4.3.4.1.2 Residential License Bonds

• Jurisdiction: Arizona

Residential license bonds are subject to claims by the Registrar of Contractors and, as provided at A.R.S. § 32-1152(E), are also for the benefit of, and subject to, claims by “[a]ny person furnishing labor, materials or construction equipment on a rental basis used in the direct performance of a construction contract involving a residential structure or by persons injured as defined in § 32-1131.”

Thus, the residential license bond is in the nature of a performance bond. The statute defines “person injured” as an owner-occupant of certain classifications of residential property who is “damaged by the failure of a residential contractor to adequately build or improve a residential structure or...