AZ HB2477

Amends Arizona statutes governing residential construction defect claims by modifying notice requirements, repair/replacement procedures, and attorney fee awards in dwelling actions.

Requires purchasers to provide written notice of alleged construction defects before filing suit, and sellers have 60 days to respond with intent to repair, replace, or offer compensation; purchaser may reject monetary offers and proceed with legal action after repairs are completed.

Changes attorney fee provisions so fees are awarded based on individual contested issues rather than the entire action, and limits expert witness fee awards to single-purchaser cases only.

Makes alternative dispute resolution (ADR) procedures in sale contracts exempt from the statute's requirements if they are commercially reasonable, but requires ADR terms be prominently disclosed in bold capital letters in the contract.

Clarifies that repair/replacement efforts and conduct during the pre-litigation process are admissible as evidence and not considered settlement communications.