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“A HOME IS ONE OF THE MOST IMPORTANT ASSETS YOU WILL EVER BUY.” — WARREN BUFFETT, CHAIRMAN AND CEO OF BERKSHIRE HATHAWAY

Rebecca Hidalgo Rains CEO/Managing Broker

COO/Chief Operating Officer

James Rains

Licensed Transaction Manager

Cherie Moore

Ashley Vantroostenberghe Licensed Marketing Manager

REALTOR®/Showing Agent

Dalton Hidalgo

Rebecca@IntegrityAllStars.com

James@IntegrityAllStars.com

Cherie@IntegrityAllStars.com

Ashley@IntegrityAllStars.com

Dalton@IntegrityAllStars.com

Office: 480.243.4242 | Team@IntegrityAllStars.com | www.IntegrityAllStars.com 4981 S. Arizona Ave., Suite 1 • Chandler, AZ 85248


TABLE OF CONTENTS INTRODUCTION ........................................................................................................................................ # HOME BUYER GUIDE ................................................................................................................................. 3-4 New Home Builder Questions ............................................................................................................. 5-6 Do’s and Don’ts ...................................................................................................................................... 7 Checklist ………………………………………………………………………………………………..8 Utilities and Reviews ………………………………………………………………………..………… 9 THE CONTRACT ……………………………………………………………………………………….. 10 AGENCY DISCLOSURE ................................................................................................................................10 BUYER BROKER EXCLUSIVE AGREEMENT.............................................................................................. 11-12 BROKER ADMISTRATION COMMISSION ................................................................................... 13-14 MARKETING SERVICE AGREEMENT ................................................................................................15 BUYER ADVISORY ................................................................................................................................ 16-29 WIRE FRAUD ………………………………………………………………………………………….. 30 PURCHASE CONTRACT ………………………………………………………………………….. 31-41 RESIDENTIAL BUYER’S INSPECTION NOTICE AND SELLER’S RESPONSE …………….… 42-43

VENDORS ...................................................................................................................................................44 ROB SELL, SELL HOME INSPECTIONS......................................................................................... 44-45 YVETTE MYER, OLD REPUBLIC HOME WARRANTY ............................................................... 46-57


OUR HOME BUYER(S) GUIDE TO BUYING A HOME (with all the steps we will help guide you through, even after you get your keys!) Here at Integrity All Stars, we truly understand the fun, excitement and STRESS of buying a home and we are here to guide you and mitigate the number of “bumps in the road” you and your family may go through during this process. We are always at your service and work as a team (Rebecca, James, Cherie and Ashley) so that we can ensure you have the BEST experience possible and get the BEST home for your money! REGARDLESS if you’re a first time home buyer OR if you’ve been through this before, it starts with just making the decision that you’re READY to purchase a home. For first time home buyers, it’s great to finally STOP paying someone else’s mortgage and finally experience the tax benefits first hand of owning a home and if you already have owned before- things change often in the Real Estate world, so it’s good to go through the information in this packet still so you will not miss a step in the buying process. Once you’ve taken the first step – then you need to figure out the HOW and with WHO… and we will help you with that! What we mean by that is you first must have your credit checked and get a mortgage loan approval from preferably a LICENSED loan officer (unless you’re paying with cash). Sellers usually won’t accept offers from Buyers that do not have proof they can actually pay for the home, so this step must be done before we go out to look at homes; not to mention, knowing your buying power is crucial before you fall in love with one! (Avoid the kid in the candy store syndrome) ONCE we know how much you are able and wanting to spend on your next home, we will set up a saved search for you to receive automatic listings through the Multiple Listing Service that fit your specific NEEDS and WANTS regarding size, location and amenities within your future home and neighborhood. We also have an APP for your mobile device and a Portal log in for you to access the same MLS us Realtors use. We do warn against searching on websites like Zillow, Realtor.com; Trulia, Redfin to just name a few as they get their data from our MLS but many times their info is outdated and they show homes for sale that are already sold or incorrect values on homes. Even Zillow self admits they are wrong an average of 8.9% on values for homes (See http://www.zillow.com/zestimate/#acc). On a sales price of just $300k, that means they could say a home is worth $25k more or less than its real value & a $50k spread is a huge difference! There are lots of homes to pick from out there too, from existing homes to brand new homes; also foreclosure/auction homes or even for sale by owners…. So it can get a little confusing- that’s why we’re here to help you figure out the best option for you! Rebecca has 24 yrs under her belt as a Full-Time Realtor, but combined, we have 38 yrs of experience as a team. Half of Rebecca’s career has been in new home sales, both as a Sales Representative as well as the Sales Manager. IF you have an interest in brand new, we can discuss that process in great length- it is a little different than the below… just let Rebecca know and she will be sure you pick the best builder possible and get the best deal possible with them! It can also be quite an adventure! Some people see the first home and say that’s it and some need to see several before they find the right one. (We don’t mind whether it’s 1 or 100- PLEASE remember that!) Just to warn you, we may have to bid on more than one home as well… depending on the current market conditions for when you decide the time is right for you to purchase. Is it a Seller’s market or Buyer’s market? What should you offer? Are their multiple bids you’re competition against? What will help you “win” the home you’ve decided is the one? This is where an agent with lots of experience can really pay for themselves ten-fold; negotiating the best deal for you and utilizing our contacts developed over the years can help get you an advantage depending on who we are working with for your next home. There’s also a lot of paperwork to go through in order for you to buy a home. A lot of it is found here for your reference as we like to give it to you in advance to familiarize you with it before we ask you to sign it. Some of it will be signed in the beginning and some throughout the process. We will let you know what we need signed when- don’t worry! Once you’re “under contract”, you will need to put down your deposit with the title company selected. We have one we work with regularly and will request them when possible. After that, you will need to work with your chosen mortgage professional to secure your loan and get all requested documentation in to their underwriter for the loan. IF you’re a Cash Buyer, you obviously won’t need to worry about this part other than providing proof of closing funds.


During the first 10 days is the normal inspection period. This is when round two of negotiations take place for an existing home. You will want to hire a home inspector (we also have a great one to recommend) to check out the home for any defects or repairs that need to be made. (IF it’s a new home, we will discuss this one as it’s actually better to have a home inspection done right before your one year anniversary and not before you close escrow.) Then, depending on your situation and what is found in the inspection, we will request repairs from the Seller of the home. IF we can’t come to an agreement, we may have to start over and get a full refund of your earnest deposit made with the title company. But don’t fret! Normally we come to an agreement and complete the rest of the process without issue! After inspections are done, the appraisal gets ordered and you will need to finish taking care of any outstanding loan items you need to do. (Please refer to our DO’s and DON’Ts we’ve compiled to help alleviate any headaches before you have them!) After that, it’s time to put in your change of addresses with everyone, plan your move, get hazard insurance, put utilities in your name, and then wait for the loan documents to arrive to the title company for your signing. When that happens, we will do a final walk through to ensure the home is in the same condition as it was at the time of contract (normally it is) and if it’s not, hold up the closing until it is. After monies have been paid and documents signed, the title company will record the transaction and then we are able to GIVE YOU THE KEYS to your NEW HOME! That is our favorite part for sure! J Afterwards, we are here to assist with any loose ends or questions you may have. We will send you a copy of your settlement statement at the end of the year so you have it for filing your income taxes the following year. We will stay in touch via email newsletters to keep you on top of Real Estate news. We will invite you to participate in contests and attend special events throughout the year. OUR GOAL is that we not only become your Realtors for life, but that you would want your co-workers/friends/family to receive the same TOP service when they are interested in buying/selling a home. After working with us, you won’t hesitate to refer us to anyone you care about. In fact, we hope you insist on it! After you’ve gotten your keys to your new home, we will ask for you to complete a customer service survey and/or a recommendation we can use for future marketing purposes. IF we didn’t do our job well enough that you’ll be delighted to do this for us, then we failed in our books, even if we got paid and you got a home in the end. Being delighted with the experience you have is our GOAL for you (and your family) and we settle for nothing short of that! NOW let’s go have fun looking at homes together! J Sincerely, James & Rebecca Hidalgo Rains, Cherie Moore, Ashley Vantroostenberghe and Dalton Hidalgo

Rebecca Hidalgo Rains CEO/Managing Broker

4981 S. Arizona Ave., Suite 1 Chandler, AZ 85248

James Rains

COO/Chief Operating Officer

Cherie Moore

Licensed Transaction Manager

Ashley Vantroostenberghe Licensed Marketing Manager

Dalton Hidalgo

REALTOR®/Showing Agent

602.463.2978

602.463.2151

480.738.3223

480.688.9198

602.872.5939

Rebecca@IntegrityAllStars.com

James@IntegrityAllStars.com

Cherie@IntegrityAllStars.com

Ashley@IntegrityAllStars.com

Dalton@IntegrityAllStars.com

Office: 480.243.4242 | eFax: 480.212.4927 | Team@IntegrityAllStars.com | www.IntegrityAllStars.com


NEW HOME BUILDER QUESTIONS SUBDIVISION NAME_________________________________________________ COMMUNITY INFORMATION: How many lots is this community? _____________________________________ Homeowner’s Association Fee(s)? _____________________________________ What does the fee cover? ____________________________________________ Is there a community pool? []Yes []No __________________________________ Is there a community park? []Yes []No __________________________________ What schools? Elem______________ JH_______________ HS_______________ Is this a gas community? []Yes []No Where is gas standard? ________________ What is located nearby community? ____________________________________ LOT INFORMATION: What is the standard lot size? _______________Dimensions? _______________ What type of home will be built around the lot chosen? ____________________ Any 2 stories? []Yes []No _______________________________________ Are there color or elevation restrictions? []Yes []No________________________ What is in back/on sides of the lot? ___________Which way does lot lay? _____ Interest in lot number? ________? Anyone else interested in this lot? []Yes []No Is front landscaping included? []Yes []No ________________________________ INCENTIVES: With their lender? __________________________________________________ With your lender? ___________________________________________________ MONIES: Cost of lot reservation? ______________________________________________ How long will this hold the lot? ________________________________________ Is lot reservation refunded? []Yes []No __________________________________ What cash is expected at contract time? _________________________________ Is this fully refundable if buyer does not qualify? []Yes []No _________________ Any other monies needed before close of escrow? []Yes []No _______________ Contingency requirements (if you have a home to sell)? []Yes []No ___________

4981 S. Arizona Ave., Suite 1 • Chandler, AZ 85248 P: (480) 243-4242 F: (480) 212-4927 • Web: www.integrityallstars.com


WARRANTIES: Inside? ____________________________________________________________ __________________________________________________________________ Structural? ________________________________________________________ __________________________________________________________________ ENERGY PACKAGE: What seer air conditioner? ________________________ Dual Zones? []Yes []No What is insulation in ceiling? _________________ Walls? ___________________ OPTIONS: What options are important? _________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ Is the following included? Covered Patio []Yes []No Granite []Yes []No 18” Tile []Yes []No Vaulted ceilings []Yes []No 36” Upper cabinets []Yes []No Undermount sinks []Yes []No Stainless steel appliances []Yes []No Vaulted ceilings []Yes []No PAINT: What paint do we get standard with the home? ___________________________ Can it be upgraded? []Yes []No At what cost? ___________________________ What paint do we get on the outside? __________________________________ Are the roof tiles colored through? []Yes []No ____________________________ BUILD TIME: _______________________________________________________ SPEC INFORMATION: ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ____________________________________

4981 S. Arizona Ave., Suite 1 • Chandler, AZ 85248 P: (480) 243-4242 F: (480) 212-4927 • Web: www.integrityallstars.com


Do’s and Don’ts Here is a list of useful tips to ensure an effortless loan process. These DO’s and DON’Ts will help you avoid any delays and costly challenges with your loan approval DO’s        

DO call us if you have any questions. DO provide requested documentation promptly and in its entirety. DO continue living at your current residence. DO continue making your mortgage or rent payments. DO continue to use your credit as normal. DO keep working at your current employer. DO keep your same insurance company. DO stay current on all existing accounts.

DON’Ts  DON’T change your employment or marital status.  DON’T make any major purchases (car, furniture, jewelry, etc.).  DON’T change bank accounts.  DON’T make any large cash deposits into your bank accounts.  DON’T transfer any balances from one account to another.  DON’T close any credit card accounts.  DON’T consolidate your debt onto one or two credit cards.  DON’T apply for new credit or open a new credit card.  DON’T max out or overcharge on your credit card accounts.  DON’T take out a new loan or co-sign on a loan.  DON’T pay off any loans or credit cards, charge offs, or collections without discussing it with us first.  DON’T finance any elective medical procedure.  DON’T join a new fitness club.  DON’T open a new cellular phone account.  DON’T start any home improvement projects.  DON’T have your credit pulled or dispute any information on your credit report.

