New Construction Guide 2026

Arizona New Construction Warranty Guide 2026: Understanding Builder Warranties, ARS §12-1361 & What Builders Won't Tell You

Everything you need to know about protecting yourself when buying a brand-new home in the Phoenix metro — from statutory rights to builder warranty fine print, common defects, and what to do when a claim gets denied.

📅 June 30, 2026 ✍ Ryan Moxley, REALTOR® 📍 Phoenix Metro, AZ 📞 (480) 227-9143

The New Construction Illusion — And Why Warranties Matter More Than You Think

Arizona is one of the most active new construction markets in the entire United States. The Phoenix metro added more than 40,000 new homes in 2025 alone, and that pace shows no sign of slowing. From master-planned communities in Queen Creek and Buckeye to luxury infill projects in Scottsdale and the workforce housing explosion in the TSMC corridor north of Deer Valley, new homes are going up across every corner of the Valley of the Sun.

And buyers love them. I understand why. There's something deeply appealing about being the first family to live in a home — fresh paint, clean carpet, new appliances, pristine surfaces. You walk through a model home, smell that new-construction smell, see the upgraded kitchen and the shiny fixtures, and you think: this is brand new, so nothing can go wrong for a long time.

That feeling is understandable. It's also, unfortunately, one of the most expensive assumptions a homebuyer can make.

The truth is that new construction defects are extraordinarily common. Studies consistently show that the majority of new homes have at least one defect significant enough to merit a warranty claim in the first year. Some of those defects are minor — a door that doesn't hang perfectly, grout that cracks as the house settles, paint that peels where two materials meet. Others are far more serious: HVAC systems that can't keep the house cool during an Arizona summer, post-tension slabs that weren't installed correctly, stucco with missing or improperly installed flashing that allows water intrusion into walls.

The builders know about these issues. The good ones have warranty programs designed to address them. But even the best warranty programs have limits, exclusions, and fine print that can leave you holding the bag on expensive repairs if you don't know what you're entitled to and how to protect your rights.

That's what this guide is for.

My name is Ryan Moxley. I'm a REALTOR® with My Home Group, ADRE license SA643872000, and I've been helping buyers purchase homes across the Phoenix metro for years. I'm consistently ranked in the top 1% of agents nationally, and a significant portion of the transactions I handle every year involve new construction purchases. I've walked dozens of clients through the process of evaluating builder warranty programs, navigating construction defect claims, and understanding their rights under Arizona law. I've sat across the table from builder sales representatives and listened to what they emphasize — and, just as importantly, what they leave out.

This guide distills everything I've learned into a comprehensive reference that covers:

Whether you're a first-time buyer looking at an entry-level D.R. Horton home in Buckeye or an experienced investor purchasing a spec build in North Scottsdale, understanding your warranty rights before you sign is essential. Let's get into it.

Quick Navigation

This guide is long and comprehensive by design. Use the table of contents in the sidebar to jump to the section most relevant to your situation, or read straight through for the full picture.

ARS §12-1361 — Arizona's Right to Repair Act: Your Statutory Floor

Before we talk about any builder's express warranty program, you need to understand Arizona's Right to Repair Act, codified at ARS §12-1361 through §12-1366. This law — sometimes called the "Right to Repair" statute — establishes minimum legal rights for homeowners dealing with construction defects that exist completely independently of whatever warranty your builder offers.

Think of ARS §12-1361 as the floor. A builder's express warranty can offer more than the statutory minimum, but it cannot offer less. Even if a builder's contract tried to limit your rights below what the statute provides, those contractual limitations would be unenforceable.

The Three Tiers of Coverage Under ARS §12-1361

The Arizona Right to Repair Act divides construction defects into three categories, each with its own claim period:

10
Years — Structural
Foundation defects, load-bearing wall failures, structural framing issues, and other defects that affect the structural integrity of the home.
8
Years — Mechanical
Defects in HVAC systems, plumbing systems, electrical systems, and other mechanical components — specifically defects in workmanship that cause system failures.
1
Year — Workmanship
Paint blistering, tile cracking, caulk gaps, door alignment, minor drywall defects, and other finish-quality workmanship issues.

What "Substantial Completion" Means and Why It Matters

The clock on these claim periods starts running from the date of substantial completion of the dwelling — or the date you take title (close escrow), whichever is later.

"Substantial completion" in the Arizona construction context generally means the point at which the home is sufficiently complete that it can be used for its intended purpose — essentially, when the Certificate of Occupancy is issued. For most new construction purchases, this happens very close to your close-of-escrow date, so the two dates align. But in situations where a builder sells a completed spec home that's been sitting on the market for several months, the clock may have already been running for a while. Make sure you know when your specific home reached substantial completion.

The statute of repose — the absolute outer limit on when claims can be brought — also interacts with the limitations periods. Arizona has an 8-year statute of repose for construction actions generally (ARS §12-552), which runs from the date of substantial completion. The Right to Repair Act periods operate within this broader framework, so for structural defects, you have 10 years of Right to Repair coverage but need to be aware of the broader repose period as well. If you have a serious defect claim, consult an attorney early — these timing issues are exactly the kind of technical detail that can torpedo otherwise valid claims.

The Mandatory Notice-and-Repair Process

This is the procedural piece of ARS §12-1361 that most buyers don't know about — and it's critical. Before you can file a lawsuit against a builder for construction defects, you must complete a mandatory notice-and-repair process. Skipping this process will get your lawsuit dismissed.

Here's how the process works:

Written Notice to the Builder

You must send written notice to the builder (and any subcontractors who may be responsible) describing the alleged defects in reasonable detail. This notice must be sent at least 60 days before you file suit. Send it via certified mail and keep proof of delivery. Email alone may not be sufficient — consult an attorney on the proper form and service method.

