement to real property occurred or a latent defect was discovered, but an action may not be brought more than six years after the substantial completion of the improvement.

H. Notwithstanding subsection B of this section, if there is a pending complaint under section 32-1155 for injury to real property or an improvement to real property regulated under title 33, chapter 9, an action to recover damages for injury to the real property or the improvement to real property may not be brought more than six years after the substantial completion of the improvement.

F. I. The limitations in subsections A, B, c, F, G and E H of this section include any action based on implied warranty arising out of the contract or the construction, including implied warranties of habitability, fitness or workmanship.

G. J. This section does not apply to actions for personal injury or death or shorten the period of warranty provided in an express written warranty.

H. K. For the purposes of subsections A, E B, F, G, H and F I of this section, an improvement to real property is considered substantially complete when any of the following first occurs:

1. It is first used by the owner or occupant of the improvement.

2. It is first available for use after having been completed according to the contract or agreement covering the improvement, including agreed changes to the contract or agreement.

3. Final inspection, if required, by the governmental body that issued the building permit for the improvement.

I. L. In this section an action based in contract is an action based on a written real estate contract, sales agreement, construction agreement, conveyance or written agreement for construction or for the services set forth in subsection A of this section. This section does not extend the period prescribed by the laws of this state for bringing any action. If a shorter period of limitation is prescribed for a specific action, the shorter period governs.

J. With respect to an improvement to real property that was substantially complete on or before September 15, 1989, the eight and nine-year periods established in subsections A and E of this section shall begin to run on September 15, 1989. Notwithstanding the provisions of subsection H of this section and section 12-505, subsection A, this subsection applies to claims that accrued before May 14, 1992. END_STATUTE

Sec. 2. Section 12-1361, Arizona Revised Statutes, is amended to read:

START_STATUTE12-1361. Definitions

In this article, unless the context otherwise requires:

1. "Association" means either of the following:

(a) The unit owners' association organized under section 33-1241.

(b) A nonprofit corporation or unincorporated association of owners that is created pursuant to a declaration to own and operate portions of a planned community and which that has the power under the declaration to assess association members to pay the costs and expenses incurred in the performance of the association's obligations under the declaration.

2. "Community documents" means the declaration, bylaws, articles of incorporation, if any, and rules, if any.

3. "Construction codes" means the building, plumbing, electrical, fire, mechanical or other codes or ordinances, including the international residential code however denominated, as adopted, amended and enforced by the city, town or county in which the dwelling is located.

4. "Construction defect" means a material deficiency in the design, construction, manufacture, repair, alteration, remodeling or landscaping of a dwelling that is the result of one of the following:

(a) A violation of construction codes applicable to the construction of the dwelling.

(b) The use of defective materials, products, components or equipment in the design, construction, manufacture, repair, alteration, remodeling or landscaping of the dwelling.

5. "Construction professional" means an architect, contractor, subcontractor, developer, builder, builder vendor, supplier, engineer or inspector performing or furnishing the design, supervision, inspection, construction or observation of the construction of any improvement to real property.

6. "Dwelling":

(a) Means a single or multifamily unit that is designed for residential use and common areas and improvements that are owned or maintained by an association or by members of an association. A dwelling

(b) Includes the systems, other components and improvements that are part of a single or multifamily unit at the time of construction.

7. "Dwelling action" means any action involving a construction defect brought by a purchaser against the seller of a dwelling arising out of or related to the design, construction, condition or sale of the dwelling.

8. "Maintenance records" means receipts, logs, reports, service documentation or other material that is in the purchaser's or association's possession or control and that relates to routine or recommended maintenance of any dwelling system or component identified in the notice of claim.

8. 9. "Material deficiency" means a deficiency that actually impairs the structural integrity, the functionality or the appearance of the dwelling at the time of the claim, or is reasonably likely to actually impair the structural integrity, the functionality or the appearance of the dwelling in the foreseeable future if not repaired or replaced.

9. 10. "Purchaser" means any person or entity who files a dwelling action.