4981 S. Arizona Ave., Suite 1 • Chandler, AZ 85248 P: (480) 243-4242 F: (480) 212-4927 • Web: www.integrityallstars.com


CHECK LIST 

              

Shop for a mortgage lender (*See below for 2 qualified lenders) Look for the best rates and terms and a good-faith estimate of closing costs. Consider getting preapproved for a loan. You won’t want to waste time looking at houses you can’t afford. Plus, a preapproval letter will demonstrate your viability as a buyer (a good edge, when you bid on a house, if there are multiple offers), and you’ll save time once a bid is accepted. Research potential neighborhoods. Investigate issues like crime rate, schools, local services, proximity to museums or other institutions that are important to you, commuting distance and property taxes. Make a list of features you want in a house. Divide it into must-haves and like-to-haves Go house hunting with your Realtor. Make an offer (if accepted continue below) Contact title company to make deposit on home Complete mortgage application and turn in requested docs Get an inspection – Sell Home Inspections http://activerain.com/profile/robsell Complete BINSR with requested repairs to the Seller Lender orders appraisal Order home warranty - Old Republic Home Warranty brochure https://www.orhp.com/index.cfm?go=homeowners.viewPlanPDF&file=AZ_4_3_ Brochure%2Epdf Confirm closing date with title company. Sign necessary paperwork a couple days prior to closing Secure Hazard insurance Contact utilities (**see below) Do a final walk through to insure home is in same condition/repairs made On closing day the lender funds and title records. Congratulations! Review Realtor on multiple sites (***see below)

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**UTILITIES: All utilities will need to be transferred to your name by close of escrow. Electric Service: APS (602) 371-7171 SRP (602) 236-8888 Cable Service: Cox (602) 775‐1000 Direct TV (800) 531-5000 Dish (888) 656-2461 Phone/Internet Service: Century Link (877) 548-6869 Trash Service: Town of Phoenix (602) 262‐7251 Town of Gilbert (480) 503-6800 Town of Chandler (480) 782-2280 Town of Mesa (480) 644-2221

***REVIEWS:

ZILLOW https://www.zillow.com/profile/Rebecca-Hidalgo/ ANGIE’S LIST https://my.angieslist.com/Angieslist/Login.aspx?ReturnUrl=%2fAngieslist%2fMyAngie% 2fReportOnCompany%2fDefault.aspx FACEBOOK https://www.facebook.com/RebeccaHidalgoAZRealtor YELP https://www.yelp.com/writeareview/biz/Qj9bTNbUfZFLTZRUQrvlMg?return_url=%2Fbiz %2FQj9bTNbUfZFLTZRUQrvlMg HOMELIGHT https://www.homelight.com/reviews/new/rebecca-hidalgo-az-rl087 GOOGLE https://plus.google.com/+IntegrityAllStarRealtyChandler/about?review=1 One Stop Shop http://integrityallstars.com/about/review/

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Marketing Service Arrangement Disclosure To: From: Berkshire Hathaway HomeServices Arizona Properties (“BHHSAZ”) Date: This is to give you notice that Berkshire Hathaway HomeServices Arizona Properties (“BHHSAZ”) has a business relationship with the following service providers - Mortgage: Axia Home Loans or Cross Country Mortgage; Home Warranty: American Home Shield (“AHS”). BHHSAZ does not have a direct or indirect ownership in Axia Home Loans, Cross Country Mortgage or American Home Shield. However, BHHSAZ receives earnings via a marketing service agreement ("MSA"). Mortgage: You are not required to use Axia Home Loans or Cross Country Mortgage as a condition for purchase or sale of the subject property. You are free to select a mortgage lender of your choice. BHHSAZ does not endorse or recommend the products or services provided by any particular mortgage lender. BHHSAZ receives earnings via a marketing service agreement with Axia Home Loans and Cross Country Mortgage. You may be able to get mortgage services at a lower rate by shopping with other home mortgage service providers. THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS (Mortgage Services) AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES. Home Warranty: You are not required to use American Home Shield as a condition for purchase or sale of the subject property. There are several companies that provide similar home warranty services in the State of Arizona. BHHSAZ does not endorse or recommend the products or services provided by any particular home warranty company. BHHSAZ receives earnings via a marketing service agreement with AHS.

THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS (Mortgage and Home Warranty) AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.

By signing below, I/We acknowledge that I/We have read this disclosure form and understand that BHHSAZ may receive a financial or other benefit as the result of the use of the referred company’s listed in this disclosure.

Name Printed:

Signature:

Date:

Name Printed:

Signature:

Date:

MSA - BHHSAZ

Rev (July 2017)


TO ENSURE THAT YOU HAVE THE MOST UP-TO-DATE BUYER ADVISORY, PLEASE CHECK https://www.aaronline.com/manage-risk/buyer-advisory-3/

Berkshire Hathaway HomeServices, 4981 S Arizona Avenue #1 Chandler, AZ 85248 Rebecca Hidalgo Rains Phone: 480-243-4242 Fax: 480-212-4927 Produced with zipForm® by zipLogix, 18070 Fifteen Mile Road, Fraser, Michigan 48026

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A Resource for Real Estate Consumers Provided by the Arizona Association of REALTORSÂŽ and the Arizona Department of Real Estate A real estate agent is vital to the purchase of real property and can provide a variety of services in locating a property, negotiating the sale, and advising the buyer.

investigate or verify concerning a property purchase are summarized in this Advisory. Included in this Advisory are: 1. Common documents a buyer should review;

A real estate agent is generally not qualified to discover defects or evaluate the physical condition of property; however, a real estate agent can assist a buyer in finding qualified inspectors and provide the buyer with documents and other resources containing vital information about a prospective property. This Advisory is designed to make the purchase of real property as smooth as possible. Some of the more common issues that a buyer may decide to

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2. Physical conditions in the property the buyer should investigate; and 3. Conditions affecting the surrounding area that the buyer should investigate.

In addition, a buyer must communicate to the real estate agents in the transaction any special concerns the buyer may have about the property or surrounding area, whether or not those issues are addressed in this Advisory.

REMINDER: This Advisory is supplemental to obtaining professional property inspections. Professional property inspections are absolutely essential: there is no practical substitute for a professional inspection as a measure to discover and investigate defects or shortcomings in a property.

Arizona Department of Real Estate

Buyer Advisory (August 2017)

Berkshire Hathaway HomeServices, 4981 S Arizona Avenue #1 Chandler, AZ 85248 Rebecca Hidalgo Rains Phone: 480-243-4242 Fax: 480-212-4927 Produced with zipFormÂŽ by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

}

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Table of Contents SECTION 1

COMMON DOCUMENTS A BUYER SHOULD REVIEW 3 3

Purchase Contract MLS Printout

4

Homeowner’s Association (HOA) Governing Documents

5 5

Lead-Based Paint Disclosure Form Professional Inspection Report

3

The Subdivision Disclosure Report

4

HOA Disclosures

5

County Assessors/Tax Records

4 4

Community Facilities District Title Report or Title Commitment

5

3

(Public Report) Seller’s Property Disclosure

Termites and Other Wood Destroying Insects and Organisms

Statement (SPDS)

4

Loan Information & Documents

5

Foreign Investment in Real Property

Covenants, Conditions and Restrictions (CC&Rs)

4 5

Home Warranty Policy Affidavit of Disclosure

3

Tax Act (FIRPTA)

SECTION 2

COMMON PHYSICAL CONDITIONS IN THE PROPERTY A BUYER SHOULD INVESTIGATE 6

Repairs, Remodeling and

7

Water/Well Issues

6

New Construction Square Footage

7

(Adjudications, CAGRDs) Soil Problems

6

Roof

7

Previous Fire/Flood

8

Property Boundaries

6 6

Swimming Pools and Spas (Barriers) Septic and Other On-Site

7

Pests (Scorpions, Bed bugs, Roof Rats, Termites & Bark Beetles)

9 9

Flood Insurance / Flood Plain Status Insurance (Claims History)

Wastewater Treatment Facilities

8

Endangered & Threatened Species

9

Other Property Conditions

Sewer

8

Deaths & Felonies on the Property

6

8

Indoor Environmental Concerns (Mold, Chinese Drywall, Radon Gas & Carbon Monoxide, Drug labs, Other)

(Plumbing, Cooling/Heating, Electrical systems)

SECTION 3

CONDITIONS AFFECTING THE AREA SURROUNDING THE PROPERTY THE BUYER SHOULD INVESTIGATE 9

Environmental Concerns

10 Freeway Construction

10 Military and Public Airports

(Environmentally Sensitive Land Ordinance)

& Traffic Conditions 10 Crime Statistics

11 Zoning/Planning/ Neighborhood Services

10 Electromagnetic Fields

10 Sex Offenders

11 Schools

10 Superfund Sites

10 Forested Areas

11 City Profile Report

SECTION 4

OTHER METHODS TO GETTING INFORMATION ABOUT A PROPERTY 11 Talk to the Neighbors

11 Drive around the Neighborhood

11 Google Earth

SECTION 5

RESOURCES 12 Market Conditions Advisory 12 Fair Housing & Disability Laws

12 Additional Information Services: NATIONAL ASSOCIATION OF REALTORS®, Arizona Government, Arizona Department of

12 Wire Fraud

BUYER ACKNOWLEDGMENT Page

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Real Estate, and Arizona Association of REALTORS® p.13

Arizona Department of Real Estate

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Buyer Advisory (August 2017)

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Section 1

COMMON DOCUMENTS A BUYER SHOULD REVIEW The documents listed below may not be relevant in every transaction, nor is the list exhaustive. Unless otherwise stated, the real estate broker has not independently verified the information contained in these documents.

1

Purchase Contract

http://www.azre.gov/PublicInfo/PropertyBuyerChecklist.aspx (ADRE Property Buyer’s Checklist)

Buyers should protect themselves by taking the time to read the real estate purchase contract and understand their legal rights and obligations before they submit an offer to buy a property. http://bit.ly/2kpUncL (AAR Sample Residential Resale Purchase Contract)

2

4

MLS Printout A listing is a contractual agreement between the seller and the listing broker and may authorize the broker to submit information to the Multiple Listing Service (MLS). The MLS printout is similar to an advertisement. Neither the listing agreement nor the printout is a part of the purchase contract between the buyer and seller. The information in the MLS printout was probably secured from the seller, the builder, or a governmental agency, and could be inaccurate, incomplete or an approximation. Therefore, the buyer should verify any important information contained in the MLS.

3

ADRE does not verify the information in the Public Report. Therefore, the Report could be inaccurate so it should be verified by the buyer.

Most sellers provide a SPDS. This document poses a variety of questions for the seller to answer about the property and its condition. The real estate broker is not responsible for verifying the accuracy of the items on the SPDS; therefore, a buyer should carefully review the SPDS and verify those statements of concern. http://bit.ly/2knrN0A (AAR Sample SPDS) http://www.azre.gov/PublicInfo/PropertyBuyerChecklist.aspx (ADRE Property Buyer’s Checklist)

5

The Subdivision Disclosure Report (Public Report) A Subdivision Disclosure Report (Public Report) is intended to point out material information about a subdivision. Subdividers (any person who offers for sale or lease six or more lots in a subdivision or who causes land to be divided into a subdivision) are required to give buyers a Public Report. Read the Public Report before signing any contract to purchase property in a subdivision. Although some of the information may become outdated, subsequent buyers can also benefit from reviewing the Public Report. Public Reports dating from January 1, 1997, are available on the Arizona Department of Real Estate (ADRE) website. http://services.azre.gov/publicdatabase/SearchDevelopments.aspx (ADRE Search Developments)

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Seller’s Property Disclosure Statement (SPDS)

Covenants, Conditions and Restrictions (CC&Rs) The CC&Rs are recorded against the property and generally empower a homeowner’s association to control certain aspects of property use within the development. By purchasing a property in such a development, the buyer agrees to be bound by the CC&Rs. The association, the property owners as a whole, and individual property owners can enforce the contract. It is essential that the buyer review and agree to these restrictions prior to purchasing a property. http://www.azre.gov/PublicInfo/PropertyBuyerChecklist.aspx (ADRE Property Buyer’s Checklist)

ADRE ADVISES: “Read the deed restrictions, also called CC&Rs (covenants, conditions and restrictions). You might find some of the CC&Rs are very strict.” Buyers should consult legal counsel if uncertain of the application of particular provisions in the CC&Rs.

Arizona Department of Real Estate

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Buyer Advisory (August 2017)

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6

Homeowners Association (HOA) Governing Documents

title/escrow company or agent. This report or commitment lists documents that are exceptions to the title insurance (Schedule B Exceptions). Schedule B Exceptions may include encumbrances, easements, and liens against the property, some of which may affect the use of the property, such as a future addition or swimming pool. Make sure you receive and review all of the listed documents. Questions about the title commitment and Schedule B documents may be answered by the title or escrow officer, legal counsel, or a surveyor.

In addition to CC&Rs, HOAs may be governed by Articles of Incorporation, Bylaws, Rules and Regulations, and often architectural control standards. Read and understand these documents. Also, be aware that some HOAs impose fees that must be paid when the property is sold, so ask if the purchase of the property will result in any fees. Condominium and planned community HOAs are regulated by Arizona statutes. They are not under the jurisdiction of the Department of Real Estate (ADRE). Nonetheless, the Arizona’s Homeowner's Association Dispute Process is administered by the ADRE. http://bit.ly/2ebBSLH and http://bit.ly/2e8jdM3 (Chapter 16 and 18 of the Arizona Revised Statutes-Title 33) http://bit.ly/1rCq9kd (ADRE HOA Information) http://www.re.state.az.us/HOA/HOA.aspx/ (Homeowners Association Dispute Process)

7

www.alta.org/consumer/questions.cfm (American Land Title Association) https://insurance.az.gov/consumers/help-hometitleflood-insurance (Arizona Department of Insurance)

10 Loan Information and Documents Unless a buyer is paying cash, the buyer must qualify for a loan in order to complete the purchase. A buyer should complete a loan application with a lender before making an offer on a property if at all possible and, if not, immediately after making an offer. It will be the buyer’s responsibility to deposit any down payment and ensure that the buyer’s lender deposits the remainder of the purchase price into escrow prior to the close of escrow date. Therefore, make sure you get all requested documentation to your lender as soon as possible.

HOA Disclosures If purchasing a resale home in a condominium or planned community, the seller (if fewer than 50 units in the community) or the HOA (if there are 50 or more units) must provide the buyer with a disclosure containing a variety of information. http://bit.ly/2ebBSLH (A.R.S. § 33-1260) http://bit.ly/2e8jdM3 (A.R.S. § 33-1806)

8

Community Facilities District The Arizona Community Facilities District Act allows for the formation of a community facilities district (CFD) by a municipality or county for the purpose of constructing or acquiring a public infrastructure. It is important when purchasing property to determine whether it falls within the boundaries of a CFD as this may result in an additional tax burden upon the owner. While the presence of a CFD may be noted on the Residential Seller’s Property Disclosure Statement, prospective buyers can further investigate the issue by contacting the treasurer’s office or assessor’s office for the county in which the property is located.

