What Arizona Buyers Don't Know About Builder Warranties
Arizona is one of the fastest-growing new construction markets in the United States. The Phoenix metro added over 25,000 new single-family homes in 2025 alone, with thousands more under construction in communities from Buckeye to Queen Creek to the TSMC corridor in north Phoenix. Buyers snapping up these homes often sign 40-page purchase agreements and assume "new means perfect."
It doesn't. New construction homes in Arizona have defects. Post-tension slabs develop cracks. Stucco fails at window penetrations. HVAC systems installed to minimum code standards struggle with 110°F Phoenix summers. Grading errors let water pool against foundations. Electrical panels are wired incorrectly.
The difference between a new construction buyer who loses $40,000 to an uncovered defect and one who gets it fixed for free comes down to three things: knowing the law, documenting everything, and acting before warranty windows close.
This guide covers everything: Arizona's statutory warranty requirements under ARS §12-1361, what the 1/2/10 warranty actually covers, the most common defect categories in Arizona new construction, the 11-month inspection strategy, how to file a warranty claim that builders take seriously, and what to do when they don't. Arizona-specific issues — post-tension slabs, caliche, stucco water intrusion, R-22 HVAC phaseout — are covered in full.
I've helped hundreds of buyers purchase new construction in the Phoenix metro. My non-negotiable advice: hire a buyer's agent (it's free — the builder pays), schedule your 11-month inspection the day you close, and never let a verbal promise from the superintendent substitute for a written warranty claim submission. The builder's warranty department and the superintendent are different organizations. Know the difference.
The Arizona Right to Repair Act: ARS §12-1361
Arizona's Right to Repair Act, codified at ARS §12-1361 through §12-1365, is the foundational law governing construction defect warranties for new residential construction. Every new home buyer in Arizona is protected by this law whether or not it's referenced in their purchase agreement — and under ARS §12-1365, builders cannot contractually shorten these statutory minimum periods.
The Four Warranty Tiers
The Act establishes four distinct warranty periods based on the type and severity of defect:
Under ARS §12-1365, any contractual provision that attempts to waive or shorten these statutory minimum warranty periods is void and unenforceable. If a builder's purchase agreement purports to limit your warranty to a period shorter than the statutory minimums, that provision cannot be enforced. However, builders CAN and often DO limit the scope of what they cover within those periods through detailed exclusions — so read the warranty document carefully.
The Pre-Litigation Notice-and-Cure Process (ARS §12-1363)
Before a homeowner can file a lawsuit against a builder for construction defects, Arizona law requires a specific notice-and-cure process:
ARS §12-1363 Pre-Litigation Process
Send Written Notice of Claim
Homeowner sends certified mail Notice of Claim to the builder describing each defect in detail, including location, observable symptoms, and any damage caused. Keep a copy and track the certified mail receipt.
Builder Inspection Period (60 Days)
Builder has 60 days to inspect and respond. Builder may bring own inspector, subcontractors, or engineers. Homeowner has the right to have their own inspector present during the builder's inspection. Document everything with photos and notes.
Builder's Written Response
Builder must respond in writing with one of: (a) an offer to repair the defect; (b) an offer of monetary compensation; (c) a combination of repair and money; or (d) a written denial of the claim with reasons.
Homeowner Decision
If you accept the offer: builder proceeds to repair. If you reject the offer or builder denies the claim: you may proceed to arbitration (if required by your purchase agreement) or litigation. Note: most Arizona builder contracts now require binding arbitration rather than jury trials.
Arizona Registrar of Contractors Complaint
Separately, you may file a complaint with the Arizona Registrar of Contractors (azroc.gov) for violations of the ARS §12-1361 warranty obligations. The ROC has enforcement authority over licensed contractors and can discipline builders who fail to honor warranty obligations.
Arizona Builder Warranty Coverage: Quick Reference Table
Use this table to quickly identify which warranty period and process applies to your specific defect. Remember: these are minimum statutory periods. Luxury builders (Toll Brothers, Shea Homes) often exceed these minimums.