11. "Remedy offer" means a written offer by a seller or construction professional to repair, replace or provide monetary compensation to resolve an alleged construction defect under this article.

10. 12. "Seller":

(a) Means any person, firm, partnership, corporation, association or other organization that is engaged in the business of designing, constructing or selling dwellings, including construction professionals. Seller

(b) Does not include a real estate broker or real estate salesperson as defined in section 32-2101 who provides services in connection with the resale of a dwelling following its initial sale. END_STATUTE

Sec. 3. Section 12-1362, Arizona Revised Statutes, is amended to read:

START_STATUTE12-1362. Dwelling action; notice of intent to repair or replace; jurisdictional prerequisite; insurance; bifurcated trial; legislative intent

A. Except with respect to claims for alleged construction defects involving an immediate threat to the life or safety of persons occupying or visiting the dwelling, a purchaser must first comply with this article before filing a dwelling action.

B. A seller and the seller's construction professional who receive a written notice of claim pursuant to section 12-1363 or 12-1363.01 have a right pursuant to section 12-1363 or 12-1363.01 to repair or replace any alleged construction defects after sending or delivering to the purchaser a written notice of intent to repair or replace the alleged construction defects pursuant to section 12-1363 or a remedy offer pursuant to section 12-1363.01. The seller and the seller's construction professional do not need to repair or replace all of the alleged construction defects specified in the notice provided pursuant to section 12-1363, subsection A or section 12-1363.01, subsection A. A purchaser may not file a dwelling action until the seller and the seller's construction professional have completed all intended repairs and replacements of the alleged construction defects identified in the intent to repair or replace the alleged construction defects pursuant to section 12-1363 or the remedy offer pursuant to section 12-1363.01.

C. If a seller or a seller's construction professional presents a notice received pursuant to section 12-1363 or 12-1363.01 to an insurer that has issued an insurance policy to the seller or the seller's construction professional that covers the seller's or the seller's construction professional's liability arising out of a construction defect or the design, construction or sale of the property that is the subject of the notice, the insurer must treat the notice as a notice of a claim subject to the terms and conditions of the policy of insurance. An insurer must work cooperatively and in good faith with the insured seller or the seller's construction professional within the time frames specified in this article to effectuate the purpose of this article. This subsection does not affect the coverage available under the policy of insurance or create a cause of action against an insurer whose actions were reasonable under the circumstances, notwithstanding its inability to comply with the time frames specified in section 12-1363 or 12-1363.01.

D. Subject to Arizona rules of court, the identified construction professionals shall be joined as third-party defendants, if feasible. Subject to Arizona rules of court, for each construction defect found to exist, the trier of fact in any dwelling action filed pursuant to this article shall first determine if a construction defect exists and the amount of damages caused by the construction defect and identify each seller or construction professional whose conduct, whether by action or omission, may have caused, in whole or in part, any construction defect. The purchaser has the burden of proof to demonstrate the existence of a construction defect and the amount of the damages caused by the construction defect. The trier of fact shall thereafter determine the relative degree of fault of any defendant or third-party defendant. The trier of fact shall allocate the pro rata share of liability based on relative degree of fault. The seller has the burden to prove the pro rata share of liability of any third-party defendant. The determination of whether a construction defect exists, the amount of damages caused by the construction defect and who may have caused, in whole or in part, the construction defect shall be bifurcated from and take place in a separate phase of the trial or alternative dispute resolution process from the determination of the relative degree of fault of any defendant or third-party defendant, unless the court finds that bifurcation is not appropriate.