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http://1.usa.gov/1Ewofgr (Your Home Loan Toolkit Consumer Financial Protection Bureau) http://1.usa.gov/1uNYamL (HUD) https://www.mba.org/who-we-are/consumer-tools (Mortgage Bankers Association) https://www.namb.org/links_to_government_resources.php (National Association of Mortgage Brokers- Consumer Info)

11 Home Warranty Policy

Title Report or Title Commitment The title report or commitment contains important information and is provided to the buyer by the

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A home warranty [policy] is a service contract that typically covers the repair and/or replacement costs of home appliances and major systems such as heating, cooling, plumbing, and possibly other components of a home that fail due to normal usage and age. Coverage varies depending on the policy. Be aware that pre-existing property conditions are generally not covered. A home warranty may be part of the sale of the home. If so, buyers should thoroughly read the home warranty contract to understand coverage, limitations, exclusions, and costs associated with the policy.

Arizona Department of Real Estate

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12 Affidavit of Disclosure If the buyer is purchasing five or fewer parcels of land (whether improved or vacant), other than subdivided land, in an unincorporated area of a county, the seller must furnish the buyer with an Affidavit of Disclosure. http://bit.ly/1p6CjDO (AAR Sample Affidavit of Disclosure)

13 Lead-Based Paint Disclosure Form If the home was built prior to 1978, the seller must provide the buyer with a lead-based paint disclosure form. Buyer is further advised to use certified contractors to perform renovation, repair or painting projects that disturb lead-based paint in residential properties built before 1978 and to follow specific work practices to prevent lead contamination. http://bit.ly/1rCq9kd (ADRE Lead Based Paint Information)

Coconino: http://1.usa.gov/1n2zoY0

Gila: http://bit.ly/Yq3bV9

Graham: http://1.usa.gov/1oUTsLP

Greenlee: http://bit.ly/1md668Y

La Paz: http://bit.ly/1BuxdWY

Maricopa: http://1.usa.gov/1pWx1tF

Mohave: http://bit.ly/Yq6nAj

Navajo: http://bit.ly/1pWxgVA

Pima: http://1.usa.gov/1oUVefT

Pinal: http://1.usa.gov/1rOIQBr

Santa Cruz: http://bit.ly/1yRYwXl

Yavapai: http://bit.ly/1AsANj5

Yuma: http://bit.ly/1FZ1uir

Termites are commonly found in some parts o Arizona. The Office of Pest Management (OPM) regulates pest inspectors and can provide the buyer with information regarding past termite treatments on a property.

14 Professional Inspection Report The importance of having a property inspected by a professional inspector cannot be over-emphasized. An inspection is a visual physical examination, performed for a fee, designed to identify material defects in the property. The inspector will generally provide the buyer with a report detailing information about the property’s condition. The buyer should carefully review this report with the inspector and ask the inspector about any item of concern. Pay attention to the scope of the inspection and any portions of the property excluded from the inspection.

http://opm.azda.gov (Office of Pest Management-General Information) http://opm.azda.gov/ (Obtain a Termite History Report on a Property) www.sb.state.az.us/TermiteInsp.php (What You Should Know about Wood-Destroying Insect Inspection Reports)

17 Foreign Investment in Real Property Tax Act (FIRPTA)

https://btr.az.gov/laws-standards/standards/home-inspectors (BTR– Home Inspector Standards) http://www.azashi.com/articles (Additional Information)

15 County Assessors/Tax Records The county assessor’s records contain a variety of valuable information, including the assessed value of the property for tax purposes and some of the physical aspects of the property, such as the reported square footage. The date built information in the assessor’s records can be either the actual or effective/weighted age if the residence has been remodeled. All information on the site should be verified for accuracy.

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Cochise: http://bit.ly/1oUS7ok

16 Termites and Other Wood Destroying Insects and Organisms

http://www2.epa.gov/lead, http://1.usa.gov/1uO5wGS (EPA)

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Apache: http://bit.ly/1FKUhk8

Foreign Investment in Real Property Tax Act (FIRPTA) may impact the purchase of property if the legal owner(s) of the property are foreign persons or nonresident aliens pursuant to FIRPTA. If so, consult a tax advisor as mandatory withholding may apply. http://1.usa.gov/1ldMdnq (I.R.S. FIRPTA Definitions) www.irs.gov/Individuals/International-Taxpayers/FIRPTA-Withholding (I.R.S. FIRPTA Information) http://www.irsvideos.gov/Individual/education/FIRPTA (I.R.S. FIRPTA Video)

Arizona Department of Real Estate

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Section 2

COMMON PHYSICAL CONDITIONS IN THE PROPERTY A BUYER SHOULD INVESTIGATE Because every buyer and every property is different, the physical property conditions requiring investigation will vary.

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Repairs, Remodeling and New Construction

4

Swimming Pools and Spas If the property has a pool or a spa, the home inspector may exclude the pool or spa from the general inspection so an inspection by a pool or spa company may be necessary.

The seller may have made repairs or added a room to the property. The buyer should feel comfortable that the work was properly done or have an expert evaluate the work. Request copies of permits, invoices or other documentation regarding the work performed.

The Arizona REALTORS® Residential Purchase Contract provides guidance for the buyer to investigate all applicable state, county, and municipal Swimming Pool Barrier regulations and acknowledge receipt of the Arizona Department of Health Services approved private pool safety notice. The state requirements contained in the notice may be superseded by local swimming pool barrier ordinances that are equal to or more restrictive than the state requirements.

https://roc.az.gov/before-hire (Before You Hire a Contractor – Tips) www.greaterphoenixnari.org (National Association of of Remodeling Industry – Greater Phoenix Chapter) http://www.nariofsouthernarizona.memberlodge.com/ (National Association of Remodeling Industry – Southern Arizona) https://apps-secure.phoenix.gov/PDD/Search/Permits (City of Phoenix – Building Permit Records)

http://bit.ly/20ZG8tp (AAR) http://bit.ly/2dhVPdw (A.R.S. 36-1681 Swimming Pool Enclosures)

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Square Footage Square footage on the MLS printout or as listed by the county assessor’s records is often only an estimate and generally should not be relied upon for the exact square footage in a property. An appraiser or architect can measure the property’s size to verify the square footage. If the square footage is important, you should have it confirmed by one of these experts during the inspection period in a resale transaction and prior to executing a contract in a new home transaction.

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https://boa.az.gov/directories/appraiser (AZFI - Arizona Board of Appraisers Directory)

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Roof If the roof is 10 years old or older, a roof inspection by a licensed roofing contractor is highly recommended.

Septic and Other On-Site Wastewater Treatment Facilities If the home is not connected to a public sewer, it is probably served by an on-site wastewater treatment facility (conventional septic or alternative system). A qualified inspector must inspect any such facility within six months prior to transfer of ownership. For information on current inspection and transfer of ownership requirements, contact the specific county environmental/health agency where the property is located or the Arizona Department of Environmental Quality (ADEQ). http://bit.ly/2plVsZe (ADEQ – AZ Statewide Inspection Program) http://az.gov/app/own/home.xhtml (File a Notice of Transfer Online)

www.azroofing.org (Arizona Roofing Contractors Association) https://roc.az.gov/before-hire (Before You Hire a Contractor – Tips)

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Arizona Department of Real Estate

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Sewer

concerns about the soil condition or observes evidence of cracking, the buyer should secure an independent assessment of the property and its structural integrity by a licensed, bonded, and insured professional engineer.

Even if the listing or SPDS indicates that the property is connected to the city sewer, a plumber, home inspector, or other professional should verify it. Some counties and cities can perform this test as well.

7

http://www.re.state.az.us/PublicInfo/Fissures.aspx (ADRE – Overview of Arizona Soils)

Water/Well Issues

http://data.azgs.az.gov/hazard-viewer/ (AZGS – Natural Hazards Viewer)

You should investigate the availability and quality of the water to the property.

http://www.azgs.az.gov/hazards_problemsoils.shtml (Arizona’s Swelling & Shrinking Soils)

http://bit.ly/1rj4DFW or http://bit.ly/VAuDO8 (Wells & Assured/Adequate Water Information)

http://azgs.az.gov/efmaps.shtml (Area Maps)

Adjudications: Arizona is undertaking several Stream Adjudications, which are court proceedings to determine the extent and priority of water rights in an entire river system. For information regarding water uses and watersheds affected by these adjudications, and the forms upon sale of the property, visit the Department of Water Resources online.

http://bit.ly/XvZEEO (Information on Land Subsidence & Earth Fissures) www.btr.state.az.us (State Certified Engineers & Firms)

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Previous Fire/Flood If it is disclosed there has been a fire or flood on the property, a qualified inspector should be hired to advise you regarding any possible future problems as a result of the fire or flood damage and/or any subsequent repairs. For example, if the property was not properly cleaned after a flood, mold issues may result. Your insurance agent may be able to assist you in obtaining information regarding fire, flood, or other past damage to the property.

http://bit.ly/1AsX14w (Department of Water Resources – Adjudications)

Additionally, the Verde Valley Water Users assists members in matters pertaining to the Gila River System Adjudication. www.verdevalleywaterusers.org (Verde Valley Water Users Association)

CAGRDs: The Central Arizona Groundwater Replenishment District (CAGRD) functions to replenish groundwater used by its members, individual subdivisions and service areas of member water providers. Homeowners in a CAGRD pay an annual assessment fee which is collected through the county property tax process based on the amount of groundwater served to member homes.

10 Pests

www.cagrd.com (Central Arizona Ground Water Replenishment District)

8

Soil Problems The soil in some areas of Arizona has “clay-like” tendencies, sometimes referred to as “expansive soil.” Other areas are subject to fissure, subsidence and other soil conditions. Properties built on such soils may experience significant movement causing a major problem. If it has been disclosed that the property is subject to any such soil conditions or if the buyer has any Page

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Cockroaches, rattlesnakes, black widow spiders, scorpions, termites and other pests are common in parts of Arizona. Fortunately, most pests can be controlled with pesticides. Scorpions: Scorpions, on the other hand, may be difficult to eliminate. If the buyer has any concerns or if the SPDS indicates the seller has seen scorpions or other pests on the property, seek the advice of a pest control company. Bed bugs: Infestations are on the rise in Arizona and nationally. Roof Rats: Roof Rats have been reported in some areas by Maricopa County Environmental Services. Termites: Consumer Information available from the Office of Pest Management (OPM). Bark Beetles: OPM reports the presence of bark beetles in some forested areas.

Arizona Department of Real Estate

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Arizona homes. Residents in homes with problem drywall report health issues such as respiratory irritation, and other problems such as copper corrosion and sulfur odors. Visit the Consumer Product Safety Commission website for more information.

http://bit.ly/1HLlWs5 (Information on Scorpions) http://bit.ly/1PFP9Y2 (Information on Bed Bugs) http://www2.epa.gov/bedbugs (Bed Bugs: Get Them Out and Keep Them Out) http://www.maricopa.gov/FAQ.aspx?TID=104 (Maricopa County – Roof Rats) http://www.sb.state.az.us/ReTermites.php (Termite Information)

Radon Gas and Carbon Monoxide: Radon gas and carbon monoxide poisoning are two of the more common and potentially serious indoor air quality (IAQ) concerns. Both of these concerns can be addressed by the home inspector, usually for an additional fee. For information on radon levels in the state, visit Arizona Radiation Regulatory Agency online.

http://www.sb.state.az.us/BarkBeetles.php (Bark Beetle Information)

11 Endangered & Threatened Species Certain areas in the state may have issues related to federally listed endangered or threatened species that may affect land uses. Further information may be obtained on the U.S. Fish and Wildlife website or by contacting the appropriate planning/development service department.

Drug labs: Residual contamination arising from the illicit manufacture of methamphetamine and other drugs carried out in clandestine drug laboratories presents a serious risk of harm to human and environmental health.

http://www.fws.gov/southwest/es/arizona/ (Arizona Ecological Services) http://www.fws.gov/endangered/map/state/AZ.html (Arizona Endangered Species)

Other: For information on other indoor environmental concerns, the EPA has a host of resource materials and pamphlets online.

12 Deaths and Felonies on the Properties

http://1.usa.gov/1it5voK (Indoor Air Quality)

Arizona law states that sellers and real estate licensees have no liability for failure to disclose to a buyer that the property was ever the site of a natural death, suicide, murder or felony.

www.epa.gov/mold (EPA) http://www.epa.gov/iaq/pubs/index.html (Publications & Resources) www.cdc.gov/mold (Mold Information) http://aardownload.com/2uZmDIc (Drywall Information Center)

This information is often difficult to uncover; however, the local law enforcement agency may be able to identify incidents related to a property address.

www.azrra.gov/radon/index.html (About Radon) http://www2.epa.gov/asbestos (Asbestos Information) http://aardownload.com/2vBEvg6 (Voluntary Guidelines for Methamphetamine) http://1.usa.gov/1OC9Yji (EPA Formaldehyde Information)

http://bit.ly/2lo53MZ (A.R.S. § 32-2156)

14 Property Boundaries

13 Indoor Environmental Concerns Mold: Mold has always been with us, and it is a rare property that does not have some mold. However, over the past few years a certain kind of mold has been identified as a possible contributor to illnesses. Allergic individuals may experience symptoms related to mold. The Arizona Department of Health Services, Office of Environmental Health, states: “If you can see mold, or if there is an earthy or musty odor, you can assume you have a mold problem.”