| Defect Category | Statutory Period | Legal Basis | Common Examples | Builder Typical Exclusions | Status |
|---|---|---|---|---|---|
| Workmanship & Finish | 1 Year | ARS §12-1361(A)(1) | Drywall cracks, paint, trim gaps, door adjustments, cabinet alignment, caulk, window sealing | Normal wear, homeowner modifications, cosmetic issues noted at walk-through and not submitted | Short Window |
| Stucco (Hairline) | 1 Year | ARS §12-1361(A)(1) | Cracks <1/8" — considered normal settlement. Cracks >1/8" at penetrations may escalate to systems or structural. | Settlement cracks <1/8", cracks caused by homeowner landscaping or irrigation | Watch Closely |
| Stucco Water Intrusion | 2–10 Years | ARS §12-1361(A)(2)/(3) | Water infiltration at window frames, pipe penetrations, electrical boxes, roof-wall interfaces | Damage caused by homeowner-installed fixtures, damage from failure to maintain caulk | High Risk in AZ |
| Plumbing Systems | 2 Years | ARS §12-1361(A)(2) | Pipe leaks, slow drains (improper slope), hot water delivery issues, water pressure problems, slab leaks (PEX fitting failures) | Damage from water softener salt, garbage disposal improper use, homeowner-installed fixtures | Covered 2 Yrs |
| HVAC System | 2 Years | ARS §12-1361(A)(2) | Compressor failure, refrigerant leaks, blower motor failure, ductwork leaks, thermostat wiring issues, undersized equipment | Filter neglect, damage from surge, damage from homeowner thermostat modifications | Covered 2 Yrs |
| Electrical Systems | 2 Years | ARS §12-1361(A)(2) | Circuit breaker failures, outlet/switch malfunctions, GFI failures, panel wiring errors, lighting circuit issues | Damage from lightning strike, homeowner electrical modifications, overloaded circuits | Covered 2 Yrs |
| Roof System (Structural) | 8 Years | ARS §12-1361(A)(3) | Truss failures, rafter failures, sheathing structural failure. NOTE: tile/shingle replacement is typically 1 year workmanship only. | Storm damage, homeowner HVAC/solar installation damage, maintenance neglect | Covered 8 Yrs |
| Framing & Load-Bearing Walls | 8 Years | ARS §12-1361(A)(3) | Load-bearing wall deflection, floor system excessive deflection, beam failures, connection hardware failures | Homeowner structural modifications, storm/seismic damage | Covered 8 Yrs |
| Foundation / Slab | 10 Years | ARS §12-1361(A)(4) | Foundation settlement causing structural failure, slab heave from expansive soils, foundation crack causing impairment of use | Settlement <1" per 50 ft (often excluded), damage from homeowner landscaping/irrigation changing soil moisture | Covered 10 Yrs |
| Post-Tension (PT) Slab | 10 Years | ARS §12-1361(A)(4) | PT cable failures, anchor failures, cable corrosion, slab cracking at PT cable paths, PT-related structural failure | Damage caused by cutting/drilling PT slab WITHOUT engineer approval (this voids warranty immediately) | NEVER Cut PT Slab |
| Appliances | Manufacturer Only | Not ARS §12-1361 | Refrigerator, dishwasher, range, microwave, washer/dryer (if included) | Appliances are covered by MANUFACTURER warranty — register within 90 days of closing | Register Now |
High-Risk Defect Categories in Arizona New Construction
Arizona's desert climate, soil composition, and construction practices create specific defect patterns that buyers need to understand before signing anything. These are the issues Ryan Moxley flags for every new construction client.
1. Post-Tension (PT) Slabs — Arizona's Dominant Foundation Type
The vast majority of new construction in the Phoenix metro uses post-tension concrete slabs. PT slabs use high-strength steel cables tensioned to 30,000+ pounds per square inch after the concrete cures. This creates an incredibly strong foundation — but one with critical vulnerabilities:
- NEVER cut or drill into a PT slab without a structural engineer's written approval AND the builder's written authorization. Cutting a PT cable releases thousands of pounds of stored energy and can cause catastrophic slab failure. This is the single most important warning for new construction buyers in Arizona.
- PT cable "chairs" — small plastic supports visible at slab edges — are evidence of PT construction. Look for them during your walk-through.
- PT failures typically appear as linear cracks along cable paths or as "blow-outs" where a cable anchor fails at the slab edge. Both are 10-year structural warranty items.
- PT cable corrosion: rare in desert climate but possible in areas with poor drainage or chemical exposure. Watch for rust staining on slab edges.
- If you're planning any work that involves drilling into your slab (interior wall removal, in-slab plumbing, dog door cut-outs, etc.): STOP. Hire a PT slab engineer first. Cost: $400–$800. Potential damage from skipping this: $10,000–$100,000+.
Ryan Moxley has personally seen two cases where homeowners allowed contractors to cut into PT slabs without authorization. Both required $35,000+ in emergency structural repairs. Both were denied warranty coverage because the homeowner's contractor caused the damage. In Arizona new construction, this is the #1 most important thing to know.
