AZ HB4045

Requires homeowners to send written notice of construction defects to sellers before filing lawsuits, giving sellers 60 days to respond with an offer to repair, replace, or provide monetary compensation, and homeowners must accept or reject within 30 days.

Mandates that contractors report any civil court judgments or arbitration awards against them to the Registrar of Contractors within 45 days, with violations subject to license suspension/revocation and civil penalties of $1,000 to $10,000 per violation.

Awards reasonable attorney fees and expert witness fees to the successful party in construction defect lawsuits, with the purchaser deemed successful if the final judgment exceeds the seller's pre-lawsuit offers.

Eliminates mandatory arbitration provisions by exempting cases from the notice-and-repair process when contracts already contain alternative dispute resolution procedures or when sellers previously refused to fix defects.

Terminates a developer's rights to enforce, modify, or restrict modification of community governing documents after completing construction and marketing activities in the development.