BUYER’S BOOK PREPARED ESPECIALLY FOR: First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2021 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF www.ThinkFirstAmerican.com FirstAmPhoenix @FirstAmAZ FirstAmericanAZ 05246810821
to the Title & Escrow Process in Arizona Home Buyer’s Guide
Southwest Gas www.swgas.com1.877.860.6020 Cox www.cox.com602.277.1000 Direct TV www.directv.com1.888.777.2454 Dish Network www.dishnetwork.com1.800.823.4929 CenturyLink www.centurylink.com800.366.8201 AT&T www.att.com1.800.222.0300 Verizon www.connecttoverizon.com1.877.300.4498 Salt River Project www.srpnet.com602.236.8888 APS www.aps.com602.371.7171 Your Escrow Number Your New City/State/ZipAddress Real Estate Agent Name Email Assistant Email Company Phone Address Fax Insurance CompanyPrevious Phone Previous Agent No.Policy New Company Phone New Agent No.Policy Home CompanyWarranty No.Policy First American Title Escrow Officer Email Escrow Assistant Email Address Phone City/State/Zip Fax 03 Welcome 04 The Benefits of Buying 06 Terms You Should Know 07 Key Professionals 08 Benefits of Using a REALTOR ® 09 Selecting a Home 10 The Life of an Escrow 11 Closing Costs: Who Pays What 12 Obtaining a New Loan & Types of Loans 14 The Escrow Process 16 Understanding Title Insurance 18 Compare our Eagle Policy for Owners 20 Ways to Hold Title 21 Your Title Commitment 22 What to Avoid 23 Closing Your Escrow 24 Planning Your Move Q uick Reference Table of Contents Utilities and Services
AZ Buyers Guide | 3 Welcome to the home-buying process. Throughout this process, you can count on First American Title to guide you smoothly through your transaction and provide expert answers to your questions. We are happy to serve you. Count on First American Title Count On Us For Service Count On Us For Stability Count On Us For Convenience Count On Us To Meet Your Needs
First American Financial Corporation offers more than title insurance and escrow services through its subsidiaries. Our subsidiaries also provide property data, title plant records and images, home warranties, property and casualty insurance, and banking, trust and advisory services.
First American Title is the principal subsidiary of First American Financial Corporation, and one of the largest suppliers of title insurance services in the nation. With roots dating back to 1889, we’ve served families for generations.
First American Title’s professionals are proud to provide the title insurance that assures people’s home ownership. Backed by First American Title Insurance Company, your transaction will be expertly completed in accordance with state-specific underwriting standards and state and federal regulatory requirements.
First American Title has a direct office or agent near you, offering convenient locations throughout Arizona. We also have an extensive network of offices and agents throughout the United States, and internationally.
15 YRS RETURN
-
BUY-Deductions for your mortgage interest paid - Mortgage payments could be fixed - Decorate and make changes without prior approval - The value of your property may increase in time - Your house will become a home, not a temporary living situation; you are not at the mercy of a landlord
1 YR 3 YRS 5
RENT YRS YRS $1,200 $14,400 $43,200 $72,000 $144,000 $216,000 $0 $1,300 $15,600 $46,800 $7,800 $156,000 $234,000 $0 $1,400 $16,800 $50,400 $84,000 $168,000 $252,000 $0 $1,500 $18,000 $54,000 $90,000 $180,000 $270,000 $0 $1,750 $21,000 $63,000 $105,000 $210,000 $315,000 $0 $2,000 $24,000 $72,000 $120,000 $240,000 $360,000 $0 $2,250 $27,000 $81,000 $135,000 $270,000 $405,000 $0 $2,500 $30,000 $90,000 $150,000 $300,000 $450,000 $0 $2,750 $33,000 $99,000 $165,000 $330,000 $495,000 $0 $3,000 $36,000 $108,000 $180,000 $360,000 $540,000 $0 $3,500 $42,000 $126,000 $210,000 $420,000 $630,000 $0 $4,000 $48,000 $144,000 $240,000 $480,000 $720,000 $0 amount may increase at any time Landlord approval needed for any changes - No capitalization; your money disappears forever - Rental is temporary and is often subject to 30 day’s notice
AZ Buyers Guide | 4
Benefits of Buying
10
RENT-Nointerest payment deductions - Rental
estate. Do
Not sure if you should buy a home? The rent you pay could build equity in your own real you realize how much you pay in rent over a period of years? The chart below gives you a total picture of what is happening to your money. The rent you pay adds up to a sizeable sum.
AZ Buyers Guide | 5 INTEREST RATE AMOUNTLOAN 4.50% 4.75% 5% 5.25% 5.50% 5.75% 6% 6.25% 6.50% $250,000 $1,267 $1,304 $1,342 $1,381 $1,419 $1,459 $1,499 $1,539 $1,580 $275,000 $1,393 $1,435 $1,476 $1,519 $1,561 $1,605 $1,649 $1,693 $1,738 $300,000 $1,520 $1,565 $1,610 $1,657 $1,703 $1,751 $1,799 $1,847 $1,896 $325,000 $1,647 $1,695 $1,745 $1,795 $1,845 $1,897 $1,949 $2,001 $2,054 $350,000 $1,773 $1,826 $1,879 $1,933 $1,987 $2,043 $2,098 $2,155 $2,212 $375,000 $1,900 $1,956 $2,013 $2,071 $2,129 $2,188 $2,248 $2,309 $2,370 $400,000 $2,027 $2,087 $2,147 $2,209 $2,271 $2,334 $2,398 $2,463 $2,528 $425,000 $2,153 $2,217 $2,281 $2,347 $2,413 $2,480 $2,548 $2,617 $2,686 $450,000 $2,280 $2,347 $2,416 $2,485 $2,555 $2,626 $2,698 $2,771 $2,844 $475,000 $2,407 $2,478 $2,550 $2,623 $2,697 $2,772 $2,848 $2,925 $3,002 $500,000 $2,533 $2,608 $2,684 $2,761 $2,839 $2,918 $2,998 $3,079 $3,160 $525,000 $2,660 $2,739 $2,818 $2,899 $2,981 $3,064 $3,148 $3,233 $3,318 $550,000 $2,787 $2,869 $2,953 $3,037 $3,123 $3,210 $3,298 $3,386 $3,476 $575,000 $2,913 $2,999 $3,087 $3,175 $3,265 $3,356 $3,447 $3,540 $3,634 $600,000 $3,040 $3,130 $3,221 $3,313 $3,407 $3,501 $3,597 $3,694 $3,792 Sample Mortgage Payment 30-Year loan / principal & interest only Contact your loan officer to determine more accurately what price range you should consider. Lenders abide by certain ratios when calculating the loan amount their customers can qualify for and the ratios vary by lender and loan program. Many use 28% of your gross monthly income as the maximum allowed for your mortgage payment (principal/interest/taxes/insurance or PITI); for your total monthly debt, the ratio is 36%. Total monthly expenses means PITI plus long-term debt (such as auto loans) and revolving/credit-card debt. Do not include other expenses such as groceries, utilities, clothing, tuition, etc., to calculate this ratio. This formula is only a guide and not to be construed as actual lending calculations. HOW MUCH YOU HOMEAFFORDCAN
An instrument used in many states in place of a mortgage. Deed Restrictions
The recipient of benefits, often from a deed of trust; usually the lender.
Close of Escrow
Closing Disclosure (CD) Closing Disclosure form designed to provide disclosures that will be helpful to borrowers in understanding all of the costs of the transaction. This form will be given to the consumer three (3) business days before closing.
Limitations in the deed to a parcel of real property that dictate certain uses that may or may not be made of the real property.
A form of encumbrance that usually makes a specific parcel of real property the security for the payment of a debt or discharge of an obligation. For example, judgments, taxes, mortgages, deeds of trust.
Earnest Money Deposit
Beneficiary
AZ Buyers Guide | Terms6 You Should Know
Loan Estimate (LE) Form designed to provide disclosures that will be helpful to borrowers in understanding the key features, costs and risks of the mortgage loan for which they are applying. Initial disclosure to be given to the borrower three (3) business days after application. Mortgage The instrument by which real property is pledged as security for repayment of a loan.
Endorsement As to a title insurance policy, a rider or attachment forming a part of the insurance policy expanding or limiting coverage.
Recording
Hazard Insurance Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. Buyer often adds liability insurance and extended coverage for personal property. Impounds A trust type of account established by lenders for the accumulation of borrower’s funds to meet periodic payments of taxes, mortgage insurance premiums and/or future insurance policy premiums, required to protect their security.
A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes called an “Attorney-in-Fact.”
The borrower’s costs of the loan term expressed as a rate. This is not their interest rate.
Legal Description
Consummation
An estimate of value of property resulting from analysis of facts about the property; an opinion of value.
A payment that includes Principal, Interest, Taxes, and Insurance. Power of Attorney
TRID TILA-RESPA Integrated Disclosures
Generally the date the buyer becomes the legal owner and title insurance becomes effective.
Deed of Trust
Down payment made by a purchaser of real property as evidence of good faith; a deposit or partial payment.
A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire parcel of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.
Easement
Comparable Sales Sales that have similar characteristics as the subject real property, used for analysis in the appraisal. Commonly called “comps.”
A right, privilege or interest limited to a specific purpose that one party has in the land of another.
PITI
Filing documents affecting real property with the appropriate government agency as a matter of public record. Settlement statement Provides a complete breakdown of costs involved in a real estate transaction.
Disbursement Date
The date the amounts are to be disbursed to a buyer and seller in a purchase transaction or the date funds are to be paid to the borrower or a third party in a transaction that is not a purchase transaction.
Occurs when the borrower becomes contractually obligated to the creditor on the loan, not, for example, when the borrower becomes contractually obligated to a seller on a real estate transaction. The point in time when a borrower becomes contractually obligated to the creditor on the loan depends on applicable State law. Consummation is not the same as close of escrow or settlement.
Appraisal
Annual Percentage Rate (APR)
Lien
A key role of the buyer’s agent or broker is to work with the buyer to locate a suitable property and negotiate a successful home purchase.
The MLS is a database of properties listed for sale by REALTORS ® who are members of the local Association of REALTORS.® Information on an MLS property is available to thousands of REALTORS ®
These are the people who carry out the title search and examination, work with you to eliminate the title exceptions you are not willing to take subject to, and provide the policy of title insurance regarding title to the real property.
TITLE COMPANY
MULTIPLE LISTING SERVICE (MLS)
A key role of the listing agent or broker is to form a legal relationship with the homeowner to sell the property and place the property in the Multiple Listing Service.
BUYER'S AGENT
Involved in Your Transaction
REALTOR ®
LISTING AGENT
ESCROW OFFICER
REAL ESTATE AGENT
AZ Buyers Guide | 7
Key Professionals
A real estate agent is licensed by the state to represent parties in the transfer of property. Every REALTOR ® is a real estate agent, but not every real estate agent has the professional designation of a REALTORS.®
A REALTOR ® is a licensed real estate agent and a member of the National Association of REALTORS,® a real estate trade association. REALTORS ® also belong to their state and local Association of REALTORS.®
An escrow officer leads the facilitation of your escrow, including escrow instructions preparation, document preparation, funds disbursement, and more.
Benefits8 of using a Professional REALTOR
You use a professional for your legal, financial and health needs. Why gamble on what may be your biggest investment without a professional at your side?
KNOWLEDGE OF NEW HOME SUBDIVISIONS. New home subdivisions will welcome you and your REALTOR.® If you’re interested in buying a new home, take your agent with you on your first visit to each subdivision. Your professional REALTOR ® is an important source of information who can supply background on the builder, nearby subdivisions, and the local community.
AZ Buyers Guide |
If you consider a “For Sale By Owner,” take your REALTOR ® along to help negotiate the contract.
Selecting a Home
Congratulations on your decision to buy a home! It’s a challenging project, and there are many ways a professional can help. Here are some of the many ways you may benefit from working with a REALTOR ®: IT WON’T COST YOU A PENNY!
IT’S A MAJOR INVESTMENT.
The REALTOR ® who helps you buy a home is traditionally paid by the seller. MANY MORE HOME CHOICES.
You may have more protection from legal and financial liability, especially as real estate transactions become more complicated.
HELP WITH FSBO’S.
A NUMBER OF TRANSACTIONS “FALL OUT.”
Unfortunately, it’s true. Some transactions fall apart before closing. An experienced REALTOR ® may be able to resolve problems and see your transaction through to a successful closing.
®
Your REALTOR ® has thousands of homes to choose from through the Multiple Listing Service (MLS), so you’re more likely to find the home that’s just right for you and find it quicker. In fact, a majority of the homes for sale are listed by REALTORS® and aren’t available to you unless you are working with a REALTOR.®
The following home comparison chart is designed to help you remember the homes you visit and what you liked best and least about each one. Rate features or make notes that will help you determine what pleased or displeased you. Remembering each home would appear easy, but it can quickly become confusing. Which home was near the school? Which one had the great pool? Did it have a family room? And how many bathrooms?
In the “Something Memorable” category, note something you think is unusual and memorable about each home, such as a stained glass window, fruit trees, a child’s playhouse. This will make it easier for you to recall the property later and refer to a specific address. And, last but not least, maybe the most important question, does this house feel like home?
THE PAPERWORK. Your experienced REALTOR ® will negotiate and prepare the purchase contract for you and assist you throughout the escrow process.
LESS LIABILITY.
AZ Buyers Guide | 9 Home 1 Home 2 Home 3 Home 4 Home 5 AskingAddressprice No. Bedrooms/baths / / / / / Square footage First DoesSomethingGarageMasterAppealingNeighborhoodimpressionLocationstyleLivingroomDiningroomGreatroomKitchenFamilyroomBathroombedroomMasterbathBedroomsFloorplanPatioPoolLandscapingorcarportmemorablethisfeellikehome?
The Life Of An Escrow
Chooses a Real Estate Agent Gets pre-approval letter from Lender and provides to Real Estate Agent. Makes offer to purchase. Upon acceptance, opens escrow and deposits earnest money. Finalizes loan application with Lender. Receives a Loan Estimate from Lender. Completes and returns opening package from First American Title. Schedules inspections and evaluates findings. Reviews title BuyerpriorlenderpaperworkProvidespreliminarycommitment/report.allrequestedtoLender(bankstatements,taxreturns,etc.)Allinvoicesandfinalapprovalsshouldbetothenolaterthan10daystoloanconsummation.Lender(orEscrowOfficer)preparesCDanddeliverstoatleast3dayspriortoloanconsummation.Escrowofficerorrealestateagentcontactsthebuyertoschedulesigningappointment.Buyerconsummatesloan,executessettlementdocuments,&depositsfundsviawiretransfer.Documentsarerecordedandthekeysaredelivered!
Schedules signing appointment and informs buyer of funds due at settlement. Once loan is consummated, sends funding package to lender for review. Prepares recording instructions and submits docs for recording. Documents are recorded and funds are disbursed. Issues final settlement statement.
Chooses a Real Estate Agent Accepts Buyer’s offer to openingCompletespurchase.andreturnspackagefromFirstAmericanTitle,includinginformationsuchasforwardingaddress,payofflendercontactinformationandloannumbers.Ordersanyworkforinspectionsand/orrepairstobedoneasrequiredbythepurchaseagreement.Escrowofficerorrealestateagentcontactsthesellertoschedulesigningappointment.Documentsarerecordedandallproceedsfromsalearereceived.
THE LENDER
AZ Buyers Guide | 10
THE ESCROW OFFICER
THE BUYER
Upon receipt of order and earnest money deposit, orders title examination. Requests necessary information from buyers and sellers via opening packages. Reviews title commitment / preliminary report. Upon receipt of opening packages, orders demands for payoffs. Contacts buyer or seller when additional information is required for the title preliminarycommitment/report. All demands, invoices, and fees must be collected and sent to lender at least 10 days prior to loan Coordinatesconsummation.withlender on the preparation of the CD. Reviews all documents, demands, and instructions and prepares settlement statements and any other required documents.
Accepts Buyer’s application and begins the qualification process. Provides Buyer with Loan Estimate. Orders and reviews title commitment / preliminary report, property appraisal, credit report, employment and funds verification. Collects information such as title commitment / preliminary report, appraisal, credit report, employment and funds verification. Reviews and requests additional information for final loan Underwritingapproval.reviews loan package for approval. Coordinates with Escrow Officer on the preparation of the Closing Disclosure, which is delivered to Buyer at least 3 days prior to loan documents,UponDeliversconsummation.loandocumentstoescrow.reviewofsignedloanauthorizesloanfunding.
THE SELLER
AZ Buyers Guide | 11 CASH FHA VA CONV 1. Downpayment BUYER BUYER BUYER BUYER 2. Termite (Wood Infestation) Inspection (negotiable except on VA) SELLER 3. Property Inspection (if requested by Buyer) BUYER BUYER BUYER BUYER 4. Property Repairs, if any (negotiable) SELLER SELLER SELLER SELLER 5. New Loan Origination Fee (negotiable) BUYER BUYER BUYER 6. Discount Points (negotiable) BUYER BUYER BUYER 7. Credit Report BUYER BUYER BUYER 8. Appraisal or Extension Fee (negotiable) BUYER BUYER BUYER 9. Existing Loan Payoff SELLER SELLER SELLER SELLER 10. Existing Loan Payoff Demand SELLER SELLER SELLER SELLER 11. Loan Prepayment Penalty (if any) SELLER SELLER SELLER SELLER 12. Next Month’s PITI Payment BUYER BUYER BUYER 13. Prepaid Interest (approx. 30 days) BUYER BUYER BUYER 14. Reserve Account Balance (Credit Seller / Charge Buyer) PRORATE PRORATE PRORATE 15. FHA MIP, VA Funding Fee, PMI Premium BUYER BUYER BUYER 16. Assessments payoff or proration (sewer, paving, etc.) SELLER 17. Taxes PRORATE PRORATE PRORATE PRORATE 18. Tax Impounds BUYER BUYER BUYER 19. Tax Service Contract SELLER SELLER BUYER 20. Fire/Hazard Insurance BUYER BUYER BUYER BUYER 21 Flood Insurance BUYER BUYER BUYER 22. Homeowners Association (HOA) Transfer Fee BUYER or SELLER BUYER or SELLER BUYER or SELLER BUYER or SELLER 23. HOA/Disclosure Fee SELLER SELLER SELLER SELLER 24 Current HOA Payment PRORATE PRORATE PRORATE PRORATE 25. Next Month’s HOA Payment BUYER BUYER BUYER BUYER 26. Home Warranty Premium (negotiable) BUYER or SELLER BUYER or SELLER BUYER or SELLER BUYER or SELLER 27. REALTORS®’ Commissions SELLER SELLER SELLER SELLER 28. EAGLE Homeowners Title Policy SELLER SELLER SELLER SELLER 29. Lenders Title Policy and Endorsements BUYER BUYER BUYER 30. Escrow Fee (NOTE: Charge Seller on VA Loan) SPLIT SPLIT SELLER SPLIT 31. Recording Fees (Flat Rate) SPLIT SPLIT SPLIT SPLIT 32. Reconveyance/Satisfaction Fee SELLER SELLER SELLER SPLIT 33. Courier/Express Mail Fees SPLIT SPLIT SELLER SPLIT THIS CHART INDICATES WHO CUSTOMARILY PAYS WHAT COSTS Note: Prorated items will appear on Closing Statement as charges for one and credits for the other. Closing Costs: Who Pays What
After loan approval and just prior to your planned closing date, the lender will send loan documents to First American Title, and your escrow officer will prepare an estimated settlement statement. This statement indicates what funds go where, and at this time your escrow officer can tell you how much money you need to bring to the closing appointment. Be aware that this amount may be higher or lower than previously estimated due to changes in such items as prepaid interest, prorated fees, courier fees, and impound accounts.
WHAT HAPPENS AFTER LOAN APPROVAL?
WHAT IS HAZARD (OR FIRE) INSURANCE? Hazard insurance covers the dwelling itself and is required by the lender to protect their “risk” in your home. Your lender or REALTOR ® will explain the necessary hazard insurance coverage to you. If you are buying a condominium, a master policy already exists which includes your unit—but it does not cover your personal belongings.
Your REALTOR ® may give you several names of lenders who have proven reliable in their previous transactions. Apply for your loan as soon as possible. In fact, it’s probably a good idea to know what you can afford before you begin looking for your new home. It can give you more bargaining power when negotiating with a Seller, especially in today’s market. A lender can prequalify you for a certain price range and help you avoid disappointment later.
CONTACT YOUR INSURANCE AGENT EARLY in the process, because this coverage must be provided so the lender can release loan funds to First American Title. Hazard insurance is one of the items frequently postponed until the last minute, and this can result in delaying the closing for a day or more. Order your insurance as soon as your loan is approved; then furnish your escrow officer with the agent’s name and phone number. When you talk with your insurance agent, be sure to ask about additional coverage in a homeowner’s policy to insure your personal belongings and to protect against liability for such events as injuries to visitors.
LOAN APPLICATION
WHAT YOU MAY NEED FOR THE
BE PREPARED TO PROVIDE SOME OF ALL OF THESE ITEMS TO YOUR LOAN OFFICER: - Addresses of residences for last two years - Social Security Number - Driver’s License or other valid ID - Names and addresses of employers for last two years - Two recent pay stubs showing year-to-date earnings - Federal tax returns for last two years - W-2’s for last two years - Last two months statements for all checking and savings account - Loans: Names, addresses, account numbers, and payment amounts on all loans - Real estate loans: Names, addresses, account numbers, and payment amounts on all loans for other real estate you own - Credit cards: Names, addresses, account numbers, and payment amounts on all credit cards - Addresses and values of other real estate owned - Value of personal property. Your best estimate of the value of all your personal property (autos, boats, furniture, jewelry, television, stereo, computer, other electronics, etc.) - For a VA loan, Certificate of Eligibility or DD214s - Divorce decree if applicable - Funds to pay upfront for the credit report and appraisal - Letters of Explanation regarding credit inquires or special circumstances a new loan
Obtaining
AZ Buyers Guide | 12
YOUR LENDER WILL MAIL OUT VERIFICATION REQUESTS and order an appraisal on the property you are buying. If your lender asks for additional items, please comply promptly with those requests to avoid delaying loan approval.
WHEN AND WHERE TO APPLY FOR A LOAN? There are many sources for home loans including banks, credit unions, mortgage companies, and mortgage brokers.
FHA LOAN. This program is beneficial for buyers who don’t have large downpayments. The loan is insured by the Federal Housing Administration under Housing and Urban Development (HUD) and offers easier qualifying with less cash needed upfront but the condition of the property is strictly regulated. The seller will pay a portion of the closing costs that would typically be paid by the buyer in a conventional loan program.
This loan has one interest rate that is constant throughout the loan.
VA LOAN. People who have served in the U.S. armed forces can apply for a VA loan which covers up to 100% of the purchase price and requires little or no downpayment.
FIXED RATE LOAN.
ASSUMABLE LOAN. A true assumable loan is rare today. This loan used to enable a buyer to pay the seller for the equity in the home and take over the payments without meeting any requirements. Assumables these days generally require standard income, credit and funds verification by the lender before the loan can be transferred to the buyer.
AZ Buyers Guide | 13
Types of Loans
ADJUSTABLE RATE LOAN. Adjustable or variable rate refers to the fluctuating interest rate you’ll pay over the life of the loan. The rate is adjusted periodically to coincide with changes in the index on which the rate is based. The minimum and maximum amounts of adjustment, as well as the frequency of adjustment are specified in the loan terms. An adjustable rate mortgage may allow you to qualify for a higher loan amount but maximums, caps and time frames should be considered before deciding on this type of loan.
This program is designed to assist first-time buyers by offering a fixed rate and a low downpayment, such as 3 to 5% down. The program doesn’t require cash reserves, and qualifying ratios are more lenient; however, the buyer’s income must fall within a certain range and a training course may be necessary if required by the program. Ask your loan officer if this program is available in your community and whether or not you might qualify.
CONVENTIONAL LOAN. This simply describes a loan that is not obtained under any governmentinsured program, secured by investors. It could be a fixed rate or adjustable.
COMMUNITY HOMEBUYER’S PROGRAM.
The Escrow
WHAT IS AN ESCROW?
The escrow is the process of having a neutral party manage the exchange of money for real property. The escrow holder is known as an escrow or settlement officer or agent. The buyer deposits funds and the seller deposits a deed with the escrow holder along with all of the other documents required to remove all "contingencies" (conditions and approvals) in the purchase agreement prior to closing.
HOW IS AN ESCROW OPENED?
Once a purchase agreement is signed by all necessary parties, the agent representing the party who will pay the fee selects an escrow holder and the buyer's earnest money deposit and contract are submitted to the escrow holder. From this point, the escrow holder will follow the mutual written instructions of the buyer and seller, maintaining a neutral stance to ensure that neither party has an unfair advantage over the other. The escrow holder also follows the instructions of the Buyer's new lender, the seller's existing lender, and both parties' agents. The escrow holder ensures the transparency of the transaction, while carefully maintaining the privacy of the consumers. Process
Coordinate with the buyer’s lender on the preparation of the Closing Disclosure (CD)
After the recordation is confirmed, close escrow and disburse funds, including Seller's proceeds, loan payoffs, etc.
AZ Buyers Guide | 15
Prepare and send final documents to all parties involved
Your
Professional May:
Set separate appointments allowing the seller and you to sign documents and deposit funds
report and begin the process of eliminating the title exceptions you and your lender are not willing to take title subject to Request payoff information for the seller's loans, other liens, homeowner's association fees, etc.
Escrow
Order a title search to determine ownership and status of the subject real Issuepropertyapreliminary
Prorate fees, such as real property taxes, per the contract, and prepare the settlement statement
Review documents ensuring all conditions and legal requirements are fulfilled; request funds from lender
When all funds are deposited, record documents with the County Recorder's Office to transfer the subject real property to you
Open escrow and, if instructed to do so, deposit your good faith funds in a separate escrow account
Title Insurance
Understandingrecords.