2. Stucco Water Intrusion — Arizona's Most Common Latent Defect
Despite the desert climate, stucco water intrusion is the leading construction defect claim in Arizona new construction. During monsoon season (July–September), intense rainfall can drive water horizontally through improperly sealed stucco penetrations. Key vulnerability points:
- Window and door frames: Stucco must be properly caulked and flashed at all window/door openings. Missing, cracked, or improperly applied caulk allows water to wick behind the stucco and rot the OSB sheathing and framing. Can develop within 1–3 monsoon seasons.
- Pipe and conduit penetrations: Anywhere a pipe or electrical conduit exits through stucco is a potential water entry point. Builder-standard caulking often fails within 2–3 years in AZ heat cycles.
- Roof-to-wall interfaces: The transition between stucco walls and roof overhangs/parapets is a critical flashing zone. Improper flashing is a common latent defect.
- What to do: During your 11-month inspection and at each monsoon season for the first few years, visually inspect all penetrations. Any discoloration, efflorescence (white mineral deposits), or soft/spongy drywall near exterior walls inside the house should trigger a warranty claim immediately.
- EIFS vs. 3-coat stucco: Some builders use EIFS (Exterior Insulation Finish System) — a synthetic stucco product. EIFS has different moisture management requirements and a longer track record of water intrusion issues nationally. Know which system is on your home.
3. HVAC Performance in Arizona's Extreme Climate
Arizona HVAC systems work harder than anywhere else in the United States. The Phoenix metro averages 150+ days per year above 95°F, with weeks of 110°F+ temperatures. New construction HVAC issues are common in the 1–3 year window:
- Undersized equipment: Some production builders use HVAC equipment sized to meet minimum code calculations, not real-world peak performance. If your home runs constantly and never reaches setpoint during peak summer, document it and file a warranty claim. Manual J load calculation errors are a 2-year systems warranty item.
- 2026 Federal Minimum: 15 SEER2 is now the minimum for new AC equipment in Arizona (Climate Zone 2). Verify your equipment meets current code at time of installation.
- Ductwork sealing: Poorly sealed ducts are one of the most common energy-wasting defects in new construction. Have a duct blaster test done at your 11-month inspection. Unsealed ducts in AZ attics (which hit 160°F in summer) waste massive energy and qualify as a 2-year systems warranty issue.
- Refrigerant leaks: These often appear in year 1–2. Symptoms: system running constantly, not cooling adequately, ice forming on lines. File immediately — 2-year systems warranty coverage.
- R-22 refrigerant: Banned from production since January 2020. Any new construction with R-22 equipment is a code violation and warranty issue.
- Register all HVAC equipment within 90 days of closing with the manufacturer (Carrier, Lennox, Trane, Rheem, etc.) to activate the extended 5–10 year parts warranty. Miss this window and you may only have the 5-year base warranty.
4. Caliche and Expansive Soil Issues
Two soil conditions unique to Arizona can affect new construction foundations:
- Caliche: A hard calcium carbonate hardpan layer found at varying depths across the Phoenix metro. While caliche makes for a solid bearing layer, improperly prepared caliche sites can create drainage issues (water pools above caliche rather than draining). Drainage problems that cause foundation damage are a 10-year structural warranty issue.
- Expansive soils: Some Phoenix-area soils expand significantly when wetted. If the builder didn't properly address expansive soil conditions during site preparation, foundation heave can occur. This is a 10-year structural issue, but it's also what makes preventing over-irrigation near foundations critically important as a homeowner. Document any foundation cracking with measurements and photos.
- Grading: The final grade around your home must slope away from the foundation (minimum 6" drop in first 10 feet per IRC and AZ building codes). Flat or negative grade is a 1-year workmanship issue that can escalate to structural damage if not corrected.
5. Pool and Deck Defects
Many Arizona new construction homes include pools, either builder-standard or as design center upgrades:
- Pool surface (plaster/pebble) warranty: typically 1–3 years from builder, 5 years from pool subcontractor
- Pool equipment (pump, filter, heater, automation): manufacturer warranty (1–5 years depending on brand)
- Structural pool issues (shell cracks, leaks): builder typically provides 5-year structural coverage; ARS §12-1361 10-year structural warranty may also apply
- Travertine/Kool Deck cracks: common in AZ due to heat cycling; typically a 1-year workmanship item
- Pool barrier compliance: ARS §36-1681 requires 5-foot barrier with self-closing, self-latching gates. Builder must install; homeowner cannot disable. Non-compliant pool barriers are a safety issue AND a warranty item.