Builder's Right to Inspect

Within 60 days of receiving your notice, the builder has the right to inspect the alleged defects. You must allow reasonable access for this inspection. The builder may bring its own contractors, engineers, or other experts to evaluate the condition.

Builder's Response

After inspection, the builder has the right to: (a) offer to repair the defect at no cost to you, (b) offer monetary compensation in lieu of repair, (c) offer a combination of repair and compensation, or (d) decline to remedy the defect. The builder must provide this response within 60 days of your notice.

Homeowner's Election

If the builder offers to repair or compensate, you can accept or reject the offer. If you reject a reasonable offer, this may affect your ability to recover attorney's fees later if you proceed to litigation. If the builder declines or fails to respond, you may proceed with filing suit.

Litigation if Necessary

Only after completing steps 1–4 can you file a construction defect lawsuit. At this stage, the case typically involves expert witnesses (structural engineers, HVAC specialists, waterproofing experts) and can be complex and expensive. Many construction defect attorneys work on contingency for significant claims.

Critical Point: This Process Cannot Be Waived

ARS §12-1361 explicitly states that the right-to-repair notice process cannot be waived by contract. Some builder contracts contain language attempting to limit your remedies or require arbitration for all disputes. While arbitration clauses may be enforceable for other matters, a builder cannot contractually strip away your right to invoke the statutory notice-and-repair process. If a builder or their attorney tries to tell you otherwise, consult your own legal counsel immediately.

How ARS §12-1361 Interacts with Builder Express Warranties

The statutory rights under ARS §12-1361 and your builder's express warranty program are parallel, overlapping systems of protection. They are not mutually exclusive. In the first year of ownership, you're protected by both the 1-year workmanship provision of ARS §12-1361 AND the 1-year workmanship warranty in the builder's express program. In years 2 through 8, you have the builder's express systems warranty (if still within the 2-year window) AND the 8-year mechanical statutory period. For structural issues, you have 10 years of statutory protection regardless of what the builder's warranty says.

The key practical implication: if your builder denies a warranty claim under their express warranty program, that does NOT necessarily mean you're out of options. You may still have a valid claim under ARS §12-1361, and the mandatory notice-and-repair process gives you a structured path to pursue it.

When to Involve an Attorney

For minor warranty issues — a sticking door, a paint touch-up, a caulk gap — work through the builder's standard warranty service process. But for any defect involving structural integrity, significant water intrusion, HVAC that can't maintain safe temperatures, or any defect where the builder's estimated repair cost exceeds $10,000-$15,000, involve a licensed Arizona construction defect attorney before proceeding. Many work on contingency for significant claims. The Right to Repair process has strict procedural requirements, and an attorney who handles these cases regularly can protect your rights in ways that are very difficult to achieve on your own.

Builder Express Warranty Programs: The 1-2-10 Structure

Nearly every major homebuilder operating in the Phoenix market structures their express warranty around what the industry calls the "1-2-10" framework. The numbers refer to the duration of three distinct tiers of coverage. Understanding this structure — and then reading each builder's specific warranty documents carefully — is essential before you close on any new construction home.

The 1-2-10 Framework Explained

Year 1 — Workmanship Warranty: The builder warrants that all workmanship meets applicable building codes and industry standards. This is the broadest coverage tier, covering everything from paint finish quality to tile grout consistency, caulking around windows and fixtures, drywall finishing, door and window adjustments, and general quality of finish work. Year 1 is when most defects surface and when your warranty relationship with the builder is most active. Builders typically conduct a formal "1-year walkthrough" around the 11-month mark to document and address any outstanding issues before this tier expires.

Year 2 — Systems Warranty: Coverage narrows to defects in the workmanship of mechanical systems — specifically, defects that cause system failures. This covers HVAC installation defects (not normal wear on parts), plumbing workmanship defects (improper slope, leaking connections that aren't related to wear), and electrical workmanship issues. Critically, this is workmanship coverage — it does NOT cover mechanical breakdown of the equipment itself, which falls under the equipment manufacturer's separate warranty.

Years 3-10 — Structural Warranty: Coverage narrows further to structural defects — issues that affect the load-bearing integrity of the home: the foundation, load-bearing walls, structural framing, roof structure. This is the longest-running but narrowest tier. Not every crack in a wall is a "structural defect" in the warranty sense — most cosmetic cracking (normal settlement) is excluded.

Third-Party Structural Warranty Providers

Some builders purchase third-party insurance-backed structural warranty products to back their 10-year structural warranty obligations. This is actually a consumer protection feature — it means that even if the builder goes bankrupt or exits the market (which has happened multiple times in Phoenix history), you still have a structural warranty backed by an insurance company. Companies like 2-10 Home Warranty, Residential Warranty Corporation (RWC), and Builders Best are common providers. Ask specifically whether the 10-year structural warranty is self-insured by the builder or backed by a third-party insurer.

Major Phoenix Metro Builders: Warranty Programs Compared

Here is how the major builders active in the Phoenix market structure their warranty programs. Note that specific terms vary by subdivision and may be updated; always obtain and read the actual warranty document for your specific home before closing.

