Implied warranty of workmanship & habitability in new housing cannot be waived

The Arizona Supreme Court has held in Zambrano v. M & RC. II LLC,, 517 P.3d 1168 (Ariz. 2022) that the implied warranty of workmanship and habitability in new housing cannot be disclaimed or waived. The involved a sales contract with a detailed express warranty that disclaims any obligation to comply with common law obligations under the implied warranty as defined in Arizona law. The Arizona Supreme Court held that any waiver of the implied warranty was void even if it was partial, as it was here because an express warranty existed, albeit narrower than the implied warranty. The Court refused to make an exception for sophisticated buyers (the buyer here was a licensed real estate agent) because such a rule would be hard to administer and because even sophisticated buyers need the protection of the rule which protects buyers from latent defects that the buyer could not have reasonably discovered at the time of purchase. Such a warranty is effectively a consumer protection law that ensures that they buyer gets what they think they are buying. The dissent thought the majority was paternalistic in its refusal to let the parties determine what was in their own best interests and who are willing to waive certain rights perhaps in return for a lower price.