Arizona Supreme Court Protects Homeowners: Implied Warranty Cannot Be Waived in Residential Contracts

Buying a home is one of the most meaningful investments a person can make. It represents security, stability, and trust in the quality of the work behind it. The Arizona Supreme Court recently reaffirmed that trust in its decision in Zambrano v. M & RC II LLC, confirming that homeowners cannot waive their right to a well-constructed and livable home. This ruling strengthens the protections every Arizona homeowner deserves and ensures that builders remain accountable for the quality of their craftsmanship.

Here is what you need to know.
In its landmark decision in Zambrano v. M & RC II LLC, 254 Ariz. 53 (2022), the Arizona Supreme Court strengthened protections for homeowners by clarifying that the implied warranty of workmanship and habitability cannot be waived or disclaimed in residential construction contracts. In Zambrano, the Court held that public policy requires builders to stand behind their work, even if the contract includes language attempting to disclaim or replace this warranty.

What Is the Implied Warranty of Workmanship and Habitability?
Arizona law recognizes that every new home contract carries with it an implied promise: that the home will be constructed in a workmanlike manner and will be suitable for habitation. This warranty protects buyers against defects that may not be immediately visible but that undermine the safety or livability of the property.

The Court’s Ruling
In Zambrano, the builder attempted to disclaim all implied warranties and substitute its own limited express warranty. After the buyer discovered defects in the residence, they filed suit against the builder, alleging a breach of the implied warranty of workmanship and habitability. The builder sought summary judgment, arguing that the purchase agreement included a waiver of that warranty. The trial court agreed and ruled in the builders’ favor, but the court of appeals overturned that decision. The Supreme Court agreed, ruling that the implied warranty is too fundamental to be waived. Allowing builders to sidestep this protection, the Court explained, would leave homeowners vulnerable to serious defects and undermine confidence in the housing market.

The Court reasoned that, “[a] homebuyer must also rely heavily on the builder-vendor’s knowledge   of   construction   quality, as   builders   are ‘skilled   in   the   profession, . . . modern construction is complex and regulated by many governmental codes, and . . . homebuyers are generally not skilled or knowledgeable in construction, plumbing, or electrical requirements and practices.’” Zambrano, 254 Ariz. 53, ¶22.

The Court goes on to state, “[t]his inequality in bargaining power, expertise, and knowledge distinguish the new-home-buying scenario from ones in which the parties are on similar footing and are thus better able to decide what contract terms serve their individual interests.” Zambrano, 254 Ariz. 53, ¶23

Why This Matters for Homeowners

This ruling indicates that no matter what your residential construction contract says, you still have the benefit of Arizona’s implied warranty protections. Even if your agreement contains a clause disclaiming implied warranties, that language is unenforceable under Arizona law. If your new home suffers from structural or workmanship defects, you may still have legal remedies.

Key Takeaways for Homebuyers
You cannot waive this protection. Any contract clause that tries to remove the implied warranty is void
Builders remain accountable. Contractors must deliver homes that meet basic standards of workmanship and habitability.
Legal recourse is available. If you discover serious defects, Arizona law preserves your right to seek relief, even if your contract says otherwise.

Our Firm’s Commitment
At Galbut Beabeau, we help homeowners understand and navigate the complexities of Arizona construction law. If you are purchasing or building a new home or are facing issues with construction defects, our team can review your contract and guide you through your options. Contact us today to discuss your situation and ensure your investment is protected.