Builder Workmanship (Yr 1) Systems (Yr 2) Structural (Yr 10) 3rd-Party Structural Online Portal 24/7 Emergency Line Customer Rating (1–10)
D.R. Horton 1 Year — Full workmanship 2 Years — Systems defects 10 Years — Structural Yes (RWC / 2-10 HW) Yes — MyDRHorton app Yes 6.5 / 10
Pulte / Centex 1 Year — Quality Care warranty 2 Years — Systems 10 Years — Structural Varies by community Yes — Pulte App Yes 7 / 10
Meritage Homes 1 Year — Full workmanship 2 Years — Systems 10 Years — Structural Yes — backed by insurer Yes — MyMeritage portal Yes 7.5 / 10
Taylor Morrison 1 Year — TM Warranty Corp 2 Years — Systems 10 Years — Structural Yes — TM Warranty Corp Yes — online portal Yes 7.5 / 10
Toll Brothers 1 Year — Comprehensive 2 Years — Systems 10 Years — Structural Yes Yes — TBHomeDirect Yes 8 / 10
K. Hovnanian 1 Year — Full workmanship 2 Years — Systems 10 Years — Structural Varies by community Yes — myhome.khov.com Yes 6.5 / 10
Shea Homes 1 Year — Full workmanship 2 Years — Systems 10 Years — Structural Yes Yes — eWarranty portal Yes 8 / 10
David Weekley 1 Year — Full workmanship 2 Years — Systems 10 Years — Structural Yes Yes — Owner Entry portal Yes 8.5 / 10

Builder-Specific Notes

D.R. Horton is the largest homebuilder in the United States and by far the most active in the Phoenix market. Their warranty program is backed by 2-10 Home Warranty (or Residential Warranty Corporation, depending on the community), which means structural coverage survives even if DR Horton ever ceases operations in a market. Quality can vary significantly between communities and superintendent assignments; request the warranty booklet before going under contract, not after.

Pulte and Centex (both owned by PulteGroup) operate under slightly different brand identities targeting different price points. Both use similar warranty structures. Pulte's Quality Care warranty program for Year 1 is well-organized, and their superintendent-driven warranty process is generally responsive. However, their escalation process when claims are denied can be slow.

Meritage Homes has a strong reputation for energy efficiency — they build to ENERGY STAR standards in most communities — and their HVAC systems tend to be better-sized than some competitors. Their warranty portal (MyMeritage) makes request submission and tracking straightforward. The company has a good track record on warranty responsiveness in the Phoenix market.

Taylor Morrison uniquely operates TM Warranty Corporation, their own third-party warranty entity, to administer and back their structural warranty. This creates a layer of separation between the builder and the warranty provider that can be either helpful (the insurer backs the claim) or frustrating (the builder may point to the warranty company when you have issues). Overall reputation in AZ is solid.

Toll Brothers builds at higher price points and generally delivers higher-quality workmanship than entry-level builders. Warranty issues are less common per unit, and their service teams tend to be more responsive. If you're buying in the $600K+ range, Toll Brothers builds to a different standard than volume production builders at lower price points — but that doesn't mean defects don't occur.

Shea Homes is Arizona-founded (based in Scottsdale) and has a long track record in the Phoenix market. They have an excellent reputation for construction quality and warranty responsiveness. Their eWarranty portal makes tracking requests easy. Many Phoenix-area real estate professionals consider Shea one of the better-quality builders in the market.

David Weekley Homes consistently ranks among the highest-rated builders for customer satisfaction nationally, and their Arizona operations reflect that reputation. Their Owner Entry warranty portal is well-designed, and their service teams are known for responsiveness. They build at mid-to-upper price points and their finish quality generally justifies the premium.

What Builder Warranties Do NOT Cover: The Exclusion List

Builder warranties may feel comprehensive from the marketing materials, but the actual warranty documents — which you absolutely must read before closing — contain extensive lists of exclusions. These are the categories where builders most commonly deny claims. Know them before you need them.

Normal Wear and Tear

Builder warranties cover defects — conditions that represent departures from proper construction standards. They do not cover the natural degradation of materials over time. Grout that slowly discolors, caulk that gradually shrinks and cracks with age, paint that fades from UV exposure, carpet that wears in high-traffic areas — these are normal wear and not covered after the workmanship period. The line between "defect" and "normal wear" is a common source of disputes, especially in years 2-5.

Cosmetic Defects Discovered After Year One

The 1-year workmanship warranty is the period for addressing cosmetic and finish issues. Defects you discover in month 14 that were actually present at closing but weren't noticed are generally not covered. This is why the 11-month walkthrough is so important — it's your last formal opportunity to document and report cosmetic issues before the workmanship tier expires.

Weather and Monsoon Damage

Arizona's summer monsoon season — July through mid-September — brings wind, rain, hail, and occasional microbursts that can damage even brand-new homes. Damage caused by weather events is not a construction defect and is not covered by builder warranties. It falls under your homeowner's insurance. However — and this is an important distinction — if monsoon rain enters the home because of an improper installation (missing flashing, inadequate sealing), that water intrusion may well be a warranty item. Document carefully and make the claim promptly.

Pest and Rodent Damage

Termite damage, packrat nesting in attic spaces, bird infiltration through improper vent screens — none of these are covered by builder warranties. Arizona has significant subterranean termite activity, and new construction homes are not immune. Most builders provide a pre-treat termite treatment as part of new construction, but this is not the same as a termite warranty. Maintain your own pest control service from day one.

Homeowner-Caused Damage and Modifications

If you drill through a post-tension slab (more on this in the next section), modify structural elements without permits, or make changes that violate the CC&Rs or building code, any resulting damage will not be covered. More subtly: if you hang heavy shelving in a way that damages drywall, or run water features against the foundation in ways that cause moisture issues, those are homeowner-caused conditions outside warranty scope.

Thermal Movement in Arizona's Extreme Climate

This exclusion is particularly significant in Arizona. The Phoenix metro can see temperatures ranging from the mid-30s°F in December to 115°F+ in July. That 30°F to 115°F+ annual spread — roughly 80 degrees of temperature variance — causes significant thermal expansion and contraction in all building materials. Concrete slabs expand and contract. Wood framing expands and contracts. Stucco, tile, and drywall all move with temperature. Some degree of cracking and movement in these materials is normal and expected in Arizona's climate and is explicitly excluded from warranty coverage. The challenge: distinguishing normal thermal cracking from defect-caused structural cracking requires a qualified engineer. Don't let a builder characterize a real defect as "normal thermal movement" without getting an independent opinion.