The Title Industry & Title Insurance in Brief
Prior to the development of the title industry in the late 1800s, a home-buyer received a grantor’s warranty, attorney’s title opinion, or abstractor’s certificate as assurance of home ownership. The buyer relied on the financial integrity of the grantor, attorney, or abstractor for protection. Today, home-buyers look primarily to title insurance to provide this protection. Title insurance companies are regulated by state statute. They are required to post financial guarantees to ensure that any claims will be paid in a timely fashion. They also must maintain their own “title plants” which house duplicates of recorded deeds, mortgages, plats, and other pertinent county property
Title insurance insures buyers against the risk that they did not acquire marketable title from the seller. It is primarily designed to reduce risk or loss caused by defects in title from the past. A loan policy of title insurance protects the interest of the mortgage lender, while an owner’s policy protects the equity of you, the buyer, for as long as you or your heirs (in certain policies) own the real property.
WHAT IS TITLE INSURANCE?
WHY IS TITLE INSURANCE NEEDED?
Title insurance provides coverage for certain losses due to defects in the title that, for the most part, occurred prior to your ownership. Title insurance protects against defects such as prior fraud or forgery that might go undetected until after closing and possibly jeopardize your ownership and investment.
AZ Buyers Guide | 16
You pay for your owner’s title insurance policy only once, at the close of escrow. Who pays for the owner’s policy and loan policy varies depending on local customs.
WHEN IS THE PREMIUM DUE?
Impersonation of the true owner of the land Deeds by minors
Claims of creditors against real property sold by heirs or devisees
The Importance of Title Protection
AZ Buyers Guide | 17
Defective acknowledgments by notaries
Here are some examples of title issues that may occur:
HOW INSURANCEDIFFERSTITLE
Mistakes in recording legal documents
Deeds by foreign parties
Forged deeds, releases, etc.
Administration of estate of persons absent but not deceased
Surviving children omitted from will
Unlike other forms of insurance, title insurance emphasizes loss prevention for the insured. Title professionals perform labor-intensive work to find and address title issues that could threaten your homeownership. This upfront analysis gives you, as a policy holder, the peace of mind that your title risk has been effectively reduced. In contrast, insurance based on loss assumption (such as auto or property and casualty insurance) requires little upfront work because claims cannot be predicted or prevented, and premium funds are needed only in the event of an accident or other covered issue. These types of insurance also require annual coverage payments, unlike title insurance which is paid for only once upon the purchase of your home or establishment of a new Frommortgage.Other Forms of Insurance
Deeds by persons of unsound mind Deeds to or from defunct corporations
There are many title issues that could cause you to lose your real property or your mortgage investment. Even the most careful search of public records may not disclose the most dangerous threat: hidden risks. These issues may not be uncovered until years later. Without title insurance from a reputable and financially solvent company, the ownership of your home could be jeopardized.
Duress in execution of instruments
Erroneous reports furnished by tax officials
Birth or adoption of children after date of will
Deed of community property recited to be separate property
Deeds by persons supposedly single, but secretly married Deeds in lieu of foreclosure given under duress Marital rights of spouse purportedly, but not legally, divorced
Post-Policy Easement by Prescription - Coverage if another claims right to use a part of the insureds land as an easement because of continuous use over time
AZ Buyers Guide | 18
Subdivision
- Protection of up to $5,000, after a small deductible, for encroachments onto a neighbor’s land, onto an easement, or over a building set-back line
Post-policy Adverse Possession - Coverage extended to homeowner when someone claims to have the insureds title arising out of someone else’s continued use and occupancy
- Homeowners are covered up to $10,000, after a small deductible, for protection against subdivi sion violations prior to purchase
Structural Damage for Mineral Abstraction or Easement Use
Violation
Encroachment of Boundary Walls and Fences
Expanded Access - Expanded to include both vehicular and pedestrian access to and from land, based upon legal Encroachmentright of Improvements onto Easements and Set-backs
The Benefits of First American Title Insurance Company's Eagle Policy® for Owners the Standard ALTA Owner's Policy
First American Title’s Eagle Policy® for Owners provides expanded title coverage for natural persons who purchase one‐to‐four family residences, including condominiums. Coverages included in the Eagle Policy® for Owners offer the highest levels of protection available to homeowners. Eagle Policy® for Owners benefits you won’t get with a Standard ALTA Owner’s Policy:
Restrictive Covenant Violations
Post-policy Forgery Post-policy Encroachments
- Coverage provided for violations of restrictive covenants, occurring before homeowner acquired land if the homeowner is forced to correct or remove the violation or if the homeowner’s title is lost or taken because of the violation
Eagle Policy® for Owners
Building Permit and Zoning
Violation - Coverage for losses up to $25,000, after a small deductible, for building permit violations and forced remediation of zoning violations, and up to the full policy amount for forced removal of structures due to zoning violations
AZ Buyers Guide | 19 Compare First American’s Eagle Policy® for Owners EAGLE StandardALTAorCLTA Protection from: 1 Someone else owns an interest in your title 2 A document is not properly signed 3 Forgery, fraud, duress in the chain of title 4 Defective recording of any document 5 There are restrictive covenants 6 There is a lien on your title because there is: a) a deed of trust b) a judgement, tax, or special assessment c) a charge by a homeowner’s association 7 Title is unmarketable 8 Mechanics lien 9 Forced removal of a structure because it: a) extends on another property and/or easement b) violates a restriction in Schedule B c) violates an existing zoning law* 10 Cannot use the land for a Single-Family Residence because the use violates a restriction in Schedule B or a zoning ordinance 11 Unrecorded lien by a homeowners association 12 Unrecorded easements 13 Building permit violations* 14 Restrictive covenant violations 15 Post-policy forgery 16 Post-policy encroachment 17 Post-policy damage from extraction of minerals or water 18 Lack of vehicular and pedestrian access 19 Map not consistent with legal description 20 Post-policy adverse possession Compare First American’s Eagle Policy® for Owners EAGLE StandardALTAorCLTA 21 Post-policy prescriptive easement 22 Covenant violation resulting in your title reverting to a previous owner 23 Violation of building setback regulations 24 Discriminatory covenants Other benefits: 25 Pays rent for substitute land or facilities 26 Rights under unrecorded leases 27 Plain language statements of policy coverage and restrictions 28 Compliance with Subdivision Map Act 29 Coverage for boundary wall or fence encroachment* 30 Added ownership coverage leads to enhanced marketability 31 Insurance coverage for a lifetime 32 Post-policy inflation coverage with automatic increase in value up to 150% over five years 33 Post-policy Living Trust coverage * Deductible and maximum limits apply. Not available to investors on 1- to 4-unit residential properties. Coverage may vary based on an individual policy. As with any insurance contract, the insuring provisions express the coverage afforded by the title insurance policy and there are exceptions, exclusions and conditions to coverage that limit or narrow the coverage afforded by the policy. Also, some cov erage may not be available in a particular area or transaction due to legal, regulatory, or underwriting considerations. Please contact a First American representative for further information. The services described above are typical basic services. The services provided to you may be different due to the specifics of your transaction or the location of the real property involved.
Requires a valid marriage between two persons. Parties need not be married; may be more than two joint tenants. Requires a valid marriage between two persons. Parties need not be married; may be more than two tenants in common. Each spouse holds an undivided one-half interest in the estate. Each joint tenant holds an equal and undivided interest in the estate, unity of interest. Each spouse holds an undivided one-half interest in the estate. Each tenant in common holds an undivided fractional interest in the estate. Can be disproportionate. One spouse cannot partition the property by selling his or her interest. One joint tenant can partition the property by selling his or her joint interest. One spouse cannot partition the property by selling his or her interest. Each tenant’s share can be conveyed, mortgaged or devised to a third party. Requires signatures of both spouses to convey or encumber. Requires signatures of all joint tenants to convey or encumber the whole. Requires signatures of both spouses to convey or encumber. Requires signatures of all tenants to convey or encumber the whole. Each spouse can devise (will) one-half of the property.community Estate passes to surviving joint tenants outside of probate. Estate passes to the surviving spouse outside of probate. Upon death the tenant’s proportionate share passes to his or her heirs by will or intestacy. Upon death the estate of the decedent must be “cleared” through probate, affidavit or adjudication. No court action required to “clear” title upon the death of joint tenant(s). No court action required to “clear” title upon the first death. Upon death the estate of the decedent must be“cleared” through probate, affidavit or adjudication.
Vesting:20 Ways to Hold Title WITH RIGHT OF SURVIVORSHIP COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP INTENANCYCOMMON
AZ Buyers Guide |
COMMUNITYPROPERTY JOINT TENANCY
Note: Arizona is a community property state. Property acquired by a married couple is presumed to be community property unless legally specified otherwise. Title may be held as “Sole and Separate.” If a married person acquires title as sole and separate, his or her spouse must execute a disclaimer deed to avoid the presumption of community property. Parties may choose to hold title in the name of an entity, e.g., a corporation; a limited liability company; a partnership (general or limited), or a trust. Each method of taking title has certain significant legal and tax consequences; therefore, you are encouraged to obtain advice from an attorney or other qualified professional.
The information below is to help you understand the contents of the title commitment you will receive from First American Title.
REQUIREMENTS
The Schedule B “exceptions” are items which are tied to the subject property, and the buyer's rights in the title will be subject to these exceptions. These may include easements, Homeowners Association by-laws, leases, Covenants, Conditions, and Restrictions (CC&Rs) and other items which will remain of record and transfer with the property. The buyer is asked to sign a receipt for the Schedule B documents which states the buyer has read and accepts the contents.
Your Title
Commitment WHAT HAPPENS THE NEXTBUYERFOR
RESPONSE TO SELLER’S NOTICES
If directed by the contract, you may receive the following items which require a response from you:
- Independent inspections, such as termite and septic, and any repairs as required
IDENTITY STATEMENT
AZ Buyers Guide | 21
SCHEDULE B
TITLE COMMITMENT
This is the information submitted to our title department by the escrow officer. It contains the basic information given to us by the buyer or real estate professional, such as the legal description of the real property, sale price, loan amount, lender, name, and marital status of buyer and seller.
Unless you are paying cash, assuming a loan, or the seller is financing, you will need to apply for a home loan if you have not already done so. Apply as soon as possible to comply with the purchase contract and prior to insuring to avoid delaying the closing.
CONSIDER THIS
These are items that First American Title needs to delete and/or record prior to insuring title to the real property. Items that need to be addressed include:
SCHEDULE A
- Seller’s property disclosure statement listing any existing problems known to the seller - Information pertaining to the Homeowners Association (HOA) or Planned Unit Development (PUD), such as Covenants, Conditions and Restrictions (CC&Rs), if applicable - Flood hazard disclosure if the real property is in a flood area
You will receive a copy of the title commitment when we complete the title search. If you have questions about the title commitment, contact your real estate agent or your escrow officer.
One escrow transaction could involve over 20 individuals, including real estate professionals, buyer, seller, attorney, escrow officer, escrow technician, title officer, loan officer, loan processor, loan underwriter, home inspector, termite inspector, insurance agent, home warranty representative, contractor, roofer, plumber, pool service, and so on. And often one transaction depends on another. When you consider the number of people involved, you can imagine the opportunities for delays and mishaps. While your experienced real estate professional, escrow, and title team can’t prevent unforeseen problems from arising, they can help to ensure as smooth a closing as possible.
- Current property-tax status - Any assessments that are owed, such as those for a Homeowners Association - Any encumbrances (or liens) on the real property Sometimes items show up against a parcel of real property because another person has a name similar to an involved party. This is one reason we ask for an Identity Statement, to determine if items are inaccurate and can be deleted.
You will be asked to fill out an Identity Statement that enables our title department to distinguish you from others with identical names during our search of County records. It also provides basic information that will be useful to your escrow officer.
HOME LOAN
A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.
If your loan officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes. MAKING ANY LARGE PURCHASES
AZ Buyers Guide |
During the Closing Process
AVOID CHANGING JOBS
What22 to Avoid
AVOID SWITCHING BANKS OR MOVING YOUR MONEY TO ANOTHER INSTITUTION After
AVOID
AVOID
A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don’t think you’re safe because you’ve received approval earlier in the process, as the lender may call your employer to re-verify your employment just prior to funding the loan. the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase. PAYING OFF EXISTING ACCOUNTS UNLESS YOUR LENDER REQUESTS IT
HOME WARRANTY REPAIRS
The escrow holder will contact you or your agent to schedule a closing or signing appointment. In some states, this is the "close of escrow." In some others, the close of escrow is either the day the documents record or that funds are disbursed. Ask your escrow holder if you would like clarification about your state's laws. You will have a chance to review the settlement statement and supporting documentation. This is your opportunity to ask questions and clarify terms. You should review the settlement statement carefully and report discrepancies to the escrow officer. This includes any payments that may have been missed. You are responsible for all charges incurred even if overlooked by the escrow holder, so it's better to bring these to their attention before closing.
The escrow holder is obligated by law to have the designated amount of money before releasing any funds.
*For purposes of the Closing Disclosure“business day” is defined as every day except Sundays and Federal legal holidays.
You will need valid identification with your photo I.D. on it when you sign documents that need to be notarized (such as a deed). A driver's license is preferred. You will also be asked to provide your social security number for tax reporting purposes, and a forwarding address.
THE CLOSING DISCLOSURE
WHAT HAPPENS NEXT?
RECORDED DEED
PROPERTY TAXES
If you have questions or foresee a problem, let your escrow holder know immediately.
You may not receive a tax statement for the current year on the home you buy; however, it is your obligation to make sure the taxes are paid when due. Check with your mortgage company to find out if taxes are included with your payment. For more information on your property taxes, visit your County Auditor/Controller's web site.
CLOSING OR SIGNING APPOINTMENT
The original deed to your home will be mailed directly to you by the County Recorder, generally within four to six weeks.
After The Closing
THE
DON'T FORGET YOUR IDENTIFICATION
We recommend you keep all records pertaining to your home together in a safe place, including all purchase documents, insurance, maintenance, and improvements.
If you have a home warranty plan with First American Home Buyers Protection, please call them directly and have your home warranty number available.
First American Title will mail your policy to you in about two to three weeks.
Once the loan is approved and all invoices and paperwork have been provided, the lender and escrow officer will collaborate on the preparation of the Closing Disclosure (CD). In order to close on time, all paperwork and invoices should be submitted at least 10 days prior to the expected close of escrow date. The borrower must receive the CD at least three days* prior to consummation of the loan (typically the signing date). The escrow officer will also prepare an estimated settlement statement and inform the buyer of the balance of the down payment and closing costs needed to close escrow.
If you are obtaining a new loan, your signed loan documents will be returned to the lender for review. The escrow holder will ensure that all contract conditions have been met and will ask the lender to "fund the loan." If your loan documents are satisfactory, the lender will send funds directly to the escrow holder. When the loan funds are received, the escrow holder will verify that all necessary funds are in. Escrow funds will be disbursed to the seller and other appropriate payees. Then, you’ll receive the keys to your home!
AZ Buyers Guide | 23
Closing Your Escrow
TITLE INSURANCE POLICY
Start packing. Begin packing for your new location.
Double check with your mover
. Notify any remaining service providers (newspapers, lawn services, etc) of your move.
Changing Schools. If changing schools, contact new school for registration process.
Packing materials. Gather moving boxes and packing materials for your move.
ONE WEEK BEFORE:
Contact utility companies. Set utility turnoff date, seek refunds and deposits and notify them of your new address.
Change of address Visit USPS for change of address form.
. Make sure your mover has the new address and your contact information should they have any questions during your move.
Prepare Floor Plan Prepare floor plan for your new home. This will help avoid confusion for you and your movers.
MOVING
SIX WEEKS BEFORE:
Cancel services
Travel items Set aside items you’ll need while traveling and those needed until your new home is established. Make sure these are not packed in the moving truck!
. Once your satisfied with the mover’s packing your items into the truck, sign the bill of lading. If possible, accompany your mover while the moving truck is being weighed.
Scan your furniture Check furniture for scratches and dents before so you can compare notes with your mover on moving day.
Obtain your medical records. Contact your doctors, physicians, dentists and other medical specialists who may currently be retaining any of your family’s medical records. obtain these records or make plans for them to be delivered to your new medical facilities.
ReviewDAY:thehouse
Sign the bill of lading
Vacate your home. Make sure utilities are off, doors and windows are locked and notify your real estate agent you’ve left the property. your move
Planning
. Transfer jewelry and valuables to safety deposit box so they can not be lost or stolen during your move.
Note food inventory levels
Contact insurance companies. (Life, Health, Fire, Auto) You’ll need to contact your insurance agent to cancel/transfer your insurance policy. Do not cancel your insurance policy until you have and closed escrow on the sale.
FOUR WEEKS BEFORE:
Discard unnecessary items. Moving is a great time for ridding yourself of unnecessary items. Have a yard sale or donate unnecessary items to charity.
Bank accounts Notify bank of address change. Make sure to have a money order for paying the moving company if you are transferring or closing accounts.
Research moving options You’ll need to decide if yours is a do-it-yourself move or if you’ll be using a moving company.
Service automobiles
AZ Buyers Guide | 24
. Check your cupboards, refrigerator and freezer to use up as much of your perishable food as possible.
Request moving quotes. Solicit moving quotes from as many moving companies and movers as possible. There can be a large difference between rates and services within moving companies.
Protect jewelry and valuables
Plan your itinerary
Borrowed and rented items. Return items which you may have borrowed or rented. Collect items borrowed to others.
Make plans to spend the entire day at the house or at least until the movers are on their way. Someone will need to be around to make decisions. Make plans for kids and pets to be at the sitters for the day.
. If automobiles will be driven long distances, you’ll want to have them serviced for a trouble-free drive.
. Once the house is empty, check the entire house (closets, the attic, basement, etc) to ensure no items are left or no home issues exist.
Create an inventory sheet of items to move
Service small engines for your move by extracting gas and oil from the machines. This will reduce the chance to catch fire during your move.
Seek employer benefits. If your move is work-related, your employer may provide funding for moving expenses. Your human resources rep should have information on this policy.
AZ Buyers Guide | 25 Your Notes:
1 4 3 2 6 12 10 5 8 7 11 9 CRISMON BUTTESIGNAL GOLDFIELD OLDWESTHWY SKINGSRANCH 14 17 15 13 16 ArizonaCentral First American Title Branch Locator 1 SUN CITY WES T 13940623.299.3644W.Meeker Blvd., #119 Sun City West, AZ 85375 N of Meeker Blvd W of R.H. Johnson 2 GOODYEAR 1626623.936.8001N.Litchfield Rd. Ste. #170 Goodyear, AZ 85395 NW corner of McDowell & Litchfield 3 ARROWHEAD 16165623.487.0404N.83rd Ave , #100 Peoria, AZ 85382 S of Bell/E side of 83rd Ave 4 THE LEGENDS 20241623.537.1608N.67th Ave , #A-2 Glendale, AZ 85308 E side 67th Ave/N of 101 5 ANTHEM 39508623.551.3265N.Daisy Mountain Dr., #128 Anthem, AZ 85086 NE corner Daisy Mtn Dr/ Gavilan Peak Pkwy 6 BILTMORE 3200602.954.3644ECamelback Rd., #123 Phoenix, AZ 85018 NE Corner of Camelback/32nd Street 7 TATUM RIDGE 480.515 4369 11211 N Tatum Blvd, #A150 Phoenix, AZ 85028 N of Shea, E side of Tatum 8 CAREFREE 7202480.575.6609E.Carefree Dr , Bldg 1, #1 Carefree, AZ 85377 NE corner of Tom Darlington/ Carefree Dr. 9 KIERLAND COMMONS 14648480.948.6488NScottsdale Rd., Ste. #100 Scottsdale, AZ 85254 W of Scottsdale Road, S side of Greenway 10 SCOTTSDALE FORUM 6263480.551.0480N.Scottsdale Rd., #110 Scottsdale, AZ 85250 E Side Scottsdale/S of Lincoln 11 DC CROSSING 18291480.563.9034N.Pima Rd , #145 Scottsdale, AZ 85255 SE corner of Pima/Legacy 12 AHWATUKEE 4435480.753.4424E.Chandler Blvd , #100 Phoenix, AZ 85048 SW corner Chandler/45th St. 13 CHANDLER PORTICO 2121480.777.0051W.Chandler Blvd., #215 Chandler, AZ 85224 SW Corner Chandler Blvd./ Dobson Rd. 14 GILBERT SAN TAN 1528480.777.0614E.Williams Field Rd., #101 Gilbert, AZ 85295 NW corner of Williams Field Rd./ Val Vista Rd. 15 MESA 1630480.401.3738S.Stapley Dr., #123 Mesa, AZ 85204 N of Baseline / W of Stapley 16 RED MOUNTAIN 1135480.534.3599N.Recker Rd., #103 Mesa, AZ 85205 SE corner of Recker & Brown 17 GOLD CANYON 6877480.288.0883SouthKings Ranch Rd., #5 Gold Canyon, AZ 85118 E of South60/Side Kings Ranch Rd. AZ Buyers Guide | 26
1 MAIN OFFICE 520.885.1600 | Fax 520.885.2309 6390 E. Tanque Verde Rd. Tucson, AZ 85715 2 BROADWAY 520.747.1644 | Fax 520.747.1403 3777 E. Broadway Blvd., Ste. 220 Tucson, AZ 85716 3 CAMBRIC 520.577.8707 | Fax 520.529.5034 1840 E. River Rd., Ste. 200 Tucson, AZ 85718 4 CASA GRANDE 520.426.4600 | Fax 520.426.4699 421 E. Cottonwood Ln. Casa Grande, AZ 85122 5 CASAS ADOBES 520.575.1900 | Fax 520.432.0168 6760 N. Oracle Rd., Ste. 100B Tucson, AZ 85704 6 FOOTHILLS 520.299.4606 | Fax 520.577.6993 6262 N Swan Road, Suite 205 Tucson, AZ 85718 7 GREEN VALLEY 520.625.1095 | Fax 520.958.9663 190 W. Continental Rd., Ste. 226 Green Valley, AZ 85622 8 ORO VALLEY/LA CANADA 520.877.9200 | Fax 520.202.6348 11165 N. La Canada Dr., Ste. 143 Oro Valley, AZ 85737 9 ORO VALLEY/ORACLE 520.229.9194 | 520.297.2576 Fax 520.229.9210 | 520.742.5866 8500 N. Oracle Rd., Ste 100 Oro Valley, AZ 85704 10 RITA ROAD 520.618.7790 | Fax 520.901.1720 10222 East Rita Rd., Ste. 190 Tucson, AZ 85747 11 RIVER 520.529.1944 | Fax 520.615.2945 1650 E. River Rd., Ste. 105 Tucson, AZ 85718 12 SKYLINE 520.529.0506 | Fax 520.529.8998 2890 E. Skyline Dr., Ste. 200 Tucson, AZ 85718 13 TANQUE VERDE 520.202.2626 | Fax 520.495.6151 7479 E. Tanque Verde Tucson, AZ 85715 AIRPORTINT'LTUCSON Air Force WSilverbellRd SSantaRitaRd NMtLemmon Hwy ESascoRd W Avra Valley Rd E G and Va ey DrNAguirreRd dRkLNucet dRWNentzNWatermanMountainRd RdAnwayN W El Tiro Rd NTricoRd W Tucke Rd W Rudasi Rd W Manv l e Rd SSanJoaquinRdWBopp Rd W Snyder H RddRSMarstear W Park Rd W Hermans RdW He mans Rd W Guy St W Bush Rd SGarveyRd eaCNlRinconado SWimotRd SShawRd SSierritaMountainRd SKobRdW Tw nButtes Rd W Mcgee Ranch Rd ESstanca BNearCanyonRdW E Cam no De Cerro E Fairmount St SSwanRd NFrontageRd W Emigh Rd W Fort Lowe Rd dSPNumptationR Cont nental Ave NTricoRd SOwlHeadGasLineRd NTricoRd W Bayard Rd dRSSandaro N Dove Mountain Blvd SHelvetiaRd WAnamax Mine Rd dRhRiGWarcaanc Road424 WRagged Top Rd W Ruby S a Dr WBritten RanchRd W Pima Mine Rd ellRdS S Mcgee RanchRd E Edw n Rd 80 NKINNEYRDSNANDARIORDNANWAYRD W VALENCIA RD W MOORE RD W INA RD ESN1TAV E SUNRISE DR E SNYDER RDNSILVERBELLRD TRSNOLDIERLE RIVER RDE PRINCE RD E SPEEDWAY BLVD SFREEMANRDE 22ND ST E 22ND ST W IRVINGTON RD SNOGALESHWY W VALENCIA RDSMISSIONRDWSPEEDWAY BLVD SOLDSPANISHTRL W NARANJA DR W TWIN PEAKS RD W PICTURE ROCKS RD W MANVILLE RD SKINNEYRD W MILE WIDE RD E SAHUARITA RD NTRICORD OSSANDARIRD SOLDNOGALESHWY GUOSHHTONRD ADCSLAANADRW HELMET PEAK RD WAJOHWY RNASNWD RDKOLBS SHOUGHTONRD W TANGERINE RD E GRANT RD SHOUGHTONRD 95 WAJOHWY E VALENCIA RD NORACLERD I-10 I-19 77 77 86 86 286 19 10 10 Corona de Tucson AdobesCasas Catalina Green Valley Picture Rocks Three Points VailSummit TanqueVerde SahuaritaTucson Saddlebrooke Marana Oro Valley Rillito SummerhavenWillow Canyon Oracle Junction Cortaro Continental Littletown 2 3758 9 10 11 13 12 6 1 SouthernArizona First American Title Branch Locator AIRPORTINT'LTUCSON Air Force FreemanRd WSilverbellRd NMtLemmon Hwy ESascoRd NF38 W Avra Val ey Rd WSCuryRdHanna Rd E Grand Va ey D W Houser Rd W Ph ps Rd E Co nman Rd NAguirreRd dRkLNucet dRWNentzNWatermanMountainRd RdAnwayN W El Tiro Rd NTricoRd W Tucke Rd W Rudas Rd W Manv e Rd SSanJoaquinRdWBopp Rd W Snyde H RddRlSMarsear W Pa k Rd W He mans RdW Hermans Rd W Guy St W Bush Rd SGaveyRd eaCNllRinconado SWimotRd SShawRd SSierritaMountainRd boRdRd W Woodru Rd ONveriedRd W Rando ph Rd W BartlettNRdLaPamaRdNTweedyRd E Randolph Rd W Kleck Rd E K eck Rd W Se ma Hwy STrekellRd SHennessRd E Selma Hwy W Co nman Rd W Pretzer Rd SLambRd SLaPalmaRd E M gan Rd E M gan Rd W A es Dr E Curtis Rd ESsancaDr EDesertDove HearthRd E Hemlock Dr BNearCanyonRdW E Cam no De Cerro E Fairmount St SSwanRd NFrontageRd W Emigh Rd GoffRanchRd NBarkervilleRd W Fort Lowe Rd dSPNumpationR E Nona Rd Ch efButteRd LovettaRd E Hanna Rd TecoloteRanchRd FlorenceRdRomeroRd Con nenta Ave BIA 30 NTricoRd SSunandGnRd SCattleTankRd E E s Rd E Hotts Rd E Nutt Rd Evalyn Rd SOwlHeadRanchRdGasLineRd PSecanRd I on Va ey RdEDeepWellRanchRd SNighSkySt SBadyPumpRdE Houser Rd E Ar ca Rd W Ea ey Rd NTrcoRd W Baya d Rd dRSSandario WillowSpringsRd EHelmwheel Ranch Rd N Dove Mounta n Blvd BIA-35 dRhRiGWarcaanc E Dese H s Rd WRagged Top Rd W Pima Mine Rd WSilverbellRdS E Edw n Rd BIA34 SGuildRd 80 NKINNEYRD SPICACHOHWYE GREENE RESERVOIR RD SSUNLANDGINRD W BATTAGLIA DR AZ-84 E BAUMGARTNER RD SSUNSHINEBLVD SNANDARIORDNANWAYRD E HARMON RD W VALENCIA RD E RODEO RD W MOORE RD W INA RD ESN1TAV E SUNRISE DR E SNYDER RDNSILVERBELLRD TRSNOLDIERLE RIVER RDE PRINCE RD E SPEEDWAY BLVD SFREEMANRDE 22ND ST E 22ND ST W IRV NGTON RD SNOGALESHWY W VALENC A RDSMISSIONRDWSPEEDWAY BLVD SOLDSPANISHTRL W NARANJA DR W TW N PEAKS RD W P CTURE ROCKS RD W MANVILLE RD SKINNEYRD W MILE WIDE RD E SAHUAR TA RD W HARMON RD W MCCARTNEY RD NTRICORD OSSANDARRD PARK LINK DR GUOSHHTONRD ADDR E MART N RD STHORNTONRD W HELMET PEAK RD SCHUICHURD WAJOHWY RNASNWD RDKOLBS SHOUGHTONRD W TANGER NE RD E GRANT RD SHOUGHTONRD NPINALAVE 95 WAJOHWY E VALENCIA RD NORACLERD I10 I-19 I8 77 77 79 77 77 87 86 86 387 287 86 10 19 8 10 10 10 La Palma Chuichu Arizona City Corona de Tucson AdobesCasas Catalina OracleDudleyvilleGrandeCasa Picture Rocks Three Points VailSummit TanqueVerde Eloy SahuaritaTucson Cactus Forest Picacho Red Rock Saddlebrooke Marana Oro Valley HaivanaNakya Rillito SummerhavenWillow Canyon Randolph Toltec Oracle Junction Cortaro Schuchk Littletown 2 4 385 9 10 11 13 12 6 1 AIRPORTINT'LTUCSON Air Force WSilverbellRd SSantaRitaRd NMtLemmon Hwy W Avra Valley Rd guirreRd dRkLNucet dRWNenzNWatermanMountainRd RdAnwayN W El Tiro Rd NTricoRd W Tucke Rd W Rudas Rd W Manv e Rd SSanJoaquinRdWBopp Rd W Snyder H RddRlSMarsear W Park Rd W Hermans RdW He mans Rd W Guy St W Bush Rd SGarveyRd eaCNlRnconado SWmoRd SShawRd SSierritaMountainRd SKobRdW TwinButtes Rd W Mcgee Ranch Rd BNearCanyonRdW E Cam no De Cerro E Fairmount St SSwanRd NFrontageRd W Emigh Rd W Fort Lowel Rd dSPNumptationR NNTricoRdTcoRd W Baya d Rd dRSSandaro N Dove Mountain Blvd SHelvetiaRd WAnamax M ne Rd dRhRiGWacaanc Road424 ed Top Rd W Ruby S ar D WBritten RanchRd W Pima Mine Rd S Mcgee RanchRd 80 NKINNEYRDSNANDARIORDNANWAYRD W VALENC A RD W MOORE RD W INA RD ESN1TAV E SUNR SE DR E SNYDER RDNSILVERBELLRD TRSNOLDIERLE RIVER RDE PRINCE RD E SPEEDWAY BLVD SFREEMANRDE 22ND ST E 22ND ST W IRV NGTON RD SNOGALESHWY W VALENCIA RDSMISSIONRDWSPEEDWAY BLVD SOLDSPANISHTRL W NARANJA DR W TW N PEAKS RD W P CTURE ROCKS RD W MANVILLE RD SKINNEYRD W MILE WIDE RD E SAHUARITA RD NTRICORD OSSANDARIRD SOLDNOGALESHWY GUOSHHTONRD ADCSLAANADRW HELMET PEAK RD WAJOHWY RNASNWD RDKOLBS SHOUGHTONRD W TANGERINE RD E GRANT RD SHOUGHTONRD 95 WAJOHWY E VALENCIA RD NORACLERD I-19 77 77 86 86 286 19 10 10 Corona de Tucson AdobesCasas Catalina Green Valley Picture Rocks Three Points VailSummit TanqueVerde SahuaritaTucson Marana Oro Valley Rillito SummerhavenWillow Canyon Cortaro Continental Littletown 2 3758 9 10 11 13 12 6 1 AZ Buyers Guide | 27
05110840622 1840 E. River Rd. Ste. 200 Tucson, AZ 85718 First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2022 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
If you receive an email requesting personal/financial information or asking you to download, click on a link, send, and/or do anything that may seem unusual to you, call your escrow officer immediately prior to acting on the suspicious email to verify the validity of the email.