If the property boundaries are of concern, a survey may be warranted. For example, a survey may be advisable if there is an obvious use of property by others, i.e., a well-worn path across a property and/or parked cars on the property or fences or structures of adjacent property owners that appear to be built on the property. For more information, visit the Arizona Professional Land Surveyors online. A search for surveyors may be found online at the Board of Technical Registration. www.azpls.org/ (AZ Professional Land Surveyors) https://btr.az.gov/standards-landing (AZ BTR Land Surveyors)

Imported Drywall: There have been reports of problematic drywall, produced in China, used in Page

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Arizona Department of Real Estate

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15 Flood Insurance/Flood Plain Status Your mortgage lender may require you to purchase flood insurance in connection with your purchase of the property. The National Flood Insurance Program provides for the availability of flood insurance and established flood insurance policy premiums based on the risk of flooding in the area where properties are located. Changes to the federal law (The BiggertWaters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014, in particular) will result in changes to flood insurance premiums that are likely to be higher, and in the future may be substantially higher, than premiums paid for flood insurance prior to or at the time of sale of the property. As a result, purchasers of property should not rely on the premiums paid for flood insurance on the property previously as an indication of the premiums that will apply after completion of the purchase. In considering purchase of the property you should consult with one or more carriers of flood insurance for a better understanding of flood insurance coverage, current and anticipated future flood insurance premiums, whether the prior owner’s policy may be assumed by a subsequent purchase of the property, and other matters related to the purchase of flood insurance for the property.

more information about flood insurance as it relates to the property. https://www.fema.gov/national-flood-insurance-program (FEMA) https://msc.fema.gov/portal (Flood Map Service Center) http://bit.ly/2egwpza (Elevation Certificates: Who Needs Them and Why - fact sheet) http://www.azgs.az.gov/hazards_floods.shtml (AZ Flood & Debris) http://www.fcd.maricopa.gov/3847/Flood-Control-District (Maricopa County Flood Control District-Services) http://pdsd.tucsonaz.gov/pdsd/floodplain-information (Tucson Flood Information)

Other Arizona Counties: Consult County Websites.

16 Insurance (Claims History) Many factors affect the availability and cost of homeowner’s insurance. Property owners may request a five-year claims history from their insurance company, an insurance support organization or consumer reporting agency. https://insurance.az.gov/consumers/help-hometitleflood-insurance (AZ Department of Insurance) http://bit.ly/VDp15E (Home Seller’s Disclosure Report)

17 Other Property Conditions

If community floodplain information is not available for a specific property, and in order to obtain flood insurance, it may be necessary to have an elevation survey and obtain an elevation certificate. This is necessary to determine a property's insurability and premium rate. You may also wish to contact the Federal Emergency Management Agency (FEMA) for

Plumbing: Check functionality. Cooling/Heating: Make sure the cooling and heating systems are adequate. Electrical Systems: Check for function and safety.

Section 3

CONDITIONS AFFECTING THE AREA SURROUNDING THE PROPERTY THE BUYER SHOULD INVESTIGATE Every property is unique; therefore, important conditions vary.

Environmental Concerns It is often very difficult to identify environmental hazards. The Arizona Department of Environmental Quality (ADEQ) website contains environmental information regarding the locations of open and

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closed landfills (Solid Waste Facilities), wildfire information, as well as air and water quality information (and more). www.adeq.state.az.us (ADEQ) http://legacy.azdeq.gov/environ/waste/solid/plan.html (ADEQ-Solid Waste Facilities) www.azdeq.gov/function/programs/wildfire.html (Wildfire Information)

Arizona Department of Real Estate

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Environmentally Sensitive Land Ordinance: Approximately two-thirds of the City of Scottsdale is affected by the Environmentally Sensitive Land Ordinance (ESLO), which requires some areas on private property be retained in their natural state and designated as National Area Open Space (NAOS).

http://www.tucsonaz.gov/police/statistics (Tucson Crime Stats) www.leagueaz.org/lgd (Crime Statistics All Arizona Cities)

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http://www.scottsdaleaz.gov/codes/eslo/naos (Natural Area Open Space)

Since June 1996, Arizona has maintained a registry and community notification program for convicted sex offenders. Prior to June 1996, registration was not required, and only the higher-risk sex offenders are on the website. The presence of a sex offender in the vicinity of the property is not a fact that the seller or real estate broker is required to disclose.

Electromagnetic Fields

www.azdps.gov/Services/Sex_Offender/ (Registered Sex Offenders and Community Notification)

http://www.scottsdaleaz.gov/codes/eslo (Environmentally Sensitive Land Ordinance)

2

For information on electromagnetic fields, and whether they pose a health risk to you or your family, visit the National Institute of Environmental Health Sciences website.

http://www.nsopw.gov/en (National Sex Offender Public Site)

7

http://azsf.az.gov/ or www.firewise.org (Protecting Your Property from Wildfire)

Superfund Sites There are numerous sites in Arizona where the soil and groundwater have been contaminated by improper disposal of contaminants. Maps may be viewed on ADEQ’s website to see if a property is in an area designated by the ADEQ as requiring cleanup.

http://cals.arizona.edu/firewise (Arizona Fire Wise Communities)

8

https://www.azdeq.gov/function/programs/gis.html (ADEQ) www.epa.gov/superfund/ (EPA) , http://espanol.epa.gov/ (Spanish)

4

Freeway Construction and Traffic Conditions Although the existence of a freeway near the property may provide highly desirable access, sometimes it contributes to undesirable noise. To search for roadway construction and planning, visit the Arizona Department of Transportation (ADOT) website. www.azdot.gov (ADOT) www.azdot.gov/Highways (Statewide Projects) www.az511.com (Traffic Conditions – Alerts)

5

Crime Statistics Crime statistics, an imperfect measurement at best, provide some indication of the level of criminal activity in an area. http://1.usa.gov/1kSEpHc (Phoenix Crime Statistics)

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Forested Areas Life in a forested area has unique benefits and concerns. Contact county/city fire authority for more information on issues particular to a community.

www.niehs.nih.gov/health/topics/agents/emf/ (National Institute of Environmental Health Sciences)

3

Sex Offenders

Military and Public Airports The legislature has mandated the identification of areas in the immediate vicinity of military and public airports that are susceptible to a certain level of noise from aircraft. The boundaries of these areas have been plotted on maps that are useful in determining if a property falls within one of these areas. The maps for military and public airports may be accessed on the Arizona Department of Real Estate (ADRE) website. Additionally, the boundaries of military and public airports in Maricopa County may be viewed on the county website. These maps are intended to show the area subject to a preponderance of airport-related noise from a given airport. Periodic over-flights that may contribute to noise cannot usually be determined from these maps. Vacant land or lots may be for sale within areas of high noise or accident potential zones. Because the zoning of these lots may conflict with the buyer’s ability to develop the property, the buyer should verify whether development is prohibited.

Arizona Department of Real Estate

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Zoning regulations for these areas, may be found at A.R.S.§28-8481.

ADRE ADVISES: “Call the school district serving the subdivision to determine whether nearby schools are accepting new students. Some school districts, especially in the northwest part of the greater Phoenix area, have placed a cap on enrollment. You may find that your children cannot attend the school nearest you and may even be transported to another community.”

http://www.re.state.az.us/AirportMaps/MilitaryAirports.aspx (ADRE - Maps of Military Airports & Boundaries) www.re.state.az.us/AirportMaps/PublicAirports.aspx (ADRE - Maps of Pubic Airports & Boundaries)

9

Zoning/Planning/Neighborhood Services Information may be found on community websites.

www.azre.gov/PublicInfo/PropertyBuyerChecklist.aspx (ADRE)

http://phoenix.gov/business/zoning (Phoenix)

11 City Profile Report

http://www.tucsonaz.gov/pdsd/planning-zoning (Tucson) http://www.leagueaz.org/lgd/ (Other Cities and Towns)

Information on demographics, finances and other factors are drawn from an array of sources, such as U.S. Census Bureau, Bureau of Labor, Internal Revenue Service, Federal Bureau of Investigation, and the National Oceanic and Atmospheric Administration and may be viewed on Homefair’s Website.

10 Schools Although there is no substitute for an on-site visit to the school to talk with principals and teachers, there is a significant amount of information about Arizona’s schools on the Internet. Visit the Arizona Department of Education website for more information.

http://www.homefair.com/real-estate/city-profile/index.asp (City Profile Report)

http://www.azed.gov/ (Arizona Department of Education)

Section 4

OTHER METHODS OF GETTING INFORMATION ABOUT A PROPERTY Talk to the Neighbors Neighbors can provide a wealth of information. Buyers should always talk to the surrounding residents about the neighborhood and the history of the property the buyer is considering for purchase.

different times of the day and evening, to investigate the surrounding area.

Investigate your Surroundings:

Drive around the Neighborhood

Google Earth is an additional method to investigate the surrounding area: https://www.google.com/earth/

Buyers should always drive around the neighborhood, preferably on different days at several

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Arizona Department of Real Estate

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Section 5

RESOURCES Market Conditions Advisory

color, national origin, religion, sex, familial status (including children under the age of 18 living with people securing custody of children under the age of 18), and handicap (disability).

The real estate market is cyclical and real estate values go up and down. The financial market also changes, affecting the terms on which a lender will agree to loan money on real property. It is impossible to accurately predict what the real estate or financial market conditions will be at any given time. The ultimate decision on the price a buyer is willing to pay and the price a seller is willing to accept for a specific property rests solely with the individual buyer or seller. The parties to a real estate transaction must decide on what price and terms they are willing to buy or sell in light of market conditions, their own financial resources and their own unique circumstances. The parties must, upon careful deliberation, decide how much risk they are willing to assume in a transaction. Any waiver of contingencies, rights or warranties in the Contract may have adverse consequences. Buyer and seller acknowledge that they understand these risks. Buyer and Seller assume all responsibility should the return on investment, tax consequences, credit effects, or financing terms not meet their expectations. The parties understand and agree that the Broker(s) do not provide advice on property as an investment. Broker(s) are not qualified to provide financial, legal, or tax advice regarding a real estate transaction. Therefore, Broker(s) make no representation regarding the above items. Buyer and seller are advised to obtain professional tax and legal advice regarding the advisability of entering into this transaction.

http://1.usa.gov/1pbD5iW (US Government – HUD) http://www.ada.gov/pubs/ada.htm (Americans with Disabilities Act)

Wire Fraud Beware of wiring instructions sent via email. Cyber criminals may hack email accounts and send emails with fake wiring instructions. You should independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone number prior to wiring any money. http://bit.ly/2gQNWms (FTC & NAR - Protect your mortgage closing from scammers http://bit.ly/2vDDvFk (CFPB- Buying a home? Watch out for mortgage closing scams

Additional Information NATIONAL ASSOCIATION OF REALTORS® (NAR) https://www.nar.realtor/

NAR’S Ten Steps To Homeownership http://bit.ly/YweGug

Home Closing 101 www.homeclosing101.org

Information about Arizona Government, State Agencies, City & County Websites Arizona Department of Real Estate Consumer Information www.azre.gov/InfoFor/Consumers.aspx

Arizona Association of REALTORS®

http://bit.ly/1sSTprj (AAR - Sample Forms)

www.aaronline.com

Fair Housing & Disability Laws The Fair Housing Act prohibits discrimination in the sale, rental, and financing of dwellings based on race,

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Arizona Department of Real Estate

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BUYER ACKNOWLEDGMENT Buyer acknowledges receipt of all 13 pages of this Advisory. Buyer further acknowledges that there may be other disclosure issues of concern not listed in this Advisory. Buyer is responsible for making all necessary inquiries and consulting the appropriate persons or entities prior to the purchase of any property. The information in this Advisory is provided with the understanding that it is not intended as legal or other professional services or advice. These materials have been prepared for general informational purposes only. The information and links contained herein may not be updated or revised for accuracy. If you have any additional questions or need advice, please contact your own lawyer or other professional representative.

^ BUYER SIGNATURE

DATE

^ BUYER SIGNATURE

DATE

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Arizona Department of Real Estate

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WIRE FRAUD IS REAL Wire instructions are being hijacked across the United States. The hackers are infiltrating email systems, modifying wire instructions, and buyers are wiring money to the wrong accounts, losing that money forever.

The hackers can monitor email traffic of a buyer, an escrow company or broker and gain knowledge of the timing of the upcoming transaction. An altered email is used to cause misdirection of funds by any party in the transaction.

Before you send any wires call the escrow company personally to verify the information prior to sending.

Money wired to the wrong account is stolen money. There is no insurance for this crime. You may not get your money back.

Buyers and Sellers should confirm all e-mail wiring instructions directly with the escrow officer by calling the escrow officer on the telephone; in that conversation the correct account number information should be repeated verbally before taking any steps to have the funds transferred.

If there is any indication that Buyers, Sellers or anyone else has received questionable wiring instructions, you should promptly notify your bank, your real estate agent and the escrow holder.

Seller:__________________ Date:________

Buyer:______________

Seller: __________________ Date:________

Buyer:______________ Date:_______

BHHSAZ 8/2015 LLH

Date:________


Home Warranty Plan – Arizona

Standard Coverage Includes* ✓ Failure due to Lack of Maintenance ✓ No Dollar Limit on Air Conditioning Refrigerant ✓ Unlimited Number of Covered HVAC Units

NHSCA Company Code 12H424

* See Plan for coverage details.


Welcome You’ve come to the right place for superior Both home sellers and buyers greatly benefit from an Old Republic Home Warranty Plan! Home Sellers Make your home more attractive to buyers by offering the budget protection and peace of mind that comes with an Old Republic Home Warranty Plan. Buyers can relax knowing that a covered system or appliance failure won’t break the bank, and including a home warranty

Because Dishes Go in the Dishwasher When Stuff Works

in your listing may help your home sell faster… at top market value! In addition, Seller’s Coverage can help you breathe easier by reducing your risk of experiencing closing delays and incurring extra expenses caused by home system and appliance breakdowns

What would you pay without a home warranty? Potential out-of-pocket repair or replacement costs for major systems and appliances:

during the listing and selling periods.