Landscaping, Grading, and Irrigation

Builder warranties cover the structure of the home and its mechanical systems. Landscaping, finish grading, irrigation systems, and the condition of the yard are generally excluded from post-close warranty coverage. The exception: if improper grading creates drainage conditions that cause water to flow toward the foundation (a genuine builder error), that may be claimable — but you'll need to document it carefully.

Appliances

The refrigerator, range, dishwasher, microwave, and other appliances in a new construction home come with their own manufacturer warranties — typically 1 year on parts and labor for most brands, with extended terms on certain components. If your refrigerator stops working in month 8, you call the appliance manufacturer, not the homebuilder. Make sure you register all appliances immediately after closing.

Damage From Failure to Maintain

Builder warranties require homeowners to perform reasonable maintenance. In Arizona, this specifically includes: changing HVAC filters on schedule (monthly during summer operation, quarterly otherwise), re-caulking areas around tubs, showers, and windows as caulk naturally shrinks, and clearing debris from roof drains and downspouts before and during monsoon season. If you fail to change HVAC filters and your coils ice up and cause system damage, the builder will point to maintenance failure as the cause and deny the warranty claim — often correctly.

Transferability Limitations

If you buy a new construction home from the original purchaser (a "resale" of a home that's still under the original builder warranty period), check the warranty transferability provisions carefully. Some builder express warranties are fully transferable to subsequent owners. Others are not transferable at all — the warranty expires when the original buyer sells. Still others allow transfer but require a formal transfer process and may charge a transfer fee. The statutory protections of ARS §12-1361 are not affected by these contractual limitations, but your builder warranty coverage for cosmetic and systems issues may be significantly reduced if the original warranty isn't transferable.

Arizona-Specific Construction Issues and Warranty Implications

Post-Tension Slabs: The Most Important Thing to Know

The vast majority of new construction homes in the Phoenix metro are built on post-tension concrete slab foundations. Understanding what this means — and what the rules are — is arguably the single most important construction knowledge you can have as an Arizona homeowner.

A post-tension slab uses high-strength steel cables (called tendons) embedded within the concrete. After the concrete is poured and cures to a minimum strength, a hydraulic jack is used to tension these cables to 33,000 pounds of force per cable. This creates a slab that is significantly stronger and more resistant to cracking from soil movement than a conventionally reinforced slab — which matters a great deal in Arizona's expansive and varied soil conditions.

The tendons run horizontally through the slab in a grid pattern. They're under enormous tension. And they're invisible — you cannot see them from the surface.

The cardinal rule: you must NEVER cut, drill into, or penetrate a post-tension slab without first obtaining the as-built PT cable layout from the builder or structural engineer and having a licensed engineer approve the work.

Why? Because if a penetration severs a PT cable, the consequences can be severe. The remaining cables redistribute load in ways that can cause slab cracking, foundation movement, and in extreme cases, structural failures that cost six figures to repair. And because the damage is inside the concrete, it may not be visible immediately — problems can manifest months or years after the damage occurs.

Common situations where homeowners inadvertently cut PT cables:

Warranty implications: Builder warranties cover defects in the PT slab as-built. They do not cover damage caused by homeowner penetration or modification of the slab — and this is one of the clearest warranty voids in existence. If you need any slab penetration for any reason, always obtain the PT cable layout drawing (builders are required to keep these on file and provide them on request) and consult a structural engineer before any work begins.

Signs that may indicate PT slab issues in a new home:

Caliche: The Hidden Variable in Arizona Soils

Caliche (pronounced "cuh-LEE-chee") is a naturally occurring accumulation of calcium carbonate in the soil. In Arizona, caliche layers are found throughout the Phoenix metro at varying depths — sometimes just a few inches below the surface, sometimes several feet down. The layer can range from soft and crumbly to rock-hard and nearly impenetrable.

Why does caliche matter for new construction? Several reasons:

Drainage: Caliche is relatively impermeable to water. If there's a caliche layer beneath your yard, rainwater (especially monsoon rains) can't percolate down through the soil — instead it collects above the caliche layer. This can create drainage problems, soil saturation adjacent to foundations, and hydrostatic pressure conditions that affect slab performance. Builders are supposed to manage this through proper site grading and drainage design, but deficiencies in drainage management are common warranty claims.

Excavation costs: Caliche requires specialized equipment to break through. In new construction, builders account for expected caliche conditions in their site preparation budget. However, if caliche conditions are more severe than anticipated, the builder may make decisions about foundation depth and pier placement that affect long-term performance.

Foundation settlement: In some situations, improper management of caliche-related drainage can cause soil conditions that lead to differential foundation settlement — meaning one part of the slab settles more than another. Differential settlement is the most common cause of serious structural warranty claims in Arizona residential construction. Typical indicators include diagonal cracks from window or door corners (the most telling sign of differential movement), doors that no longer close properly, and visible slope differences within the home.

Under ARS §12-1361, foundation and slab issues caused by construction defects — including defects in how the builder prepared the soil and managed drainage — fall within the 10-year structural coverage period. If you observe significant cracking patterns or door/window alignment issues that worsen over time, document them immediately with dated photos and consult both the builder and an independent structural engineer.

Stucco Water Intrusion: Phoenix's Most Litigated Warranty Issue

Stucco (a cementitious plaster applied over a substrate and wire mesh system) is the dominant exterior finish in Phoenix new construction. It's durable, fire-resistant, and well-suited to the desert climate — when installed correctly. When installed incorrectly, it can allow water intrusion that damages framing, insulation, and interior finishes in ways that may not become apparent until significant damage has already occurred.