The 11-Month Inspection: The Most Important Thing You Can Do
Schedule this on the day you close. Put it in your calendar right now. Set a reminder 10 months from closing. The 11-month inspection — performed by an independent licensed home inspector just before your 1-year workmanship warranty expires — is the single highest-ROI action any new construction buyer can take.
Here's why 11 months (not 12): you need time to receive the inspection report, submit warranty claims in writing, and have the builder acknowledge receipt before the window closes. Submitting claims with 2–3 weeks to spare gives you leverage. Submitting them the day before the warranty expires creates administrative chaos and gives the builder an excuse to delay.
11-Month Inspection Checklist
A qualified inspector will cover all of these areas. Make sure they're included in the scope:
- All exterior stucco surfaces — every penetration (windows, doors, pipes, conduit, electrical boxes)
- Roof surface — tile/shingle condition, flashing at vents and wall interfaces, ridge caps
- HVAC operation — cooling and heating cycles, duct leakage assessment, refrigerant charge, filter housing
- Plumbing — all fixtures, water pressure, drain flow rate, water heater temperature and T&P valve
- Electrical — all outlets and switches, GFI/AFCI protection, panel labeling, service entrance
- Foundation and slab — exterior perimeter for cracks, interior slab for cracking at PT cable lines
- Attic — insulation depth (R-38 minimum in AZ), ventilation adequacy, duct connections, roof structure
- Interior — all doors (sticking, latching), windows (operation, sealing), drywall cracks, floor levelness
- Garage — floor cracks, fire separation wall compliance, door auto-reverse function
- Pool (if applicable) — surface condition, equipment operation, barrier compliance
- Grading — confirm positive drainage away from foundation on all sides
- Irrigation system — all zones, heads, timer, connection points
Be present for the entire 11-month inspection. Take your own photos and video alongside the inspector's report. Then submit your warranty claims IN WRITING to the builder's warranty department — not the superintendent, not the sales office — with your photos attached. Use certified mail AND email to create a documented paper trail. Verbal requests don't create warranty obligations under Arizona law.
Major Arizona Builder Warranty Programs Compared 2026
While all Arizona builders must meet the statutory minimums of ARS §12-1361, the quality of their warranty programs, responsiveness, and documentation varies significantly. Here's what buyers should know about the major builders active in the Phoenix metro:
| Builder | Price Tier | Workmanship | Systems | Structural | 3rd Party Admin | Online Portal | Transferable | Overall Grade |
|---|---|---|---|---|---|---|---|---|
| Toll Brothers | Luxury ($600K+) | 1 Year | 5 Years | 10 Years | PWC | Yes | Yes (structural) | A |
| Shea Homes | Mid-Luxury ($500K+) | 1 Year | 2 Years | 10 Years | In-House | Yes | Yes (structural) | A- |
| Taylor Morrison | Mid-Range ($400K+) | 1 Year | 2 Years | 10 Years | 2-10 HBW | Yes | Yes (structural) | B+ |
| Meritage Homes | Mid-Range ($380K+) | 1 Year | 2 Years | 10 Years | In-House | Yes | Yes (structural) | B+ |
| PulteGroup / Del Webb | Mid-Range / 55+ | 1 Year | 8 Years (systems) | 10 Years | 2-10 HBW | Yes | Yes (structural) | B+ |
| D.R. Horton | Entry-Mid ($290K+) | 1 Year | 2 Years | 10 Years | In-House | Yes | Yes (structural) | B |
| K. Hovnanian | Entry-Mid ($320K+) | 1 Year | 2 Years | 10 Years | 2-10 HBW | Yes | Yes (structural) | B |
| Century Communities | Entry ($290K+) | 1 Year | 2 Years | 10 Years | In-House | Limited | Yes (structural) | B- |
| LGI Homes | Entry ($270K+) | 1 Year | 2 Years | 10 Years | In-House | Limited | Yes (structural) | C+ |
Note: Builder grades reflect overall warranty responsiveness and program quality based on Phoenix metro buyer experiences. All builders must meet ARS §12-1361 minimums. Individual community experiences vary.
D.R. Horton
- Workmanship 1 Year
- Systems 2 Years
- Structural 10 Years
- Portal drhorton.com/warranty
- Active Communities 50+ in AZ
Meritage Homes
- Workmanship 1 Year
- Systems 2 Years
- Structural 10 Years
- HVAC Upgrade Often Yes
- Insulation Above Code
Taylor Morrison
- Workmanship 1 Year
- Systems 2 Years
- Structural 10 Years
- 3rd Party 2-10 HBW
- Upgrades Covered Usually Yes
Toll Brothers
- Workmanship 1 Year
- Systems 5 Years
- Structural 10 Years
- Response Time Best in Class
- 3rd Party PWC
How to File a Warranty Claim That Builders Take Seriously
The difference between a warranty claim that gets fixed in 30 days and one that gets denied comes down to documentation and process. Here's the Ryan Moxley protocol for new construction warranty claims:
Before You File: Document Everything
- Photos with timestamps: Use your phone to photograph every defect with date/time metadata. Wide shot showing location + close-up showing detail.