WIRE
Before you wire funds to any party (including your lawyer, title agent, mortgage broker, or real estate agent) personally meet them or call a verified telephone number (not the telephone number in the email) to confirm before you act! notify your banking institution and Settlement/Title Company if you are a victim of wire fraud. acknowledges receipt of this Wire Fraud
you
Immediately
Advisory. Client Date Client Date ONLINE RESOURCES: There are many online sources that can provide useful information regarding similar topics including, but not limited to, the following sites: The Federal Bureau of Investigation @ https://www.fbi.gov/scams-and-safety The Internet Crime Complaint Center @ www.ic3.gov The National White Collar Crime Center @ http://www.nw3c.org/research On Guard Online @ www.onguardonline.gov PROTECT YOURSELF VERIFY AND NOTIFY
WIRE FRAUD ADVISORY
NOT TRUST EMAILS SEEKING
If receive an email containing wire transfer instructions, immediately call your escrow officer to ensure the validity of the instructions.
DO NOT TRUST EMAILS
TRUST YOUR SOURCE OF INFORMATION direct, accept or allow anyone in the transaction to consent to receiving transfer instructions without a direct personal telephone call to the individual allegedly providing the instructions. It is imperative that this call be made to a number obtained in person from the individual or through other reliable means, not from a number provided in the email or the wiring instructions.
The undersigned
Never
We
DO PERSONAL/FINANCIAL INFORMATION
Criminals are targeting social media and email to steal information. This is particularly common in real estate transactions because sensitive data, including social security numbers, bank account numbers, and wire instructions are often sent by electronic means. do not want you to be the next victim of wire fraud. Money wired to a fraudulent account is stolen money that typically cannot be recovered. Additionally, there is generally no insurance for this loss. You may never get the money back. CONTAINING INSTRUCTIONS
Remembering each home would appear easy, but it can quickly become confusing. Which home was near the school? Which one had the great pool? Did it have a family room? And how many bathrooms? In the “What’s Memorable” category, note something you think is unusual and memorable about each home, such as a stained glass window, fruit trees, a child’s playhouse. This will make it easier for you to recall the property later and refer to a specific address. And, last but not least, maybe the most important question, does this house feel like home?
The following home comparison chart is designed to help you remember the homes you visit and what you liked best and least about each one. Rate features or make notes that will help you determine what pleased or displeased you.
HOME 1 HOME 2 No.AskingAddress/LocationPriceBeds/Baths / / Square Footage First UtilitiesInsuranceWhat’sGarageLandscapingPoolPatioBedroomsMasterMasterBathsFamilyKitchenStudy/OfficeLivingSchoolNeighborhoodImpressionDistrictRoomRoomBedroomBathorCarportMemorable Good luck with your search, and enjoy your house hunting adventure! For more information please contact your First American representative. www.firstam.com
ASELECTINGHOME
HOME 3 HOME 4 HOME 5 No.AskingAddress/LocationPriceBeds/Baths / / / Square Footage First UtilitiesInsuranceWhat’sGarageLandscapingPoolPatioBedroomsMasterMasterBathsFamilyKitchenStudy/OfficeLivingSchoolNeighborhoodImpressionDistrictRoomRoomBedroomBathorCarportMemorable First02100491118AmericanTitle Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2020 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
To practice “social distancing” while conducting real estate transactions, Arizona REALTORS® can:
• Use electronic documents and encourage buyers and sellers to sign paperwork through platforms like Authentisign and eSign to minimize in-person contact. In fact, much of the transaction was already conducted online, even before COVID-19.
TECHNOLOGY
TAKING EXTRA PRECAUTIONS DURING PANDEMIC Even during this pandemic, Arizona’s 50,000+ REALTORS® are well-positioned to continue meeting the needs of their clients and the communities they serve. REALTORS®, escrow companies, mortgage lenders, home inspectors, appraisers and other service providers remain hard at work, making sure buyers and sellers have all the services they need to complete their real estate transactions safely and efficiently.
• With the increased use of technology, however, we encourage buyers and sellers to be aware of scams. Before sending money, buyers and sellers should always call their title company using an independently verified number to confirm wiring instructions.
ARIZONA REALTORS® READY TO ASSIST BUYERS AND SELLERS,
• Assist in securing a mobile notary, thereby helping their clients finalize the transaction without ever leaving their home.
• Create virtual property tours and conduct video chats that allow buyers to see properties in a realistic way online. REALTORS® can also conduct virtual listing presentations with sellers.
•
In the event that a seller chooses not to hold an open house, REALTORS® remain ready and able to market the property in a number of alternative ways.
•
•
Asking buyers to avoid touching anything in the home.
Having all parties wash hands and/or use hand sanitizer before and after entering a home.
REALTORS® currently report that real estate transactions are moving smoothly. Nevertheless, should any issues arise, the Arizona Association of REALTORS® continues to provide its members with the most up to date information and tools they need to help their clients through any delays resulting from the outbreak. Real estate closings continue to take place each day, and the demand for real estate in Arizona remains high. Arizona REALTORS® stand ready to help their community and serve their clients.
During property showings and inspections, REALTORS® are encouraging the following to prevent the spread of disease:
•
255 E. Osborn Rd., Suite 200 • Phoenix, AZ 85012 Phone: 602.248.7787 • Toll-free in AZ: 800.426.7274 • Fax: 602.351.2474 www.aaronline.com facebook.com/azrealtors twitter.com/AARSuccess linkedin.com/company/arizona-realtors youtube.com/azrealtors
Turning on all lights before showings to prevent touching light switches.
•
Canceling showings if buyers, sellers or others are sick.
SAFETY PRECAUTIONS
POTENTIAL DELAYS
•
•
Opening all interior doors prior to showings to minimize the need for buyers to touch door handles.
Disinfecting all door handles and high-touch areas prior to and after showings.
Limiting the number of individuals in the home at any one time and having all parties stand six feet away from each other during showings.
ContractPurchase Guide to Arizona Association of REALTORS® Residential Resale Purchase Contract Includes the October 2021 Revisions For more information please contact your First American representative. www.firstam.com
Table of Contents 03 RESIDENTIAL RESALE REAL ESTATE PURCHASE CONTRACT 14 ADDITIONAL CLAUSE ADDENDUM 16 BUYER CONTINGENCY ADDENDUM 18 COUNTER OFFER 19 CURE PERIOD NOTICE 20 HOA CONDOMINIUM PLANNED COMMUNITY ADDENDUM 23 LOAN STATUS UPDATE 25 PRE-QUALIFICATION FORM 26 RESIDENTIAL SELLER DISCLOSURE ADVISORY 27 RESIDENTIAL SELLERS PROPERTY DISCLOSURE STATEMENT (SPDS) 34 RESIDENTIAL BUYERS INSPECTION NOTICE AND SELLERS RESPONSE (BINSR) 36 CRITICAL DATE LIST
Remember, you are urged to consult with an attorney, inspectors, and experts of your choice in any area of interest or concern in the transaction. Be cautious about verbal representations, advertising claims, and information contained in a listing.Verify anything important to you.
8. Conduct a thorough pre-closing walkthrough (see Section 6l). If the property is unacceptable, speak up. After the closing may be too late. You can obtain information through the Buyer’s Advisory at www.aaronline.com/manage-risk/buyer-advisory-3/.
WARNING: *WIRE TRANSFER FRAUD* Beware of wiring instructions sent via email. Cyber criminals may hack email accounts and send emails with fake wiring instructions. Always independently confirm wiring instructions prior to wiring any money. Do not email or transmit documents that show bank account numbers or personal identification information.Document updated: February 2020BUYER ATTACHMENT This attachment should be given to the Buyer prior to the submission of any offer and is not part of the Residential Resale Real Estate Purchase Contract’s terms. Buyer’s Check List4
Buyer Attachment • Updated: February 2020 Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. ATTENTION BUYER! You are entering into a legally binding agreement. 1. Read the entire contract before you sign it. 2. Review the Residential Seller’s Property Disclosure Statement (See Section 4a). • This information comes directly from the Seller. • Investigate any blank spaces, unclear answers or any other information that is important to you. 3. Review the Inspection Paragraph (see Section 6a). If important to you, hire a qualified: • General home inspector • Heating/cooling inspector • Mold inspector • Pest inspector • Pool inspector • Roof inspector Verify square footage (see Section 6b) Verify the property is on sewer or septic (see Section 6f) 4. Confirm your ability to obtain insurance and insurability of the property during the inspection period with your insurance agent (see Sections 6a and 6e). 5. Apply for your home loan now, if you have not done so already, and provide your lender with all requested information (see Section 2f). It is your responsibility to make sure that you and your lender follow the timeline requirements in Section 2, and that you and your lender deliver the necessary funds to escrow in sufficient time to allow escrow to close on the agreed upon date. Otherwise, the Seller may cancel the contract and you may be liable for damages. 6. Read the title commitment within five (5) days of receipt (see Section 3c). 7. Read the CC&R’s and all other governing documents within five (5) days of receipt (see Section 3c), especially if the home is in a homeowner’s association.
IF THIS IS AN ALL CASH SALE: A Letter of Credit or a source of funds from a financial institution documenting the availability of funds to close escrow is attached hereto.
Buyer and Seller shall comply with all terms and conditions of this Contract, execute and deliver to Escrow Company all closing documents, and perform all other acts necessary in sufficient time to allow COE to occur on , 20 (“COE Date”). If Escrow Company or recorder’s office is closed on the COE Date, MONTH DAY YEAR COE shall occur on the next day that both are open for business.
Buyer shall deliver to Escrow Company a cashier’s check, wired funds or other immediately available funds to pay any down payment, additional deposits or Buyer’s closing costs, and instruct the lender, if applicable, to deliver immediately available funds to Escrow Company, in a sufficient amount and in sufficient time to allow COE to occur on the COE Date.
Addenda Incorporated: Additional Clause Buyer Contingency Domestic Water Well H.O.A. Lead-Based Paint Disclosure Loan Assumption On-site Wastewater Treatment Facility Seller Financing Short Sale Solar Lease / Solar Loan Assumption Addendum
Close of Escrow: Close of Escrow (“COE”) shall occur when the deed is recorded at the appropriate county recorder’s office.
Residential Resale Real Estate Purchase Contract • Updated: February 2020 Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. Page 1 of 10 >> 1. PROPERTY BUYER: BUYER’S NAME(S) SELLER: or as identified in section 9c. SELLER’S NAME(S) Buyer agrees to buy and Seller agrees to sell the real property with all improvements, fixtures, and appurtenances thereon or incidental thereto, plus the personal property described herein (collectively the “Premises”). Premises Address: Assessor’s #: City: County: AZ, Zip Code: Legal Description: $ Full Purchase Price, paid as outlined below $ Earnest Money Earnest$$
Possession: Seller shall deliver possession, occupancy, existing keys and/or means to operate all locks, mailbox, security system/alarms, and all common area facilities to Buyer at COE or Broker(s) recommend that the parties seek independent counsel from insurance, legal, tax, and accounting professionals regarding the risks of pre-possession or post-possession of the Premises.
Money is in the form of: Personal Check Wire Transfer Other Upon acceptance of this offer, the Earnest Money, if any, will be deposited with: Escrow Company Broker’s Trust Account.
Buyer acknowledges that failure to pay the required closing funds by the scheduled COE, if not cured after a cure notice is delivered pursuant to Section 7a, shall be construed as a material breach of this Contract and the Earnest Money shall be subject to forfeiture. All funds are to be in U.S. currency.
Other: Document updated: February 2020 RESIDENTIAL RESALE REAL ESTATE PURCHASE CONTRACT Page 1 of 10 1d.1b.1a.1c.1e.1f. 38.37.36.35.34.33.32.31.30.29.28.27.26.25.24.23.22.21.20.19.18.17.16.15.14.13.12.11.10.9.8.7.6.5.4.3.2.1.
Unfulfilled Loan Contingency: This Contract shall be cancelled and Buyer shall be entitled to a return of the Earnest Money if after diligent and good faith effort, Buyer is unable to obtain loan approval without PTD conditions and delivers notice of inability to obtain loan approval no later than three (3) days prior to the COE Date. If Buyer fails to deliver such notice, Seller may issue a cure notice to Buyer as required by Section 7a and, in the event of Buyer’s breach, Seller shall be entitled to the Earnest Money pursuant to Section 7b. If, prior to expiration of any Cure Period, Buyer delivers notice of inability to obtain loan approval, Buyer shall be entitled to a return of the Earnest Money. Buyer acknowledges that prepaid items paid separately from the Earnest Money are not refundable.
If owned by Seller, the following items also are included in this sale:
Interest Rate / Necessary Funds: Buyer agrees that (i) the inability to obtain loan approval due to the failure to lock the interest rate and “points” by separate written agreement with the lender; or (ii) the failure to have the down payment or other funds due from Buyer necessary to obtain the loan approval without conditions and close this transaction is not an unfulfilled loan contingency.
Additional existing personal property included shall not be considered part of the Premises and shall be transferred with no monetary value, and free and clear of all liens or encumbrances.
Fixtures and Personal Property: For purposes of this Contract, fixtures shall mean property attached/affixed to the Premises.
Loan Status Update: Buyer shall deliver to Seller the LSU, with at a minimum lines 1-40 completed, describing the current status of the Buyer’s proposed loan within ten (10) days after Contract acceptance and instruct lender to provide an updated LSU to Broker(s) and Seller upon request.
89.88.87.86.85.84.83.82.81.80.79.78.77.76.75.74.73.72.71.70.69.68.67.66.65.64.63.62.61.60.59.58.57.56.55.54.53.52.51.50.49.48.47.46.45.44.43.42.41.40.39.2d.2b.1g.2a.2c.2e. • built-in appliances, ceiling fans and remotes • central vacuum, hose, and attachments • draperies and other window coverings • fireplace equipment (affixed) • floor coverings (affixed) • free-standing range/oven • garage door openers and remotes • light fixtures • mailbox • media antennas/satellite dishes (affixed) • outdoor fountains and lighting • outdoor landscaping (i.e., shrubbery, trees and unpotted plants) • shutters and awnings • smart home devices, access to which shall be transferred (i.e., video doorbell, automated thermostat) • speakers (flush-mounted) • storage sheds • storm windows and doors • stoves: gas-log, pellet, wood-burning • timers (affixed) • towel, curtain and drapery rods • wall mounted TV brackets and hardware (excluding TVs) • water-misting systems • window and door screens, sun shades • affixed alternate power systems serving the Premises (i.e., solar) • in-ground pool and spa/hot tub equipment and covers (including any mechanical or other cleaning systems) • security and/or fire systems and/or alarms • water purification systems • water softeners
Leased items shall NOT be included in this sale. Seller shall deliver notice of all leased items within three (3) days after Contract acceptance. Buyer shall provide notice of any leased items disapproved within the Inspection Period or five (5) days after receipt of the notice, whichever is later.
IF THIS IS AN ALL CASH SALE: Section 2 does not apply - go to Section 3.
Seller agrees that all existing: fixtures on the Premises, personal property specified herein, and means to operate fixtures and property (i.e., remote controls) shall convey in this sale. Including the following:
2. FINANCING Pre-Qualification: An AAR Pre-Qualification Form is attached hereto and incorporated herein by reference.
Additional existing personal property included in this sale (if checked): refrigerator (description): washer (description): dryer above-ground(description):spa/hot tub including equipment, covers, and any mechanical or other cleaning systems (description): other personal property not otherwise addressed (description): other personal property not otherwise addressed (description):
Loan Contingency: Buyer’s obligation to complete this sale is contingent upon Buyer obtaining loan approval without Prior to Document (“PTD”) conditions no later than three (3) days prior to the COE Date for the loan described in the AAR Loan Status Update (“LSU”) form or the AAR Pre-Qualification Form, whichever is delivered later. No later than three (3) days prior to the COE Date, Buyer shall either: (i) sign all loan documents; or (ii) deliver to Seller or Escrow Company notice of loan approval without PTD conditions AND date(s) of receipt of Closing Disclosure(s) from Lender; or (iii) deliver to Seller or Escrow Company notice of inability to obtain loan approval without PTD conditions.
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Residential Resale Real Estate Purchase Contract • Updated: February 2020 Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. Page 3 of 10 Residential Resale Real Estate Purchase Contract >> Page 3 of 10 >>
3. TITLE AND ESCROW Escrow: This Contract shall be used as escrow instructions. The Escrow Company employed by the parties to carry out the terms of this Contract shall be: ESCROW/TITLE COMPANY ADDRESS CITY STATE ZIP EMAIL PHONE FAX Title and Vesting: Buyer will take title as determined before COE. If Buyer is married and intends to take title as his/her sole and separate property, a disclaimer deed may be required. Taking title may have significant legal, estate planning and tax consequences. Buyer should obtain independent legal and tax advice.
From Subject Received Size Categories Calie Waterhouse IPC 132.131.130.129.128.127.126.125.124.123.122.121.120.119.118.117.116.115.114.113.112.111.110.109.108.107.106.105.104.103.102.101.100.99.98.97.96.95.94.93.92.91.90.2m.2h.2g.2f.2i.2j.2k.2l.3a.3b.3c.
Appraisal Cost(s): Initial appraisal fee shall be paid by Buyer Seller Other at the time payment is required by lender and is non-refundable. If Seller is paying the initial appraisal fee, the fee will will not be applied against Seller’s Concessions at COE, if applicable. If Buyer’s lender requires an updated appraisal prior to COE, it will be performed at Buyer’s expense. Any appraiser/lender required inspection cost(s) shall be paid for by Buyer.
Loan Processing During Escrow: Within ten (10) days after receipt of the Loan Estimate Buyer shall (i) provide lender with notice of intent to proceed with the loan transaction in a manner satisfactory to lender; and (ii) provide to lender all requested signed disclosures and the documentation listed in the LSU at lines 32-35. Buyer agrees to diligently work to obtain the loan and will promptly provide the lender with all additional documentation requested.
Loan Application: Unless previously completed, within three (3) days after Contract acceptance Buyer shall (i) provide lender with Buyer’s name, income, social security number, Premises address, estimate of value of the Premises, and mortgage loan amount sought; and (ii) grant lender permission to access Buyer’s Trimerged Residential Credit Report.
Seller Concessions (if any): In addition to the other costs Seller has agreed to pay herein, Seller will credit Buyer % of the Purchase Price OR $ (Seller Concessions). The Seller Concessions may be used for any Buyer fee, cost, charge, or expenditure to the extent allowed by Buyer’s lender.
Changes: Buyer shall immediately notify Seller of any changes in the loan program, financing terms, or lender described in the Pre-Qualification Form attached hereto or LSU provided within ten (10) days after Contract acceptance and shall only make any such changes without the prior written consent of Seller if such changes do not adversely affect Buyer’s ability to obtain loan approval without PTD conditions, increase Seller’s closing costs, or delay COE.
Loan Costs: All costs of obtaining the loan shall be paid by Buyer, unless otherwise provided for herein.
Appraisal Contingency: Buyer’s obligation to complete this sale is contingent upon an appraisal of the Premises acceptable to lender for at least the purchase price. If the Premises fail to appraise for the purchase price in any appraisal required by lender, Buyer has five (5) days after notice of the appraised value to cancel this Contract and receive a return of the Earnest Money or the appraisal contingency shall be waived, unless otherwise prohibited by federal law.
Type of Financing: Conventional FHA VA USDA Assumption Seller Carryback (If financing is to be other than new financing, see attached addendum.)
Title Commitment and Title Insurance: Escrow Company is hereby instructed to obtain and deliver to Buyer and Seller directly, addressed pursuant to 8s and 9c or as otherwise provided, a Commitment for Title Insurance together with complete and legible copies of all documents that will remain as exceptions to Buyer’s policy of Title Insurance (“Title Commitment”), including but not limited to Conditions, Covenants and Restrictions (“CC&Rs”); deed restrictions; and easements. Buyer shall have five (5) days after receipt of the Title Commitment and after receipt of notice of any subsequent exceptions to provide notice to Seller of any items disapproved. Seller shall convey title by warranty deed, subject to existing taxes, assessments, covenants, conditions, restrictions, rights of way, easements and all other matters of record. Buyer shall be provided at Seller’s expense an American Land Title Association (“ALTA”) Homeowner’s Title Insurance Policy or, if not available, a Standard Owner’s Title Insurance Policy, showing title vested in Buyer. Buyer may acquire extended coverage at Buyer’s own additional expense. If applicable, Buyer shall pay the cost of obtaining the ALTA Lender Title Insurance Policy.