The four most critical vulnerability points in stucco systems, and what to look for:

Window and Door Penetrations: Every window and door is a hole cut through the building envelope. Proper installation requires a system of flashing — typically metal or rubberized membrane — that directs any water that gets past the window frame back to the exterior. Improper flashing at window penetrations is one of the most common construction defects in Arizona new construction, and one of the most expensive to repair. Signs of window flashing failure: staining on interior window sills, damp drywall around window frames, mold growth in corners near windows (often visible only after removing baseboards).

Pipe and Mechanical Penetrations: Every hole in the exterior stucco for pipes, electrical conduits, hose bibs, and similar penetrations is a potential water entry point if not properly sealed. Proper installation uses flashing and backer rod with appropriate exterior sealant. Improper installation — which is common — uses only sealant, which eventually fails as materials expand and contract with temperature changes.

Parapets and Flat Roof Intersections: Many Phoenix homes have flat or low-slope roof sections, and the intersection where a flat roof meets a vertical stucco wall — the parapet — is a prime water intrusion point. Proper flashing and counter-flashing at these transitions is essential. Failures here can allow water to infiltrate behind the stucco and into wall cavities without any visible exterior signs.

Chimney Caps and Roof Penetrations: Decorative chimney caps, vent stacks, and other roof penetrations require proper integration with the roofing membrane. Installation defects here are common and can allow water entry directly into attic spaces.

Warranty coverage for stucco water intrusion depends on timing and cause. During the 1-year workmanship period, virtually any stucco issue should be covered. In years 2-8, if the intrusion is caused by a defect in the installation of the stucco system or its components, it may fall under the mechanical/systems coverage. After year 2, if the defect caused structural damage to framing or load-bearing components, it could be covered under the 10-year structural warranty.

Do Not Let Stucco Water Intrusion Go Unreported

Water intrusion behind stucco is a condition that gets dramatically worse over time. What starts as a minor flashing defect can evolve into rotted framing, mold growth, and compromised structural members. The moment you observe any sign of water intrusion — staining, soft drywall, musty odors near exterior walls — document it with photos and report it to the builder in writing immediately. Waiting turns a warranty claim into a homeowner-expense nightmare.

HVAC Sizing and Performance in Arizona's Extreme Heat

Arizona's summers put HVAC systems under extraordinary stress. A new home in Phoenix must be able to maintain interior temperatures at or below 75°F when exterior temperatures reach 115°F — a 40-degree differential. (The old industry standard in Arizona was a 20-degree differential, but modern building codes and updated engineering standards generally target the 40-degree performance level, though terminology varies.)

HVAC undersizing is a real issue in new construction — not necessarily because builders intentionally install inadequate equipment, but because the Manual J load calculation (the engineering calculation that determines the correct HVAC size for a given home) can be done incorrectly or with incorrect inputs. Common errors include underestimating duct losses, using incorrect wall assembly R-values, or failing to properly account for solar heat gain through windows.

How to test HVAC performance in Year 1:

If you believe the HVAC is undersized or improperly installed, report it to the builder in writing during Year 1. Builders will often send their HVAC contractor to evaluate, and that contractor has an obvious conflict of interest. Consider obtaining an independent evaluation from a licensed HVAC engineer (different from an HVAC technician) if the builder's response is unsatisfactory.

Roof Systems in New Construction

Arizona new construction uses primarily two roofing systems: concrete or clay tile on pitched roofs, and TPO (thermoplastic polyolefin) membrane on flat or low-slope sections. Both are appropriate for the climate when properly installed. Both are commonly subject to installation defects in new construction.

Tile roofs: Common defects include insufficient fastening (tiles can shift in monsoon winds), improper flashing at valleys and penetrations, cracked tiles from foot traffic during installation, and ponding areas created by improper slope. Tile itself is extremely durable; the underlayment beneath it is what actually waterproofs the roof and typically has a 25-30 year lifespan when properly installed.

TPO/flat roofs: Seam integrity is critical — improperly welded seams are the most common failure mode. Ponding water (pooling that doesn't drain within 48 hours after rain) accelerates TPO degradation and should be reported as a warranty issue. Proper roof drainage design is a builder obligation.

Any observed roof leak — even a very minor one — should be documented and reported to the builder in writing immediately. Do not wait to see if it gets worse. Do not delay through multiple monsoon seasons. The moment water enters through the roof is the moment the clock starts on potential damage, and prompt reporting protects both your home and your warranty claim.

Common New Construction Defects: Coverage, Timing, and Strategy

The table below summarizes the most common new construction warranty issues in Arizona, the applicable coverage periods, and practical guidance on how to approach each type of claim.

