Certain Utah Laws Important to HOAs and Rentals
Utah Code 78B-4-513. Cause of action for
defective construction.
(1) Except as provided in Subsection (2), an action for
defective design or construction is limited to breach of the contract, whether
written or otherwise, including both express and implied warranties.
(2) An action for defective design or construction may
include damage to other property or physical personal injury if the damage or
injury is caused by the defective design or construction.
(3) For purposes of Subsection (2), property damage does not
include:
(a) the failure of construction to function as
designed; or
(b) diminution of the value of the constructed
property because of the defective design or construction.
(4) Except as provided in Subsections (2) and (6), an action
for defective design or construction may be brought only by a person in privity
of contract with the original contractor, architect, engineer, or the real
estate developer.
(5) If a person in privity of contract sues for defective
design or construction under this section, nothing in this section precludes
the person from bringing, in the same suit, another cause of action to which
the person is entitled based on an intentional or willful breach of a duty
existing in law.
(6) Nothing in this section precludes a person from
assigning a right under a contract to another person, including to a subsequent
owner or a homeowners association.
Enacted by Chapter 280, 2008 General Session