182.181.180.179.178.177.176.175.174.173.172.171.170.169.168.167.166.165.164.163.162.161.160.159.158.157.156.155.154.153.152.151.150.149.148.147.146.145.144.143.142.141.140.139.138.137.136.135.134.133.3d.3e3f.3g.3h.4a.4b.4c.4d.
Additional Instructions: (i) Escrow Company shall promptly furnish notice of pending sale that contains the name and address of Buyer to any homeowner’s association(s) in which the Premises are located. (ii) If Escrow Company is also acting as the title agency but is not the title insurer issuing the title insurance policy, Escrow Company shall deliver to Buyer and Seller, upon deposit of funds, a closing protection letter from the title insurer indemnifying Buyer and Seller for any losses due to fraudulent acts or breach of escrow instructions by Escrow Company. (iii) All documents necessary to close this transaction shall be executed promptly by Seller and Buyer in the standard form used by Escrow Company. Escrow Company shall modify such documents to the extent necessary to be consistent with this Contract. (iv) Escrow Company fees, unless otherwise stated herein, shall be allocated equally between Seller and Buyer. (v) Escrow Company shall send to all parties and Broker(s) copies of all notices and communications directed to Seller, Buyer and Broker(s). (vi) Escrow Company shall provide Broker(s) access to escrowed materials and information regarding the escrow. (vii) If an Affidavit of Disclosure is provided, Escrow Company shall record the Affidavit at COE.
Tax Prorations: Real property taxes payable by Seller shall be prorated to COE based upon the latest tax information available.
If Premises were constructed in 1978 or later, (BUYER’S INITIALS REQUIRED) BUYER BUYER
Lead-Based Paint Disclosure: If the Premises were built prior to 1978, Seller shall: (i) notify Buyer of any known lead-based paint (“LBP”) or LBP hazards in the Premises; (ii) provide Buyer with any LBP risk assessments or inspections of the Premises in Seller’s possession; (iii) provide Buyer with the Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards, and any report, records, pamphlets, and/or other materials referenced therein, including the pamphlet “Protect Your Family from Lead in Your Home” (collectively “LBP Information”). Buyer shall return a signed copy of the Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards to Seller prior to COE.
If Premises were constructed prior to 1978, (BUYER’S INITIALS REQUIRED)
Release of Earnest Money: In the event of a dispute between Buyer and Seller regarding any Earnest Money deposited with Escrow Company, Buyer and Seller authorize Escrow Company to release the Earnest Money pursuant to the terms and conditions of this Contract in its sole and absolute discretion. Buyer and Seller agree to hold harmless and indemnify Escrow Company against any claim, action or lawsuit of any kind, and from any loss, judgment, or expense, including costs and attorney fees, arising from or relating in any way to the release of the Earnest Money.
Insurance Claims History: Seller shall deliver to Buyer a written five (5) year insurance claims history regarding the Premises (or a claims history for the length of time Seller has owned the Premises if less than five (5) years) from Seller’s insurance company or an insurance support organization or consumer reporting agency, or if unavailable from these sources, from Seller, within five (5) days after Contract acceptance. Buyer shall provide notice of any items disapproved within the Inspection Period or five (5) days after receipt of the claims history, whichever is later.
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.
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Foreign Sellers: The Foreign Investment in Real Property Tax Act (“FIRPTA”) is applicable if Seller is a non-resident alien individual, foreign corporation, foreign partnership, foreign trust, or foreign estate (“Foreign Person”). Seller agrees to complete, sign, and deliver to Escrow Company a certificate indicating whether Seller is a Foreign Person. FIRPTA requires that a foreign seller may have federal income taxes up to 15% of the purchase price withheld, unless an exception applies. Seller is responsible for obtaining independent legal and tax advice.
Seller shall provide LBP Information within five (5) days after Contract acceptance. Buyer may within ten (10) days or days after receipt of the LBP Information conduct or obtain a risk assessment or inspection of the Premises for the presence of LBP or LBP hazards (“Assessment Period”). Buyer may within five (5) days after receipt of the LBP Information or five (5) days after expiration of the Assessment Period cancel this Contract.
4. DISCLOSURE Seller’s Property Disclosure Statement (“SPDS”): Seller shall deliver a completed AAR Residential SPDS form to Buyer within three (3) days after Contract acceptance. Buyer shall provide notice of any SPDS items disapproved within the Inspection Period or five (5) days after receipt of the SPDS, whichever is later.
Assessment Liens: The amount of any assessment lien or bond including those charged by a special taxing district, such as a Community Facilities District, shall be prorated as of COE.
Prorations of Assessments and Fees: All assessments and fees that are not a lien as of COE, including homeowner’s association fees, rents, irrigation fees, and, if assumed, insurance premiums, interest on assessments, interest on encumbrances, and service contracts, shall be prorated as of COE or Other:
BUYER BUYER
LBP Information was provided prior to Contract acceptance and Buyer acknowledges the opportunity to conduct LBP risk assessments or inspections during Inspection Period.
Changes During Escrow: Seller shall immediately notify Buyer of any changes in the Premises or disclosures made herein, in the SPDS, or otherwise. Such notice shall be considered an update of the SPDS. Unless Seller is already obligated by this Contract or any amendments hereto, to correct or repair the changed item disclosed, Buyer shall be allowed five (5) days after delivery of such notice to provide notice of disapproval to Seller.
Condition of Premises: BUYER AND SELLER AGREE THE PREMISES ARE BEING SOLD IN ITS PRESENT PHYSICAL CONDITION AS OF THE DATE OF CONTRACT ACCEPTANCE. Seller makes no warranty to Buyer, either express or implied, as to the condition, zoning, or fitness for any particular use or purpose of the Premises. However, Seller shall maintain and repair the Premises so that at the earlier of possession or COE: (i) the Premises, including all personal property included in the sale, will be in substantially the same condition as on the date of Contract acceptance; and (ii) all personal property not included in the sale and debris will be removed from the Premises. Buyer is advised to conduct independent inspections and investigations regarding the Premises within the Inspection Period as specified in Section 6a. Buyer and Seller acknowledge and understand they may, but are not obligated to, engage in negotiations for repairs/improvements to the Premises. Any/all agreed upon repairs/improvements will be addressed pursuant to Section 6j.
5. WARRANTIES
6. DUE DILIGENCE
Inspection Period: Buyer’s Inspection Period shall be ten (10) days or days after Contract acceptance. During the Inspection Period Buyer, at Buyer’s expense, shall: (i) conduct all desired physical, environmental, and other types of inspections and investigations to determine the value and condition of the Premises; (ii) make inquiries and consult government agencies, lenders, insurance agents, architects, and other appropriate persons and entities concerning the suitability of the Premises and the surrounding area; (iii) investigate applicable building, zoning, fire, health, and safety codes to determine any potential hazards, violations or defects in the Premises; and (iv) verify any material multiple listing service (“MLS”) information. If the presence of sex offenders in the vicinity or the occurrence of a disease, natural death, suicide, homicide or other crime on or in the vicinity is a material matter to Buyer, it must be investigated by Buyer during the Inspection Period. Buyer shall keep the Premises free and clear of liens, shall indemnify and hold Seller harmless from all liability, claims, demands, damages, and costs, and shall repair all damages arising from the inspections. Buyer shall provide Seller and Broker(s) upon receipt, at no cost, copies of all inspection reports concerning the Premises obtained by Buyer. Buyer is advised to consult the Arizona Department of Real Estate Buyer Advisory to assist in Buyer’s due diligence inspections and investigations.
Warranties that Survive Closing: Seller warrants that Seller has disclosed to Buyer and Broker(s) all material latent defects and any information concerning the Premises known to Seller, excluding opinions of value, which materially and adversely affect the consideration to be paid by Buyer. Prior to COE, Seller warrants that payment in full will have been made for all labor, professional services, materials, machinery, fixtures, or tools furnished within the 150 days immediately preceding COE in connection with the construction, alteration, or repair of any structure on or improvement to the Premises. Seller warrants that the information regarding connection to a sewer system or on-site wastewater treatment facility (conventional septic or alternative) is correct to the best of Seller’s knowledge.
Affidavit of Disclosure: If the Premises are located in an unincorporated area of the county, and five (5) or fewer parcels of property other than subdivided property are being transferred, Seller shall deliver a completed Affidavit of Disclosure in the form required by law to Buyer within five (5) days after Contract acceptance. Buyer shall provide notice of any Affidavit of Disclosure items disapproved within the Inspection Period or five (5) days after receipt of the Affidavit of Disclosure, whichever is later.
Square Footage: BUYER IS AWARE THAT ANY REFERENCE TO THE SQUARE FOOTAGE OF THE PREMISES, BOTH THE REAL PROPERTY (LAND) AND IMPROVEMENTS THEREON, IS APPROXIMATE. IF SQUARE FOOTAGE IS A MATERIAL MATTER TO BUYER, IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD.
Wood-Destroying Organism or Insect Inspection: IF CURRENT OR PAST WOOD-DESTROYING ORGANISMS OR INSECTS (SUCH AS TERMITES) ARE A MATERIAL MATTER TO BUYER, THESE ISSUES MUST BE INVESTIGATED DURING THE INSPECTION PERIOD. Buyer shall order and pay for all wood-destroying organism or insect inspections performed during the Inspection Period. If the lender requires an updated Wood-Destroying Organism or Insect Inspection Report prior to COE, it will be performed at Buyer’s expense.
Buyer Warranties: Buyer warrants that Buyer has disclosed to Seller any information that may materially and adversely affect Buyer’s ability to close escrow or complete the obligations of this Contract. At the earlier of possession of the Premises or COE, Buyer warrants to Seller that Buyer has conducted all desired independent inspections and investigations and accepts the Premises. Buyer warrants that Buyer is not relying on any verbal representations concerning the Premises except disclosed as follows:
Flood Hazard: FLOOD HAZARD DESIGNATIONS OR THE COST OF FLOOD HAZARD INSURANCE SHALL BE DETERMINED BY BUYER DURING THE INSPECTION PERIOD. If the Premises are situated in an area identified as having any special flood hazards by any governmental entity, THE LENDER MAY REQUIRE THE PURCHASE OF FLOOD HAZARD INSURANCE. Special flood hazards may also affect the ability to encumber or improve the Premises.
Residential Resale Real Estate Purchase Contract • Updated: February 2020 Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. Page 5 of 10 Residential Resale Real Estate Purchase Contract >> Page 5 of 10 >>
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Buyer Disapproval: If Buyer, in Buyer’s sole discretion, disapproves of items as allowed herein, Buyer shall deliver to Seller a signed notice of the items disapproved and state in the notice that Buyer elects to either:
(a) Seller shall respond in writing within five (5) days or days after delivery to Seller of Buyer’s notice of items disapproved. Seller’s failure to respond to Buyer in writing within the specified time period shall conclusively be deemed Seller’s refusal to correct any of the items disapproved.
(b) If Seller agrees in writing to correct items disapproved, Seller shall correct the items, complete any repairs in a workmanlike manner and deliver any paid receipts evidencing the corrections and repairs to Buyer three (3) days or days prior to the COE Date.
IF HOMEOWNER’S INSURANCE IS A MATERIAL MATTER TO BUYER, BUYER SHALL APPLY FOR AND OBTAIN WRITTEN CONFIRMATION OF THE AVAILABILITY AND COST OF HOMEOWNER’S INSURANCE FOR THE PREMISES FROM BUYER’S INSURANCE COMPANY DURING THE INSPECTION PERIOD. Buyer understands that any homeowner’s, fire, casualty, or other insurance desired by Buyer or required by lender should be in place at COE. Sewer or On-site Wastewater Treatment System: The Premises are connected to a: sewer system conventional septic system alternative system IF A SEWER CONNECTION IS A MATERIAL MATTER TO BUYER, IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD. If the Premises are served by a conventional septic or alternative system, the AAR On-site Wastewater Treatment Facility Addendum is incorporated herein by reference.
(c) If Seller is unwilling or unable to correct any of the items disapproved, Buyer may cancel this Contract within five (5) days after delivery of Seller’s response or after expiration of the time for Seller’s response, whichever occurs first, and the Earnest Money shall be released to Buyer. If Buyer does not cancel this Contract within the five (5) days as provided, Buyer shall close escrow without correction of those items that Seller has not agreed in writing to correct.
VERBAL DISCUSSIONS WILL NOT EXTEND THESE TIME PERIODS. Only a written agreement signed by both parties will extend response times or cancellation rights.
(BUYER’S INITIALS REQUIRED) BUYER BUYER BUYER ACKNOWLEDGMENT: BUYER RECOGNIZES, ACKNOWLEDGES, AND AGREES THAT BROKER(S) ARE NOT QUALIFIED, NOR LICENSED, TO CONDUCT DUE DILIGENCE WITH RESPECT TO THE PREMISES OR THE SURROUNDING AREA. BUYER IS INSTRUCTED TO CONSULT WITH QUALIFIED LICENSED PROFESSIONALS TO ASSIST IN BUYER’S DUE DILIGENCE EFFORTS. BECAUSE CONDUCTING DUE DILIGENCE WITH RESPECT TO THE PREMISES AND THE SURROUNDING AREA IS BEYOND THE SCOPE OF BROKER’S EXPERTISE AND LICENSING, BUYER EXPRESSLY RELEASES AND HOLDS HARMLESS BROKER(S) FROM LIABILITY FOR ANY DEFECTS OR CONDITIONS THAT COULD HAVE BEEN DISCOVERED BY INSPECTION OR INVESTIGATION.(BUYER’S INITIALS REQUIRED) BUYER BUYER Inspection Period Notice: Prior to expiration of the Inspection Period, Buyer shall deliver to Seller a signed notice of any items disapproved. AAR’s Buyer’s Inspection Notice and Seller’s Response form is available for this purpose. Buyer shall conduct all desired inspections and investigations prior to delivering such notice to Seller and all Inspection Period items disapproved shall be provided in a single notice.
BUYER’S FAILURE TO GIVE NOTICE OF DISAPPROVAL OF ITEMS OR CANCELLATION OF THIS CONTRACT WITHIN THE SPECIFIED TIME PERIOD SHALL CONCLUSIVELY BE DEEMED BUYER’S ELECTION TO PROCEED WITH THE TRANSACTION WITHOUT CORRECTION OF ANY DISAPPROVED ITEMS.
6h.6g.6e.6f.6i.6j. 289.288.287.286.285.284.283.282.281.280.279.278.277.276.275.274.273.272.271.270.269.268.267.266.265.264.263.262.261.260.259.258.257.256.255.254.253.252.251.250.249.248.247.246.245.244.243.242.241.240.239.238.237.
Residential Resale Real Estate Purchase Contract • Updated: February 2020 Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. Page 6 of 10 Residential Resale Real Estate Purchase Contract >> Page 6 of 10 >> Insurance:
(BUYER’S INITIALS REQUIRED) BUYER BUYER Swimming Pool Barrier Regulations: During the Inspection Period, Buyer agrees to investigate all applicable state, county, and municipal Swimming Pool barrier regulations and agrees to comply with and pay all costs of compliance with said regulations prior to occupying the Premises, unless otherwise agreed in writing. If the Premises contains a Swimming Pool, Buyer acknowledges receipt of the Arizona Department of Health Services approved private pool safety notice.
(1) Immediately cancel this Contract, in which case: (a) If Buyer’s notice specifies disapproval of items as allowed herein, the Earnest Money shall be released to Buyer. (b) If Buyer’s notice fails to specify items disapproved as allowed herein, the cancellation will remain in effect but Buyer has failed to comply with a provision of this Contract and Seller may deliver to Buyer a cure notice as required by Section 7a. If Buyer fails to cure their non-compliance within three (3) days after delivery of such notice, Buyer shall be in breach and Seller shall be entitled to the Earnest Money. If, prior to expiration of the Cure Period, Buyer delivers notice specifying items disapproved as allowed herein, Buyer shall be entitled to a return of the Earnest Money. OR (2) Provide Seller an opportunity to correct the items disapproved, in which case:
flood
7. REMEDIES Cure Period: A party shall have an opportunity to cure a potential breach of this Contract. If a party fails to comply with any provision of this Contract, the other party shall deliver a notice to the non-complying party specifying the non-compliance. If the non-compliance is not cured within three (3) days after delivery of such notice (“Cure Period”), the failure to comply shall become a breach of Contract. If Escrow Company or recorder’s office is closed on the last day of the Cure Period, and COE must occur to cure a potential breach, COE shall occur on the next day that both are open for business.
Walkthrough(s): Seller grants Buyer and Buyer’s inspector(s) reasonable access to conduct walkthrough(s) of the Premises for the purpose of satisfying Buyer that any corrections or repairs agreed to by Seller have been completed, and the Premises are in substantially the same condition as of the date of Contract acceptance. If Buyer does not conduct such walkthrough(s), Buyer releases Seller and Broker(s) from liability for any defects that could have been discovered.
IRS and FIRPTA Reporting: The Foreign Investment in Real Property Tax Act (“FIRPTA”) provides that, if a seller is a Foreign Person, a buyer of residential real property must withhold federal income taxes up to 15% of the purchase price, unless an exception applies. If FIRPTA is applicable and Buyer fails to withhold, Buyer may be held liable for the tax. Buyer agrees to perform any acts reasonable or necessary to comply with FIRPTA and IRS reporting requirements and Buyer is responsible for obtaining independent legal and tax advice.
BUYER BUYER
Residential Resale Real Estate Purchase Contract • Updated: February 2020 Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. Page 7 of 10 Residential Resale Real Estate Purchase Contract >> Page 7 of 10 >> Home Warranty Plan: Buyer and Seller are advised to investigate the various home warranty plans available for purchase. The parties acknowledge that different home warranty plans have different coverage options, exclusions, limitations, service fees and most plans exclude pre-existing conditions. A Home Warranty Plan will be ordered by Buyer or Seller with the following optional coverage , to be issued by at a cost not to exceed $ , to be paid for by Buyer Seller Split evenly between Buyer and Seller Buyer declines the purchase of a Home Warranty Plan. (BUYER’S INITIALS REQUIRED)
Breach: In the event of a breach of Contract, the non-breaching party may cancel this Contract and/or proceed against the breaching party in any claim or remedy that the non-breaching party may have in law or equity, subject to the Alternative Dispute Resolution obligations set forth herein. In the case of Seller, because it would be difficult to fix actual damages in the event of Buyer’s breach, the Earnest Money may be deemed a reasonable estimate of damages and Seller may, at Seller’s option, accept the Earnest Money as Seller’s sole right to damages; and in the event of Buyer’s breach arising from Buyer’s failure to deliver the notice required by Section 2b, or Buyer’s inability to obtain loan approval due to the waiver of the appraisal contingency pursuant to Section 2l, Seller shall exercise this option and accept the Earnest Money as Seller’s sole right to damages. An unfulfilled contingency is not a breach of Contract. The parties expressly agree that the failure of any party to comply with the terms and conditions of Section 1d to allow COE to occur on the COE Date, if not cured after a cure notice is delivered pursuant to Section 7a, will constitute a material breach of this Contract, rendering the Contract subject to cancellation.
Alternative Dispute Resolution (“ADR”): Buyer and Seller agree to mediate any dispute or claim arising out of or relating to this Contract in accordance with the REALTORS® Dispute Resolution System, or as otherwise agreed. All mediation costs shall be paid equally by the parties. In the event that mediation does not resolve all disputes or claims, the unresolved disputes or claims shall be submitted for binding arbitration. In such event, the parties shall agree upon an arbitrator and cooperate in the scheduling of an arbitration hearing. If the parties are unable to agree on an arbitrator, the dispute shall be submitted to the American Arbitration Association (“AAA”) in accordance with the AAA Arbitration Rules for the Real Estate Industry. The decision of the arbitrator shall be final and nonappealable. Judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction.
Seller’s Responsibility Regarding Inspections and Walkthrough(s): Seller shall make the Premises available for all inspections and walkthrough(s) upon reasonable notice by Buyer. Seller shall, at Seller’s expense, have all utilities on, including any propane, until COE to enable Buyer to conduct these inspections and walkthrough(s).
Notwithstanding the foregoing, either party may opt out of binding arbitration within thirty (30) days after the conclusion of the mediation conference by notice to the other and, in such event, either party shall have the right to resort to court action.
Exclusions from ADR: The following matters are excluded from the requirement for ADR hereunder: (i) any action brought in the Small Claims Division of an Arizona Justice Court (up to $3,500) so long as the matter is not thereafter transferred or removed from the small claims division; (ii) judicial or nonjudicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or agreement for sale; (iii) an unlawful entry or detainer action; (iv) the filing or enforcement of a mechanic’s lien; or (v) any matter that is within the jurisdiction of a probate court. Further, the filing of a judicial action to enable the recording of a notice of pending action (“lis pendens”), or order of attachment, receivership, injunction, or other provisional remedies shall not constitute a waiver of the obligation to submit the claim to ADR, nor shall such action constitute a breach of the duty to mediate or arbitrate.
Attorney Fees and Costs: The prevailing party in any dispute or claim between Buyer and Seller arising out of or relating to this Contract shall be awarded their reasonable attorney fees and costs. Costs shall include, without limitation, attorney fees, expert witness fees, fees paid to investigators, and arbitration costs.
6m.6k.6l.6n.7a.7b.7c.7d.7e. 343.342.341.340.339.338.337.336.335.334.333.332.331.330.329.328.327.326.325.324.323.322.321.320.319.318.317.316.315.314.313.312.311.310.309.308.307.306.305.304.303.302.301.300.299.298.297.296.295.294.293.292.291.290.
Residential Resale Real Estate Purchase Contract • Updated: February 2020 Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. Page 8 of 10 Residential Resale Real Estate Purchase Contract >> Page 8 of 10>>8. ADDITIONAL TERMS AND CONDITIONS 8a. 389.388.387.386.385.384.383.382.381.380.379.378.377.376.375.374.373.372.371.370.369.368.367.366.365.364.363.362.361.360.359.358.357.356.355.354.353.352.351.350.349.348.347.346.345.344.
CONTRACT CONTAINS TEN (10) PAGES EXCLUSIVE OF ANY ADDENDA AND ATTACHMENTS. PLEASE ENSURE THAT YOU HAVE RECEIVED AND READ ALL TEN (10) PAGES OF THIS OFFER AS WELL AS ANY ADDENDA AND ATTACHMENTS. >> 8m.8h.8g.8d.8b.8c.8e.8f.8i.8j.8k.8l.8n.8o.8p. 442.441.440.439.438.437.436.435.434.433.432.431.430.429.428.427.426.425.424.423.422.421.420.419.418.417.416.415.414.413.412.411.410.409.408.407.406.405.404.403.402.401.400.399.398.397.396.395.394.393.392.391.390.
If Seller is obligated to pay Broker(s), this Contract shall constitute an irrevocable assignment of Seller’s proceeds at COE. If Buyer is obligated to pay Broker(s), payment shall be collected from Buyer as a condition of COE. COMMISSIONS PAYABLE FOR THE SALE, LEASING, OR MANAGEMENT OF PROPERTY ARE NOT SET BY ANY BOARD OR ASSOCIATION OF REALTORS®, OR MULTIPLE LISTING SERVICE, OR IN ANY MANNER OTHER THAN BETWEEN BROKER AND CLIENT.
A fully executed facsimile or electronic copy of the Contract shall be treated as an original Contract. This Contract and any other documents required by this Contract may be executed by facsimile or other electronic means and in any number of counterparts, which shall become effective upon delivery as provided for herein, except that the Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards may not be signed in counterpart. All counterparts shall be deemed to constitute one instrument, and each counterpart shall be deemed an original.
Notice: Unless otherwise provided, delivery of all notices and documentation required or permitted hereunder shall be in writing and deemed delivered and received when: (i) hand-delivered; (ii) sent via facsimile transmission; (iii) sent via electronic mail, if email addresses are provided herein; or (iv) sent by recognized overnight courier service, and addressed to Buyer as indicated in Section 8q, to Seller as indicated in Section 9a and to Escrow Company indicated in Section 3a.
SELLER SELLER BUYER BUYER
Entire Agreement: This Contract, and any addenda and attachments, shall constitute the entire agreement between Seller and Buyer, shall supersede any other written or oral agreements between Seller and Buyer and can be modified only by a writing signed by Seller and Buyer. The failure to initial any page of this Contract shall not affect the validity or terms of this Contract.
Compensation: Seller and Buyer acknowledge that Broker(s) shall be compensated for services rendered as previously agreed by separate written agreement(s), which shall be delivered by Broker(s) to Escrow Company for payment at COE, if not previously paid.
Subsequent Offers: Buyer acknowledges that Seller has the right to accept subsequent offers until COE. Seller understands that any subsequent offer accepted by Seller must be a backup offer contingent on the cancellation of this Contract.
Arizona Law: This Contract shall be governed by Arizona law and jurisdiction is exclusively conferred on the State of Arizona.
Risk of Loss: If there is any loss or damage to the Premises between the date of Contract acceptance and COE or possession, whichever is earlier, by reason of fire, vandalism, flood, earthquake, or act of God, the risk of loss shall be on Seller, provided, however, that if the cost of repairing such loss or damage would exceed ten percent (10%) of the purchase price, either Seller or Buyer may elect to cancel the Contract.
Time is of the Essence: The parties acknowledge that time is of the essence in the performance of the obligations described herein.
Calculating Time Periods: In computing any time period prescribed or allowed by this Contract, the day of the act or event from which the time period begins to run is not included and the last day of the time period is included. Contract acceptance occurs on the date that the signed Contract (and any incorporated counter offer) is delivered to and received by the appropriate Broker. Acts that must be performed three (3) days prior to the COE Date must be performed three (3) full days prior (i.e. – if the COE Date is Friday the act must be performed by 11:59 p.m. on Monday).
Cancellation: A party who wishes to exercise the right of cancellation as allowed herein may cancel this Contract by delivering notice stating the reason for cancellation to the other party or to Escrow Company. Cancellation shall become effective immediately upon delivery of the cancellation notice.