- Video: For functional issues (HVAC not cooling, door not latching, water pooling), video is more compelling than photos.
- Written description: Note the specific location (e.g., "master bedroom north exterior wall, at second window from left, lower-left corner"), the observable symptoms, when it was first noticed, and any progression.
- Prior communications: If you mentioned this verbally to the superintendent, note the date and what was said.
Submitting Your Claim
- Submit to the warranty department — not the superintendent, not sales. Look in your closing documents for the warranty department contact information.
- Submit in writing — email with read receipt AND certified mail creates the best paper trail.
- Include all documentation (photos, videos as attachments or links).
- Reference the specific warranty section you believe applies (1-year workmanship, 2-year systems, etc.).
- Request a written response confirming receipt and scheduled inspection date.
- Keep copies of everything in a dedicated folder (physical + cloud backup).
If the Builder Denies Your Claim
- Request the denial in writing with specific reasons. A verbal denial is not sufficient.
- Get a second opinion from an independent licensed home inspector or structural engineer (worth $400–$800 for a professional opinion letter).
- Send formal Notice of Claim per ARS §12-1363 if informal process failed.
- File a complaint with the Arizona Registrar of Contractors at azroc.gov — this is free and the ROC has real enforcement authority over licensed builders.
- Consult a construction defect attorney — many AZ construction defect attorneys offer free consultations, and some work on contingency for large structural claims.
The Arizona Registrar of Contractors (azroc.gov) can discipline, fine, and suspend a builder's license for failing to honor warranty obligations under ARS §12-1361. For production builders with hundreds of active homes under construction in Arizona, an ROC complaint creates significant leverage. File it the moment informal resolution fails — it costs nothing and creates an official record of the dispute.
10 Rules for New Construction Buyers in Arizona
After years working with new construction buyers across the Phoenix metro — from D.R. Horton entry-level homes in Buckeye to Toll Brothers luxury builds in Paradise Valley — these are the ten rules Ryan Moxley gives every client:
- Hire a buyer's agent. It's free. The builder pays the buyer's agent commission. You get experienced representation at zero cost. Never walk into a model home without an agent.
- Read the purchase agreement before you sign it. Builder contracts are 40–60 pages. The warranty section, arbitration clause, and allowance schedule are the most important. Take 48 hours to review it with your agent.
- Ask about CFDs on Day 1. Community Facilities Districts are common in new construction. They add $500–$3,000+/year to your property tax bill. The builder must disclose them in the SPDS (ARS §33-422), but ask up front so you're not surprised at closing.
- Attend the framing walk. Most builders offer a pre-drywall walk-through. Go. Take photos of the framing, PT slab layout, ductwork, plumbing, and electrical rough-in. This is your baseline before the walls close.
- Never cut or drill your PT slab. See the critical warning above. This cannot be repeated enough.
- Register all appliances within 90 days. Water heater, HVAC, washer/dryer, refrigerator — all have manufacturer warranty registration requirements. Missing this window can cut your coverage from 10 years to 5 years on HVAC.
- Schedule the 11-month inspection now. The day you close. Put it in your calendar. This is non-negotiable.
- Document your punch list in writing. Items the builder promises to fix post-close must be in a written punch list, signed by the builder's representative, before you close. Do not close on the verbal promise of a superintendent.
- Maintain proper irrigation setbacks. Watering too close to the foundation changes soil moisture and can void structural warranty claims. Keep irrigation heads at least 18–24 inches from the foundation.
- Know the difference between CFD, HOA, and builder warranty. Three separate systems. CFD = municipal infrastructure fee on property tax. HOA = community association governing CC&Rs and common areas. Builder warranty = your rights against the builder for construction defects. Each has different contacts, processes, and resolution paths.
Ryan Moxley has negotiated with every major builder in the Phoenix metro on behalf of buyers. Builder-employed sales agents represent the builder. Ryan represents you. His services are free to buyers (builder pays), and he brings knowledge of which communities have active CFDs, which builders have the best warranty responsiveness, and exactly how to negotiate design center upgrades and closing cost contributions. Call (480) 227-9143 before you visit any model home.
