Mon, Jul 06, 2009

Business

Prop. 201 pits union vs. builders

By Shelley Shelton
Arizona Daily Star
Tucson, Arizona | Published: 10.04.2008
Proposition 201 is shaping up to be less about the warranty obligations of new-home sellers than it is about the anticipated propensity for increased lawsuits if it passes.
Supporters, including a sponsoring construction union group, call the ballot measure the Homeowners' Bill of Rights and say it would give the "little guy" some recourse when buying a new home — including a 10-year warranty.
But opponents — including Arizonans Against Lawsuit Abuse, a group funded largely by the Home Builders Association of Central Arizona — say the measure would lead to a flood of frivolous lawsuits.
If passed, PropOSITION 201 would:
• Grant new-home buyers a right to sue over a repair dispute.
• Permit lawsuits, despite alternative dispute-resolution provisions in sales contracts.
• Shorten notice periods before and after filing a defects lawsuit.
• Require sellers to inspect a dwelling after receiving notice of a defect.
• Mandate that sale offers must include a repair-or-replace option that must be performed by a licensed contractor.
• Eliminate a seller's right to receive attorney fees and costs if the seller prevails.
• Require a seller to provide a 10-year warranty on materials and workmanship.
• Require a new-home sales contract to include disclosure of the seller's financial relationship with a financial institution.
• Prohibit sellers from requiring a buyer deposit unless the contract allows a 100-day cancellation period.
• Extend from eight to 10 years the time to file suit against any person making improvements to real property.
• Expand remedies available to an owner who is successful in an action against a seller.