Defect Type Builder Warranty Period ARS §12-1361 Period Typically Covered? Documentation Needed Typical Repair Cost (If Denied) Best Response Strategy
Cracked stucco Year 1 (workmanship) 1 year (workmanship) Depends — hairline OK, structural cracks covered Photos showing crack width/location; engineer opinion if significant $500–$8,000+ Report in writing in Year 1; get engineer opinion if >1/8" wide
HVAC underperformance Years 1–2 (systems) 8 years (mechanical) Yes — if undersizing or install defect proven Temperature logs, thermostat photos, date/time, outdoor temp $4,000–$18,000 (new unit or duct work) Document during summer peak heat; get independent HVAC engineer eval
Roof flashing leak Year 1 (workmanship) 8–10 years depending on structural damage caused Yes — if defective installation Photos of water intrusion; written builder notification same day $800–$6,000+ Report immediately; don't allow to persist through multiple rain events
Window water intrusion Years 1–2 8–10 years (structural if framing damaged) Yes — likely workmanship defect Interior staining photos; moisture meter readings; thermal imaging $1,500–$15,000+ (full window reflash) Get thermal imaging inspection; document all moisture; report in writing
Tile/grout cracking Year 1 (workmanship) 1 year (workmanship) Depends — minor settlement expected; significant cracking covered Photos before and after; note pattern (linear vs random) $300–$3,000 Report all in Year 1 walkthrough; distinguish from normal settlement
Post-tension slab settlement Years 1–10 (structural) 10 years (structural) Yes — if defective installation or improper soil prep Engineer report; elevation survey; documented crack progression $15,000–$80,000+ Engage structural engineer immediately; preserve all evidence
Pool deck settlement/cracking Year 1 (workmanship) Depends on cause Depends — if pool contractor hired separately, builder may not be responsible Photos; pool company records; signed contracts $2,000–$12,000 Identify who contracted the pool work; file with correct party
Door/window alignment issues Year 1 (workmanship) 1 year (workmanship); 10 yr if structural cause Yes during Year 1; only if structural cause after Photos/video of sticking or gaps; note when it began $200–$1,500 per door/window Report in Year 1 walkthrough; if recurs after repair, may indicate structural movement
Drywall nail pops Year 1 (workmanship) 1 year (workmanship) Yes — common in Year 1 Photos with ruler showing location; list of all affected areas $50–$400 (DIY to professional) Compile comprehensive list; report in Year 1 walkthrough; batch repairs
Appliance failure NOT covered — separate manufacturer warranty Not applicable No — contact manufacturer directly Model/serial numbers; purchase date; manufacturer warranty registration $150–$2,000 depending on appliance Register all appliances at closing; call manufacturer for service
Foundation differential settlement Years 1–10 (structural) 10 years (structural) Yes — if construction defect is causative Structural engineer report; elevation survey at multiple points; crack photos with dates $25,000–$150,000+ Consult construction defect attorney immediately; document everything
Electrical panel defects Years 1–2 (systems workmanship) 8 years (mechanical) Yes — if installation defect Licensed electrician inspection report; description of specific defect $500–$5,000 Report in writing; have licensed electrician document before builder repairs

The New Construction Walkthrough Process: How to Approach It Strategically

The walkthrough process for new construction is fundamentally different from a traditional resale home inspection. You're not trying to decide whether to buy the home (you're already under contract) — you're creating a formal, documented record of conditions at specific milestones so that the builder is obligated to address deficiencies. How you approach these walkthroughs directly determines how effectively your warranty rights will be enforced.

The Pre-Drywall Inspection

This is the single most valuable inspection opportunity in new construction, and most buyers don't realize it exists or don't take advantage of it. The pre-drywall inspection happens after framing is complete but before insulation and drywall are installed — giving you (and an independent inspector) a clear view of the structural framing, rough plumbing, rough electrical, window rough openings, and HVAC ductwork layout.

What a good pre-drywall inspection checks:

Strongly request a pre-drywall walk with your builder. Most production builders accommodate this as a standard practice. Consider bringing an independent inspector. Once drywall goes up, many of these systems are completely inaccessible without destructive investigation — and what you can't see, you can't include in a warranty claim.

The Builder Orientation / Final Walkthrough

This walkthrough happens when construction is essentially complete — typically a few days before your close date. The builder's superintendent or customer care representative walks through the home with you, demonstrating how systems work and documenting any remaining items on a punch list.

Critical strategic points for this walkthrough:

Take a camera or phone — video everything. Walk every room in a slow, continuous video. This creates a timestamped record of conditions at the moment of your walkthrough. If the builder later claims a condition didn't exist at closing, you have evidence.

Be methodical, not rushed. Builders schedule closing-day walkthroughs on tight timelines because they want to close on schedule and collect their money. Take the time you need. Open every cabinet door, test every window and door, run every faucet, flush every toilet, test every light switch and outlet, operate the garage door, inspect the attic access.

Do not sign any satisfaction statement before punch list items are complete. This is crucial. Some builders ask buyers to sign a form acknowledging that the home is complete and satisfactory. If there are outstanding punch list items — and there almost always are — do NOT sign any document that could be characterized as releasing the builder from addressing those items. Only sign the walkthrough form that documents the punch list. Items not on the documented punch list may be more difficult to claim later.

Test the HVAC to the extent possible. Run the AC, verify that airflow comes from all registers, check that thermostats respond correctly. Note any rooms with clearly different temperatures.

Check all finish work carefully. This is your best opportunity to identify cosmetic defects — paint quality, tile alignment, grout consistency, caulk application, trim installation, cabinet alignment and adjustment.

The Blue Tape Walkthrough

The "blue tape" walkthrough refers to the practice of using blue painter's tape to mark items that need attention — a small piece of tape on a drywall defect, a larger piece framing a paint issue, tape over a cabinet hinge that doesn't close correctly. The builder's team then uses these markings as their work order for pre-close repairs.

Be comprehensive with blue tape. It costs nothing to mark an issue, and anything not marked is likely to become a "you should have reported it at walkthrough" argument later. Your goal is a thorough punch list, not a short one.

Typical Timeline from Walkthrough to Close

In a typical new construction transaction in Phoenix:

Third-Party Home Inspection: Strongly Recommended on Every New Construction Home

If there is one piece of advice in this entire guide that I hope every buyer takes to heart, it's this: always hire an independent home inspector on new construction, no matter what the builder says.

New construction buyers sometimes feel that an independent inspection is unnecessary — the home is brand new, the city inspection process ensures code compliance, the builder has their own quality control process. All of this is true in theory. In practice, multiple peer-reviewed studies of new construction defects show that the majority of new homes have at least one code violation or workmanship defect that was not caught by the official inspection process, and that independent inspector findings result in documented warranty claims in a substantial percentage of new construction purchases.

City inspectors are responsible for ensuring minimum code compliance. They are not doing a comprehensive quality inspection. A builder's own superintendent is responsible for quality control but also has pressure to keep the project on schedule. Neither is a substitute for an independent inspector whose only responsibility is to your interests as the buyer.