Release of Broker(s): Seller and Buyer hereby expressly release, hold harmless and indemnify Broker(s) in this transaction from any and all liability and responsibility regarding financing, the condition, square footage, lot lines, boundaries, value, rent rolls, environmental problems, sanitation systems, roof, wood infestation, building codes, governmental regulations, insurance, price and terms of sale, return on investment or any other matter relating to the value or condition of the Premises. The parties understand and agree that Broker(s) do not provide advice on property as an investment and are not qualified to provide financial, legal, or tax advice regarding this real estate transaction.
Buyer may withdraw this offer at any time prior to receipt of Seller’s signed acceptance. If no signed acceptance is received by this date and time, this offer shall be deemed withdrawn and Buyer’s Earnest Money shall be returned.
(SELLER’S INITIALS REQUIRED) (BUYER’S INITIALS REQUIRED)
Residential Resale Real Estate Purchase Contract • Updated: February 2020 Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. Page 9 of 10 Residential Resale Real Estate Purchase Contract >> Page 9 of 10
Copies and Counterparts:
Days: All references to days in this Contract shall be construed as calendar days and a day shall begin at 12:00 a.m. and end at 11:59 p.m.
THIS
Permission: Buyer and Seller grant Broker(s) permission to advise the public of this Contract.
Terms of Acceptance: This offer will become a binding Contract when acceptance is signed by Seller and a signed copy delivered in person, by mail, facsimile or electronically, and received by Broker named in Section 8q by , at a.m./p.m., Mountain Standard Time.
Residential Resale Real Estate Purchase Contract • Updated: February 2020 Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. Page 10 of 10 Broker on behalf of Buyer: PRINT AGENT’S NAME AGENT MLS CODE AGENT STATE LICENSE NO. PRINT AGENT’S NAME AGENT MLS CODE AGENT STATE LICENSE NO. PRINT FIRM NAME FIRM MLS CODE FIRM ADDRESS STATE ZIP CODE FIRM STATE LICENSE NO. PREFERRED TELEPHONE FAX EMAIL Agency Confirmation: Broker named in Section 8q above is the agent of (check one): Buyer; Seller; or both Buyer and Seller The undersigned agree to purchase the Premises on the terms and conditions herein stated and acknowledge receipt of a copy hereof including the Buyer Attachment. ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S NAME PRINTED ^ BUYER’S NAME PRINTED ADDRESS ADDRESS CITY, STATE, ZIP CODE CITY, STATE, ZIP CODE 9. SELLER ACCEPTANCE Broker on behalf of Seller: PRINT AGENT’S NAME AGENT MLS CODE AGENT STATE LICENSE NO. PRINT AGENT’S NAME AGENT MLS CODE AGENT STATE LICENSE NO. PRINT FIRM NAME FIRM MLS CODE FIRM ADDRESS STATE ZIP CODE FIRM STATE LICENSE NO. PREFERRED TELEPHONE FAX EMAIL Agency Confirmation: Broker named in Section 9a above is the agent of (check one): Seller; or both Buyer and Seller The undersigned agree to sell the Premises on the terms and conditions herein stated, acknowledge receipt of a copy hereof and grant permission to Broker named in Section 9a to deliver a copy to Buyer. Counter Offer is attached, and is incorporated herein by reference. Seller must sign and deliver both this offer and the Counter Offer. If there is a conflict between this offer and the Counter Offer, the provisions of the Counter Offer shall be controlling. ^ SELLER’S SIGNATURE MO/DA/YR ^ SELLER’S SIGNATURE MO/DA/YR ^ SELLER’S NAME PRINTED ^ SELLER’S NAME PRINTED ADDRESS ADDRESS CITY, STATE, ZIP CODE CITY, STATE, ZIP CODE OFFER REJECTED BY SELLER: , 20 MONTH DAY YEAR (SELLER’S INITIALS)Page10of10Residential Resale Real Estate Purchase Contract >> 9b.8q.8r.8s.9a.9c. 448.447.446.445.444.443.449.450.451.452.453.454.455.456.457.458.459.460.461.462.463.464.465.466.467.468.469.470.471.472.473.
The following additional terms and conditions are hereby included as a part of the Contract between Seller and Buyer for the above referenced Premises if marked by an “X” and initialed by Buyer and Seller. All terms and conditions of the Contract are hereby included herein and delivery of all notices and documentation shall be deemed delivered and received when sent as required by Section 8m of the Contract. n BACK-UP CONTRACT — CONTINGENT UPON CANCELLATION OF PRIOR CONTRACT: Buyer acknowledges that Seller is currently obligated by a prior contract to sell the Premises to another buyer. This is a backup Contract contingent upon cancellation of the prior contract. Seller retains the right to amend, extend, or modify the prior contract. Upon cancellation of the prior contract, Seller shall promptly deliver written notice to Buyer. Upon Buyer’s receipt of written notice of cancellation of the prior contract, Buyer shall open escrow and Buyer shall deposit any required earnest money. The date of Seller’s written notice to Buyer shall be deemed the date of Contract acceptance for purposes of all applicable Contract time periods. Buyer may cancel this backup Contract any time prior to receipt of Seller’s notice of cancellation of prior contract. (BUYER’S AND SELLER’S INITIALS REQUIRED) / / / BUYER BUYER SELLER SELLER n SIGNATURE OF ABSENT BUYER SPOUSE OR CO-BUYER: Signing Buyer shall within five (5) days or ________ days of acceptance of this Contract obtain the signature of the absent buyer spouse or co-buyer on this Contract or deliver a disclaimer deed to Escrow Company that eliminates the need for the absent signature. (BUYER’S AND SELLER’S INITIALS REQUIRED) _________ / _________ / _________ / _________ BUYER BUYER SELLER SELLER n CORPORATE RELOCATION APPROVAL: Seller is in the process of a corporate relocation and this Contract is contingent upon corporate approval. Buyer agrees to cooperate with Seller in providing additional disclosures or executing additional addenda required by corporation, provided that Buyer incurs no additional costs or liability. (BUYER’S AND SELLER’S INITIALS REQUIRED) _________ / _________ / _________ / _________ BUYER BUYER SELLER SELLER n NON-REFUNDABLE EARNEST MONEY: Buyer’s earnest money shall be non-refundable unless Buyer elects to cancel pursuant to the Due Diligence section of the Contract, the Contract is cancelled pursuant to the Risk of Loss provision or escrow fails to close due to Seller’s breach of contract. Buyer acknowledges that Buyer’s earnest money shall be non-refundable even if the Premises fail to appraise for the sales price or the loan contingency is unfulfilled, unless prohibited by Federal Law. (BUYER’S AND SELLER’S INITIALS REQUIRED) _________ / _________ / _________ / _________ BUYER BUYER SELLER SELLER 31.30.29.28.27.26.25.24.23.22.21.20.19.18.17.16.15.14.13.12.11.10.9.8.7.6.5. Document updated: June 2021ADDITIONAL CLAUSE ADDENDUM 4.3.2.1. PremisesSeller:Buyer: Address: Date: Page 1 of 3 Additional Clause Addendum • Updated: June 2021 • Copyright © 2021 Arizona Association of REALTORS®. All rights reserved. >>
SELLER n APPRAISAL
n WAIVER OF APPRAISAL: Buyer agrees to waive the appraisal contingency pursuant to the Financing section of the Contract. In the event that the Premises fail to appraise for at least the sales price, Buyer agrees that Buyer’s down payment shall be increased in an amount equal to the difference between the appraised value and the purchase price. (BUYER’S AND SELLER’S INITIALS REQUIRED) _________ / _________ / _________ / _________
(BUYER’S
regardless of whether an appraisal has been ordered or received. Appraisal fee shall be paid by n Buyer n Seller n Other: ____________________________________________________________ (BUYER’S AND SELLER’S INITIALS REQUIRED) _________ / _________ / _________ / _________ BUYER BUYER SELLER SELLER n SURVEY: A survey shall be performed by a licensed surveyor within ________ days after Contract acceptance. Cost of the survey shall be paid by n Buyer n Seller n Other: _______________________________________. The survey shall be performed in accordance with the Arizona State Board of Technical Registration’s “Arizona Land Boundary Survey Minimum Standards.” Survey instructions are: n A boundary survey and survey plat showing the corners either verified or monumentation. n A survey certified by a licensed surveyor, acceptable to Buyer and the Title Company, in sufficient detail for an American Land Title Association (“ALTA”) Owner’s Policy of Title Insurance with boundary, encroachment or survey exceptions and showing all improvements, utility lines and easements on the Property or within five (5) feet thereof. n Other survey terms: ___________________________________________________ Buyer shall have five (5) days after receipt of results of survey or map to provide notice of disapproval to Seller. (BUYER’S AND SELLER’S INITIALS REQUIRED) _________ / _________ / _________ / _________ BUYER BUYER SELLER SELLER n TAX-DEFERRED EXCHANGE: n Seller n Buyer intend to enter into a tax-deferred exchange pursuant to I.R.C. §1031 or otherwise. All additional costs in connection with any such tax-deferred exchange shall be borne by the party requesting the exchange. The non-requesting party agrees to cooperate in the tax-deferred exchange provided that the non-requesting party incurs no additional costs and COE is not delayed. The parties are advised to consult a professional tax advisor regarding the advisability of any such exchange. The nonrequesting party and Broker(s) shall be indemnified and held harmless from any liability that may arise from participation in the tax-deferred exchange. (BUYER’S AND SELLER’S INITIALS REQUIRED) / / / BUYER BUYER SELLER SELLER 74.73.72.71.70.69.68.67.66.65.64.63.62.61.60.59.58.57.56.55.54.53.52.51.50.49.48.47.45.44.43.42.41.40.39.38.37.36.35.34.33.32.46. Page 2 of 3 Additional Clause Addendum • Updated: June 2021 • Copyright © 2021 Arizona Association of REALTORS®. All rights reserved. Additional Clause Addendum >> >>
/ / /
BUYER BUYER SELLER SHORTFALL: In the event the Premises fail to appraise for at least the purchase price in any appraisal required by lender, Buyer agrees that Buyer shall submit additional funds via U.S. currency or financing in an amount equal to the difference between the appraised value and the purchase price, provided that the difference does not exceed $ . Buyer and Seller agree that if the difference between the appraised value and the purchase price exceeds the amount of money set forth on line 40, Seller is not obligated to lower the purchase price and Buyer has five (5) days after notice of the appraised value to cancel this Contract and receive a return of the Earnest Money or the appraisal contingency shall be waived, unless otherwise prohibited by federal law. AND SELLER’S INITIALS REQUIRED)
BUYER BUYER SELLER SELLER Buyer’s obligation to complete this all cash sale is contingent upon an appraisal of the Premises for at least the purchase price. If the Premises fail to appraise for the purchase price, Buyer has five (5) days after notice of the appraised value, or twenty (20) days after Contract acceptance, whichever occurs first, to cancel this Contract and receive a return of the Earnest Money or the appraisal contingency shall be waived. In all cases, this appraisal contingency shall expire twenty (20) days after Contract acceptance,
n ALL CASH SALE APPRAISAL CONTINGENCY:
BUYER CONTINGENCY ADDENDUM Buyer Contingency Addendum • Updated: October 2018 • Copyright © 2018 Arizona Association of REALTORS ®. All rights reserved. Page 1 of 2 >> Document updated: October 2018 41.40.39.38.37.36.35.34.33.32.31.30.29.28.27.26.25.24.23.22.21.20.19.18.17.16.15.14.13.12.11.10.9.8.7.6.5.4.3.2.1.
CONTINGENT UPON ACCEPTED OFFER FOR BUYER’S PROPERTY: This Contract is contingent upon Buyer accepting an offer to purchase Buyer’s real property (“Accepted Offer”) located at: (“Buyer’s Property”) no later than . If Buyer does not accept an offer on Buyer’s Property by the date set MO/DA/YR forth on line 10, this Contract shall be deemed cancelled and the Earnest Money shall be released to Buyer.
If Buyer accepts an offer on Buyer’s Property, yet fails to deliver the Accepted Offer documents to Seller within the time frame set forth on line 13, Seller may issue a cure notice to Buyer as required by Section 7a of this Contract and, in the event of Buyer’s breach, Seller shall be entitled to the Earnest Money pursuant to Section 7b of this Contract.
ACCEPTED OFFER FOR BUYER’S PROPERTY: If Buyer accepts an offer on Buyer’s Property by the date set forth on line 10, Buyer shall deliver the Accepted Offer documents described on lines 67-72 to Seller for Seller’s review within three (3) days or days of execution of the Accepted Offer.
SELLER’S ACCEPTANCE OF BACK-UP CONTRACT: If Seller accepts a subsequent offer (Back-Up Contract) to purchase the Premises before Buyer has delivered to Seller the Accepted Offer documents, Seller may deliver written notice to Buyer informing Buyer of the Back-Up Contract. Upon receipt of Seller’s notice, Buyer shall have three (3) days or days to deliver to Seller a written notice to remove this Buyer Contingency. Such notice from Buyer shall include: (i) written documentation from Buyer’s Lender that Buyer can close escrow by the COE Date without the sale and closing of Buyer’s Property; or (ii) if this is an all cash sale, evidence of Buyer’s financial ability to close escrow by the COE Date without the sale and closing of Buyer’s Property. If Buyer fails to timely waive this Buyer Contingency, this Contract shall be deemed cancelled and the Earnest Money shall be released to Buyer.
Seller may, within three (3) days of receipt of the Accepted Offer documents, cancel this Contract and the Earnest Money shall be released to Buyer.
PremisesBuyer:Seller: Address: TheDate:following additional terms and conditions are hereby included as a part of the Contract between Seller and Buyer for the above referenced Premises if marked by an “X” and initialed by Seller and Buyer. The terms and conditions of the Contract are included herein by reference.
2. Proceed with this Contract by removing this Buyer Contingency and provide: (i) written documentation from Buyer’s Lender that Buyer can close escrow by the COE Date without the sale and closing of Buyer’s Property; or (ii) if this is an all cash sale, evidence of Buyer’s financial ability to close escrow by the COE Date without the sale and closing of Buyer’s Property.
BUYER’S CONTINGENCY: If Seller does not cancel this Contract within three (3) days of receipt of the Accepted Offer documents, this Contract shall become contingent upon the closing of the pending sale of Buyer’s Property by MO/DA/YR If the pending sale of Buyer’s Property does not close escrow by this date, this Contract shall be deemed cancelled and the Earnest Money shall be released to Buyer.
1. Immediately cancel this Contract and all Earnest Money shall be released to Buyer; or
If Buyer elects to waive this Buyer Contingency and proceed with this Contract, Seller and Buyer agree that all other contingencies shall remain.
CANCELLATION OF ACCEPTED OFFER FOR BUYER’S PROPERTY: If Buyer’s Accepted Offer cancels for any reason, Buyer shall deliver notice to Seller within three (3) days of Buyer’s receipt of cancellation and provide evidence of cancellation. Notice to Seller shall state Buyer’s election to either:
If Buyer elects to waive this Buyer Contingency and proceed with this Contract, Seller and Buyer agree that all other contingencies shall remain.
BUYER’S CONTINGENCY: If the pending sale of Buyer’s Property does not close escrow by , this Contract shall be deemed cancelled and the Earnest Money shall be released to Buyer.
If lines
AGREED
If Buyer elects to waive this Buyer Contingency and proceed with this Contract, Seller and Buyer agree that all other contingencies shall remain.
CANCELLATION OF ACCEPTED OFFER FOR BUYER’S PROPERTY: If Buyer’s Accepted Offer cancels for any reason, Buyer shall deliver notice to Seller within three (3) days of Buyer’s receipt of cancellation and provide evidence of cancellation. Notice to Seller shall state Buyer’s election to either:
NOTICE: If Buyer fails to timely deliver any Notice required by this Addendum, Seller may issue a cure notice to Buyer as required by Section 7a of this Contract and, in the event of Buyer’s breach, Seller shall be entitled to the Earnest Money pursuant to Section 7b of this Contract. STATUS UPDATE: Upon request, Buyer shall provide Seller with a written update regarding the status of the sale of Buyer’s Property. The undersigned agrees to the modified or additional terms and conditions contained herein and acknowledges a copy hereof. ^ BUYER’S SIGNATURE MO/DA/YR^ BUYER’S SIGNATURE MO/DA/YR ^ SELLER’S SIGNATURE MO/DA/YR ^ SELLER’S SIGNATURE MO/DA/YR Buyer Contingency Addendum >> Buyer Contingency Addendum • Updated: October 2018 • Copyright © 2018 Arizona Association of REALTORS ®. All rights reserved. Page 2 of 2 79.78.77.76.75.74.73.72.71.70.69.68.67.66.65.64.63.62.61.60.59.58.57.56.55.54.53.52.51.50.49.48.47.46.45.44.43.42. MO/DA/YR
Buyer has already accepted an offer to purchase Buyer’s real property (“Accepted Offer”) located at: (“Buyer’s Property”). The Accepted Offer documents described on lines 67-72 are attached hereto.
2. Proceed with this Contract by removing this Buyer Contingency and provide: (i) written documentation from Buyer’s Lender that Buyer can close escrow by the COE Date without the sale and closing of Buyer’s Property; or (ii) if this is an all cash sale, evidence of Buyer’s financial ability to close escrow by the COE Date without the sale and closing of Buyer’s Property.
If lines 49-65 AND CONTINGENCY TO ABOVE: Within the time specified in the applicable section above, Buyer shall deliver the Accepted Offer a copy of all purchase contract documents evidencing the sale, and: a. b. c. f. DELIVER
1. Immediately cancel this Contract and all Earnest Money shall be released to Buyer; or
documents to Seller, including
The date of Contract acceptance for purposes of all applicable Contract time periods, excluding opening of escrow and deposit of Earnest Money, shall be deemed to be: The date that the signed Contract (and any incorporated counter offer) is delivered to and received by the appropriate Broker as indicated in Section 8i of this Contract; Three (3) days after Seller’s receipt of Buyer’s Accepted Offer documents, provided that Seller does not cancel this Contract prior to expiration of the three (3) day period as permitted in lines 18-19. 7-47 AND SELLER’S UPON THE CLOSING OF BUYER’S PROPERTY:
TIME PERIODS:
SELLER’S INITIALS REQUIRED / / / BUYER BUYER SELLER SELLER THE FOLLOWING TERMS APPLY TO EITHER
apply: BUYER’S
TIME PERIODS: The date of Contract acceptance for purposes of all applicable Contract time periods shall be the date that the signed Contract (and any incorporated counter offer) is delivered to and received by the appropriate Broker as indicated in Section 8i of this Contract.
ACCEPTED OFFER DOCUMENTS:
FAILURE TO
or □
INITIALS REQUIRED / / BUYERBUYERSELLERSELLER/ CONTINGENT
□
apply: BUYER’S
d. e.
This is a Counter Offer originated by: n Seller n Buyer n Landlord n Tenant This is a Counter Offer to the n Offer n Counter Offer dated between the following Parties: MO/DA/YR AcceptancePremisesBuyer/Tenant:Seller/Landlord:Address:oftheabove Offer and/or Counter Offer is contingent upon agreement to the following: Terms of Acceptance: Unless acceptance of this Counter Offer is signed by all parties and a signed copy delivered in person, by mail, facsimile or electronically, and received by the originating party’s Broker named in the Contract Section 8q or 9a as applicable by at n a.m. n p.m., Mountain Standard Time, this Counter Offer shall be considered withdrawn. Except as modified by this Counter Offer, all other terms and conditions of the above referenced Offer/Counter Offer(s) shall remain unchanged and deemed accepted. Until this Counter Offer has been accepted in the manner described above, the Parties understand that the Party originating this Counter Offer may withdraw the offer to buy, sell, or lease the Premises. The undersigned acknowledges receipt of a copy hereof.
Date:
Time: n Seller n Buyer n Landlord n Tenant Date: Time: n Seller n Buyer n Landlord n Tenant n ACCEPTANCE The undersigned agrees to the terms and conditions of this Counter Offer and acknowledges receipt of a copy hereof. Date: Time: n Seller n Buyer n Landlord n Tenant Date: Time: n Seller n Buyer n Landlord n Tenant42.41.40.39.38.37.36.35.34.33.32.31.30.29.28.27.26.25.24.23.22.21.20.19.18.17.16.15.14.13.12.11.10.9.8.7.6.5.4.3.2.1. Document updated: June 2021COUNTER OFFER Counter Offer • Updated: June 2021 • Copyright © 2021 Arizona Association of REALTORS®. All rights reserved.
Time: n Seller n Buyer n Landlord n Tenant Date: Time: n Seller n Buyer n Landlord n Tenant n RESPONSE An additional Counter Offer is attached, and is incorporated by reference. If there is a conflict between this Counter Offer and the additional Counter Offer, the provisions of the additional Counter Offer shall be controlling.
Date:
PURSUANT TO THE REMEDIES SECTION OF THE CONTRACT Buyer Seller hereby delivers notice to Buyer Seller of the following non-compliance with the Contract: If the non-compliance is not cured within three (3) days after delivery of this notice (“Cure Period”) the failure to comply shall become a breach of Contract. In the event of a breach of Contract, review the Remedies Section of the Contract and consult independent legal counsel.21.20.19.18.17.16.15.14.13.12.11.10.9.8.7.6. Document updated: February 2019 Cure Period Notice • Updated: February 2019 Copyright © 2019 Arizona Association of REALTORS®. All rights reserved. CURE PERIOD NOTICE Contract Dated: EscrowSeller:Buyer: Premises/PropertyCompany: Address:5.4.3.2.1.
Based on the information provided, Buyer can pre-qualify for a loan amount of: $ , assuming a monthly principal and interest loan payment of $ , provided that the total monthly payment (which includes principal, interest, mortgage insurance, property taxes, insurance, HOA fees, and flood insurance, if applicable) does not exceed: $ Interest rate not to exceed: %, Fixed Interest Rate Adjustable Interest Rate Pre-Payment Penalty
Returns Credit/Liability Documentation Corporate
Returns Other: Additional
YES NO N/A Paystubs Down
provide loan status updates on this AAR Loan Status Update form to Seller and Broker(s) within ten (10) days of Contract acceptance pursuant to Section 2e of the Contract and upon request thereafter. Buyer commits to work with the above referenced Lender on the terms described herein. Buyer acknowledges receipt of a copy hereof. ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR40.39.38.37.36.35.34.33.32.31.30.29.28.27.26.25.24.23.22.21.20.19.18.17.16.15.14.13.12.11.10.9.8.7.6.5.4.3.2.1. Document updated: February 2017LOAN STATUS UPDATE (LSU) Loan Status Update • Updated: February 2017 • Copyright © 2017 Arizona Association of REALTORS®. All rights reserved. PAGE 1 of 2 >>
Initial Documentation Received: Lender received the following information from Buyer (Additional documentation may be requested.): NO N/A Payment/Reserves Tax Tax comments: Buyer has instructed, and Lender agrees to
Documentation W-2s Gift Documentation Personal
YES NO N/A
Lender has provided Buyer with the HUD form “For Your Protection: Get a Home Inspection” (FHA loans only).
YES
Pursuant to Section 2e of the Contract, Buyer shall deliver to Seller the AAR Loan Status Update (“LSU”) describing the current status of Buyer’s proposed loan within ten (10) days after Contract acceptance and hereby instructs lender to provide an updated LSU to Broker(s) and Seller upon request. “Lender” is indicated on lines 4 and 5. Lender: COMPANY ARIZONA LICENSE # NMLS # LOAN OFFICER ARIZONA LICENSE # NMLS # ADDRESS CITY STATE ZIP EMAIL PHONE FAX Close of Escrow Date: Premises/PropertySeller(s):Buyer(s): Address or Assessor’s #(s): City: , AZ ZIP Code: PRE-QUALIFICATION INFORMATION Buyer is: Married Unmarried Legally Separated Buyer: is is not relying on the sale or lease of a property to qualify for this loan. Buyer: is is not relying on Seller Concessions for Buyer’s loan costs, impounds, Title/Escrow Company costs, recording fees, and, if applicable, VA loan costs not permitted to be paid by Buyer. (Note: The amount that Seller agrees to contribute, if any, shall be established in the Contract.) Buyer: is is not relying on down payment assistance to qualify for this loan. Type of Loan: Conventional FHA VA USDA Other: Occupancy Type: Primary Secondary Non-Owner Occupied Property Type: Single Family Residence Condominium Planned Unit Development Manufactured Home Mobile Home Vacant Land/Lot Other:
Lender has completed a verbal discussion with Buyer including a discussion of income, assets and debts. Lender has obtained a Tri-Merged Residential Credit Report.
