Real Estate

Earlier this year, the Legislature enacted SB1271, which made a number of changes to the Purchaser Dwelling Act (the “PDA”).  The PDA governs construction defect litigation involving single-family and multi-family homes.  SB1271 went into effect on August 27, 2019.

The legislation arose out of recommendations from the Construction Liability Apportionment Study Committee.  This committee was established by the Legislature in 2018 to study how liability for construction defects is apportioned and recommend changes to the law.  SB1271 was the committee’s final product.

The new law makes the following changes to the PDA and construction-defect litigation:

Indemnity:  One of SB1271’s foremost goals is to apportion liability for construction defects based on each party’s own share of fault for that defect. 

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Earlier this year, the Legislature enacted a statute making a number of changes to the Purchaser Dwelling Act (the “PDA”).  The PDA governs construction defect litigation involving single-family and multi-family homes.

The new legislation becomes effective on August 27, 2019 and requires some changes to form construction and consulting agreements, and may also require changes to how homebuilders and sellers process construction defect claims.

Broadly, the legislation changes the PDA in the following ways:

Expanded Right of Repair:  The PDA was initially enacted to give the “seller” an opportunity to repair any alleged construction defects before the homebuyer could file a lawsuit. 

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Congratulations to Gammage & Burnham client, Arizona Humane Society, on the recommendation of approval for its requested entitlement modifications for its Nina Mason Pulliam Campus for Compassion! For nearly 20 years, the Nina Mason Pulliam Campus for Compassion has served as the Arizona Humane Society’s home base for providing crucial animal care services—including affordable veterinary services and life-saving adoptions—to the local community.

On June 2, 2019, the City of Phoenix Planner Hearing Officer recommended approval for modifications to the Arizona Humane Society’s special permit zoning.  With these approved modifications, the Arizona Humane Society can start to plan for the future growth of the Campus for Compassion.

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On June 21st the U.S. Supreme Court issued its decision in Knick v. Scott Township, which materially expanded the ability of private property owners to go to federal court to defend their property rights.  The Court overturned a 34-year old decision that required property owners to litigate “takings” claims in state court before they were allowed to sue in federal court.  The Knick decision broadly expands projections of private property rights by allowing property owners to bring a takings claim directly in federal court.

The key to Knick is identifying the point in time when a property owner can sue over an alleged taking—(1) as soon as government action causes an alleged “taking” of property; or (2) later, only when it refuses to pay just compensation.  

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Gammage & Burnham is pleased to welcome Ian K. Douglas to our team of experienced attorneys! Ian’s practice is focused on real estate and commercial finance. Ian has broad experience practicing law in Arizona as well as in New Mexico, where he is also licensed. When asked what he was most looking forward to about joining G&B, Ian said: “I am excited to be working with the firm’s team of excellent lawyers”.

Ian represents school districts, home builders, developers and investors in all aspects of the acquisition and disposition of real property. He also represents regional and national landlords and tenants and he has represented international mining companies and utility companies in real estate matters.

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