Warranty Transferability, Arbitration, and Builder Bankruptcy
Is the Builder Warranty Transferable?
The 10-year structural warranty under ARS §12-1361 typically runs with the property, meaning subsequent owners within the 10-year period have warranty rights. The 1-year and 2-year warranties are generally only available to the original purchaser unless the warranty documents specifically state otherwise. If you're buying a 3-year-old new construction resale home, confirm in writing from the builder whether the remaining 7 years of structural warranty is transferable to you.
Arbitration Clauses: What Buyers Should Know
The vast majority of new construction purchase agreements in Arizona include mandatory binding arbitration clauses for construction defect disputes. This means:
- You typically cannot sue the builder in court or before a jury — disputes go to a private arbitrator.
- Arbitration can be faster than litigation (6–18 months vs. 2–4 years) but results in an arbitral award rather than a court judgment.
- The arbitration provider (usually JAMS or AAA) and its rules are typically specified in the purchase agreement — read these rules.
- Arbitration awards are generally final and binding; grounds for appeal are extremely limited.
- Attorney fee provisions in arbitration: often the losing party pays the winner's attorney fees — this can deter small claims.
- For large structural claims ($50,000+), involving a construction defect attorney from the start of the ARS §12-1363 process is strongly advisable.
What Happens If My Builder Goes Bankrupt?
It's a legitimate concern. If a builder becomes insolvent during your warranty period:
- Contractor's license bond: All Arizona licensed contractors are required to maintain a surety bond. File a claim against this bond with the ROC (azroc.gov). Bond amounts vary ($5,000–$25,000 for residential builders) and may not cover large claims.
- Third-party warranty (2-10 HBW, PWC): If your builder used a third-party structural warranty administrator, that company's obligation survives the builder's bankruptcy. Check your closing documents for third-party warranty certificates.
- General liability insurance: Builders are required to maintain GL insurance. Filing a claim against this policy may be possible for defects that cause property damage. A construction attorney can advise on this option.
- Bankruptcy court claims: You may be able to file as a creditor in the builder's bankruptcy proceeding, though recovery is typically limited.
- Lesson: third-party warranty administration (2-10 HBW, PWC) is worth more than most buyers realize — it survives the builder.
New Construction vs. Resale: Warranty Perspective
Understanding the warranty trade-offs helps buyers make the right choice for their situation:
- New construction advantages: ARS §12-1361 statutory warranties; new systems with manufacturer warranties; modern energy codes; no deferred maintenance; design customization.
- New construction cautions: CFD fees; community under construction for 2–5 years; settling and warranty administration; landscape immaturity.
- Resale advantages: Mature landscaping; established community; more negotiable price; no CFD in most cases; quicker occupancy.
- Resale protections: BINSR (Buyer's Inspection Notice and Seller's Response) — Arizona's 10-day inspection contingency gives resale buyers the ability to inspect and negotiate repairs. SPDS (Seller Property Disclosure Statement, ARS §33-422) requires sellers to disclose known material defects. These are the resale equivalent of warranty protections.
Design Center Upgrades: What's Covered by Warranty vs. What Isn't
Every major Arizona builder operates a design center where buyers select finishes, fixtures, and optional upgrades — often adding $20,000–$150,000+ to the base price. Understanding what's covered by the builder's warranty is critical before you sign the design center contract.
Upgrades Typically Covered by Builder Warranty
- Upgraded flooring installation: If you paid extra for tile, wood, or LVP flooring, the installation workmanship (leveling, adhesion, grout) is covered under the 1-year workmanship warranty. Tile cracking due to improper substrate preparation is a warranty item.
- Upgraded cabinetry and countertops: Installation workmanship covered. Delamination of MDF cabinetry within the first year is a warranty claim. Note: granite/quartz countertops cracking from improper support are warranty items; cracks from homeowner use are not.
- Upgraded plumbing fixtures: The installation and connections are covered by the 2-year systems warranty. The fixtures themselves are covered by the manufacturer warranty.
- Upgraded electrical (recessed lights, additional circuits): Workmanship and electrical systems coverage applies to upgrades as well as base-build items.
- Extended garage: Any structural addition covered by 10-year structural warranty.
- Added rooms or square footage: Covered by all applicable warranty tiers as part of the home structure.
Upgrades Often NOT Covered by Builder Warranty
- Upgraded appliances: Refrigerators, ranges, dishwashers, wine coolers — covered ONLY by manufacturer warranty. Register within 90 days of closing.
- Window treatments: Blinds, shutters, and shades added as builder upgrades are typically excluded from warranty.