Home Buyers In an ideal world, buying a home should be one of the most memorable and rewarding experiences of your life. However, the headaches caused by a heating system failure or a broken refrigerator could taint

Item*

Repair/Replacement Cost Without a Home Warranty†

Heating System

$318–$3,911

Air Conditioning

$360–$5,100

Water Heater

$384–$2,331

Oven/Range

$325–$2,487

Refrigerator

$294–$1,904

Washer/Dryer

$230–$1,112

those memories forever. Safeguard your budget against expensive system and appliance failures with an Old Republic Home Warranty Plan. Enjoy exceptional peace of mind and keep everything running smoothly long after you’ve unpacked your boxes and settled into your American dream.

Whether you are selling or buying a home, you’re in excellent hands with Old Republic Home Protection and our network of qualified Service Providers. Experience peace of mind knowing that help is just a phone call away—24 hours a day, 365 days a year!

AZ 5.0 (03/2016)

1

*Some items listed may be Optional Coverage items. See Plan for terms and conditions of coverage. † Costs based on actual invoices paid by ORHP in 2014. Costs may vary in your area.


budget protection, convenience, and peace of mind.

Why choose Old Republic Home Protection? We’ve provided caring, dependable service for more than 40 years, and our vision of “People Helping People” is reflected in our A+ rating with the Better Business Bureau. How do we earn this distinction? We understand that behind every service request—every dishwasher or water heater failure—are real

We’re just a phone call– or a click–away!

people with busy lives and pressing needs. We’re committed to providing effective, efficient solutions that help you celebrate the joy of homeownership! When you turn to us, our caring staff and skilled Service Providers make it their mission to get your life back to normal as quickly as possible.

Place Applications: Online www.orhp.com Phone 800.445.6999

People Helping People We Care – we handle claims on a case-by-case basis: fast,

Fax 800.866.2488

We Listen – we understand there is a human side to home

Mail

friendly, efficiently. warranties.

We’re Dependable – we want to give solutions, not excuses. We’re Helpful and Sincere – we take pride in the service we offer.

We Know – there is a difference between “company policy” and “customer service.”

We Set the Premier Example – by offering comprehensive coverage and quality service at reasonable rates. Our Goal – is to create a positive difference in your life. 2

P.O. Box 5017 San Ramon, CA 94583-0917

Place Service Requests: Online www.orhp.com Phone 800.972.5985 AZ 5.0 (03/2016)


Standard Coverage

Coverage Subject to Terms and Conditions summarized herein, and will be contained in the Plan Contract to be mailed to Home Buyer upon payment of Plan fee.

This section of the Plan outlines Standard Coverage by trade. Please Note: Universal exclusions and limitations of liability apply. In this document Old Republic Home Protection Company, Inc. will hereinafter be referred to as “we, us, our, ORHP.” The Home Seller/Home Buyer/Plan Holder will hereinafter be referred to as “you, your”.

HEATING SYSTEM/DUCTWORK COVERAGE

PLUMBING COVERAGE

Coverage for Home Buyer Only unless Optional Seller’s HVAC Coverage selected.

• Drain line StoppagesF which can be cleared with sewer cable through an accessible, existing ground level cleanout (main line) or removable p-trap (branch line), or with hydrojetting if stoppage is unable to be cleared with sewer cable (unless stoppage is due to roots). • Water, Drain, Gas, or Sewer Vent Pipe Leaks or Breaks (including Polybutylene) • Toilet Tanks, Bowls, Flushing Mechanisms and Wax Ring Seals • Water HeaterF (including tankless, power vent, and direct vent unit) • Built-in Jetted Bathtub Motor, Pump and Air Switch Assemblies • Shower and Bathtub Valves, including Diverter Valves • Recirculating Pump • Instant Hot/Cold Water Dispenser • Garbage Disposal • Risers and Gate Valves • Stop & Waste ValvesF • Angle Stops • Water Pressure RegulatorF • Sump Pump (for ground water only)

Primary gas, oil, or electric heating systemF, built-in wall or floor heater, heat pumpF, thermostat, ductwork, accessible heat pump refrigerant lines and condensate drain lines. If necessary, as part of a covered replacement, we will upgrade a heat pump system to federally mandated HSPF standards. Coverage is available for heating systems with capacity not exceeding five (5) tons per unit. There is no limit to the number of covered heating units. For heat pumps and heat pump package units: Coverage under Central Air Conditioner/Cooler applies. NOT COVERED: TIMERS/CLOCKS THAT DO NOT AFFECT THE HEATING/COOLING OPERATION OF THE UNIT; VENTS; FLUES; FUEL STORAGE TANKS; FREESTANDING/ WINDOW UNITS; CABLE HEAT; ZONING CONTROLS AND RESPECTIVE EQUIPMENT; SECONDARY DRAIN PAN; INSULATION; DAMPERS; FILTERS; DIAGNOSTIC TESTING OF OR LOCATING LEAKS IN DUCTWORK (AS REQUIRED BY ANY FEDERAL, STATE OR LOCAL REGULATION, OR WHEN REQUIRED DUE TO THE INSTALLATION OR REPLACEMENT OF SYSTEM EQUIPMENT); FIREPLACES AND KEY VALVES; GRAIN, WOOD, OR PELLET STOVES (EVEN IF PRIMARY SOURCE OF HEAT); MINI-SPLIT DUCTLESS SYSTEMS; USE OF CRANES OR OTHER LIFTING EQUIPMENT TO REPAIR OR REPLACE UNITS/SYSTEM COMPONENTS; ELECTRONIC AIR FILTERS/CLEANERS; HUMIDIFIERS AND RESPECTIVE EQUIPMENT; CHILLERS AND RESPECTIVE EQUIPMENT; CONDENSATE DRAIN PUMP.

NOT COVERED: FIXTURES; FAUCETS; HOSE BIBBS; MULTI-VALVE MANIFOLDS AND OTHER ATTACHMENTS TO PIPES; GAS LOG LIGHTER; TOILET LIDS AND SEATS; WATER HEATER VENTS AND FLUES; SHOWER PANS; STOPPAGES DUE TO ROOTS; LEAKS/ DAMAGE CAUSED BY ROOTS; STOPPAGES THAT CANNOT BE CLEARED WITH CABLE OR HYDROJETTING; WATER HEATER HEAT PUMP ATTACHMENT; HOLDING, STORAGE OR EXPANSION TANKS; BATHTUB JETS; TUB SPOUT OR TUB SPOUT DIVERTER; BASKET STRAINER; FIRE SUPPRESSION SYSTEMS; POP-UP ASSEMBLIES; NOISES OR ODORS WITHOUT A RELATED MALFUNCTION; CAULKING OR GROUTING; INADEQUATE OR EXCESSIVE WATER PRESSURE. IN THE EVENT OF A STOPPAGE: ACCESS TO DRAIN LINES FROM VENT; REMOVAL OF TOILET; AND COSTS TO LOCATE, ACCESS OR INSTALL A GROUND LEVEL CLEAN-OUT.

AIR CONDITIONER/COOLERF (For Ductwork, see Heating System Coverage) Coverage for Home Buyer Only unless Optional Seller’s HVAC Coverage selected.

Central air conditioner, wall or through the wall air conditioner and evaporative cooler (including primary drain pan), condenser (including compressor), evaporative coil/air handler, thermostat, refrigerant lines, leaks or stoppages in accessible condensate drain lines, metering device (e.g. evaporative coil piston or thermal expansion valve).

NOTE: 1. TOILET TANKS AND BOWLS REPLACED WITH WHITE BUILDER’S STANDARD, WHEN NECESSARY.

2. VALVES WILL BE REPLACED WITH CHROME BUILDER’S STANDARD, WHEN NECESSARY.

When a condenser replacement is necessary, in order to maintain system operational compatibility and operating efficiency that meets or exceeds that of the original equipment, we will replace any covered component as well as modify the plenum, indoor electrical, air handling transition, duct connections, and the installation of metering devices, as necessary.

ELECTRICAL COVERAGE Light Switches, Electrical Outlets, Main Electrical Panel/Sub PanelF, Meter Base/Socket/ PedestalF, BreakersF, FusesF and Interior Wiring, Bath Exhaust Fans, Ceiling Fans, Attic Fans, Whole House Fans.

• SEER Coverage: When unit/component replacement is required, we will upgrade to federally mandated SEER standards to ensure operational compatibility and functionality with existing equipment.

NOT COVERED: LIGHT FIXTURES, INCLUDING THOSE ON CEILING FANS; BULBS; BALLASTS; HEAT LAMPS; DOORBELLS; TELEPHONE, AUDIO, VIDEO, COMPUTER, INTERCOM, AND ALARM SECURITY WIRING AND SYSTEMS; LOW VOLTAGE RELAY SYSTEMS; SMOKE DETECTORS; INADEQUATE WIRING CAPACITY; POWER SURGES; OVERLOAD; REMOTE CONTROLS; VENTS; LIGHT SOCKETS.

• R410A Coverage: For units using R22 refrigerant, repair/replacement will be performed with R410A equipment when R22 replacement equipment is not available, including covered components required to ensure system operational compatibility.

GARAGE DOOR OPENER COVERAGE

Coverage is available for cooling systems with capacity not exceeding five (5) tons per unit. There is no limit to the number of covered air conditioning units.

All components that affect the opening and closing function of the Opener Unit, including motor, logic board, gear assembly, capacitor, rail assembly, sensors.

NOT COVERED: GAS AIR CONDITIONING UNITS; PORTABLE UNITS; ZONING CONTROLS

AND RESPECTIVE EQUIPMENT; WINDOW UNITS; COOLER PADS; SECONDARY DRAIN PAN; MINI-SPLIT DUCTLESS SYSTEMS; USE OF CRANES OR OTHER LIFTING EQUIPMENT TO REPAIR OR REPLACE UNITS/SYSTEM COMPONENTS; CHILLERS AND RESPECTIVE EQUIPMENT; CONDENSATE DRAIN PUMP; FAILURES CAUSED AS A DIRECT RESULT OF PREVIOUS SEALANT OR ALTERNATIVE REFRIGERANT USE.

NOT COVERED: GARAGE DOORS; HINGES; SPRINGS; REMOTE TRANSMITTERS; KEY PADS; LIGHT SOCKETS; DOOR CABLES; BATTERY BACK-UP; BALANCING THE DOOR.

CENTRAL VACUUM COVERAGE Power unit, including motor and electrical components; dirt canister.

F We cover items located on the exterior or outside of the home that service only the main home or other structure covered by us. AZ 5.0 (03/2016)

NOT COVERED: ATTACHMENTS; REMOVABLE COMPONENTS; ACCESSORIES; HOSES; VENTS; STOPPAGES. 3


INCREASE YOUR COVERAGE with

Ultimate or Platinum Protection! Ultimate Protection (Available to Home Buyer Only) . . . . . . $425 Includes: Standard Coverage PLUS these enhancements: 1) Plumbing: faucets, shower heads, and shower arms replaced with chrome builder’s standard, as necessary. Interior hose bibbs. Toilet replacement up to $600 per toilet, when necessary, including toilet seats and lids. (See Page 8, 1.N.) 2) Heating System: a) disposable filters, heat lamps, and cost related to refrigerant recapture, reclaim and disposal when required for diagnosis, repair or replacement of heat pumps. b) Provide for the use of cranes to complete a heating repair/replacement. 3) Water Heater: expansion tanksF. 4) Dishwasher: baskets, rollers, racks, runner guards. 5) Oven/Microwave/Range/Cooktop: racks, handles, knobs, interior lining. 6) Trash Compactor: lock and key assemblies, buckets. 7) Smoke Detector: both battery operated and hardwired systems. 8) Garage Door Opener: hinges, springs, remote transmitters, key pads. 9) Air Conditioner: a) disposable filters, condensate drain pumps, secondary drain pans, window units, and costs related to refrigerant recapture, reclaim and disposal when required for diagnosis, repair or replacement. b) Provide for the use of cranes to complete an A/C repair/replacement. 10) Other Enhanced Coverage included in Ultimate Protection: When required to render a covered repair or replacement, we will: a) Provide up to $250 per Plan to correct code violations. b) Provide up to $250 per occurrence for required permits. c) Provide haul away of a covered appliance, system or component when replacing that covered appliance, system or component. d) Correct an improper installation/repair/modification of a system or appliance, or correct any mismatch condition in terms of capacity/efficiency in order to ensure system operational compatibility and functionality. Coverage does not apply if the cause of failure of the system or appliance is solely due to the improper installation/repair/modification or mismatch condition, or if the system is undersized relative to the square footage of the area being heated/cooled. All other terms and conditions of the Plan apply. If the improper installation/repair/modification or mismatch condition is in violation of a code requirement, see 10a above.

APPLIANCE COVERAGE Dishwasher All components that affect the cleaning operation of the unit, including the pump, motor, gasket, tub, timer, fill valve, seal, door latch, air gap, control board and touch pad.

Trash Compactor All components that affect the compacting operation of the unit, including motor, ram assembly switch and door latch.

Kitchen Exhaust Fan All components that affect the exhaust operation of the unit, including motor, selector switch and fan.

Oven, Range, Cooktop, Built-in Microwave Oven All components that affect the heating/cleaning operation of the unit, including heating element, thermostat, burner, control board and touch pad. Timer and clock are covered if they affect the heating or cleaning of the unit. NOT COVERED: TIMERS; CLOCKS; HALOGEN UNITS; MAGNETIC INDUCTION UNIT; REFRIGERATOR/OVEN COMBINATION UNIT; MICROWAVE/COOKTOP DRAWER COMBINATION UNIT; PORTABLE OR FREESTANDING MICROWAVE; SENSI-HEAT BURNERS.

NOT COVERED ON ALL APPLIANCES: DETACHABLE COMPONENTS; BASKETS; BUCKETS; DIALS; KNOBS; HANDLES; DOOR GLASS; LIGHTS; LIGHT SOCKETS; LIGHT SWITCHES; PANS; TRAYS; ROLLERS; RACKS; SHELVES; RUNNER GUARDS; INTERIOR LINING; TRIM KITS; VENTS; FILTERS; FLUES; DRAWERS; LOCK AND KEY ASSEMBLIES.