E. The legislature finds and determines that given the complexity and multiparty nature of dwelling actions, it is important to provide a streamlined process for the resolution of construction defect claims and indemnification claims between the seller and the construction professionals that is efficient, economical and convenient for the parties involved. The legislature further finds and determines that, for the majority of dwelling actions, bifurcation of the issues of the existence of a construction defect and causation from the issue of apportionment of fault is more efficient, fair and convenient for the parties. It is the legislature's intent that the bifurcation process prescribed in subsection D of this section does not alter the seller's liability under the seller's implied warranty to the purchaser. It is the legislature's intent that the bifurcation process prescribed in subsection D of this section be used and that the issues of existence of a construction defect, damages, causation and apportionment of fault be tried in one trial unless the court finds that the circumstances of the particular case at issue render bifurcation inappropriate. END_STATUTE

Sec. 4. Title 12, chapter 8, article 14, Arizona Revised Statutes, is amended by adding section 12-1363.01, to read:

START_STATUTE12-1363.01. Condominiums; notice; remedy offer; repair or replace; tolling of time limits; admissible evidence; limitation of damages; definition

A. Before filing a dwelling action, a purchaser of real property regulated under title 33, chapter 9 shall give at least ninety days' written notice by certified mail, return receipt requested, to the seller specifying in reasonable detail the basis of the dwelling action. A seller who receives notice under this subsection shall promptly forward a copy of the notice to the last known address of each construction professional who the seller reasonably believes is responsible for an alleged construction defect that is specified in the notice. The seller's notice to each construction professional may be delivered by electronic means.

B. A notice of claim shall include copies of all maintenance records relating to any system or component identified in the notice of claim or a certification that maintenance records do not exist.

C. If maintenance records or a certification that maintenance records do not exist is not provided, the notice of claim is deemed incomplete and the deadlines or obligations under this article do not apply until the maintenance records or certification that maintenance records do not exist are provided.

D. If the claimant does not provide maintenance records or certification that maintenance records do not exist, there is a rebuttable presumption that any alleged defect affecting a system or component that requires routine maintenance was caused by the claimant's failure to perform ordinary maintenance.

E. After receipt of the notice described in subsection A of this section, the seller and the seller's construction professional may inspect the dwelling to determine the nature and cause of the alleged construction defects and the nature and extent of any repairs or replacements necessary to remedy the alleged construction defects. The purchaser shall ensure that the dwelling is made available for inspection not later than ten days after the purchaser receives the seller's and the seller's construction professional's request for an inspection. The purchaser may not allow any components or other improvements to be removed from the dwelling for testing or any other purpose without the seller's prior written approval. The seller MAY not unreasonably withhold approval of the purchaser's request to remove components or other improvements from the dwelling for testing or any other purpose. The seller and the seller's construction professional shall provide reasonable notice to the purchaser before conducting the inspection. The inspection shall be conducted at a reasonable time. The seller and the seller's construction professional may use reasonable measures, including destructive and nondestructive testing, to determine the nature and cause of the alleged construction defects and the nature and extent of any repairs or replacements necessary to remedy the alleged construction defects. A second inspection may be conducted within thirty days after the first inspection. If the seller or the seller's construction professional conducts testing pursuant to this subsection, the seller or the seller's construction professional shall restore the dwelling to its condition before the testing.

F. The seller or THE SELLER'S construction professional may provide a remedy offer to the purchaser. The remedy offer shall include either or both of the following:

1. A detailed scope of the repairs, including the method and materials to be used, the identity of those performing the work and a reasonable repair schedule.

2. A sum certain monetary offer.

G. SUbsection F of this section does not prohibit the seller from offering monetary compensation or other consideration instead of or in addition to a repair or replacement. The purchaser, subject to the requirements of this section, may accept or reject a remedy offer that consists of monetary compensation or other consideration, other than repair or replacement and, if rejected, may proceed with a dwelling action on completion of any repairs or replacements the seller and the seller's construction professional intend to make or provide. The parties may negotiate for a release if an offer involving monetary compensation or other consideration is accepted.

H. If the seller does not provide a remedy to the purchaser's notice within ninety days after receiving the notice or if the seller notifies the purchaser in writing that a remedy offer will not be provided, the purchaser may file a dwelling action.

