12-1363

12-1363. Notice and opportunity to repair

A. At least ninety days before filing a dwelling action, the purchaser shall give
written notice by certified mail, return receipt requested, to the seller specifying in
reasonable detail the basis of the dwelling action. The notice in a multiunit dwelling
action involving alleged defects that are substantially similar in multiple residential
units may comply with this section by providing a reasonably detailed description of the
alleged defects in a fair and representative sample of the affected residential units.
For the purposes of this subsection, "reasonable detail" includes a detailed and itemized
list that describes each alleged defect and the location that each alleged defect has
been observed by the purchaser in each dwelling that is the subject of the notice.

B. After receipt of the notice described in subsection A of this section, the
seller may inspect the dwelling to determine the nature and cause of the alleged defects
and the nature and extent of any repairs or replacements necessary to remedy the alleged
defects. The purchaser shall ensure that the dwelling is made available for inspection no
later than ten days after the purchaser receives the seller's request for an
inspection. The seller shall provide reasonable notice to the purchaser before
conducting the inspection. The inspection shall be conducted at a reasonable time. The
seller may use reasonable measures, including testing, to determine the nature and cause
of the alleged defects and the nature and extent of any repairs or replacements necessary
to remedy the alleged defects. If the seller conducts testing pursuant to this
subsection, the seller shall restore the dwelling to its condition before the testing.

C. Within sixty days after receipt of the notice described in subsection A of this
section, the seller shall send to the purchaser a good faith written response to the
purchaser's notice by certified mail, return receipt requested. The response may include
an offer to repair or replace any alleged defects, to have the alleged defects repaired
or replaced at the seller's expense or to provide monetary compensation to the purchaser.
The offer shall describe in reasonable detail all repairs or replacements that the seller
is offering to make or provide to the dwelling and a reasonable estimate of the date by
which the repairs or replacements will be made or monetary compensation will be provided.

D. If the seller does not provide a written response to the purchaser's notice
within sixty days, the purchaser may file a dwelling action without waiting for the
expiration of ninety days as required by subsection A of this section.

E. Within twenty days after receipt of the seller's offer made pursuant to
subsection C of this section, the purchaser shall provide a good faith written response.
A purchaser who accepts the seller's offer made pursuant to subsection C of this section
shall do so in writing by certified mail, return receipt requested. A purchaser who
rejects the seller's offer made pursuant to subsection C of this section shall respond to
the seller in writing by certified mail, return receipt requested. If the seller provides
a specific factual basis for the offer, the response shall include the specific factual
basis for the purchaser's rejection of the seller's offer and the purchaser's
counteroffer, if any. Within ten days after receipt of the purchaser's response, the
seller may make a best and final offer to the purchaser in writing by certified mail,
return receipt requested.

F. The following are not admissible in any dwelling action:

1. A purchaser's good faith notice given to the seller pursuant to subsection A of
this section.

2. A seller's good faith response or offer made pursuant to subsection C of this
section.

3. A purchaser's good faith response made to a seller's offer pursuant to
subsection E of this section.

4. A purchaser's good faith counteroffer to a seller's offer made pursuant to
subsection E of this section.

5. A seller's good faith best and final offer made pursuant to subsection E of this
section.

G. A purchaser may amend the notice provided pursuant to subsection A of this
section to include alleged defects identified in good faith after submission of the
original notice during the ninety day notice period. The seller shall have a reasonable
period of time to conduct an inspection, if requested, and thereafter the parties shall
comply with the requirements of subsections B, C and E of this section for the additional
alleged defects identified in reasonable detail in the notice.

H. A purchaser's written notice made pursuant to subsection A of this section or an
amended notice made pursuant to subsection G of this section tolls the applicable statute
of limitations, including section 12-552, until ninety days after the seller receives the
notice or for a reasonable period agreed to in writing by the purchaser and seller.

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

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

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

L. For the sale of a dwelling that occurs within the statutory period set forth in
section 12-552, the escrow agent, as defined in section 6-801, shall provide notice to
the purchaser of the provisions of this section and sections 12-1361 and
12-1362. Nothing in this subsection creates a fiduciary duty or provides any person or
entity with a private right or cause of action or administrative action.