Platinum Protection (Available to Home Buyer Only). . . . . . $500

Coverage Plan Limits:

Most Comprehensive Coverage Available!

Includes: Ultimate Protection (above) PLUS these additional enhancements: 1) Plumbing items: tub spouts (replaced with chrome builder’s standard, as necessary), tub spout diverter, basket strainer. 2) Other Enhanced Coverage included in Platinum Protection: When required to render a covered service, we will: a) Provide up to $250 per Plan to clear stoppages due to roots or toward removal of toilets or other access to clear a stoppage, including cost to install a ground level cleanout. NOT COVERED: Collapsed or broken lines outside the main foundation; excavation. b) Provide up to $1,000 per Plan for construction/carpentry or other related costs necessary to effect a covered repair or replacement (including the correction of code violations). NOT COVERED: Restoration of any wall, ceiling, or floor coverings, cabinets, counter tops, tile, paint, or the like. c) Increase the Standard Plan limit per Plan Term by $1,000 ($2,500 in total) for the repair/ replacement of diesel, oil, Glycol, hot water, steam, radiant, geothermal, high velocity, water cooled and water sourced heating and air conditioning systems.

All Home Warranty Plans have limits to coverage. We have clearly identified our limits for your convenience. Access, Diagnosis, Repair and/or Replacement of the following items are limited as follows:

Dollar Limit per Plan Term:

During Seller’s Coverage: When Optional Seller’s HVAC Coverage selected: Heating, Ductwork, A/C: (including water heater/heating combination units) . . . . . . . . . . . . . . . . . . . . . . . . $ 1,500 Plumbing pipe leaks in water, drain or gas lines located under, encased in, or covered by, concrete. Plumbing pipe leaks in Polybutylene piping. . . . . . . . . . . . $ 1,000 During Buyer’s Coverage: Diesel, oil, Glycol, hot water, steam, radiant, geothermal, high velocity, water cooled and water source systems, and water heater/heating combination units . . $ 1,500 Ductwork, air transfer systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

500

Plumbing pipe leaks in water, drain or gas lines located under, encased in, or covered by, concrete. Plumbing pipe leaks in Polybutylene piping. . . . . . . . . . . . $ 1,000

4

AZ 5.0 (03/2016)


Optional Home Buyer Coverage STAR SERVICE . . . . . . . . . . . . . . . . . . . . . . . . . . .$50

SWIMMING POOL/SPA EQUIPMENT INCLUDES SALT WATER CIRCUIT BOARD AND CELLF . . .$180

(Only available in Phoenix & Tucson Metropolitan Area)

No additional charge if separate equipment.

A/C & Heating System Pre-Season Tune-ups: We will perform one A/C Pre-Season Tune-up between February and April and one Heating System Pre-Season Tune-up between September and November. You are responsible for requesting the tune-up during the pre-season period. Maintenance tune-ups are provided for one unit. A trade call fee is due for each seasonal tune-up requested. If you would like additional units tuned-up, you are responsible to pay the Service Provider directly for each additional unit. If covered service beyond the tune-up is required, an additional trade call fee is due. Calibrate thermostat, test temperature split, check refrigerant levels & system pressures and add refrigerant if necessary, perform amp draw on condenser coils, check contactors, check accessible condensate lines for leaks, clean or replace filters (owner supplied), clean & tighten electrical connections, test capacitors, and check heating operation, inspect pilot system, test safety switches, test limit switches, and clean burners. NOT COVERED: FILTERS; CLEARING OF CONDENSATE LINE STOPPAGES;

Above ground and accessible working parts and components of heating and filtration system, including heater, motor, filter, filter timer, diatomaceous filter grid, pump, gaskets, timer, backwash/flush/check valve, pool sweep motor and pump/booster pump, above ground plumbing pipes and wiring, control panel. Coverage also includes spa blower, salt water circuit board and cell. NOT COVERED: REMOTE CONTROL PANEL AND SWITCHES; AIR SWITCHES; WATER

CHEMISTRY CONTROL EQUIPMENT AND MATERIALS (E.G. CHLORINATORS, IONIZERS, OZONATORS, ETC.); DISPOSABLE FILTRATION MEDIUMS (SAND, DIATOMACEOUS EARTH, FILTER CARTRIDGES, ETC.); SKIMMER; HEAT PUMP; VALVE ACTUATOR MOTOR; SALT; CLEANING EQUIPMENT INCLUDING POP-UP HEADS, TURBO VALVES, CREEPY CRAWLERS AND THE LIKE; SWIM JET/RESISTANCE POOL AND RESPECTIVE EQUIPMENT; DAMAGE OR FAILURE AS A RESULT OF CHEMICAL IMBALANCE; UNDERGROUND WATER, GAS, AND ELECTRICAL LINES; LIGHTS, JETS; ORNAMENTAL FOUNTAIN MOTORS AND PUMPS; POWER CENTER.

EVAPORATOR/INDOOR COIL CLEANING, INCLUDING ACID CLEANING; CLEANING OR UNCLOGGING SERVICES REQUIRED TO CORRECT PROBLEMS RELATED TO THE LACK OF MANUFACTURER RECOMMENDED MAINTENANCE (FILTERS MUST BE REPLACED MONTHLY).

LIMITED ROOF LEAK REPAIR . . . . . . . . . . . . . .$100 The repair of specific leaks that occur in the roof located over the occupied living area of the main dwelling (excluding garage), provided the leaks are the result of rain and/or normal wear and deterioration and the roof was watertight and in good condition on the effective date of the Plan.

Re-Key Service: Re-key up to 6 key holes (including deadbolts) and provide 4 copies of the key. Also includes a one-time reprogramming of hand held garage door remotes. NOT COVERED: REMOTE CONTROL UNITS BUILT INTO ANY VEHICLE.

NOT COVERED: GUTTERS; DRAIN LINES; FLASHING; SKYLIGHTS; PATIO COVERS;

SCUPPERS; GLASS; SHEET METAL; ROOF MOUNTED INSTALLATIONS; LEAKS THAT OCCUR IN A DECK OR BALCONY WHEN DECK OR BALCONY SERVES AS THE ROOF OF THE STRUCTURE BELOW; LEAKS THAT RESULT FROM OR THAT ARE CAUSED BY ROOF MOUNTED INSTALLATIONS; IMPROPER CONSTRUCTION OR REPAIRS; MISSING OR BROKEN ROOF SHINGLES OR TILES; DAMAGE CAUSED BY PERSONS WALKING OR STANDING ON THE ROOF; FAILURE TO PERFORM NORMAL MAINTENANCE TO ROOF AND GUTTERS; IMPROPER INSTALLATION; LEAKS MANIFESTED PRIOR TO THE EFFECTIVE DATE OF THE PLAN.

Sprinkler, Drip and Timer SystemF: Sprinkler system utilized for residential landscape only. Domestic use only. Leaks and breaks of PVC lines, sprinkler heads, bubbler heads, timers, gate valves, shut off valves, solenoid, and other remotely activated control valves. Existing wiring must be U.L. rated for underground use. NOT COVERED: ADJUSTMENTS OR CLEANING; BACKFLOW PREVENTION DEVICES;

HYDRAULIC SYSTEMS; PRESSURE REDUCERS; RAIN SENSORS; TIMER BATTERIES; FAILURES DUE TO LAWN OR YARD CARE EQUIPMENT; DAMAGE DUE TO ROOTS OR OVERGROWTH, EXCAVATION.

NOTE: AN ACTUAL WATER LEAK MUST OCCUR DURING THE COVERAGE PERIOD FOR COVERAGE TO APPLY UNDER THIS PLAN. IF THE AREA OF THE ROOF THAT IS LEAKING HAS DETERIORATED TO SUCH AN EXTENT THAT THE LEAK CANNOT BE REPAIRED WITHOUT PARTIAL REPLACEMENT OF THE ROOF, THE COMPANY’S OBLIGATION IS LIMITED TO THE COST OF REPAIR IF SUCH LEAK HAD BEEN REPAIRABLE. IN THE EVENT THE ROOF HAS EXCEEDED ITS LIFE EXPECTANCY AND MUST BE REPLACED, THIS COVERAGE WILL NOT APPLY.

Buyer’s Optional Coverage Plan Limits (With purchase of appropriate Option):

All Home Warranty Plans have limits to coverage. We have clearly identified our limits for your convenience. Access, Diagnosis, Repair and/or Replacement of the following Options are limited as follows:

Dollar Limit per Optional Coverage Plan Term:

Sprinkler, Drip and Timer System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Salt Water Circuit Board and Cell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Limited Roof Leak Repair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Kitchen Refrigerator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Additional Refrigeration Units (in total) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Ornamental Fountain Motor/Pump. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Water Softener/RO Filtration System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Well Pump and/or Booster Pump . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Enhanced Slab Leak Limit/External Pipe Leak (in total) . . . . . . . . . . . . . . . . . . . . . $ Septic System/Sewage Ejector Pump . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ AZ 5.0 (03/2016)

500 1,500 1,000 2,500 1,000 500 500 1,500 2,000 500

F We cover items located on the exterior or outside of the home that service only the main home or other structure covered by us. 5


Since not every home is the same, Optional Coverage outlined in this section is available to meet the needs of your specific home. Optional Coverage may be added at any time prior to close of sale and up to 60 days after close of sale. For homes not going through a Real Estate transaction, Optional Coverage cannot be added after the initial payment of Plan fee. Optional Coverage not selected will be unavailable at time of renewal. Please Note: Universal exclusions and limitations of liability apply.

WASHER/DRYER (PER SET) . . . . . . . . . . . . . . . .$ 80

WATER SOFTENER/ REVERSE OSMOSIS WATER FILTRATION SYSTEMF. . . . . . . . . . . . . . .$ 75

All components that affect the washing or drying operation of the unit, including belts, pump, motor, tub, timer, drum, thermostat, transmission, heating element, control board and touch pad.

Water Softener/Reverse Osmosis system (for drinking water) and their respective equipment. NOT COVERED: LEASED OR RENTED UNITS; ANY AND ALL TREATMENT, PURIFICATION,

ODOR CONTROL, IRON FILTRATION COMPONENTS AND SYSTEMS; DISCHARGE DRYWELLS; RESIN BED REPLACEMENT; SALT; REPLACEMENT OF FILTERS, WATER FILTERS, PRE-FILTERS, FILTER COMPONENTS; REPLACEMENT MEMBRANES; WATER PURIFICATION SYSTEMS; RO FILTRATION SYSTEM FOR POOL/SPA.

NOT COVERED: PLASTIC MINI-TUB; VENTING; FILTER; LINT SCREEN; ALL-IN-ONE-TUB WASH/DRY UNIT; SOAP DISPENSER.

KITCHEN REFRIGERATOR Located in Kitchen. . . . . . . .$ 50

Coverage for one Freestanding or one Built-in Unit (Single or Dual Compressor), and Ice Maker.

WELL PUMPF . . . . . . . . . . . . . . . . . . . . . . . . . . . .$100

All components that affect the cooling operation of the unit, including compressor, thermostat, condenser coil, evaporator and defrost system.

BOOSTER PUMPF . . . . . . . . . . . . . . . . . . . . . . . .$ 75

NOTE: REPAIR OR REPLACEMENT OF ICE MAKERS, ICE CRUSHERS, BEVERAGE

Pump servicing only the home or other structure covered by us. Domestic use only. One well pump/booster pump per Plan.

DISPENSERS AND THEIR RESPECTIVE EQUIPMENT ARE COVERED FOR KITCHEN REFRIGERATOR ONLY, PROVIDING PARTS ARE AVAILABLE. IF PARTS ARE NOT AVAILABLE, OUR OBLIGATION IS LIMITED TO CASH IN LIEU OF REPAIR.

NOT COVERED: CONTROL BOXES; PRESSURE SWITCHES; CAPACITORS OR RELAYS; COST OF LOCATING PUMP.

NOT COVERED: FILTER; INTERIOR THERMAL SHELL; FOOD SPOILAGE; INSULATION; MULTI-MEDIA CENTERS; WINE VAULTS; COST OF RECAPTURE OR DISPOSAL OF REFRIGERANT; REFRIGERATOR/OVEN COMBINATION UNITS; COMPONENTS WHICH DO NOT AFFECT THE PRIMARY FUNCTION OF THE UNIT, SUCH AS COFFEEMAKERS, HOT WATER DISPENSERS, ETC.; KEGERATOR.

ENHANCED SLAB LEAK LIMIT EXTERNAL PIPE LEAK COVERAGEF . . . . . . . .$100 NOT AVAILABLE TO CONDOS OR MULTI-UNIT BUILDINGS. When required to render a covered service, we will:

ADDITIONAL REFRIGERATION UNITS . . . . . . . .$ 40

Internal Slab Leak Limit (Add a Maximum $1,000 to Standard Plan Limit).

Only available with Kitchen Refrigerator Option. Single Compressor Units Only.

a) Increase the Standard Plan limit per Plan Term by $1,000 for the repair/replacement of plumbing pipe leaks in water, drain or gas lines located under, encased in, or covered by, concrete that are located within the interior of the main foundation of the home and garage (inside the load-bearing walls of the structure).

Provides coverage for up to four additional refrigeration systems, such as: Additional refrigerator, wet bar refrigerator, wine refrigerator, freestanding freezer and freestanding ice maker.

External Pipe Leak Limit (Maximum $1,000).

All components that affect the cooling operation of the unit, including compressor, thermostat, condenser coil, evaporator and defrost system.

b) Provide coverage up to $1,000 for external pipe leaks located outside the foundation of the covered structure, including water, gas and drain lines that service only the main home or other structure covered by us. Repair or replace exterior hose bibbs and main shut off valve.