I. If the response provided pursuant to subsection F of this section includes a notice of intent to repair or replace the alleged construction defects, the purchaser shall allow the seller and the seller's construction professional a reasonable opportunity to repair or replace the alleged construction defects or cause the alleged construction defects to be repaired or replaced pursuant to the following:

1. The purchaser and the seller or the seller's construction professional shall coordinate repairs or replacements within thirty days after the seller's remedy offer was sent pursuant to subsection F of this section. A contractor or subcontractor that was not involved in the construction or design of the dwelling and that performs any repair or replacement of the alleged construction defect pursuant to this section is liable only to the seller or purchaser who contracted for the contractor's or subcontractor's services for the contractor's or subcontractor's scope of work and that contractor or subcontractor may be named in an amended notice pursuant to subsection M of this section or in the corresponding dwelling action.

2. Repairs or replacements shall begin as agreed by the purchaser and the seller or the seller's construction professional, with reasonable efforts to begin repairs or replacements within thirty-five days after the seller's remedy offer was sent pursuant to subsection F of this section. If a permit is required to perform the repair or replacement, reasonable efforts shall be made to begin repairs or replacements within ten days after receipt of the permit or thirty-five days after the seller's remedy offer was sent pursuant to subsection F of this section, whichever is later.

3. All repairs or replacements shall be completed using reasonable care under the circumstances and within a commercially reasonable time frame considering the nature of the repair or replacement, any access issues or unforeseen events that are not caused by the seller or the seller's construction professional.

4. The purchaser shall provide reasonable access for the repairs or replacements.

5. The seller is not entitled to a release or waiver solely in exchange for any repair or replacement THAT IS made pursuant to this subsection, except that the purchaser and seller may negotiate a release or waiver in exchange for monetary compensation or other consideration in a remedy offer.

6. At the conclusion of any repairs or replacements, the purchaser may commence a dwelling action or, if the contract for the sale of the dwelling or the community documents contain a commercially reasonable alternative dispute resolution procedure that complies with section 12-1366, subsection C, may initiate the dispute resolution process, including any claim for inadequate repair or replacement.

J. During the notice and repair or replacement process, and for thirty days after substantial completion of the repair or replacement, the statute of limitations and statute of repose, including section 12-552, THAT APPLY to the purchaser, including any construction professional involved in the construction or design, are tolled as to the seller and the seller's construction professional who were involved in the construction or design of the dwelling for all alleged construction defects described in reasonable detail in the written notice sent to the seller pursuant to subsection A of this section.

K. The statute of limitations and statute of repose, including section 12-552, that apply to the seller's claim for indemnity or contribution against any construction professional is tolled from the date the seller receives the notice required by this section until nine months after the purchaser's service of the civil complaint or arbitration demand on the seller.

L. All conduct of parties during the repair or replacement process prescribed in subsections E, F, H and I of this section may not be introduced in any subsequent dwelling action. Any repair or replacement efforts undertaken by the seller or the seller's construction professional are not considered settlement communications or offers of settlement and are admissible in evidence.

M. A purchaser may amend the notice provided pursuant to subsection A of this section to include alleged construction defects that are identified in good faith after submission of the original notice. The seller and the seller's construction professional shall have a reasonable period of time to conduct an inspection, if requested, and thereafter the parties shall comply with the requirements of subsections E, F, H and I of this section for the additional alleged construction defects that are identified in reasonable detail in the notice. For the purposes of this subsection, reasonable time does not mean a time frame that is less than the time frames provided in this section.

N. Subject to Arizona rules of court, during the pendency of a dwelling action, the purchaser may supplement the list of alleged construction defects to include additional alleged construction defects that are identified in good faith after the filing of the original dwelling action and that have been identified in reasonable detail as required by this section. The court shall provide the seller and the seller's construction professional a reasonable amount of time to inspect the dwelling to determine the nature and cause of the additional alleged construction defects and the nature and extent of any repairs or replacements necessary to remedy the additional alleged construction defects and, on request of the seller or the seller's construction professional, sufficient time to repair or replace the additional alleged construction defects. The parties shall comply with the requirements of subsections E, F, H and I of this section for the additional alleged construction defects that are identified in reasonable detail in the notice.