- Landscaping upgrades: Sod, plants, and irrigation upgrades may have a 30-60 day warranty at most. Xeriscape upgrades: check individual contract terms.
- Smart home packages: Ring, Nest, ADT, built-in speaker systems — typically covered by manufacturer warranty only. Builder installs them but doesn't warrant ongoing function.
- Pool and spa (if builder-contracted): Pool surface warranty varies (1–3 years); equipment by manufacturer; structural by builder (typically 5 years on shell).
- Garage flooring coatings: Epoxy/polyaspartic coatings added as builder upgrade are typically 1-year workmanship items with significant exclusions for peeling/bubbling caused by moisture vapor (common in AZ concrete slabs).
Before finalizing your design center selections, ask the design consultant: "Does this upgrade carry the same warranty as the base home?" Get the answer in writing in the design contract, not just verbally. Production builder design consultants are salespeople, not warranty experts — when in doubt, escalate the question to the builder's warranty department or project manager before signing.
The CFD and Special Assessment Intersection
Community Facilities Districts (CFDs) are a separate issue from builder warranties but are critical knowledge for new construction buyers in Arizona:
- CFDs are created under ARS Title 48 by municipalities or developers to fund community infrastructure: roads, parks, sewers, utilities.
- CFD fees appear as an additional line item on your property tax bill — $500 to $3,000+/year is common in new Phoenix-area communities.
- CFDs must be disclosed in the Seller Property Disclosure Statement (SPDS) per ARS §33-422. If a builder fails to disclose an active CFD before contract signing, this is a material disclosure violation.
- CFD issues (road quality, park maintenance) are NOT builder warranty items — they're municipal infrastructure matters. Contact the CFD board or municipality for infrastructure issues.
- CFDs typically run for 20–30 years and decrease over time as bonds are paid down. Ask the builder for the CFD schedule: current assessment, projected payoff year, and what happens to the assessment after payoff.
- Example: A $350K home in a new Buckeye community with a $1,500/year CFD carries the equivalent of a $50,000 price premium over a comparable non-CFD home when you calculate the 30-year NPV of those fees.
Arizona Laws Every New Construction Buyer Should Know
Beyond ARS §12-1361 (Right to Repair), several other Arizona statutes directly affect new construction buyers. Here's the quick-reference guide:
ARS §33-422 — Seller Property Disclosure Statement (SPDS)
Builders selling new homes must provide an SPDS disclosing: HOA existence and fees, CFD status and fees, known material defects, environmental issues, and more. Review the SPDS carefully before signing. Missing or incorrect SPDS disclosures can give you grounds to rescind the contract or seek damages after closing.
ARS §33-1806 — HOA Disclosure
In HOA communities (the majority of new Arizona construction), the HOA must provide a disclosure package including CC&Rs, bylaws, rules and regulations, current budget, and reserve fund status. Arizona gives buyers a 5-day review period after receiving HOA documents to rescind the contract. Use this window — read the CC&Rs to understand: STR restrictions, pet rules, parking rules, landscape standards, and assessment authority.
ARS §9-500.39 — Short-Term Rental (STR) Preemption
Arizona preempts local government bans on STRs (Airbnb, VRBO). Cities and counties CANNOT ban STRs in residential areas. HOWEVER, HOA CC&Rs CAN restrict or ban STRs — this is a private contractual matter, not a government regulation. If STR potential matters to your investment thesis, verify the CC&Rs before purchasing in any HOA community.
ARS §45-576 — Assured Water Supply
In Active Management Areas (AMAs), developers must demonstrate a 100-year assured water supply before platting new subdivisions. All Phoenix metro new construction should have AMA compliance, but buyers in fringe areas (Rio Verde, Buckeye west of I-10, Maricopa, Apache Junction) should verify assured water supply status and confirm they're on a municipal water system, not a private well.
ARS §36-1681 — Pool Barrier Requirements
All new construction pools in Arizona must comply with pool barrier law: minimum 5-foot barrier with self-closing, self-latching gates. If a builder-installed pool doesn't meet these specifications, it's both a warranty item AND a code violation reportable to the city building department.
ARS §12-1365 — Warranty Waiver Prohibition
No builder warranty provision, purchase agreement clause, or separate agreement can waive or reduce the statutory minimums of ARS §12-1361 below what the law requires. If a builder's contract contains such a provision, that specific provision is void as a matter of law. The warranty rights you have under §12-1361 are yours regardless of what the purchase agreement says.