Freestanding ice maker includes coverage for ice maker, ice crusher, beverage dispenser and respective equipment. NOT COVERED: ICE MAKER; ICE CRUSHER; BEVERAGE DISPENSER AND THEIR

NOT COVERED: FAUCETS; SPRINKLER SYSTEMS; SWIMMING POOL/BUILT-IN POOL PIPING; DOWNSPOUT; LANDSCAPE DRAIN LINES; DAMAGE DUE TO ROOTS.

RESPECTIVE EQUIPMENT; FILTER; INTERIOR THERMAL SHELL; FOOD SPOILAGE; INSULATION; MULTI-MEDIA CENTERS; WINE VAULTS; COST OF RECAPTURE OR DISPOSAL OF REFRIGERANT; REFRIGERATOR/OVEN COMBINATION UNITS; COMPONENTS WHICH DO NOT AFFECT THE PRIMARY FUNCTION OF THE UNIT, SUCH AS COFFEEMAKERS, HOT WATER DISPENSERS, ETC.; DUAL COMPRESSOR UNITS; KEGERATOR.

Basement Bath? Check out this coverage!

SEPTIC TANK PUMPING/SEPTIC SYSTEMS INCLUDING SEWAGE EJECTOR PUMPF . . . . .$ 75 NOT AVAILABLE ON NEW CONSTRUCTION PLAN

NOT COVERED ON ALL APPLIANCES: DETACHABLE COMPONENTS; BASKETS; BUCKETS; DIALS; KNOBS; HANDLES; DOOR GLASS; LIGHTS; LIGHT SOCKETS; LIGHT SWITCHES; PANS; TRAYS; ROLLERS; RACKS; SHELVES; RUNNER GUARDS; INTERIOR LINING; TRIM KITS; VENTS; FILTERS; FLUES; DRAWERS; LOCK AND KEY ASSEMBLIES.

Septic Tank Pumping (For Single or Dual Compartment Tanks): Septic tank must service only the main home or other structure covered by us. If the septic tank is full or a stoppage is the result of a septic tank back-up, we will pump the septic tank (and dispose of waste) one time during the term of the Plan.

ORNAMENTAL FOUNTAIN (Including Pond and Pool) MOTOR/PUMP COVERAGEF (Per Fountain) . . . . . . .$ 75

Septic System/Sewage Ejector Pump: Aerobic pump, jet pump, grinder pump, sewage ejector pump, septic tank and line from house to tank.

Motor and pump assembly. Multiple motors/pumps contained within each fountain will be covered.

NOT COVERED: SEEPAGE PITS; STOPPAGE OR DAMAGE DUE TO ROOTS; THE COST

NOT COVERED: WATER PIPING; ELECTRICAL LINES OR CONTROLS; FILTERS; FILTER

MEDIA AND CARTRIDGES; OVERFLOW/NEGATIVE EDGE/INFINITY POOL MOTOR AND PUMP.

6

OF LOCATING TANK; CHEMICAL TREATMENTS; TILE FIELDS AND LEACH BEDS; LEACH LINES; LATERAL LINES; INSUFFICIENT CAPACITY; LEVEL SENSORS/SWITCHES; CONTROL PANELS; ASSOCIATED ELECTRICAL LINES. AZ 5.0 (03/2016)


When You Need Us You are responsible to pay a TRADE (SERVICE) CALL FEE (TCF) when the Service Provider arrives at your home. The TCF (or the actual cost of service, whichever is less) is due for each dispatched service request by trade (plumbing, electrical, appliance, heating/air conditioning, etc.). Service work is guaranteed for 30 days. The TCF is due whether service is covered or denied. Essentially, when we incur a cost of service, you are responsible for a TCF. A TCF may be due if you fail to be present at the scheduled appointment time, if you cancel your request once the Service Provider is in route to your home, or you request a second opinion of the Service Provider’s diagnosis. Failure to pay the TCF can result in suspension of coverage until such time as the proper fee is paid. At that time, coverage will be reinstated but the term will not be extended. You will be responsible for any fees incurred for collection efforts, if required. We will not respond to a new service request until all previous Trade Call Fees are paid.

It can be inconvenient when a home system or appliance unexpectedly breaks down. When you need service, we are here to provide you with a helping hand and peace of mind. Please take a few moments to become familiar with the Plan and keep it handy, as it will save you both time and money. This entire document explains all the terms and conditions of coverage, with distinct sections to make the Plan easy to understand and simple to use. If you have any questions about coverage, please visit www.orhp.com or contact us directly at 800.972.5985.

Review the “ABC’s of Coverage” to ensure your service issue is covered by the Plan.

In accordance with the terms and conditions of the Plan, we will perform services, and repair or replace systems and appliances mentioned as covered; we exclude all others. Coverage is subject to limitations. We will provide service for covered systems or appliances that malfunction, and are reported, during the term of the Plan that:

To ensure you receive reputable and unbiased service, we have built an extensive network of SERVICE PROVIDERS who provide service to our Plan Holders at fair and reasonable rates. Our network, however, is not all inclusive for every trade, in every town, across the nation. For that reason, we may authorize you to contact an Independent Out-of-Network Contractor directly to obtain service.

A) Are installed for diagnosis and located within the interior of the main foundation of

the home and garage (inside the load-bearing walls of the structure). Systems or appliances located on the exterior or outside of the home (including porch, patio, etc.) are not covered with the exception of covered items marked with a F,

When we request or authorize you to obtain an INDEPENDENT OUT-OF-NETWORK CONTRACTOR to perform diagnosis and/or service: 1) The Contractor must be qualified,

B) Were correctly installed and working properly on the effective date of the Plan, and

licensed, and insured, and charge fair and reasonable rates for parts and service. 2) Once the technician is at the home, and prior to any services being rendered, you must call our Authorization Department with the technician’s diagnosis and dollar amount of services required. Covered repairs or replacements will be authorized if work can be completed at an agreed upon rate. 3) We will provide an Authorization Number for the covered services and dollar amount that we have authorized. Failure to contact us as outlined may result in denial of coverage. 4) Upon completion of the authorized services, the Contractor must provide you an itemized invoice for the authorized charges. 5) You must submit the itemized invoice, including the Authorization Number provided by us, for reimbursement. 6) A Trade Call Fee is due per trade, and will be deducted from any reimbursement provided. 7) You are expected to pay the Independent Out-of-Network Contractor directly for the services rendered and then submit the invoice to us for reimbursement. We accept invoices by fax (800.866.2488), post (P.O. Box 5017, San Ramon, CA 94583-0917) or email to: easyas123@orhp.com.

C) Have become inoperable due to normal wear and use (including rust, corrosion, and

chemical or sediment build-up), after the effective date of coverage. Pre-existing conditions are not covered.

Coverage may apply to a malfunction which existed at the effective date/transfer of ownership (excludes renewal and non-real estate transaction customers) if, at that time, 1) the malfunction was unknown to the home seller, agent, buyer, or home inspector, 2) the malfunction was undetectable and would not have been detectable by visual inspection or simple mechanical test. A visual inspection of the covered item verifies that it appears structurally intact and without damage or missing parts that would indicate inoperability. A simple mechanical test consists of turning the unit on and off, verifying the unit operates without irregular sounds, smoke or other abnormal outcome. For Service: Place service requests online at www.orhp.com or call us at 800.972.5985 ✓ We accept service requests 24 hours a day, 365 days a year. ✓ We require you to contact us so we may have the opportunity to select a Service Provider. ✓ We will not reimburse you for services performed without our prior authorization.

We have the sole right to determine whether a covered system, appliance or component will be repaired or replaced. We reserve the right to send a second opinion at our expense. We are not responsible for non-covered work performed or non-covered costs.

When you place a service request, we will notify an INDEPENDENT CONTRACTOR (Service Provider) who will contact you directly to schedule a convenient appointment during normal business hours. Under normal circumstances, our service effort will be initiated within 48 hours. Throughout the service effort, we urge you to take reasonable measures to prevent secondary damage (e.g. turning off water to the home in the case of a major pipe leak).

We reserve the right to provide CASH IN LIEU of repair or replacement in the amount of our actual cost. Payment will be provided based on our negotiated rates with our Service Provider and/or Supplier network, which may be less than retail. We are not responsible for work performed once you accept cash in lieu of service. To ensure continued coverage of the system or appliance for which we provide a cash in lieu settlement, either during the current or future term of coverage between you and us, you must provide proof of repair or replacement that meets our reasonable satisfaction. You may send proof to ProofofRepair@orhp.com.

In cases of EMERGENCY, we will make reasonable efforts to expedite service, including initiating our service effort within 24 hours. An emergency is defined as a service issue resulting in 1) No electricity, gas, water or toilet facilities to the entire home; 2) A condition that immediately endangers health and safety; 3) A condition that interferes with healthcare support of occupants; and/or 4) A system malfunction that is causing ongoing damage to the home. Other conditions may, at our discretion, be considered an emergency. If you should request non-emergency service outside of normal business hours, you will be responsible for additional fees, including overtime.

If we provide reimbursement or cash in lieu of service, our normal processing time, from date of receipt of invoice/your acceptance to the issuance of a check, is approximately two weeks.

Obligations under this Plan Contract are backed by the full faith and credit of Old Republic Home Protection, Co., Inc.

If you experience any difficulties during the service process, you can contact the Service Provider or us directly for assistance. AZ 5.0 (03/2016)

Old Republic Home Protection, P.O. Box 5017, San Ramon, CA 94583

7


It is important that you understand the Plan coverage as well as its limitations, as it may affect the coverage that will be provided for any service requested.

Limitations Of Liability

This Plan Contract is intended to provide quality protection against the high cost of home repair. It is intended to help reduce the Plan Holder’s out-of-pocket costs for covered services. Coverage is not all inclusive; there may be situations in which you will be responsible to pay additional costs for parts or services not covered by the Plan. In those situations, we will work with you to determine the best course of action to reasonably minimize your out-of-pocket costs. 1. GENERAL LIMITATIONS. THIS PLAN DOES NOT COVER:

3. ACCESS:

A. System or appliance repairs, replacements or upgrades required as a result of: 1. A malfunction due to missing components or equipment; 2. A malfunction due to lack of capacity of the existing system or appliance; 3. A malfunction due to a system or appliance with mismatched components in terms of capacity or efficiency*; 4. Any federal, state, or local regulations or ordinances; utility regulations; building or zoning code. B. Routine maintenance or cleaning. C. Damage caused by people, pests, or pets. D. Missing components. E. Improper repair/installation/modification of the covered item.* F. Any costs related to servicing systems, appliances or components covered, in whole or in part, by an existing manufacturer/ distributor/ or other warranty. G. Repair, replacement, installation, or modification of any covered system or component for which a manufacturer has issued a warning, recall, or other design flaw or determination of defect. H. Cosmetic or other defects that do not affect the functioning of the unit. I. Solar systems and components, including holding tanks. J. Electronic, computerized, pneumatic, energy, or manual management systems. K. Systems or appliances classified by the manufacturer as commercial, or commercial equipment modified for domestic use. L. Electrolysis. M. Outside or underground piping and components for geothermal and water source heat pumps, including well pumps and respective equipment. N. Matching dimensions, color or brand. We are responsible for providing installation of equipment comparable in features (features that affect the operation of the system or appliance), capacity and efficiency only. If feature is no longer available, our obligation is limited to equivalent unit based on available existing features. O. Systems and appliances that have no malfunction, that have not failed due to normal wear and use, or that are not installed for diagnosis. P. Services requested prior to the effective date of the coverage or after the expiration date of coverage. Q. Services requested for Optional Coverage not purchased, or for Options not available to Home Seller.

A. When covered heating and plumbing service is performed, access will be provided through unobstructed walls, ceilings and floors only. In that case, we will return access opening to a rough finish condition (concrete, mud, wire, drywall and tape). B. We do not cover the restoration of any wall, ceiling, or floor coverings, cabinets, counter tops, tile, paint, or the like. C. We are not responsible for providing or closing access to covered items, except as noted above and in Coverage Plan Limits. D. We do not pay additional charges to remove or install systems, appliances, or nonrelated equipment in order to make a covered repair.

4. GENERAL EXCLUSIONS: A. This Plan does not cover services required as a result of: 1. Accidents; water damage; failure due to power surge or overload; or structural damage or defect. 2. Lightning; mud; earthquake; fire; flood; freezing; ice; snow; soil movement; storms; or acts of nature. B. Except where noted, we do not pay for upgrades; components; equipment; or services required due to the incompatibility of the existing equipment with the replacement system; appliance; or component; or with new types of chemicals or material utilized to operate the replacement equipment. This includes without limitation, differences in technology; refrigerant requirements; or efficiency as mandated by federal, state or local governments. If upgrades are required, we cannot perform service until you complete corrective work. If additional costs are incurred in order to comply with regulations, we will not be responsible for the added expense. C. We reserve the right to repair systems and appliances with non-original manufacturer’s parts, including rebuilt or refurbished parts. D. We do not pay, nor are we liable, for secondary or consequential loss or damage; personal or property loss or damage; or bodily injury of any kind. E. We are not responsible for a Service Provider’s neglect or delay; or their failure to provide service, repair or replacement; nor are we responsible for any delay in service, or failure to provide service, which may be caused by conditions beyond our control, such as, but not limited to, parts on order, labor difficulties, or weather. F. We do not pay for food spoilage; loss of income; utility bills; or living expenses. G. We are not responsible to perform service involving, providing disposal of, or remediation for, contaminants/hazardous/toxic materials, such as, but not limited to: asbestos; mold; sewage spills; or lead paint. H. We do not pay, nor are we liable, for any claim arising as a result of any pathogenic organism such as: bacteria; yeast; mildew; virus; rot or fungus; mold or their spores; mycotoxins; or other metabolic products. We are not, under any circumstances, responsible for: 1. Diagnosis, repair, removal or remediation of such substances; 2. Damages resulting from such substances, even when caused by or related to a covered malfunction; 3. Damages resulting from such substances, regardless of any event or cause that contributed in any sequence to damage or injury.