Loan Status Update (LSU) >> Page 2 of 2 PAGE 2 of 2 DOCUMENTATION Lender received the Contract and all Addenda / / Lender received Buyer’s name, income, social security number, Premises address, estimate of value of the Premises, and mortgage loan amount sought / / Lender sent Loan Estimate / / Buyer indicated to Lender an intent to proceed with the transaction after having received the Loan Estimate / / Lender received a signed Form 1003 and Lender disclosures / / Payment for the appraisal has been received / / Lender ordered the appraisal / / Lender identified down payment source / / Lender received and reviewed the Title Commitment / / Buyer locked the loan program and financing terms, including interest rate and points / / Lock expiration date Lender received the Initial Documentation listed on lines 32-35 / / Appraisal received / / Premises/Property appraised for at least the purchase price / / Closing Disclosure provided to Buyer / / Closing Disclosure received by Buyer / / UNDERWRITING AND APPROVAL Lender submitted the loan package to the Underwriter / / Lender obtained loan approval with Prior to Document (“PTD”) Conditions / / Appraisal conditions have been met / / Buyer has loan approval without PTD Conditions / / CLOSING Lender ordered the Closing Loan Documents and Instructions / / Lender received signed Closing Loan Documents from all parties / / All Lender Quality Control Reviews have been completed / / All Prior to Funding (“PTF”) Conditions have been met and Buyer has obtained loan approval without conditions / / Funds have been ordered / / All funds have been received by Escrow Company / / Close of escrow occurs when the deed has been recorded at the appropriate county recorder’s office. ^ LOAN OFFICER’S SIGNATURE MO/DA/YR YES NO COMPLETEDDATE INITIALSLENDER Premises/Property Address or Assessor’s #(s): Loan Status Update • Updated: February 2017 • Copyright © 2017 Arizona Association of REALTORS®. All rights reserved. 71.70.69.68.67.66.65.64.63.62.61.60.59.58.57.56.55.54.53.52.51.50.49.48.47.46.45.44.43.42.41.
days
Lender provided Buyer with the HUD form “For Your Protection: Get a Home Inspection” (FHA loans only). Lender completed a verbal discussion with Buyer including a discussion of income, assets and debts. Lender obtained a Tri-Merged Residential Credit Report. Based on the information provided, Buyer can pre-qualify for a loan amount of: $ , assuming a monthly principal and interest loan payment of $ , provided that the total monthly payment (which includes principal, interest, mortgage insurance, property taxes, insurance, HOA fees, and flood insurance, if applicable) does (10) of
not exceed: $ Interest rate not to exceed: %, Fixed Interest Rate Adjustable Interest Rate Pre-Payment Penalty Initial Documentation Received: Lender received the following information from Buyer (additional documentation may be requested): YES NO N/A YES NO N/A Paystubs Down Payment/Reserves Documentation W-2s Gift Documentation Personal Tax Returns Credit/Liability Documentation Corporate Tax Returns Other: Additional comments: Buyer has instructed, and Lender agrees to provide loan status updates on the AAR Loan Status Update form to Seller and Broker(s) within ten
Contract acceptance pursuant to Section 2e of the Contract and upon request thereafter. LENDER INFORMATION The Lender identified below has prepared the information listed above with Buyer(s) and has completed the above action points noted. This information does not constitute loan approval. All information provided must be approved by an underwriter, and any material change in Buyer’s credit or financial profile will render this pre-qualification null and void. The above pre-qualification expires on: . DATE Lender: COMPANY ARIZONA LICENSE # NMLS # LOAN OFFICER ARIZONA LICENSE # NMLS # ADDRESS CITY STATE ZIP EMAIL PHONE FAX ^ LOAN OFFICER’S SIGNATURE MO/DA/YR Buyer acknowledges receipt of a copy hereof and grants permission to Broker to submit this Pre-Qualification Form with Contract. ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR 42.41.40.39.38.37.36.35.34.33.32.31.30.29.28.27.26.25.24.23.22.21.20.19.18.17.16.15.14.13.12.11.10.9.8.7.6.4.3.2.1.5. Document updated: February 2017PRE-QUALIFICATION FORM Pre-Qualification Form • Updated: February 2017 • Copyright © 2017 Arizona Association of REALTORS®. All rights reserved. Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
PRE-QUALIFICATION INFORMATION Purpose: This Pre-Qualification Form is to be used in conjunction with an AAR Residential Resale Real Estate Purchase Contract or Vacant Land/Lot Purchase Contract (“Contract”). Buyer HAS NOT consulted with a lender. (If Buyer marks the box on line 3, Buyer is to complete only lines 4 and 5.) PRINT BUYER’S NAME PRINT BUYER’S NAME ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR Lender indicated on lines 36 and 37 has consulted with (“Buyer”) and submits the following: Buyer is: Married Unmarried Legally Separated Buyer: is is not relying on the sale or lease of a property to qualify for this loan. Buyer: is is not relying on Seller Concessions for Buyer’s loan costs, impounds, Title/Escrow Company costs, recording fees, and, if applicable, VA loan costs not permitted to be paid by Buyer. (Note: The amount Seller agrees to contribute, if any, shall be established in the Contract.) Buyer: is is not relying on down payment assistance to qualify for this loan. Type of Loan: Conventional FHA VA USDA Other: Occupancy Type: Primary Secondary Non-Owner Occupied Property Type: Single Family Residence Condominium Planned Unit Development Manufactured Home Mobile Home Vacant Land/Lot Other: YES NO N/A
If the buyer asks you about an aspect of the property, you have a duty to disclose the information, even if you do not consider the information material.* You also have a legal duty to disclose facts when disclosure is necessary to prevent a previous statement from being misleading or misrepresented: for example, if something changes.
If you do not make the legally required disclosures, you may be subject to civil liability Under certain circumstances, nondisclosure of a fact is the same as saying that the fact does not exist. Therefore, nondisclosure may be given the same legal effect as fraud.
Residential Seller Disclosure Advisory • Updated: October 2017 Copyright © 2017 Arizona Association of REALTORS®. All rights reserved. DOUBT –
DISCLOSE!
The*
Arizona law requires the seller to disclose material (important) facts about the property, even if you are not asked by the buyer or a real estate agent.
SPDS is designed to assist you, the seller, in making these legally required disclosures and to avoid inadvertent nondisclosures of material facts To satisfy your disclosure obligations and protect yourself against alleged nondisclosure, you should complete the SPDS by answering all questions as truthfully and as thoroughly as possible. Attach copies of any available invoices, warranties, and leases, to insure that you are disclosing accurate information. Use the blank lines to explain your answers. If you do not have the personal knowledge to answer a question, it is important not to guess use the blank lines to explain the situation.
Document updated: October 2017 RESIDENTIAL SELLER DISCLOSURE ADVISORY WHEN IN
These disclosure obligations remain even if you and the buyer agree that no Seller’s Property Disclosure Statement (“SPDS”) will be provided.
If you are using the Arizona Association of REALTORS® (“AAR”) Residential Resale Real Estate Purchase Contract, the seller is required to deliver “a completedAAR Residential SPDS form to the Buyer within three (3) days after Contract acceptance.” If the Seller does not provide the SPDS as the Contract requires, the Seller is potentially in breach of the Contract, thereby enabling the Buyer to cancel the transaction and receive the earnest money deposit.
By law, sellers are not obligated to disclose that the property is or has been: (1) a site of a natural death, suicide, homicide, or any other crime classified as a felony; (2) owned or occupied by a person exposed to HIV, or diagnosed as having AIDS or any other disease not known to be transmitted through common occupancy of real estate; or (3) located in the vicinity of a sex offender. However, the law does not protect a seller who makes an intentional misrepresentation. For example, if you are asked whether there has been a death on the property and you know that there was such a death, you should not answer “no” or “I don’t know.” Instead you should either answer truthfully or respond that you are not legally required to answer the question.
Residential Seller’s
INSTRUCTIONS: (1) Review this form and any attachments carefully. (2) Verify all important information. (3) Ask about any incomplete or inadequate responses. (4) Inquire about any concerns not addressed on the SPDS. (5) Review all other applicable documents, such as CC&R’s, association bylaws, surveys, rules, and the title report or commitment. (6) Obtain professional inspections of the Property. (7) Investigate the surroundingarea.
PROPERTY AND OWNERSHIP As used herein, “Property” shall mean the real property and all fixtures and improvements thereon and appurtenances incidental thereto, plus fixtures and personal property described in the Contract.
If any refundable deposits or prepaid rents are being held, by whom and how much? Explain: Is the legal owner(s) of the Property a foreign person pursuant to the Foreign Investment in Real Property Tax Act (FIRPTA)? n Yes n No If yes, consult a tax advisor; mandatory withholding may apply.
MESSAGE TO THE SELLER:
Sellers are obligated by law to disclose all known material (important) facts about the Property to the Buyer. The SPDS is designed to assist you in making these disclosures. If you know something important about the Property that is not addressed on the SPDS, add that information to the form. Prospective Buyers may rely on the information you provide.
LEGAL OWNER(S) OF PROPERTY: Date Purchased:
INSTRUCTIONS: (1) Complete this form yourself. (2) Answer all questions truthfully and as fully as possible. (3) Attach all available supporting documentation. (4) Use explanation lines as necessary. (5) If you do not have the personal knowledge to answer a question, use the explanation lines to explain. By signing on page 7, you acknowledge that the failure to disclose known material information about the Property may result in liability.
PROPERTY ADDRESS: (STREET ADDRESS) (CITY) (STATE) (ZIP)
Explain:Approximate year built: . If Property was built prior to 1978, Seller must furnish the Buyer with a lead-based paint disclosure form.
NOTICE TO BUYER:If the Property is in a subdivision, a subdivision public report, which contains a variety of information about the subdivision at the time the subdivision was approved, may be available by contacting the Arizona Department of Real Estate or the homebuilder. The public report information may be outdated. www.azre.gov. STATEMENT
Is the Property located in a community defined by the fair housing laws as housing for older persons? n Yes n No
(SPDS) (Tobe completedbySeller)
The Property is currently: n Owner-occupied n Leased n Estate n Foreclosure n VacantIf vacant, how long? If a rental property, how long? Expiration date of current lease: (Attach a copy of the lease if available.)
Explain:IstheProperty located in an unincorporated area of the county? n Yes n NoIf yes, and five or fewer parcels of land other than subdividedland are being transferred, the Seller must furnish the Buyer with a written Affidavit of Disclosure in the form required by law.
MESSAGE TO THE BUYER: Although Sellers are obligated to disclose all known material (important) facts about the Property, there are likely facts about the Property that the Sellers do not know. Therefore, it is important that you take an active role in obtaining information about the Property.
Disclosure Statement (SPDS) Updated: October 2017• Copyright © 2017 Arizona Association of REALTORS® All rights reserved. Page 1 of 7 >>
Does the Property include any leased land? n Yes n No
20.19.18.17.16.15.14.13.12.11.10.9.8.7.6.5.4.3.2.1. R Document updated: October 2017 RESIDENTIAL SELLER’S PROPERTY DISCLOSURE
THE FOLLOWING ARE REPRESENTATIONS OF THE SELLER(S) AND ARE NOT VERIFIED BY THE BROKER(S) OR AGENT(S). Property
YESNO n n Have you entered into any agreement to transfer your interest in the Property in any way, including rental renewals or options to purchase? Explain: n n Are you aware if there are any association(s) governing the Property? If yes, provide contact(s) information:Name: Phone #: Name: Phone #: If yes, are there any fees?How much? $ How often? How much? $ How often? n n Are you aware of any association fees payable upon transfer of the Property? Explain: n n Are you aware of any proposed or existing association assessment(s)? Explain: n n Are you aware of any pending or anticipated disputes or litigation regarding the Property or the association(s)? Explain: n n Are you aware of any of the following recorded against the Property? (Check all that apply): n Judgment liens n Tax liens n Other non-consensual liens Explain: n n Are you aware of any assessments affecting the Property? (Check all that apply): n Paving n Sewer n Water n Electric n Other Explain: n n Are you aware of any title issues affecting the Property? (Check all that apply): n Recorded easements n Use restrictions n Lot line disputes n Encroachments n Unrecorded easements n Use permits n Other Explain: n n Are you aware if the Property is located within the boundaries of a Community Facilities District (CFD)? If yes, provide the name of the CFD: n n Are you aware of any public or private use paths or roadways on or across the Property? Explain: n n Are you aware of any problems with legal or physical access to the Property? Explain: The road/street access to the Property is maintained by the n County n City n Homeowners’ Association n Privately n n If privately maintained, is there a recorded road maintenance agreement? Explain: n n Are you aware of any violation(s) of any of the following? (Check all that apply): n Zoning n Building Codes n Utility Service n Sanitary health regulations n Covenants, Conditions, Restrictions (CC&R’s) n Other (Attach a copy of notice(s) of violation if available.) Explain: n n Are you aware of any homeowner’s insurance claims having been filed against the Property? Explain: NOTICE TO BUYER:Your claims history, your credit report, the Property’s claims history and other factorsmay affect the insurability of the Property and at what cost. Under Arizona law, your insurance companymay cancel your homeowner’s insurance within 60 days after the effective date. Contact your insurance company. BUILDING AND SAFETY INFORMATION YESNOROOF / NOTICESTRUCTURAL:TOBUYER:Contact a professional to verify the condition of the roof. n n Are you aware of any past or present roof leaks? Explain: n n Are you aware of any other past or present roof problems? Explain:67.66.65.64.63.62.61.60.59.58.57.56.55.54.53.52.51.50.49.48.47.46.45.44.43.42.41.40.39.38.37.36.35.34.33.32.31.30.29.28.27.26.25.24.23.22.21. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 2 of 7 >> Residential Seller’s Property Disclosure Statement (SPDS) Updated: October 2017• Copyright © 2017 Arizona Association of REALTORS® All rights reserved.
YESNO n n Are you aware of any roof repairs? Explain: n n Is there a roof warranty? (Attach a copy of warranty if available.) n n If yes, is the roof warranty transferable? Cost to transfer n n Are you aware of any interior wall/ceiling/door/window/floor problems? Explain: n n Are you aware of any cracks or settling involving the foundation, exterior walls or slab? Explain: n n Are you aware of any chimney or fireplace problems, if applicable? Explain: n n Are you aware of any damage to any structure on the Property by any of the following? (Check all that apply): n Flood n Fire n Wind n Expansive soil(s) n Water n Hail n Other Explain: WOOD INFESTATION: Are you aware of any of the following: n n Past presence of termites or other wood destroying organisms on the Property? n n Current presence of termites or other wood destroying organisms on the Property? n n Past or present damage to the Property by termites or other wood destroying organisms? Explain: n n Are you aware of past or present treatment(s) of the Property for termites or other wood destroying organisms? If yes, date last treatment was performed: Name of treatment provider(s): n n Is there a treatment warranty? (Attach a copy of warranty if available.) n n If yes, is the treatment warranty transferrable? NOTICE TO BUYER:Contact Office of Pest Management for past termite reports or treatment history. www.sb.state.az.us HEATING & COOLING: ApproximateCooling:Type(s)ApproximateHeating:Type(s)Age(s)Age(s) n n Are you aware of any past or present problems with the heating or cooling system(s)? Explain: PLUMBING: n n Are you aware of the type of water pipes, such as galvanized, copper, PVC, CPVC or polybutylene? If yes, identify: n n Are you aware of any past or present plumbing problems? Explain: n n Are you aware of any water pressure problems? Explain: Type of water heater(s): n Gas n Electric n Solar Approx. age(s): n n Are you aware of any past or present water heater problems? Explain: n n Is there a landscape watering system? If yes, type: n automatic timer n manual n both n n If yes, are you aware of any past or present problems with the landscape watering system? Explain: n n Are there any water treatment systems? (Check all that apply): n water filtration n reverse osmosis n water softener n Other Is water treatment system(s) n owned n leased (Attach a copy of lease if available.) n n Are you aware of any past or present problems with the water treatment system(s)? Explain:118.117.116.115.114.113.112.111.110.109.108.107.106.105.104.103.102.101.100.99.98.97.96.95.94.93.92.91.90.89.88.87.86.85.84.83.82.81.80.79.78.77.76.75.74.73.72.71.70.69.68. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 3 of 7 >> Residential Seller’s Property Disclosure Statement (SPDS) Updated: October 2017• Copyright © 2017 Arizona Association of REALTORS® All rights reserved.
YESNO SWIMMING POOL/SPA/HOT TUB/SAUNA/WATER FEATURE: n n Does the Property contain any of the following? (Check all that apply): n Swimming pool n Spa n Hot tub n Sauna n Water feature n n If yes, are either of the following heated? n Swimming pool n Spa If yes, type of heat: n n Are you aware of any past or present problems relating to the swimming pool, spa, hot tub, sauna or water feature? Explain: ELECTRICAL AND OTHER RELATED SYSTEMS: n n Are you aware of any past or present problems with the electrical system? Explain: n n Is there a security system? If yes, is it (Check all that apply): n Leased (Attach a copy of lease if available.) n Owned n Monitored n Other n n Are you aware of any past or present problems with the security system? Explain: n n Does the Property contain any of the following systems or detectors?(Check all that apply): n Smoke/fire detection n Fire suppression (sprinklers) n Carbon monoxide detector If yes, are you aware of any past or present problems with the above systems? Explain: MISCELLANEOUS: n n Are you aware of any animals/pets that have resided in the Property? If yes, what kind: n n Are you aware of or have you observed any of the following on the Property? (Check all that apply): n Scorpions n Rabid animals n Bee swarms n Rodents n Reptiles n Bed Bugs n Other: Explain: n n Has the Property been serviced or treated for pests, reptiles, insects, birds or animals? If yes, how often: Name of service provider(s): Date of last service: n n Are you aware of any work done on the Property, such as building, plumbing, electrical or other improvements or alterations or room conversions? (If no, skip to line 156.) Explain: n n Were permits for the work required? Explain: n n If yes, were permits for the work obtained? Explain: n n Was the work performed by a person licensed to perform the work? Explain: n n Was approval for the work required by any association governing the property? Explain: If yes, was approval granted by the association? Explain: n n Was the work completed? Explain: n n Are there any security bars or other obstructions to door or window openings? Explain: n n Are you aware of any past or present problems with any built-in appliances? Explain: n n Are there any leased propane tanks, equipment or other systems on the Property? (Attach a copy of lease if available.) Explain:161.160.159.158.157.156.155.154.153.152.151.150.149.148.147.146.145.144.143.142.141.140.139.138.137.136.135.134.133.132.131.130.129.128.127.126.125.124.123.122.121.120.119. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 4 of 7 >> Residential Seller’s Property Disclosure Statement (SPDS) Updated: October 2017• Copyright © 2017 Arizona Association of REALTORS® All rights reserved.
ENVIRONMENTAL INFORMATION YESNO n n Are
n Drainage/grade n Erosion n Fissures n Dampness/moisture n Other Explain: n n
BUYER:If the
to any of the following? (Check all that apply): n Soil settlement/expansion n Drainage/grade n Erosion n Fissures n Other Explain: NOTICE
NOTICE TO Property is served by a solar system, Buyer is advised to read all pertinent documents and review the cost, insurability, operation, and value of the system, among other items. you aware of any past or present issues or problems with any of the following on the Property? (Check all that apply): settlement/expansion Are you aware of any past or present issues or problems in close proximity to the Property related TO
n Soil
BUYER: The Arizona Department of Real Estate provides earth fissure maps to any member of the public in printed or electronic format upon request and on its website at www.azre.gov. n n Are you aware if the Property is subject to any present or proposed effects of any of the following? (Check all that apply): n Airport noise n Traffic noise n Rail line noise n Neighborhood noise n Landfill n Toxic waste disposal n Odors n Nuisances n Sand/gravel operations n Other Explain: n n Are you aware if any portion of the Property has ever been used as a "Clandestine drug laboratory" (manufacture of, or storage of, chemicals or equipment used in manufacturing methamphetamine, ecstasy or LSD)?206.205.204.203.202.201.200.199.198.197.196.195.194.193.192.191.190.189.188.187.186.185.184.183.182.181.180.179.178.177.176.175.174.173.172.171.170.169.168.167.166.165.164.163.162. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 5 of 7 >> Residential Seller’s Property Disclosure Statement (SPDS) Updated: October 2017• Copyright © 2017 Arizona Association of REALTORS® All rights reserved.
UTILITIES DOES THE PROPERTY CURRENTLY RECEIVE THE FOLLOWING SERVICES? YESNO PROVIDER n n Electricity: n n Fuel: n Natural gas n Propane n Oil n n Cable / Satellite: n n Internet: n n Telephone: n n Garbage Collection: .................................................... n n Fire: n n Irrigation: n n Water Source: n n n Public n Private water co. n Hauled water n Private well n Shared well If water source is a private or shared well, complete and attach Domestic Water Well/Water Use Addendum. NOTICE TO BUYER:If the Property is served by a well, private water company or a municipal water provider, the Arizona Department of Water Resources may not have made a water supply determination. For more information about water supply, or any of the above services, contact the provider. n n Are you aware of any past or present drinking water problems? Explain: n n U.S. Postal Service delivery is available at: n Property n Cluster Mailbox n Post Office n Other n n Are there any alternate power systems serving the Property? (If no, skip to line 190.) If yes, indicate type (Check all that apply): n Solar n Wind n Generator n Other Are you aware of any past or present problems with the alternate power system(s)? Explain: n n Are any alternate power systems serving the Property leased? Explain: If yes, provide name and phone number of the leasing company (Attach copy of lease if available):
n
n n Are
YESNO n n Are you aware if the Property is located in the vicinity of a public or private airport? Explain:
n n Are
If the entire Property or a portion of the Property is connected to a sewer, has a professional verified the sewer connection? BUYER: Contact a professional to conduct a sewer verification test. and approved sewer system, but not
If yes, how and when: NOTICE TO
n n
Type of sewer: n Public n Private n Planned
(Check
n Superfund /
n n
NOTICE TO BUYER: Your mortgage lender [may] [will] require you to purchase flood insurance in connection with your purchase of this property. The National Flood Insurance Program provides for the availability of flood insurance and establishes flood insurance policy premiums based on the risk of flooding in the area where properties are located. Recent changes to federal law (The Biggert-Waters 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 this property previously as an indication of the premiums that will apply after completion of the purchase. In considering purchase of this 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 purchaser of the property, and other matters related to the purchase of flood insurance for the property. You may also wish to contact the Federal Emergency Management Agency (FEMA) for more information about flood insurance as it relates to this property. you aware of any portion of the Property ever having been flooded? Explain: Are you aware of any water damage or water leaks of any kind on the Property? Explain: Are you aware of any past or present mold growth on the Property? If yes, explain: the entire Property connected to a sewer? If no, is a portion of the Property connected to a sewer? Explain:
Spaces n n Are
Explain: n n Are
n n
SEWER/WASTEWATER TREATMENT YESNO n n Is
n Asbestos n Radon gas n Lead-based paint n Pesticides n
tanks n Fuel/chemical storage Explain: n n Are
NOTICE TO SELLER AND BUYER:Pursuant to Arizona law a Seller shall provide a written disclosure to the Buyer if the Property is located in territory in the vicinity of a military airport or ancillary military facility as delineated on a map prepared by the State Land Department. The Department of Real Estate also is obligated to record a document at the County Recorder’s Office disclosing if the Property is under restricted air space and to maintain the State Land Department Military Airport Map on its website at www.azre.gov. the Property located in the vicinity of a military airport or ancillary military facility? you aware of the presence of any of the following on the Property, past or present? (Check all that apply): Underground storage you aware if the Property is located within or subject to any of the following ordinances? all that apply): WQARF CERCLA area Natural Area Open you aware of any open mine shafts/tunnels or abandoned wells on the Property? yes, describe location: you aware if any portion of the Property is in a flood plain/way?
/
Explain:
connected Name of Provider:23237.236.235.234.233.232.231.230.229.228.227.226.225.224.223.222.221.220.219.218.217.216.215.214.213.212.211.210.209.208.207.8.239.240.241.242.243.244.245.246.247.248.249.250.251.252. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 6 of 7 >> Residential Seller’s Property Disclosure Statement (SPDS) Updated: October 2017• Copyright © 2017 Arizona Association of REALTORS® All rights reserved.
n n
n Wetlands
If
n n Is
^ BUYER’S SIGNATURE
^ BUYER’S SIGNATURE
NOTICE: Buyer acknowledges that by law, Sellers, Lessors and Brokers are not obligated to disclose that the Property is or has been: (1) the site of a natural death, suicide, homicide, or any other crime classified as a felony; (2) owned or occupied by a person exposed to HIV, diagnosed as having AIDS or any other disease not known to be transmitted through common occupancy of real estate; or (3) located in the vicinity of a sex offender. By signing below, Buyer acknowledges receipt only of this SPDS. If Buyer disapproves of any items provided herein, Buyer shall deliver to Seller written notice of the items disapproved as provided in the Contract. MO/DA/YR MO/DA/YR
YESNO n n Are you aware of any past or present problems with the sewer? Explain: n n Is the Property served by an On-Site Wastewater Treatment Facility? (If no, skip to line 267.) If yes, the Facility is: n Conventional septic system n Alternative system; type: n n If the Facility is an alternative system, is it currently being serviced under a maintenance contract? If yes, name of contractor: Phone #: Approximate year Facility installed: (Attach copy of permit if available.) n n Are you aware of any repairs or alterations made to this Facility since original installation? ApproximateExplain: date of last Facility inspection and/or pumping of septic tank: n n Are you aware of any past or present problems with the Facility? Explain: NOTICE TO SELLER AND BUYER: The Arizona Department of Environmental Quality requires a Pre-Transfer Inspection of On-Site Wastewater Treatment Facilities on re-sale properties. OTHER CONDITIONS AND FACTORS What other material (important) information are you aware of concerning the Property that might affect the Buyer’s decision-making process, the value of the Property, or its use? Explain: ADDITIONAL EXPLANATIONS SELLER CERTIFICATION: Seller certifies that the information contained herein is true and complete to the best of Seller’s knowledge as of the date signed. Seller agrees that any changes in the information contained herein will be disclosed in writing by Seller to Buyer prior to Close of Escrow, including any information that may be revealed by subsequent inspections. Seller acknowledges receipt of Residential Seller Disclosure Advisory titled When in Doubt — Disclose. ^ SELLER’S SIGNATURE MO/DA/YR ^ SELLER’S SIGNATURE MO/DA/YR Reviewed and updated: Initials: / SELLER SELLER MO/DA/YR BUYER’S ACKNOWLEDGMENT: Buyer acknowledges that the information contained herein is based only on the Seller’s actual knowledge and is not a warranty of any kind. Buyer acknowledges Buyer’s obligation to investigate any material (important) facts in regard to the Property. Buyer is encouraged to obtain Property inspections by professional independent third parties and to consider obtaining a home warranty protection plan.
295.294.293.292.291.290.289.288.287.286.285.284.283.282.281.280.279.278.277.276.275.274.273.272.271.270.269.268.267.266.265.264.263.262.261.260.259.258.257.256.255.254.253. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 7 of 7 Residential Seller’s Property Disclosure Statement (SPDS) Updated: October 2017• Copyright © 2017 Arizona Association of REALTORS® All rights reserved.
n Premises
n Premises
Items disapproved: Page 1 of 3 Contract dated: , 20 MONTH DAY YEAR PremisesBuyer:Seller: Address:4.3.2.1. RESIDENTIAL BUYER’S INSPECTION NOTICE AND SELLER’S RESPONSE (BINSR) PAGE 1 of 3 Residential Buyer’s Inspection Notice and Seller’s Response • Updated: June 2020 • Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. Document updated: June 2020 >>
BUYER INSPECTIONS AND INVESTIGATIONS COMPLETED
(See Section 6j) Buyer has completed all desired Inspection Period items, such as: (a) physical, environmental, and other inspections and investigations; (b) inquiries and consultations with government agencies, lenders, insurance agents, architects, and other persons and entities; (c) investigations of applicable building, zoning, fire, health, and safety codes; (d) inquiries regarding sex offenders; and the occurrence of a disease, natural death, suicide, homicide or other crime on the Premises or in the vicinity (e) inspections and investigations pertaining to square footage, wood-destroying organisms or insects, sewer, flood hazard, swimming pool barriers, and insurance; and (f) inspections and investigations of any other items important to Buyer. Buyer has verified all information deemed important including: (a) MLS or listing information; and (b) all other information obtained regarding the Premises.
