The proposed bill amends sections 12-552 and 33-1242 of the Arizona Revised Statutes, specifically changing the time limitations on legal actions related to real property improvements. The current law allows for actions or arbitrations based on contract to be initiated up to eight years after the substantial completion of an improvement to real property. The new bill reduces this period to four years. Additionally, the bill modifies the time frame in which one can bring an action for damages due to injury to real property or a latent defect discovered in the fourth year after completion; the period to bring such an action is extended from one year to two years after the injury or discovery, but not more than six years after substantial completion, replacing the current nine-year limit.

Furthermore, the bill introduces a requirement for condominium boards of directors to obtain a two-thirds vote of the unit owners before engaging in litigation or administrative proceedings in matters related to section 12-552. This is a new provision that adds a layer of approval for condominium boards before taking legal action, which was not present in the current law. The bill also removes language pertaining to the eight and nine-year periods for improvements completed on or before September 15, 1989, indicating that these specific provisions are no longer applicable.

Statutes affected:
Introduced Version: 12-552, 33-1242, 12-505