2. PERMITS AND OTHER FEES: A. You may be responsible for the payment of additional fees not covered according to the terms and conditions of the Plan. These fees may include, but are not limited to: 1. The cost of permits and code upgrades.* 2. The cost to haul away components, systems or appliances that have been replaced under the terms of coverage.* 3. The cost for cranes* or other lifting equipment. 4. The cost of construction, carpentry or other modifications made necessary by existing or installing different equipment.** 5. Relocation of equipment.** 6. Costs related to refrigerant recapture, reclaim and disposal.* *Additional Coverage may be available with Ultimate Protection. **Additional Coverage may be available with Platinum Protection. 8

AZ 5.0 (03/2016)


Coverage Subject to Terms and Conditions of Coverage summarized herein, and will be contained in the Plan Contract to be mailed to Home Buyer upon payment of Plan fee.

Items You Should Know

Please see Cancellation and Arbitration clause below. PLAN EFFECTIVE DATES:

RENEWALS:

Your Plan term (effective and expiration date) will be indicated on the Declaration of Coverage, mailed to you upon our receipt of payment.

The Plan will be renewed at our discretion. If your Plan is eligible for renewal, we will notify you of the Plan fee and terms of renewal approximately 60 days prior to expiration of coverage. To ensure there is no lapse of coverage, payment must be received prior to Plan expiration. Plan fees may increase upon renewal.

We provide coverage for single family residential-use resale and new construction homes less than 5,000 sq. ft., unless amended by us prior to the effective date of coverage. Resale and New Construction homes 5,000 sq. ft. or more, multiple units, mother-in-law-units, guest houses, casitas, and other structures are covered if appropriate fee is paid. Please call for quote. Coverage for homes 10,000 sq. ft. or over is not available. NOTE: Home Seller’s Coverage is not available on homes 5,000 sq. ft. or over, multi-unit dwellings, guest houses, casitas, properties not going through a Real Estate transaction, For Sale by Owner properties, and lease-purchase properties.

TRANSFER BY PLAN HOLDER: This Plan is transferable to a new owner. In that event, please notify us.

Cancellation: Arizona Residents: If Plan is cancelled by you, you will receive a pro rata refund for the unexpired term, less any unpaid trade call fees, and a $50 processing fee. If Plan is cancelled by us, you will be entitled to a pro rata refund for the unexpired term, less unpaid trade call fees. Our reasons for cancellation include 1) nonpayment of fees; 2) fraud or misrepresentation of facts material to the Plan; 3) upon mutual agreement between you and ORHP; or 4) if you harm or threaten the safety or well-being of ORHP, any employee of ORHP, a Service Provider, or any property of ORHP or of the Service Provider.

This coverage is for residential-use property only. It does not cover commercial property or homes used as a business, such as: nursing/care homes, fraternity/sorority houses or day care centers. If this Plan is for a duplex, triplex or four-plex, then all units within the dwelling must be covered by an ORHP Plan for applicable coverage to apply to shared systems and appliances. For cost of Optional Coverage, multiply option cost by the number of units. Common grounds and facilities are excluded.

Arbitration: By entering into this Agreement the parties agree and acknowledge that all disputes they have that involve us, or arise out of actions that we did or did not take, shall be arbitrated as set forth herein as long as the claim is in excess of the applicable small claims court jurisdictional limit. The parties further agree that they are giving up the right to a jury trial, and the right to participate in any class action, private attorney general action, or other representative or consolidated action, including any class arbitration or consolidated arbitration proceeding.

HOME BUYER’S COVERAGE: Home Buyer's Coverage is effective for the term indicated on the Declaration of Coverage. Coverage is normally effective upon close of sale for a one-year term. Your Plan effective date and term may vary. The Plan fee must be received within 14 days after close of sale. If you take possession prior to close of sale (or obtain possession through rental or lease agreement), the Plan fee is due upon occupancy and coverage will begin upon receipt of Plan fee by ORHP. We offer a 60 day grace period from the close of sale during which you may add Optional Coverage. You must request and pay for Optional Coverage within the 60 day grace period or it shall be conclusively presumed that you do not wish to add additional Optional Coverage. Upon receipt of additional Plan fee, an updated Declaration of Coverage will be issued to confirm the coverage provided. Optional Coverage not selected will be unavailable at time of renewal.

All disputes or claims between the parties arising out of the agreement or the parties’ relationship shall be settled as follows: 1) Small claims court; for claims within the applicable small claims court jurisdictional limit, or 2) Final and binding arbitration held in the county of the covered property address (or other location mutually agreed upon by both parties) for claims in excess of the Small Claims Court jurisdictional limit. The arbitration shall be conducted by the American Arbitration Association pursuant to its rules for consumer disputes. Copies of the AAA Rules and forms can be located at www. adr.org, or by calling 800.778.7879. The Company agrees to pay the initial filing fee if the customer cannot afford to pay the fee or to reimburse the customer for filing fees unless the arbitrator determines that the claim is frivolous.

HOME SELLER’S COVERAGE (for listing/closing period): Seller’s coverage is available only in conjunction with the purchase of coverage for Home Buyer. Coverage becomes effective the day the application is received by us,

The parties expressly agree that this Agreement and this arbitration provision involve and concern interstate commerce and are governed by the provisions of the Federal Arbitration Act (9 U.S.C. § 1, et seq.) to the exclusion of any different or inconsistent state or local law, ordinance or judicial rule.

and continues until the expiration of the initial listing period (up to 180 days), close of sale, or listing termination; whichever occurs first. Should close of sale not occur in the 180-day period, we may, at our sole discretion, extend the seller’s coverage period. Pre-existing conditions are not covered for the Home Seller. Known defects of covered items found at the time of home inspection are excluded from coverage until proof of repair or replacement is received by us. You may send proof to ProofofRepair@orhp.com.

FOR HOMES NOT GOING THROUGH A REAL ESTATE TRANSACTION: Plans are normally purchased as part of a Real Estate transaction. If you are not involved in a resale transaction, Plan fees, terms or coverage may vary. Please call for a quote. Coverage is effective 30 days following receipt of payment by us. The effective date will be confirmed on the Declaration of Coverage. Optional Coverage cannot be added after the initial payment of Plan fee. Pre-existing conditions are not covered for homes not

going through a real estate transaction.

AZ 5.0 (03/2016)

9


Application – Order Today!

OLD REPUBLIC HOME PROTECTION

Internet: www.orhp.com | Phone: 800.445.6999 | Fax: 800.866.2488 Mail: P.O. Box 5017, San Ramon, CA 94583-0917

Please give your client a sample Plan Contract. Plan #_____________________

Select Plan Coverage (Pick One)

Covered Property

COVERAGE IS FOR HOMES LESS THAN 5,000 SQ. FT. FOR HOMES 5,000 SQ. FT. OR OVER, PLEASE CALL FOR QUOTE.

Street _______________________________________________________ City

Standard Coverage for Home Buyer (Includes Standard Coverage for Home Seller)  

Single Family Home Condo, Townhome and Mobile Home

State

Zip _______________

Home Buyer/Seller Information

$ 355 _____ $ 330 _____

Buyer Name _________________________________________________ Buyer Mailing Address _________________________________________

Ultimate Protection for Home Buyer

Phone # (

(Includes Standard Coverage for Home Seller)  

Single Family Home Condo/Townhome/Mobile Home

Platinum Protection for Home Buyer

) _________________________________________

Buyer E-Mail _________________________________________________

$ 425 _____ $ 395 _____

Seller Name _________________________________________________

Agent/Closing Information

$ 500 _____

Initiating Agent Information

(Includes Standard Coverage for Home Seller)

Main Office Phone # ( 

New Construction (Years 1-4 or 2-5)  With Ultimate Protection (Years 1-4 or 2-5)

$ 595 _____ $ 665 _____

Seller’s Agent

Buyer’s Agent

) ________________________________

RE Company Name

City _________________

Initiating Agent _______________________________________________

Cooperating Agent Information

Multi-Units 

Duplex–$570

Triplex–$670

Fourplex–$770

(Buyer only)

Main Office Phone # (

_____

) ________________________________

Multi-Units With Ultimate Protection

RE Company Name

Cooperating Agent ____________________________________________

Duplex–$665  Triplex–$880  Fourplex–$1,135 (Buyer only) _______ For cost of Optional Coverage for multiple unit buildings, multiply option cost by the number of units.

City _________________

Closing Company Information Closing Company Name

Optional HVAC Coverage for Home Seller

City _________________

Officer ______________________________________________________

Select Seller's Options $ 60 ______

Main Office Phone # (

) ________________________________

File #

Estimated Close ___________________

Select Buyer’s Options 

Star Service (Only available in Phoenix & Tucson Metropolitan Area) $ 50 ______

Swimming Pool/Spa Equipment includes Salt Water Circuit Board and Cell

Acknowledgement I desire:

$ 180 ______

Coverage as indicated.

(No additional charge if separate equipment)

To decline the benefits of coverage.

Limited Roof Leak Repair

To decline the Optional Coverage benefits of: _____________________

$ 100 ______

____________________________________________________________

Washer/Dryer (Per Set)

$ 80 ______

Washer/Dryer/Kitchen Refrigerator

$ 110 ______

Kitchen Refrigerator

$ 50 ______

been covered by this Plan. The real estate agent offering this Plan does

 Additional

$ 40 ______

so as a service to protect their client’s best interest. Signature

Refrigeration (four units total)

I agree not to hold the above real estate company, broker, and/or agents liable for the repair/replacement of a system or appliance that would have

(Only available with Kitchen Refrigerator Option) 

Ornamental Fountain

$ 75 ______

Water Softener/ Reverse Osmosis Water Filtration System

$ 75 ______

Well Pump

$ 100 ______

Booster Pump

$ 75 ______

Enhanced Slab Leak Limit/External Pipe Leak Coverage $ 100 ______

Septic Tank Pumping/Septic System/Sewage Ejector Pump $ 75 ______

TOTAL COST (Due at Close of Sale) $65 Trade Call Fee

Date _____________

I also acknowledge that:

$

1) The terms of our Agreement, and the coverage I will receive, will be governed by a Plan Contract that will be mailed to the Home Buyer upon receipt of the Plan fee. 2) Coverage is not all inclusive; and contains specific exclusions and limitations. 3) I have read and accept the terms of cancellation and arbitration stated herein.

______ 10

AZ 5.0 (03/2016)


HOME SELLER COVERAGE

Select Plan Coverage

$65 Trade Call Fee

Internet: www.orhp.com | Phone: 800.445.6999 | Fax: 800.866.2488 P.O. Box 5017, San Ramon, CA 94583-0917

HOME BUYER COVERAGE

An Industry Exclusive!

Platinum Protection

Standard Home Seller Coverage

Standard Coverage

Ultimate Protection

Included

$355

$425

Seller’s coverage is available only in conjunction with the purchase of Coverage for Home Buyer

Condo/ Townhome/ Mobile Home

Condo/ Townhome/ Mobile Home

$330

$395

$500 Best Value!

COVERED Primary Gas, Oil or Electric Heater

Optional✔Seller's HVAC Coverage

Air Conditioner/Cooler

$60 ✔

Ductwork Drain Line Stoppages

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Plumbing Pipe Leaks (including Polybutylene) Toilets Water Heater Built-in Jetted Bathtub Motor & Pump Recirculating Pump Instant Hot/Cold Water Dispenser Garbage Disposal Water Pressure Regulator Sump Pump Electrical System Exhaust, Attic, Ceiling, Whole House Fans Garage Door Opener Central Vacuum Dishwasher Trash Compactor Kitchen Exhaust Fan Oven/Range/Cooktop Built-in Microwave Oven

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

OPTIONAL COVERAGE • HOME BUYER ONLY

Star Service

(Heat & A/C Tune-ups, Re-key, and Sprinkler service)

$ 50

Swimming Pool/Spa Equipment includes Salt Water Circuit Board and Cell

$ 180

Limited Roof Leak Repair

$ 100

Washer/Dryer (Per Set)

$ 80

(Only available in Phoenix & Tucson Metropolitan Area)

(No additional charge if separate equipment)

Washer/Dryer/Kitchen Refrigerator

Combine & Save!

Kitchen Refrigerator (Located in Kitchen)

$ 50

Coverage for one Freestanding or one Built-in Unit (Single or Dual Compressor), and Ice Maker.

• Additional Refrigeration Units

$ 40

(Only available with Kitchen Refrigerator Option)

Ornamental Fountain

$ 75

Water Softener/ Reverse Osmosis Water Filtration System

$ 75

Well Pump

$ 100

Booster Pump

$ 75

Enhanced Slab Leak Limit/ External Pipe Leak Coverage

$ 100

Septic Tank Pumping/ Septic System/Sewage Ejector Pump

Basement Bath? Check out this coverage!

Ultimate Protection Ultimate Enhancements Refrigerant Recapture, Reclaim and Disposal Code Upgrades Permits Haul Away Cranes Improper Installation Mismatched Systems Platinum Protection Increased Coverage for Plumbing items Increased Coverage for Stoppages Modification (with Additional Code Upgrades) Increased Coverage for specific HVAC Systems AZ 5.0 (03/2016)

See Plan for details of coverage.

✔ ✔ ✔ ✔

$ 110

ADDITIONAL PLAN TYPES FOR HOME BUYER ONLY

New Construction (Years 1-4 or 2-5)

$ 75

STANDARD

ULTIMATE PROTECTION

$ 595

$ 665

$

$ 665

Multiple Unit Properties Duplex

570

Triplex

$

670

$ 880

Fourplex

$

770

$ 1,135

For cost of Optional Coverage for multiple unit buildings, multiply option cost by the number of units Platinum Protection: Not available to Multiple Units or New Construction

For homes 5,000 sq. ft. or over, or guest homes, please call for quote.

(2/4/16)

OLD REPUBLIC HOME PROTECTION

IAS Buyer Info Package  
IAS Buyer Info Package