2026 Conforming Loan Limit
The 2026 conforming loan limit for Maricopa and Pinal Counties is $806,500. New construction priced above this threshold requires jumbo financing — important for buyers in the $800K–$1.2M new construction range, as jumbo loans typically require 20% down (vs. 3–5% for conventional) and have different credit standards.
Active New Construction Communities in the Phoenix Metro 2026
Knowing where the major builders are active helps you understand which communities to target — and which builder warranty programs you'll be dealing with. This is Ryan Moxley's current overview of active new construction across the Phoenix metro.
TSMC Corridor (North Phoenix / Deer Valley)
The $65 billion TSMC Fab 21 semiconductor plant in north Phoenix has catalyzed massive residential development along the Deer Valley / I-17 / Loop 303 corridor. Active builder communities in this zone include developments by D.R. Horton, Taylor Morrison, and Meritage in the 75th-83rd Ave corridors north of Happy Valley Road. The TSMC campus brings 10,000+ direct jobs and 50,000+ indirect — creating one of the strongest sustained rental demand zones in Arizona. New construction here carries standard ARS §12-1361 warranty protections but often has active CFDs and HOAs with strict STR provisions.
West Valley (Buckeye / Goodyear / Surprise)
The fastest-growing geographic corridor for new construction in the Phoenix metro. D.R. Horton, LGI Homes, Century Communities, and Meritage are all heavily active in Buckeye (Tartesso, Verrado, Western Star, Saddleback Ranch) and Goodyear (Estrella Mountain Ranch, Canyon Trails, Tartesso West). Entry prices start at $290K–$340K, making this the primary first-time buyer market. CFDs are nearly universal in West Valley new construction — always verify the CFD schedule before signing.
Southeast Valley (Queen Creek / Maricopa)
Strong builder activity continues in Queen Creek (Harvest, Meridian, Circle G, San Tan Heights) and Maricopa. Taylor Morrison, Shea Homes, and Toll Brothers have active luxury-tier communities in Queen Creek alongside D.R. Horton and Meritage entry-level offerings. Queen Creek's school districts (QCUSD and Chandler USD overlap areas) remain a major buyer draw. Maricopa is entering its next growth phase with expanded I-10 access and industrial development along the SR-347 corridor.
Peoria / Surprise (Northwest Valley)
Vistancia (Peoria), Prasada (Surprise), and the Marley Park corridor are seeing continued Taylor Morrison, D.R. Horton, and Meritage activity. The Northwest Valley benefits from Luke AFB proximity (strong VA loan buyer demand), USAA campus employment, and Loop 303 access. Most communities have HOAs and CFDs; STR restrictions vary significantly by community — verify before purchasing if rental income is part of your plan.
East Valley (Gilbert / Chandler / Mesa)
Gilbert and Chandler are largely built out, but infill and luxury new construction continues. Taylor Morrison, Toll Brothers, and Shea Homes remain active in Gilbert master-planned communities. The Intel Fab 52/62 expansion in Chandler ($20B investment, 12,000+ employees) continues to drive demand for new construction within commuting distance. Entry-level new construction in southeast Mesa and the San Tan Valley remains active.
Ryan Moxley maintains a current list of active new construction communities across the Phoenix metro, including which builders are selling, current incentives, CFD status, and estimated delivery timelines. Call (480) 227-9143 or email moxleysellsaz@gmail.com to get the current list for your target area and price range — free to new construction buyers.
Know Your Rights — Then Build Your Future
Arizona's Right to Repair Act gives new construction buyers meaningful legal protections that most don't take full advantage of. Understanding the 1/2/10 warranty tiers, the 11-month inspection imperative, how to submit claims that builders take seriously, and what to do when they don't — these are the tools that protect your investment.
The Phoenix metro is in the middle of a generational growth surge. TSMC, Intel, the West Valley logistics boom, and continued migration from California and the Midwest are driving sustained demand for new construction at every price point. Buying a new home here in 2026 is a sound decision — but only if you're positioned to protect your investment with the knowledge in this guide.
The 11-month inspection isn't optional. Registering your appliances within 90 days isn't optional. Never cutting your PT slab isn't optional. These are the three non-negotiables.
And when you're ready to tour model homes, call Ryan Moxley first. The builder pays his commission. You get experienced, independent advocacy at no cost — someone who's been through the process with hundreds of Phoenix buyers and knows exactly how to negotiate on your behalf.
Ryan Moxley · REALTOR® · My Home Group
(480) 227-9143 · moxleysellsaz@gmail.com
ADRE SA643872000
Buying New Construction in Arizona?
Ryan Moxley has represented buyers at every major Phoenix metro builder. His services are free to you — the builder pays. Get independent representation that puts your interests first.