O. The service of an amended notice that identifies in reasonable detail the alleged construction defects during the pendency of a dwelling action shall relate back to the original notice of alleged construction defects for the purpose of tolling applicable statutes of limitations and statutes of repose, including section 12-552.

P. By written agreement of the seller and purchaser, the time periods provided in this section may be extended.

Q. For the sale of a dwelling that occurs within the statutory period set forth in section 12-552, the escrow agent, as defined in section 6-801, shall provide notice to the purchaser of the provisions of this section and sections 12-1361 and 12-1362. This subsection does not create a fiduciary duty or provide any person or entity with a private right or cause of action or administrative action.

R. A purchaser who files a contested dwelling action under this article must file an affidavit with the purchaser's complaint, under penalty of perjury, that the purchaser has read the entire complaint, agrees with all of the allegations and facts contained in the complaint and, unless authorized by statute or rule, is not receiving and has not been promised anything of value in exchange for filing the dwelling action.

S. If the seller does not comply with the requirements of this section and the failure is not due to any fault of the purchaser or as a result of an unforeseen condition, including an unforeseen weather condition or government delay, the purchaser may commence a dwelling action.

T. If the purchaser fails to comply with the requirements of this section before bringing a dwelling action, the dwelling action shall be dismissed. If the dwelling action is dismissed after the statute of limitations or statute of repose, including section 12-552, that applies to the purchaser, any subsequent dwelling action brought by the purchaser is time barred as to the seller and the seller's construction professional involved in the construction or design of the dwelling.

U. If a timely remedy offer was made and repairs were substantially completed, the purchaser's damages are limited to the following:

1. The reasonable cost of completing or correcting repairs.

2. Temporary housing, storage and relocation costs.

3. The amount of the actual property damage.

4. The reasonable cost of inspecting the completed repairs.

V. For the purposes of this section, "reasonable detail" includes all of the following:

1. An itemized list that describes each alleged construction defect with sufficient detail to allow the seller or seller's construction professional to identify the alleged construction defect.

2. The location that each alleged construction defect has been observed by the purchaser in each dwelling that is the subject of the notice.

3. The impairment to the dwelling that has occurred as a result of each of the alleged construction defects or is reasonably likely to occur if the alleged construction defects are not repaired or replaced.

4. The street address for each dwelling that is the subject of the notice. END_STATUTE

Sec. 5. Section 32-1162, Arizona Revised Statutes, is amended to read:

START_STATUTE32-1162. Statute of limitations; remedy violations

A. A person may file a written complaint pursuant to section 32-1155 with the registrar alleging a licensee has committed a violation of this chapter. The complaint must be filed:

1. For new home builds or other new building construction, except real property regulated under title 33, chapter 9, within two years after the earlier of the close of escrow or actual occupancy.

2. For all other projects, except real property regulated under title 33, chapter 9, within two years after the completion of the specific project.

3. For real property regulated under title 33, chapter 9, within five years after the earlier of the close of escrow or actual occupancy.

B. For licensure regulatory purposes under this chapter, a licensee's qualifying party is responsible for any violation of this chapter committed by the licensee during the period of time that the qualifying party is named on the license. This subsection does not impose personal liability on the qualifying party for a licensee's violation of this chapter.

C. For licensure regulatory purposes under this chapter, a person named on a license is responsible for any violation of this chapter committed by the licensee during the period of time that person was named on the license. This subsection does not impose personal liability on a person named on a license for a licensee's violation of this chapter.

D. A licensee doing business as a sole proprietor may be personally liable to the registrar for the purposes of enforcing this chapter, including subrogation proceedings brought by this state pursuant to section 32-1138.END_STATUTE

Sec. 6. Title 33, chapter 9, article 3, Arizona Revised Statutes, is amended by adding section 33-1242.01, to read:

START_STATUTE33-1242.01. Association's construction defect claims; inspection; meeting; vote; definitions

A. In a civil action brought pursuant to section 12-552, subsection B, G or H, and after the time periods in and requirements prescribed in sections 12-1363.01 and 33-2002 are complete, the board of directors shall first obtain the approval by a vote of at least two-thirds of the unit owners before the board of directors may institute, defend or intervene in litigation or administrative proceedings. The board of directors may initiate the action only if authorized by a vote of the unit owners pursuant to this section.