What Independent Inspectors Find in New Construction

Common findings by independent inspectors on new construction homes in Arizona include:

Inspection Services to Consider

Standard Home Inspection ($350–$600): Covers all accessible systems and components. Highly recommended for every new construction purchase.

Thermal Imaging ($150–$300 added to standard inspection): Infrared camera technology reveals temperature differences behind walls and ceilings. This is particularly valuable for finding missing insulation, HVAC air leaks, and areas of moisture intrusion that aren't visible to the naked eye. In Arizona's extreme heat, proper insulation is a major energy and comfort factor — thermal imaging is worth the additional cost.

Sewer Scope ($100–$200): A small camera is fed into the main drain line to check for blockages, improper installation, or construction debris. Even in new construction, construction debris in sewer lines is common. A sewer backup in month 6 that's traced to construction debris is an argument, not an easy warranty claim. Know the condition going in.

How to Handle Builder Pushback on Inspections

In my experience, most reputable builders in the Phoenix market do not actively resist independent inspections — they accommodate them as part of their standard process. However, buyers should know: you have the right to an independent inspection, and a builder who refuses to allow one should be a red flag. Arizona law does not give builders the right to exclude independent inspections, and any purchase contract provision that tries to prevent you from inspecting is suspect.

If a builder objects to the timing or process of an inspection (e.g., they don't want an inspector present during construction because of safety concerns), work with them on scheduling — but don't give up the inspection.

Post-Closing Warranty Service: How to Protect Your Rights After Move-In

Setting Up Your Warranty Service

At or before closing, your builder will provide warranty documentation and service contact information. Do this immediately:

Documentation Best Practices

The single most important thing you can do to protect your warranty rights is maintain meticulous documentation. For every issue:

The 11-Month Walkthrough

Many builders offer a formal 11-month walkthrough as part of their warranty program — a second formal inspection of the home near the end of the 1-year workmanship period. Even if your builder doesn't proactively schedule one, request it. This walkthrough is your formal opportunity to document all remaining workmanship issues before the most comprehensive tier of coverage expires.

Schedule your 11-month walkthrough at month 10 (not month 11) to give yourself and the builder enough time to schedule and complete repairs before the 1-year anniversary. Walk through with the same methodical approach as the initial walkthrough — be comprehensive, document everything, don't rush.

After the 1-Year Workmanship Period

When the 1-year workmanship warranty expires, your coverage narrows to systems defects (year 2) and structural issues (years 3-10). This doesn't mean you're without options for workmanship-type issues that emerge — ARS §12-1361 still provides 1-year statutory coverage from substantial completion for workmanship items. But as a practical matter, after year 1, your primary coverage is for systems and structural issues.

Escalation When Claims Are Denied

If a warranty claim is denied and you believe it was wrongly denied:

  1. Request denial in writing. A verbal "that's not covered" is much harder to work with than a written denial. Ask for the specific warranty provision being cited.
  2. Get a second opinion. Hire an independent contractor or engineer to evaluate whether the condition is properly characterized.
  3. Escalate within the builder's organization. Most production builders have a customer escalation path above the local service rep — regional managers, customer satisfaction departments.
  4. Contact your state's contractor licensing board. The Arizona Registrar of Contractors (AzROC) licenses general contractors and investigates complaints. Filing a complaint can motivate resolution.
  5. Contact an Arizona construction defect attorney. For significant claims ($10,000+), the ARS §12-1361 right-to-repair notice process — initiated by an attorney who does this work regularly — is often the most effective tool for compelling builder action. Many construction defect attorneys work on contingency for significant claims, meaning they don't get paid unless you win.

New Construction by Phoenix Metro Area: Location-Specific Considerations

TSMC Corridor — North Phoenix / Deer Valley

The TSMC Fab 21 semiconductor facility represents a $65 billion investment in north Phoenix's Deer Valley corridor and has triggered one of the largest regional economic booms in Arizona history. Phase 1 is now producing 4nm and 3nm chips; Phase 2 (2nm) is under construction. The result: an enormous wave of new residential construction in the areas surrounding the facility — north Phoenix, North Scottsdale, Cave Creek Road corridor, and into New River.

New construction buyers in this area should be particularly attentive to:

Eastmark — East Mesa

Eastmark is one of the most successful master-planned communities in Phoenix metro history — more than 7,000 acres being developed east of Mesa on Ellsworth Road. The community has strong infrastructure, robust HOA management, and multiple builder options at various price points. New construction here benefits from mature community planning, established school assignments, and well-maintained common areas.

Eastmark buyers should verify which builder built their specific home — quality can vary significantly between builders even within the same master plan. The community's HOA is active in maintaining standards, which is generally a consumer protection rather than a burden.

Queen Creek / San Tan Valley

The Queen Creek / San Tan Valley area has been one of the fastest-growing markets in Arizona for several consecutive years. Land is more available, prices are more accessible than established East Valley communities, and new developments are going up at a rapid pace.

Key considerations here:

Buckeye / Goodyear — West Valley Expansion

Buckeye is one of the fastest-growing cities in the entire United States, and Goodyear isn't far behind. The West Valley's affordability relative to the East Valley and Central Phoenix has driven massive new construction activity. Major master-planned communities like Festival Ranch, Canyon Trails, Estrella Mountain Ranch (in Goodyear), and numerous Buckeye developments offer entry-level to mid-range new construction.

West Valley buyers should be aware that summer heat in western Maricopa County can be several degrees warmer than Scottsdale or Tempe due to the urban heat island effect and lower elevation. HVAC sizing is especially critical in this part of the valley — verify during your first summer that the system performs adequately.