Buyer acknowledges that: (a) All desired Inspection Period inspections and investigations must be completed prior to delivering this notice to Seller; (b) All Inspection Period items disapproved must be provided in this notice; (c)Buyer’s election is limited to the options specified below; and (d)Buyer is not entitled to change or modify Buyer’s election after this notice is delivered to Seller. Buyer elects as follows: Accepted – No corrections requested. Buyer accepts the Premises in its present condition and no corrections or repairs are requested. Rejected – Buyer disapproves of the items listed below and elects to immediately cancel the Contract. Buyer elects to provide Seller an opportunity to correct the disapproved items listed below.
n
Buyer acknowledges that Broker(s): (1) make no representations concerning the competency of any inspectors, contractors and/or repair persons and assume no responsibility for any deficiencies or errors made; and (2) neither Seller nor Broker(s) are experts at detecting or repairing physical defects in the Premises. The undersigned agrees to the modified or additional terms and conditions, if any, and acknowledges receipt of a copy hereof. ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR BUYER’S WAIVER OF INSPECTIONS BUYER ACKNOWLEDGES THAT BUYER WAS ADVISED TO OBTAIN INSPECTIONS OF THE PREMISES BY QUALIFIED INSPECTOR(S) AND BUYER DECLINED. By acting against Broker’s advice, Buyer accepts responsibility and hereby releases, indemnifies and holds harmless Brokers from any and all liability for all matters that professional inspections could have revealed. ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR Residential Buyer’s Inspection Notice and Seller’s Response >> Page 2 of 3 PAGE 2 of 3 Residential Buyer’s Inspection Notice and Seller’s Response • Updated: June 2020 • Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. >>
DRAFT3-2-05 SELLER’S RESPONSE TO BE COMPLETED ONLY IF BUYER PROVIDES SELLER AN OPPORTUNITY TO CORRECT ITEMS DISAPPROVED ON PAGES 1-2. (See Section 6j) If Buyer provides Seller an opportunity to correct items disapproved, Seller shall respond within five (5) days or otherwise specified days after delivery of this notice. Seller responds as follows: n Seller agrees to correct the items disapproved by Buyer pursuant to terms set forth herein and Section 6j of the Contract. n Seller is unwilling or unable to correct any of the items disapproved by Buyer. n Seller’s response to Buyer’s Notice is as follows: The undersigned agrees to the modified or additional terms and conditions, if any, and acknowledges receipt of a copy hereof. ^ SELLER’S SIGNATURE MO/DA/YR ^ SELLER’S SIGNATURE MO/DA/YR BUYER’S ELECTION TO BE COMPLETED ONLY IF SELLER HAS NOT AGREED TO CORRECT ALL ITEMS DISAPPROVED (See Section 6j) n Buyer elects to cancel this Contract n Buyer accepts Seller’s response to Buyer’s Notice and agrees to close escrow without correction of those items Seller has not agreed in writing to correct. The undersigned agrees to the modified or additional terms and conditions, if any, and acknowledges receipt of a copy hereof. ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR PAGE 3 of 3 Residential Buyer’s Inspection Notice and Seller’s Response • Updated: June 2020 • Copyright © 2020 Arizona Association of REALTORS®. All rights reserved. Residential Buyer’s Inspection Notice and Seller’s Response >> Page 3 of 3
CRITICAL DATE LIST Updated: February 2017 Page 1 of 3 CURE NOTICE SELLER BUYER PREMISES ADDRESS CITY, AZ ZIP CODE ESCROW OFFICER ESCROW NUMBER ESCROW COMPANY ESCROW OFFICER PHONE ESCROW OFFICER EMAIL ESCROW OFFICER FAX LISTING AGENT NAME LISTING AGENT PHONE LISTING AGENT COMPANY LISTING AGENT EMAIL SELLING AGENT NAME SELLING AGENT PHONE SELLING AGENT COMPANY SELLING AGENT EMAIL LOAN OFFICER LOAN OFFICER PHONE LENDER COMPANY NAME LOAN OFFICER EMAIL This is a Critical Date List for the transaction listed above as of this date: ____ /____ /____ DATE ACTIONS: DUE DATE: COMPLETED: 1 Mutual Acceptance of Purchase Contract: ____ /____ /____ 2 Buyer to deposit Earnest Money with Escrow Company: Upon Acceptance __ /____ /____ 3 Buyer to provide lender with Loan Application (within 3 days after Contract acceptance): ____ /____ /____ ____ /_ /__ 4 Buyer to grant lender permission to access Credit Report (within 3 days after Contract acceptance): ____ /____ /____ ____ /____ /____ 5 Seller to deliver SPDS (within 3 days after Contract acceptance): ____ /____ /____ ____ /____ /____ 6 Seller to deliver Insurance Claims History (within 5 days after Contract acceptance): ____ /____ /____ ____ /_ /__ 7. Buyer to receive Loan Estimate (LE): ____ /____ /____ ____ /____ /____ 8 Seller to notify HOA of pending sale if over 50 units (5 days after Contract acceptance): ____ /____ /____ ____ /_ /__ 9 Buyer to receive required HOA disclosures (10 days after Contract acceptance if less than 50 units) (10 days after HOA’s receipt of notice if 50 or more units): ____ /____ /____ ____ /____ /____ 10 Buyer to supply LSU (within 10 days after Contract acceptance): ____ /____ /____ ____ /____ /____ 11 Buyer to provide notice of any items disapproved within the SPDS (5 days after receipt/Inspection Period): ____ /____ /____ ____ /____ /____ 12 Buyer to provide notice of any items disapproved within the Insurance Claims History (5 day after receipt/Inspection Period): ____ /____ /____ ____ /____ /____ 13. Buyer to apply for Homeowners Insurance (Inspection Period): ____ /____ /____ ____ /____ /____ 14. Buyer to order Termite or Insect Inspection (Inspection Period): ____ /____ /____ ____ /____ /____ SAMPLE
Page 2 of 3 CURE NOTICE Premises Address: ______________________________________________________________________________________________________ DATE ACTIONS: DUE DATE: COMPLETED: 15 Buyer to deliver Inspection Notice (Inspection Period): ____ /____ /____ ____ /____ /____ 16 Seller to deliver response to Buyer’s Inspection Notice (5 days after receipt): ____ /____ /____ ____ /____ /____ 17. Buyer to deliver reply to Seller’s Inspection Notice response (5 days after receipt): ____ /____ /____ ____ /____ /____ 18 Buyer to provide lender with Notice of Intent to Proceed with loan (within 10 days of receipt of LE): ____ /____ /____ ____ /____ /____ 19. Buyer to provide lender all requested signed disclosures and documentation listed in LSU at lines 32 35 (within 10 days of receipt of LE): ____ /____ /____ ____ /____ /____ 20. Buyer’s disapproval of Title Commitment/Sch. B, etc. (5 days after receipt): ____ /____ /____ ____ /____ /____ 21 Buyer’s disapproval of HOA documents (5 days after receipt): ____ /____ /____ ____ /____ /____ 22 Buyer may cancel in the event of low appraisal (5 days after notice): ____ /____ /____ ____ /____ /____ 23 Buyer’s Homeowners Insurance in place (COE): ____ /____ /____ ____ /____ /____ 24 Buyer to perform Walkthrough(s): ____ /____ /____ ____ /____ /____ 25 Buyer to receive Closing Disclosure (CD) (no later than 3 business days prior to signing): ____ /____ /____ ____ /____ /____ 26a Buyer to sign Loan Documents (no later than 3 days prior to COE): ____ /____ /____ ____ /____ /____ OR 26b Buyer to deliver Notice of Loan Approval without PTD conditions AND date(s) of CD receipt from lender (no later than 3 days prior to COE): ____ /____ /____ ____ /____ /____ OR 26c Buyer to deliver Notice of Inability to Obtain Loan A pproval without PTD conditions (no later than 3 days prior to COE): ____ /____ /____ ____ /____ /____ 27. Buyer to have funds in Escrow to allow COE on COE Date: ____ /____ /____ ____ /____ /____ 28. Seller to complete repairs (if any) / receipts to Buyer (3 days prior to COE): ____ /____ /____ ____ /____ /____ 29 Recordation of Documents (COE): ____ /____ /____ ____ /____ /____ 30 Seller to deliver possession, existing keys, security system/alarms, mailbox, etc. (COE): ____ /____ /____ ____ /____ /____ OTHER ACTIONS REQUIRED DATE SPECIFIC TO TRANSACTION: DUE DATE: COMPLETED: 31 Seller to deliver AAR DWWA SPDS (5 days after Contract acceptance): ____ /____ /____ ____ /____ /____ 32 Buyer to provide notice of any items disapproved within the DWWA SPDS (5 days after receipt): ____ /____ /____ ____ /____ /____ 33 Seller to deliver ADWR Registration of Existing Well (5 days after Contract acceptance): ____ /____ /____ ____ /____ /____ 34 Buyer to respond to ADWR Registration of Existing Well (5 days after receipt): ____ /____ /____ ____ /____ /____ 35 Seller to have On Site Wastewater Treatment Facility inspected (3 days prior to COE): ____ /____ /____ ____ /____ /____ 36 Seller to deliver completed On Site Wastewater report of inspection (upon receipt): ____ /____ /____ ____ /____ /____ 37 Buyer to deliver On Site Wastewater Treatment Facility Ownership Transfer Doc (prior to COE): ____ /____ /____ ____ /____ /____ 38 Seller to deliver Lead Based Paint Information (5 days after Contract acceptance): ____ /____ /____ ____ /____ /____ 39 Buyer to respond to Lead Based Paint Disclosure (5 days after receipt): ____ /____ /____ ____ /____ /____ 40 Seller to deliver Affidavit of Disclosure (5 days after Contract acceptance): ____ /____ /____ ____ /____ /____ 41 Buyer to provide notice of any Affidavit of Disclosure items disapproved (5 days after receipt): ____ /____ /____ ____ /____ /____ 42 Buyer to receive Flood Status Report: ____ /____ /____ ____ /____ /____ 43 □ Buyer □ Seller to order Home Warranty Plan: ____ /____ /____ ____ /____ /____ 44 Other: ____ /____ /____ ____ /____ /____ SAMPLE
Page 3 of 3 CURE NOTICE CURE NOTICE ACTIVATED Date: ____ /____ /____ Reason: ______________________________________________________________________________________________________________ Cure Deadline: ____ /____ /____ Date Cured: ____ /____ /____ or Date Cancelled: ____ /____ /____ Date: ____ /____ /____ Reason: ___________________________________________________________ Cure Deadline: ____ /____ /____ Date Cured: ____ /____ /____ or Date Cancelled: ____ /____ /____ Date: ____ /____ /____ Reason: ______________________________________________________________________________________________________________ Cure Deadline: ____ /____ /____ Date Cured: ____ /____ /___ or Date Cancelled: ____ /____ /____ SAMPLE
First05138141121AmericanTitle Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2022 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
Reminder:
Please Note:
DOCUMENT UPDATED: July 2022
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 shortcoming in a property.
A Resource for Real Estate Consumers
The property may be subject to video and/or audio surveillance. Buyer should therefore exercise caution and not discuss features or pricing while in the home.
Page | 1 of 13 Buyer Advisory (July 2022)Arizona Department of Real Estate
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 investigate or verify concerning a property purchase are summarized in this Advisory. Included in this Advisory are:
Provided by the Arizona Association of REALTORS® 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.
1. Common documents a buyer should review; 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.
Page | 2 of 13 Buyer Advisory (July 2022)Arizona Department of Real Estate Table of Contents SECTION COMMON1 DOCUMENTS A BUYER SHOULD REVIEW 3 Purchase Contract 4 Homeowner’s Association (HOA) 5 Lead Based Paint Disclosure Form 3 MLS Printout Governing Documents 5 Professional Inspection Report 3 The Subdivision Disclosure Report 4 HOA Disclosures 5 County Assessors/Tax Records (Public Report) 4 Community Facilities District 5 Termites and Other Wood 3 Seller’s Property Disclosure 4 Title Report or Title Commitment Destroying Insects and Organisms Statement (SPDS) 4 Loan Information & Documents 5 Foreign Investment in Real Property 3 Covenants, Conditions and 4 Home Warranty Policy Tax Act (FIRPTA) Restrictions (CC&Rs) 5 Affidavit of Disclosure SECTION COMMON2 PHYSICAL CONDITIONS IN THE PROPERTY A BUYER SHOULD INVESTIGATE 6 Repairs, Remodeling and 7 Water/Well Issues 8 Indoor Environmental Concerns New Construction (Adjudications, CAGRDs) (Mold, Drywall, Radon Gas & 6 Square Footage 7 Soil Problems Carbon Monoxide, Drug labs, Other) 6 Roof 7 Previous Fire/Flood 8 Property Boundaries 6 Swimming Pools and Spas (Barriers) 7 Pests (Scorpions, Bed bugs, 9 Flood Insurance / Flood Plain Status 6 Septic and Other On Site Roof Rats, Termites & Bark Beetles) 9 Insurance (Claims History) Wastewater Treatment Facilities 8 Endangered & Threatened Species 9 Other Property Conditions 7 Sewer 8 Deaths & Felonies on the Property (Plumbing, Cooling/Heating, Electrical systems) SECTION CONDITIONS3 AFFECTING THE AREA SURROUNDING THE PROPERTY THE BUYER SHOULD INVESTIGATE 10 Environmental Concerns 10Sensitive(EnvironmentallyLandOrdinance)10ElectromagneticFieldsSuperfundSites 10 Freeway Construction & Traffic Conditions 10 Crime Statistics 10 Sex Offenders 10 Forested Areas 10 Military and Public Airports 10 ServicesZoning/Planning/Neighborhood 11 Schools 11 City Profile Report SECTION 4 OTHER METHODS TO GETTING INFORMATION ABOUT A PROPERTY 11 Drive around the Neighborhood 11 Talk to the Neighbors 11 Investigate your Surroundings SECTION RESOURCES5 12 Market Conditions Advisory 12 Fair Housing & Disability Laws 12 Wire Fraud ACKNOWLEDGMENTBUYER 13 12 Additional Information 12 Information about Arizona Government, State Agencies and Arizona REALTORS®
Buyers should protect themselves by taking the time to read the Arizona REALTORS® Residential Resale Real Estate Purchase Contract and understand their legal rights and obligations before they submit an offer to buy a (AARhttp://bit.ly/38XEynJproperty.SampleResidential
Resale Purchase Contract)
ADRE(ADREhttps://azre.gov/consumers/property(ADREhttps://services.azre.gov/publicdatabase/SearchDevelopments.aspxwebsite.SearchDevelopments)buyerschecklisthomeorlandPropertyBuyer’sChecklist)doesnotverifytheinformationinthePublicReport.Therefore,theReportcouldbeinaccurate,soitshouldbeverifiedbythebuyer.
A seller’s disclosure obligation remains even if the buyer and seller agree that no Seller’s Property Disclosure Statement will be provided. http://bit.ly/2knrN0A (AAR Sample (http://www.azre.gov/PublicInfo/PropertyBuyerChecklist.aspxSPDS)ADREPropertyBuyer’sChecklist)
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.
3 The Subdivision Disclosure Report (Public Report)
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.
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.
2 MLS Printout
COMMON DOCUMENTS
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.
4 Seller’s Property Disclosure Statement (SPDS)
5 Covenants, Conditions and Restrictions (CC&Rs)
The Purchase Contract contains numerous contingencies, including, but not limited to, the loan contingency, the inspection contingency, and the appraisal contingency. Should a buyer elect to waive any such contingencies in conjunction with their purchase offer, adverse consequences may result that place buyer at risk of losing their Earnest Money or incurring monetary damages if buyer decides not to purchase the property after their offer is accepted. Before offering to waive any contractual contingencies, buyers should weigh the risks and consult with independent legal counsel.
Contingency Waivers
(ADRE Property Buyer’s Checklist) It is the law of this state that any covenants or restrictions that are based on race, religion, color, handicap status or national origin are invalid and unenforceable A.R.S. 32 2107.01 https://www.aaronline.com/arizona deed restrictions/ (Arizona Deed Restrictions webpage)
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 owner can enforce the CC&Rs. It is essential that the buyer review and agree to these restrictions prior to purchasing a http://www.azre.gov/PublicInfo/PropertyBuyerChecklist.aspxproperty.
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 a 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)
Page | 3 of 13 Arizona Department of Real Estate Buyer Advisory (July 2022) Section 1
1 Purchase Contract
6 Homeowners Association (HOA)
Governing Documents
11 Home Warranty Policy
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).
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); and http://bit.ly/2e8jdM3 (A.R.S. 33 1806)
http://bit.ly/2ebBSLH (A.R.S. 33 1260; and http://bit.ly/2e8jdM3 (A.R.S.§33 http://bit.ly/1rCq9kd1806)
9 Title Report or Title Commitment
10 Loan Information and Documents
Page | 4 of 13 Arizona Department of Real Estate Buyer Advisory (July 2022)
Nonetheless, the Arizona’s Homeowner's Association Dispute Process is administered by the ADRE.
7 HOA
The title report or commitment contains important information and is provided to the buyer by the 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 ans wered by the title or escrow officer, legal counsel, or a https:surveyor.//www.homeclosing101.org/ (American Land Title Association)https://bit.ly/34KkCaQ (CFPB - What is title insurance?)
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.
8 Community Facilities District Community Facilities Districts (CFDs) are special taxing districts that use bonds for the purpose of financing construction, acquisition, operation and maintenance of public infrastructure that benefits the real property owners comprising the CFD members. Roadways, public sewer, utility infrastructure and public parks are examples of the types of public infrastructure paid for by CFDs. CFDs have a Governing Board that may be the City Council acting as the board or a stand alone board. Any member of a CFD may request disclosures from this board.
Questions to ask include: the amount still owed and how many more payments are left in order to pay off the CFD for the property. It is important that you review the Detailed Property Tax Statement which will show the current amount due to the CFD. CFDs are most commonly found on the property’s detailed property tax statement from the County Tax Assessor. The local municipality or county can also be a source of CFD information.
https://www.consumerfinance.gov/owning-a-home/(Buyingahouse:Tools&ResourcesforHomebuyers)https://www.hud.gov/topics/buying_a_home(HUD.gov)
(ADRE HOA Information) Disclosures
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.
14 Professional Inspection Report
17 Foreign Investment in Real Property Tax Act (FIRPTA)
Termites and other wood destroying insects are commonly found in some parts of Arizona. General guidance, inspection report information and the ability to search a property for past termite treatments may be found on the Arizona Department of Agriculture website.
Apache:withholdinghttps://www.irs.gov/Individuals/InternationalDefinitions)taxpayers/firpta(I.R.S.FIRPTAInformation)https://www.irsvideos.gov/Individual/education/FIRPTA(I.R.S.FIRPTAVideo)https://bit.ly/3CVkXTuCochise:http://bit.ly/1oUS7okCoconino:http://bit.ly/2F9PstMGila:http://bit.ly/Yq3bV9Graham:http://bit.ly/2JGz2ZOGreenlee:http://bit.ly/2SCTZu6LaPaz:http://bit.ly/2HzhhdRMaricopa:https://mcassessor.maricopa.gov/Mohave:https://bit.ly/2Y8QH9gNavajo:http://bit.ly/1pWxgVAPima:https://www.asr.pima.gov/SantaCruz:http://bit.ly/1yRYwXlYuma:https://bit.ly/3uO8BbWPinal:http://www.pinalcountyaz.gov/Assessor/Pages/home.aspxYavapai:Assessor'sOfficeHome(yavapaiaz.gov)
Termites | Arizona Department of Agriculture (az.gov) (AZDA Termite http://bit.ly/2GiGlIRInformation)(AZDAWood Destroying Insect Inspection Reports) https://tarf.azda.gov/ (AZDA Search for Termite Reports)
12 Affidavit of Disclosure
16 Termites and Other Wood Destroying Insects and Organisms
Page | 5 of 13 Arizona Department of Real Estate Buyer Advisory (July 2022)
13 Lead Based Paint Disclosure Form
(AARhttps://bit.ly/2ZLwvdXSampleAffidavitof Disclosure)
https://bit.ly/3w10GsF (I.R.S. FIRPTA
15 County Assessors/Tax Records
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, consulta tax advisor as mandatory withholding may apply.
Home | American Society of Home Inspectors, ASHI (ASHI Home Buyer’s Guide)
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 leadbased paint in residential properties built before 1978 and to follow specific work practices to prevent lead http://bit.ly/2O4pL4Acontamination.
(AAR Sample Form) https://bit.ly/3uzq5Kb (ADRE Lead Based Paint Information)
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.
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.
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.Theinspector 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.
Page | 6 of 13 Arizona Department of Real Estate Buyer Advisory (July 2022) Section 2 COMMON PHYSICAL CONDITIONS IN THE PROPERTY
3 Roof If the roof is 10 years old or older, a roof inspection by a licensed roofing contractors highly recommended.
If the property has a pool or a spa, the home inspector may Exclude the pool or spa form the general inspection so an inspection by a pool or spa company may be necessary.
1 Repairs, Remodeling and New Construction
A contractor’s license is required for work performed on a property unless the aggregate contract price, including labor and material, is less than $1,000, the work performed is of a “casual or minor nature,” and no building permit is required.
https://roc.az.gov/before hire (Before you Hire a Contractor Tips) https://remodelingdoneright.nari.org/ (National Association of the Remodeling Industry) https://apps secure.phoenix.gov/PDD/Search/Permits (Phoenix Building Permit https://www.tucsonaz.gov/pdsd/recordsSearch)
LICENSED
A SHOULD INVESTIGATE
USE OF CONTRACTORS
(Tucson Building permit records) Other cities- search Planning & Development
4 Swimming Pools and Spas
Because every buyer and every property are different, the physical property conditions requiring investigation will vary.
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 on a new home https://dfi.az.gov/industry/RealEstateAppraiserstransaction.
BUYER
2 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. An appraiser or architect can measure the property’s size to verify the square footage.
5 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 Environmental Quality (ADEQ). Notice of Transfer and Inspection | On site Wastewater | ADEQ Arizona Department of Environmental Quality (azdeq.gov) (ADEQ – AZ Statewide Inspection Program File a Notice of Transfer Online)
(Arizonawww.azroofing.orgRoofingContractors Association) https://roc.az.gov/before hire (Before you Hire a Contractor)
Pool Barrier Laws & Information | Arizona Association of REALTORS® (aaronline.com) (AAR Pool Barrier Laws & Information Updated August 36-16812020) - Pool enclosures; requirements; exceptions; enforcement (azleg.gov) (A.R.S. 36 1681 Swimming Pool Enclosures)
An unlicensed property owner may also perform work themselves if the property is intended for occupancy solely by the owner. If, however, the property is listed or offered for sale or rent within one year of the completed work, it is considered prima facie evidence that the owner performed the work for purposes of sale or rent.
Owners of property who are acting as developers, who improve structures or appurtenances to structures on their property for the purpose of sale or rent, and who contract with a licensed general contractor must identify the licensed contractors’ names and license numbers in all sales documents.
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.
(Licensed Real Estate Appraisers)
Cockroaches, rattlesnakes, black widow spiders, scorpions, termites and other pests are common in parts of Arizona. Fortunately, most pests can be controlled with pesticides.
Page | 7 of 13 Arizona Department of Real Estate Buyer Advisory (July 2022) 6 SEWER
Scorpions: Scorpions, on the other hand, may be difficult to eliminate. If 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.
(Problemhttps://bit.ly/3rTzD2O(ADREhttps://azre.gov/PublicInfo/Fissures–OverviewofArizonaSoils)SoilsAZGS)http://bit.ly/2MpcKNU(Shrink/SwellPotential&FAQs)http://bit.ly/2yfzVHR(InformationonLandSubsidence&
www.btr.state.az.us(StateCertifiedEngineers & Firms)
Earth Fissures)
https://new.azwater.gov/aaws/statutes rules (Assured and Adequate Water Supply)
Bed Bugs: Infestations are on the rise in Arizona and nationally.
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.
Bark Beetles: Bark beetles have been reported in some forested areas.
Termites: Consumer Information is available from the Arizona Department of Agriculture.
10 Pests
7 Water/Well Issues
9 Previous Fire/Flood
The soil in some areas of Arizona has “clay like” tendencies, sometimes referred to as “expansive Othersoil.” 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 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.
Roof Rats: Roof Rats have been reported in some areas by Maricopa County Environmental Services.
8 Soil Problems
Adjudications: Arizona is undertaking several Stream Adjudications, which are court proceedings to determine the extent and priority of water rights in an entire river Forsystem.information regarding water uses and watersheds affected by these adjudications, and the forms upon sale of the property, visit the Department of Water Resources Adjudicationsonline.
https://www.azcc.gov/utilities/waterCommission.(ArizonaCorporationCommission-Utilities Water)
The property may receive water from a municipal system, a private water company, or a well. You should investigate the availability and quality of the water to the property, as well as the water provider. A list of Arizona’s water companies is available at the Arizona Corporation
Overview | Arizona Department of Water Resources (azwater.gov) (Department of Water Resources – Adjudications) 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 the amount of ground water served to member (Centralwww.cagrd.comhomes.ArizonaGround Water Replenishment District)
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.
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. This information is often difficult to uncover; however, the local law enforcement agency may be able to identify incidents related to a property http://bit.ly/2lo53MZaddress.
14 Property Boundaries
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.
The Arizona Department of Health Ser vices, 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.”