B. Before holding a meeting of the unit owners to vote on the matter pursuant to this section, the association shall:

1. Describe the specific units or common elements that are subject to the alleged construction defect.

2. Describe the physical condition of the units or common elements that are subject to the claim.

3. Describe any modifications, maintenance or repairs to the units that were performed by the unit owners or the association.

4. Provide copies of any written inspection reports performed by the association and the condominium developer at least five business days before the date of the meeting to vote.

5. Provide any copies of written cash offers, completed repairs or offered repairs by the condominium developer to remedy any defect alleged as prescribed in section 12-1363.01 to the unit owners.

C. Before a vote of the unit owners, the association shall deliver by certified mail or by electronic means written notice of the anticipated commencement of a construction defect action to each unit owner. The notice shall also be provided by certified mail to:

1. The developer of the condominium.

2. any construction professional identified in the proposed construction defect action.

D. The developer of the condominium and any construction professional identified in the proposed construction defect action have the right to attend and participate in the meeting as provided by this section.

E. The notice to unit owners pursuant to subsection C of this section must call for a meeting of the unit owners to be held not less than fifteen days and not more than thirty days after the date the notice is mailed. The notice must contain:

1. A description of the nature of the construction defect action, a description of the alleged defect or defects and the relief sought.

2. A disclosure that the construction defect claim may result in increased costs to the association in maintenance or repair or cause an increase in assessments or special assessments to cover the cost of repairs.

3. A disclosure that the construction defect claim may result in increased costs to the association to cover litigation costs, including ATTORNEY fees.

4. The fee arrangement agreed to by the board of directors and the attorneys representing the association, including the percentage of the recovery from the defendant that the attorneys may receive.

F. The meeting to consider instituting, defending or intervening in litigation pursuant to section 12-552 and in compliance with this section shall include a presentation by the association or its attorneys of the alleged construction defects.

G. The CONDOMINIUM developer and the construction professionals against whom the construction defect is alleged have the right to:

1. Attend the meeting required by this section.

2. Make a presentation regarding the condition of the property, any investigation completed, any proposed scope of repair or remediation, including any remedy offer made under section 12-1363.01, and any available alternative dispute resolution process.

3. Respond to questions asked by unit owners.

4. Request access for additional inspections or request a subsequent vote of the unit owners on the remedy offer or any modified remedy offer made in writing by the developer or construction professional. The ASSOCIATION may deny requests made pursuant to this paragraph.

H. The association shall maintain a record of all votes until the conclusion of the construction defect action, including any appeals. The association may not commence a construction defect action unless authorized by an affirmative vote of at least two-thirds of the unit owners of the association who are eligible to vote and whose votes are collected at, and not later than, the meeting required by this section. the association may not adopt a vote requirement that is greater than the two-thirds requirement prescribed by this subsection for the purposes of commencing a construction defect action.

I. This section applies in addition to any applicable provisions of title 12, chapter 8, article 14 and chapter 18 of this title.

J. For the purposes of this section:

1. "Construction defect" means a material deficiency in the design, construction, manufacture, repair, alteration, remodeling or landscaping of a unit or common element that is the result of one of the following:

(a) A violation of construction codes applicable to the construction of the unit or common element.

(b) The use of defective materials, products, components or equipment in the design, construction, manufacture, repair, alteration, remodeling or landscaping of the unit or common element.

2. "Construction professional" means an architect, contractor, subcontractor, developer, builder, builder vendor, supplier, engineer or inspector performing or furnishing the design, supervision, inspection, construction or observation of the construction of any improvement to real property. END_STATUTE

Sec. 7. Effective date

This act is effective from and after December 31, 2026.