Gilbert / Chandler — Premium East Valley

Gilbert and Chandler represent mature, established East Valley communities where new construction is primarily infill — replacing older properties or filling in remaining vacant parcels rather than breaking new ground on agricultural land. Infrastructure is generally well-established, school districts are among the best in Arizona (Gilbert Unified, Chandler Unified), and proximity to Intel Fab 52/62 (a $20 billion investment in Chandler with 12,000+ employees) supports strong long-term demand.

New construction in Gilbert and Chandler tends to be at higher price points than West Valley or Queen Creek options but with the benefit of proven infrastructure and established communities. Fewer CFD complications as a general rule, though always verify for specific communities.

Surprise / El Mirage — Northwest Value Play

The Northwest Valley around Surprise and El Mirage offers some of the most affordable new construction price points in the metro while maintaining reasonable proximity to Loop 303 for access to job centers. Development activity here targets first-time buyers and workforce housing demographics. The area also hosts significant 55+ new construction through Sun City Grand and related communities.

With more volume production at lower price points, workmanship quality variations are something to watch for. Independent inspections and diligent 1-year walkthrough processes are especially valuable in this market segment.

Ryan's Recommendations: New Construction Purchase Checklist

After years of helping Phoenix metro buyers navigate new construction purchases, here's my practical checklist for protecting yourself:

Why a Buyer's Agent Matters in New Construction

One of the most important things I tell new construction buyers: the builder's on-site sales agent represents the builder. Their job is to sell you the home at the highest price with the best terms for the builder. They are excellent at their jobs. They are not your advocate.

A buyer's agent — like me — represents you and only you. In the vast majority of new construction transactions in Arizona, the builder pays the buyer's agent commission. You get professional representation that advocates for your interests at no additional cost to you.

What does buyer representation mean in new construction? It means I review the purchase contract before you sign it, not after. It means I accompany you to walkthroughs and help you document issues strategically. It means I know the reputation of the builder's local operations and can tell you what to watch for. It means when the builder's sales agent tells you something that doesn't sound right, you have a second expert to call.

I've helped dozens of buyers through new construction purchases across the Phoenix metro. I know the builders, I know the communities, I know the warranty programs, and I know how to protect your interests throughout the process. And I work at no extra cost to you — the builder pays my commission, not you.

If you're considering a new construction purchase anywhere in the Phoenix metro — or you've already closed and have warranty questions — I'm happy to talk through your situation.

Ryan Moxley | My Home Group | ADRE SA643872000
📞 (480) 227-9143
📧 moxleysellsaz@gmail.com

Frequently Asked Questions: Arizona New Construction Warranties

What is the Arizona Right to Repair law for new construction homes?

Arizona's Right to Repair Act (ARS §12-1361 et seq.) gives homeowners statutory rights to pursue construction defect claims against builders. The law establishes three tiers: 10 years for structural defects (foundation, load-bearing walls, structural framing), 8 years for mechanical systems defects (HVAC, plumbing, electrical workmanship), and 1 year for workmanship defects (paint, tile, caulk, drywall). Before filing a lawsuit, homeowners must provide written notice to the builder at least 60 days in advance, giving the builder an opportunity to inspect and offer to repair or compensate. This notice process cannot be waived by contract — it is a mandatory statutory right that cannot be taken away by anything in your purchase agreement. If a significant defect claim is denied, consulting an Arizona construction defect attorney before the statutory periods expire is strongly recommended.

How long is the builder warranty on a new home in Arizona?

Most builders in Arizona offer what's called a 1-2-10 warranty: 1 year for workmanship defects covering all finish quality issues (paint, tile, grout, caulk, door alignment, drywall finishing), 2 years for mechanical systems defects covering workmanship defects that cause failures in HVAC, plumbing, and electrical systems, and 10 years for structural defects covering foundation, load-bearing walls, and structural framing issues. These builder express warranties work alongside Arizona's statutory rights under ARS §12-1361 — the statute provides the floor, and builder warranties may offer additional coverage on top. Importantly, some warranties are transferable to subsequent owners (a significant benefit for resale value) while others are not — check the specific warranty terms before purchasing. Always request the actual warranty document, not just the marketing summary.

What does a new construction warranty NOT cover in Arizona?

Major warranty exclusions include: normal wear and tear (gradual material degradation over time), cosmetic defects discovered after the 1-year workmanship period expires, weather and monsoon damage (covered by homeowner's insurance, not builder warranty), pest damage including termites and packrats, homeowner-caused damage or unauthorized modifications, normal thermal expansion and contraction of materials (especially significant in Arizona's 80°F+ annual temperature range), landscaping and irrigation systems, appliances (covered by separate manufacturer warranties), and damage from homeowner's failure to perform required maintenance like changing HVAC filters and re-caulking. Some warranties are also non-transferable, meaning they expire when the original buyer sells — a significant issue for buyers of "new-but-second-owner" homes still within the original builder warranty period.

Should I get a home inspection on a new construction home in Arizona?

Absolutely yes — this is one of the most important things you can do to protect yourself in a new construction purchase. Independent home inspections on new construction regularly uncover defects that were not caught by the builder's quality control process or city inspectors. Common findings include missing insulation (often visible only with thermal imaging), improper flashing at windows and doors, HVAC sizing or installation issues, construction debris in plumbing drain lines, electrical code violations, and roofing installation defects. A standard inspection costs $350-$600, with thermal imaging adding $150-$300 and a sewer scope another $100-$200. These relatively small investments regularly identify thousands of dollars in warranty items that the builder is responsible to fix — and provide documentation that makes warranty claims much easier to pursue. Builders in Arizona cannot legally prevent you from getting an independent inspection, and any builder who objects to one should raise a red flag.

Buying New Construction in Arizona? Let's Talk.

I represent buyers in new construction purchases across the entire Phoenix metro — at no extra cost to you. The builder pays my commission. Fill out the form below or call me directly at (480) 227-9143.