Page | 8 of 13 Arizona Department of Real Estate Buyer Advisory (July 2022) http://bit.ly/32y89l6 (Information on Scorpions) Bed Bugs | Arizona Department of Agriculture (az.gov) (Bed Bugs) Bedbugs: Get them Out and Keep them http://www.maricopa.gov/FAQ.aspx?TID=104Out)(Maricopa County – Roof https://agriculture.az.gov/pestspestRats) control/termites (Termite https://agriculture.az.gov/pestsInformation pest control/agriculture (Bark Beetle 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.
https://www.epa.gov/indoor air quality iaq (EPA Indoor Air https://www.epa.gov/moldQuality) (EPA Mold) https://www.cdc.gov/mold/ (CDC Mold Information)
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.https://btr.az.gov/arizona professional land surveyors apls (AZ BTR Land http://www.azpls.org/Surveyors) (Professional Land Surveyors)
(A.R.S. § 32 2156)
Arizona Ecological Services Field Office | U.S. Fish & Wildlife Service (Arizona(fws.gov)Ecological Services) (Arizona Endangered Species)
12 Death and Felonies on the Properties
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.
13 Indoor Environmental Concerns
Attention has been given to the possible health effects of mold in homes, apartments and commercial buildings. Certain types of molds may cause health problems in some people while triggering only common allergic responses in others. Mold is often not detectable by a visual inspection. To determine if the premises you are purchasing, or leasing contains mold or airborne health hazards, you may retain an environmental expert to perform an indoor air quality test. This is particularly important if any of the inspection reports or disclosure documents indicate the existence of past or present moisture, standing water, visible water stains, or water intrusion in the Premises.
Imported Drywall: There have been reports of problematic drywall, produced in China, used in 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.
11 Endangered & Threatened Species
Other: For information on other indoor environmental concerns, the EPA has a host of resource materials and pamphlets online. bit.ly2kRk7jm (Drywall Information Center) http://bit.ly/2GclWpM (About Radon) http://bit.ly/2t1CAPq (Carbon Monoxide Infographic) https://www.epa.gov/asbestos (Asbestos Information) http://bit.ly/2qUZcSt (Voluntary GuidelinesMethamphetamine & Fentanyl Laboratory Cleanup) Formaldehyde | US EPA (EPA Formaldehyde)
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
Electrical
Plumbing: Check functionality. Cooling/Heating: Make sure the cooling and heating systems are adequate. If it is important to you, hire a qualified heating/cooling https://www.epa.gov/odsinspector.phaseout (Phaseout of Ozone Depleting Substances ODS) Systems: Check for functionality and safety. Department of Environmental Quality (ADEQ) the (Solid Waste Facilities), as well as ADEQ Arizona Department of Environmental Quality (azdeq.gov) https://www.azdeq.gov/solidwaste(ADEQ) (ADEQ Solid Waste Facilities) Wildfire Support | ADEQ Arizona Department of Environmental Quality (azdeq.gov) (Wildfire Support)
locations of open and closed landfills
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.
wildfire information,
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. Consumer Resources (naic.org) (Helping You Navigate Insurance and Make Better Informed Decisions)
15 Flood Insurance/Flood Plain Status
16 Insurance (Claims History)
17 Other Property Conditions
Other Arizona Counties: Consult County Websites.
Your mortgage lender may require you to purchase flood insurance in connection with your purchase of the property.
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 properties insurability and premium rate. You may also wish to contact the Federal Emergency Management Agency (FEMA) for Section 3
more information about flood insurance as it relates to the Nationalproperty.FloodInsurance Program (FEMA)
Page | 9 of 13 Arizona Department of Real Estate Buyer Advisory (July 2022)
Control District (Maricopa County Flood Control District Services)
website contains environmental information regarding
https://www.realtor.com/flood risk/ (Flood Risk Information) https://www.floodsmart.gov/flood map zone/elevation certificate (Elevation Certificates: Who Needs Them and Why - fact http://azgs.arizona.edu/centersheet) natural hazards/floods (Flooding in https://www.fcd.maricopa.gov/5308/FloodArizona)
air and water quality information Landfills |
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 websit e. 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.
2 Electromagnetic Fields
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) https://azdot.gov/projectshttps://azdot.gov/website.(ADOT)(ADOT Statewide Projects) https://az511.com (ADOT Road Conditions)
3 Superfund Sites
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.
8 Military and Public Airports
6 Sex Offenders
5 Crime Statistics
(Crime Statistics - All Arizona Cities)
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 OpenSpace(NAOS).
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
City of Scottsdale - ESL Overlay (scottsdaleaz.gov) (ELS and NAOS
(Nationalhttps://www.niehs.nih.gov/health/topics/agents/emf/index.cfmwebsite.InstituteofEnvironmentalHealthSciences)
Page | 10 of 13 Arizona Department of Real Estate Buyer Advisory (July 2022)
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. www.azdeq.gov/emaps (ADEQ Maps) www.epa.gov/superfund (EPA)
4 Freeway Construction and Traffic Conditions
Crime statistics, an imperfect measurement at best, provide some indication of the level of criminal activity in an https://communitycrimemap.com/area.
(Nationalhttps://www.nsopw.gov/(Registeredhttps://www.azdps.gov/services/public/offenderSexOffenderandCommunityNotification)SexOffenderPublicSite)
7 Forested Areas
Environmentally Sensitive Land Ordinance
USA (Public Education/Fire Wise USA)
1
Life in a forested area has unique benefits and concerns. As with other natural disasters that affect the United States in any given year including flooding, tornados, hurricanes and earthquakes, having information regarding wildfire risk will be crucial for Buyers here in the Southwest. To get the most up to date information on the community you are seeking to purchase in, search by city name, zip code and/or contact county/city fire authority for more information on issues particular to a https://www.nfpa.org/Public(Arizona(Searchwww.wildfirerisk.orgcommunity.-CommunityWildfireRisk)https://dffm.az.gov/fire/prevention/firewiseFireWiseCommunities)Education/Bytopic/Wildfire/Firewise
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 Zoning regulations for these areas, may be found at A.R.S.§288481.
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 https://www.azed.gov/information.(Arizona Department of Education)
Investigate Your Surroundings Google Earth is an additional method to investigate the surrounding area: Google Earth
estate/compare cities/ (City Profile Report)
https://azre.gov/military airports (ADRE - Maps of Military Airports & Boundaries) http://azre.gov/public airports (ADRE - Maps of Public Airports & https://www.skyharbor.com/FlightPathsBoundaries)(PhoenixSkyharborAirport-GeneralInformation) 9 Zoning/Planning/Neighborhood Services
(Tucson) 10 Schools
Information may be found on community websites. http://phoenix.gov/business/zoning http://www.tucsonaz.gov/pdsd/planning(Phoenix)zoning
ADRE ADVISES: “Call the school district serving the subdivision to determine whether nearby schools’ area accepting new students. Some school districts, especially in the northwest of the greater Phoenix area, have placed a cap on enrolment. You may find that your children cannot attend the school nearest you and may even be transported to another community.” www.azre.gov/PublicInfo/PropertyBuyerChecklist.aspx (ADRE) 11 City Profile Report
INFORMATION ABOUT A PROPERTY Drive Around the Neighborhood Buyers should always drive around the neighborhood, preferably on different days at several different times of the day and evening, to investigate the surrounding area. Talk to the Neighbors Neighbors can provide a wealth of information. Buyer should always talk to the surrounding residents about the neighborhood and the history of the property the buyer is considering for purchase.
Page | 11 of 13 Arizona Department of Real Estate Buyer Advisory (July 2022)
Information on demographics, finances and other factors are drawn from an array of sources, such as U.S. Census Bureau of Labor, Internal Revenue Service, Federal Bureau of Investigation, and the National Oceanic and Atmospheric Administration and may be viewed on Homefair’s https://www.moving.com/realWebsite.
Section 4 OTHER METHODS OF GETTING
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 rest 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 considering market conditions, their own financial resources and their own unique Thecircumstances.partiesmust, 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.
Advisory
Fair Housing Rights and Obligations (HUD.gov)
Fair Housing and Disability Laws
(Americanshttp://www.ada.gov/pubs/ada.htmwithDisabilitiesAct)
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.
REALTORS®
http://bit.ly/2vDDvFk (CFPB- Buying a home? Watch out for mortgage closing scams Additional Information NATIONAL ASSOCIATION OF REALTORS® (NAR) Tenhttps://www.nar.realtor/StepGuidetoBuying a Home (Realtor.com) http://bit.ly/3pQqXX7HomeClosing101www.homeclosing101.org Information about Arizona Government, State Agencies and Arizona REALTORS® ArizonaDepartmentof Real Estate Consumer www.aaronline.comArizonawww.azre.gov/InfoFor/Consumers.aspxInformationAssociationofREALTORS®
Page | 12 of 13 Arizona Department of Real Estate Buyer Advisory (July 2022) Section 5
RESOURCESMarketConditions
Wire Fraud Advisory (Arizona Wire Fraud Advisory)
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.
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 Markettransaction.Conditions Advisory (AAR – Sample Forms)
The Fair Housing Act prohibits discrimination in the sale, rental, and financing of dwellings based on race, 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 disability.
Page | 13 of 13 Buyer Advisory (July 2022)Arizona Department of Real Estate 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
The date for Close of Escrow is hereby postponed and extended to
wor ld-wide Coronavirus / COVID-19 pandemic has impacted real estate transactions in many unique ways, including, but not limited to, travel restrictions, self-imposed and governmentally required quarantines and closures of both governmental and private offices required to fund, close and record real estate transactions. Because of the unprecedented nature of this pandemic, Buyer and Seller are hereby advised to seek appropriate counsel from insurance, legal, tax, and accounting professionals to better understand their rights and obligations.
A variety of issues outside the control of Buyer and Seller may impact this real estate transaction and affect the parties’ contractual performance. As a result, the following additional terms and conditions are hereby included as part of the Contract between Buyer and Seller for the above referenced Premises: Only those items checked are hereby included as part of the Contract. All other terms and conditions of the Contract remain unchanged.
Notwithstanding any other provisions of this Contract, Buyer and Seller acknowledge the possibility that Buyer, Buyer’s lender, Seller, Escrow Company or appropriate county recorder’s office may become the subject of a voluntary or mandatory COVID-19 virus quarantine or closure prior to or at the time of Close of Escrow. Should such an event occur that results in a party’s inability to perform on the Close of Escrow date, Buyer and Seller agree that the closing may be automatically extended by either party via written notice for a period of up to ten (10) days after such quarantine is over or closure order is lifted, unless the parties otherwise mutually agree in writing to further extend Close of Escrow. Notwithstanding any other provisions of this Contract, Buyer and Seller acknowledge the possibility that Buyer, Buyer’s lender, Seller, Escrow Company or appropriate county recorder’s office may become the subject of a voluntary or mandatory COVID-19 virus quarantine or closure prior to or at the time of Close of Escrow. Should such an event occur that results in a party’s inability to perform on the Close of Escrow date, Buyer and Seller agree that the closing may be automatically extended by either party via written notice for a period of up to ten (10) days after such quarantine is over or closure order is lifted. This delay shall not exceed thirty (30) days in total unless the parties otherwise mutually agree in writing to further extend Close of Escrow. Upon the expiration of any automatic or agreed extension, either party may terminate this Agreement in writing without any further liability to the other party, and the Earnest Money shall be released to Buyer.
Page 1 of 2 32.31.30.29.28.27.26.25.24.23.22.21.20.19.18.17.16.1514.13.12.11.10.9.8.7.6.5.4.3.2.1. Coronavirus/Covid-19 Addendum • March 2020 Copyright © 2020 Arizona Association of REALTORS®. All rights reserved.
MONTH DAY YEAR
CORONAVIRUS/COVID-19 ADDENDUM Document: March 2020 This is an addendum to the Contract dated between the following parties: MO/DA/YR ThePremises:BuyerSeller::current
BUYER’S INITIALS REQUIRED: BUYER BUYER SELLER’S INITIALS REQUIRED: SELLER SELLER
Buyer and Seller agree to mutually cancel the Contract and the Earnest Money shall be released to Buyer.
42.41.4039.38.37.36.35.34.33. Additional Terms and Conditions: The undersigned agrees to the modified or additional terms and conditions contained herein and acknowledges receipt of a copy hereof. □ SELLER □ BUYER MO/DA/YR □ SELLER □ BUYER MO/DA/YR □ SELLER □ BUYER MO/DA/YR □ SELLER □ BUYER MO/DA/YR Coronavirus/Covid-19 Addendum >> Page 2 of 2 Coronavirus/Covid-19 Addendum • March 2020 • Copyright © 2020 Arizona Association of REALTORS®. All rights reserved.
Contract acceptance pursuant to Section 2e of the Contract and upon request thereafter. LENDER INFORMATION The Lender identified below has prepared the information listed above with Buyer(s) and has completed the above action points noted. This information does not constitute loan approval. All information provided must be approved by an underwriter, and any material change in Buyer’s credit or financial profile will render this pre-qualification null and void. The above pre-qualification expires on: . DATE Lender: COMPANY ARIZONA LICENSE # NMLS # LOAN OFFICER ARIZONA LICENSE # NMLS # ADDRESS CITY STATE ZIP EMAIL PHONE FAX ^ LOAN OFFICER’S SIGNATURE MO/DA/YR Buyer acknowledges receipt of a copy hereof and grants permission to Broker to submit this Pre-Qualification Form with Contract ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR 42.41.40.39.38.37.36.35.34.33.32.31.30.29.28.27.26.25.24.23.22.21.20.19.18.17.16.15.14.13.12.11.10.9.8.7.6.4.3.2.1.5. Document updated: February 2017PRE-QUALIFICATION FORM Pre-Qualification Form • Updated: February 2017 • Copyright © 2017 Arizona Association of REALTORS®. All rights reserved. Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
PRE-QUALIFICATION INFORMATION Purpose: This Pre-Qualification Form is to be used in conjunction with an AAR Residential Resale Real Estate Purchase Contract or Vacant Land/Lot Purchase Contract (“Contract”). Buyer HAS NOT consulted with a lender. (If Buyer marks the box on line 3, Buyer is to complete only lines 4 and 5.) PRINT BUYER’S NAME PRINT BUYER’S NAME ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR Lender indicated on lines 36 and 37 has consulted with (“Buyer”) and submits the following: Buyer is: Married Unmarried Legally Separated Buyer: is is not relying on the sale or lease of a property to qualify for this loan. Buyer: is is not relying on Seller Concessions for Buyer’s loan costs, impounds, Title/Escrow Company costs, recording fees, and, if applicable, VA loan costs not permitted to be paid by Buyer. (Note: The amount Seller agrees to contribute, if any, shall be established in the Contract.) Buyer: is is not relying on down payment assistance to qualify for this loan. Type of Loan: Conventional FHA VA USDA Other: Occupancy Type: Primary Secondary Non-Owner Occupied Property Type: Single Family Residence Condominium Planned Unit Development Manufactured Home Mobile Home Vacant Land/Lot Other: YES NO N/A
Lender provided Buyer with the HUD form “For Your Protection: Get a Home Inspection” (FHA loans only). Lender completed a verbal discussion with Buyer including a discussion of income, assets and debts. Lender obtained a Tri-Merged Residential Credit Report.
agrees to provide loan status updates on the AAR Loan Status Update form to Seller and Broker(s) within ten
not exceed: $ Interest rate not to exceed: %, Fixed Interest Rate Adjustable Interest Rate Pre-Payment Penalty Initial Documentation Received: Lender received the following information from Buyer (additional documentation may be requested): YES NO N/A YES NO N/A Paystubs Down Payment/Reserves Documentation W-2s Gift Documentation Personal Tax Returns Credit/Liability Documentation Corporate Tax Returns Other: Additional comments: Buyer has instructed, and
days
Based on the information provided, Buyer can pre-qualify for a loan amount of: $ , assuming a monthly principal and interest loan payment of $ , provided that the total monthly payment (which includes principal, interest, mortgage insurance, property taxes, insurance, HOA fees, and flood insurance, if applicable) does Lender (10) of
YES
Lender has completed a verbal discussion with Buyer including a discussion of income, assets and debts. Lender has obtained a Tri-Merged Residential Credit Report.
Based on the information provided, Buyer can pre-qualify for a loan amount of: $ , assuming a monthly principal and interest loan payment of $ , provided that the total monthly payment (which includes principal, interest, mortgage insurance, property taxes, insurance, HOA fees, and flood insurance, if applicable) does not exceed: $ Interest rate not to exceed: %, Fixed Interest Rate Adjustable Interest Rate Pre-Payment Penalty
W-2s Gift Documentation Personal
Returns Credit/Liability
Additional comments: Buyer has instructed, and Lender agrees to
YES NO N/A
N/A Paystubs Down
Returns
Lender has provided Buyer with the HUD form “For Your Protection: Get a Home Inspection” (FHA loans only).
YES
provide loan status updates on this AAR Loan Status Update form to Seller and Broker(s) within ten (10) days of Contract acceptance pursuant to Section 2e of the Contract and upon request thereafter. Buyer commits to work with the above referenced Lender on the terms described herein. Buyer acknowledges receipt of a copy hereof. ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR40.39.38.37.36.35.34.33.32.31.30.29.28.27.26.25.24.23.22.21.20.19.18.17.16.15.14.13.12.11.10.9.8.7.6.5.4.3.2.1. Document updated: February 2017LOAN STATUS UPDATE (LSU) Loan Status Update • Updated: February 2017 • Copyright © 2017 Arizona Association of REALTORS®. All rights reserved. PAGE 1 of 2 >>
Initial Documentation Received: Lender received the following information from Buyer (Additional documentation may be requested.): NO N/A NO Payment/Reserves Documentation Tax Documentation Tax Other:
Corporate
Pursuant to Section 2e of the Contract, Buyer shall deliver to Seller the AAR Loan Status Update (“LSU”) describing the current status of Buyer’s proposed loan within ten (10) days after Contract acceptance and hereby instructs lender to provide an updated LSU to Broker(s) and Seller upon request. “Lender” is indicated on lines 4 and 5. Lender: COMPANY ARIZONA LICENSE # NMLS # LOAN OFFICER ARIZONA LICENSE # NMLS # ADDRESS CITY STATE ZIP EMAIL PHONE FAX Close of Escrow Date: Premises/PropertySeller(s):Buyer(s): Address or Assessor’s #(s): City: , AZ ZIP Code: PRE-QUALIFICATION INFORMATION Buyer is: Married Unmarried Legally Separated Buyer: is is not relying on the sale or lease of a property to qualify for this loan. Buyer: is is not relying on Seller Concessions for Buyer’s loan costs, impounds, Title/Escrow Company costs, recording fees, and, if applicable, VA loan costs not permitted to be paid by Buyer. (Note: The amount that Seller agrees to contribute, if any, shall be established in the Contract.) Buyer: is is not relying on down payment assistance to qualify for this loan. Type of Loan: Conventional FHA VA USDA Other: Occupancy Type: Primary Secondary Non-Owner Occupied Property Type: Single Family Residence Condominium Planned Unit Development Manufactured Home Mobile Home Vacant Land/Lot Other:
Loan Status Update (LSU) >> Page 2 of 2 PAGE 2 of 2 DOCUMENTATION Lender received the Contract and all Addenda / / Lender received Buyer’s name, income, social security number, Premises address, estimate of value of the Premises, and mortgage loan amount sought / / Lender sent Loan Estimate / / Buyer indicated to Lender an intent to proceed with the transaction after having received the Loan Estimate / / Lender received a signed Form 1003 and Lender disclosures / / Payment for the appraisal has been received / / Lender ordered the appraisal / / Lender identified down payment source / / Lender received and reviewed the Title Commitment / / Buyer locked the loan program and financing terms, including interest rate and points / / Lock expiration date Lender received the Initial Documentation listed on lines 32-35 / / Appraisal received / / Premises/Property appraised for at least the purchase price / / Closing Disclosure provided to Buyer / / Closing Disclosure received by Buyer / / UNDERWRITING AND APPROVAL Lender submitted the loan package to the Underwriter / / Lender obtained loan approval with Prior to Document (“PTD”) Conditions / / Appraisal conditions have been met / / Buyer has loan approval without PTD Conditions / / CLOSING Lender ordered the Closing Loan Documents and Instructions / / Lender received signed Closing Loan Documents from all parties / / All Lender Quality Control Reviews have been completed / / All Prior to Funding (“PTF”) Conditions have been met and Buyer has obtained loan approval without conditions / / Funds have been ordered / / All funds have been received by Escrow Company / / Close of escrow occurs when the deed has been recorded at the appropriate county recorder’s office. ^ LOAN OFFICER’S SIGNATURE MO/DA/YR YES NO COMPLETEDDATE INITIALSLENDER Premises/Property Address or Assessor’s #(s): Loan Status Update • Updated: February 2017 • Copyright © 2017 Arizona Association of REALTORS®. All rights reserved. 71.70.69.68.67.66.65.64.63.62.61.60.59.58.57.56.55.54.53.52.51.50.49.48.47.46.45.44.43.42.41.
One spouse cannot partition the property by selling his or her interest. One joint tenant can partition the property by selling his or her joint interest. One spouse cannot partition the property by selling his or her interest.
WAYS TO TAKE TITLE IN ARIZONA
For more information please contact your First American representative.
Requires a valid marriage between two persons. Parties need not be married; may be more than two joint tenants. Requires a valid marriage between two persons. Parties need not be married; may be more than two tenants in common.
Note: Arizona is a community property state. Property acquired by a married couple is presumed to be community property unless legally specified otherwise. Title may be held as “Sole and Separate.” If a married person acquires title as sole and separate, his or her spouse must execute a disclaimer deed to avoid the presumption of community property. Parties may choose to hold title in the name of an entity, e.g., a corporation; a limited liability company; a partnership (general or limited), or a trust. Each method of taking title has certain significant legal and tax consequences; therefore, you are encouraged to obtain advice from an attorney or other qualified professional.
First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions.
05108990519 COMMUNITYPROPERTY JOINT TENANCY WITH RIGHT OF SURVIVORSHIP COMMUNITY PROPERTY WITH RIGHT SURVIVORSHIPOF INTENANCYCOMMON
www.firstam.com
Upon death the estate of the decedent must be “cleared” through probate, affidavit or adjudication. No court action required to “clear” title upon the death of joint tenant(s). No court action required to “clear” title upon the first death. Upon death the estate of the decedent must be“cleared” through probate, affidavit or adjudication.
First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2020 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
Estate passes to surviving joint tenants outside of probate. Estate passes to the surviving spouse outside of probate. Upon death the tenant’s proportionate share passes to his or her heirs by will or intestacy.
Each tenant’s share can be conveyed, mortgaged or devised to a third party. Requires signatures of both spouses to convey or encumber. Requires signatures of all joint tenants to convey or encumber the whole. Requires signatures of both spouses to convey or encumber. Requires signatures of all tenants to convey or encumber the whole.
Each spouse holds an undivided one-half interest in the estate. Each joint tenant holds an equal and undivided interest in the estate, unity of interest. Each spouse holds an undivided one-half interest in the estate. Each tenant in common holds an undivided fractional interest in the estate. Can be disproportionate
Each spouse can devise (will) one-half of the community property.
xxxxxxx Closing Paperwork Loan Docs & Signthethe “Escrow” describes the neutral third-party handling of funds, documents, and tasks specific to the closing. the life of an escrow First American Title Presents Your Home Find Your Family A Find or ListReal Estate Agent & Lender Open ContractEscrow& SignthentheProperty Inspections & Needed Repairs Complete Title Commitment or the Preliminary Report Review the Lender/Escrow O cer Deliver invoices & info to the (at least 10 days prior to signing) Promptly respond to requests for Information & ThePaperworkFundsKeysSeller receives Buyer getsWire TransferDepositvia Closing Funds For01104090915more information please contact your First American representative. www.firstam.com First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2020 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
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.
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 and 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 UNDERSIGNED ACCEPT AND UNDERSTAND THE FOREGOING AND ACKNOWLEDGE RECEIPT OF A COPY OF THIS ADVISORY. Market Conditions Advisory • Updated: February 2021 Copyright © 2021 Arizona Association of REALTORS®. All rights reserved. Document updated: February 2021MARKET CONDITIONS ADVISORY SIGNATURE MO/DA/YR NAME SIGNATURE MO/DA/YR NAME
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 real estate market is cyclical and real estate values go up and down.
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05122881020 east 51 17 17 10 10 10 10 347 51 101101101101 101101 202 87 87 202 4 31 202 SCOTTSDALE FoothillsukeeCanyonGold Rio JUNCTION APACHE Desert Hills Verde FOUNTAIHILLSN Komatke LakesSun Ahwat GUADALUPE QUEENCREEK AIN MOUNTAIN SOUTH SANTAN SANTAN MOUNT RED GNAT CENTERST PKWYMUNTAINO EA A 7THST LAAKPWYMODAISYUNTAINDRKEPNIVGA ELLIOTPRIEST AVE27TH ST32ND DALINGTONR BEARDSLEY DA VIA VIA RDSTTHPEAKMCDORANCHMTNLLWEWYPKNOSPMOWRIG92ND ST96TH LIN LINDAST124TH ALLEY WAYANTHEM YO VENTURADEVI BLVD MA BL D BLVDHT OYWPKLSTORT 56 CLOUD RD 90STTH FORT RD WELLODCM RIGGSRD MOUNTAIRDN BROADWAY BLVDLOST DUTCHMANRDAVE AVE ST DRTOM CAVE VALLEY AVE DR AVE AVE KCREE NUEE ST TH NCH USH AVE LVD TTLETAR UMTATB BELTLINE RD B RD RITTENHOUSE LLOYDFRANK RA KINGS ST64TH MESA COMBS RD RDOCOTILLO HWY B ST16TH STST ES H RD DOUBLETREE RD E BLVDBLVDBLVD CDOWELL RD BELL RD SCHOOL CREE SRDTEROF RD MOUNTAIN DAL K BLVD P RIO ALMA RD DR DIXILETA RDLONE OFU ILLH U GOL O VD SISADESGLETNNIA SAG BLVDRDDR HAPPY JOMAX DYNAMITE M EN RA SCOTTSDALE PIMA ST RD 64TH TH PKWY ODLEIFDLG RD RD CRISMON SIGNAL MERIDIAN RD RD DRNOMSIRC IRONWOODDR SHEA RD DR RD RD VERDE RD RD RD RD RD HIGLEY RD RD ST INVERGORDON RD DR MESA YELPATS GREBLIT LINDSAY SVAT MAIN UNIVERSITY BROWN MCKELLIPS MCDOWELL DR DR RD POWER RD MCKELLIPS RD RDGALVINPKWY AVEBASELINE SHAWE RDOODRRIONWD IDAHO TOMAHAWK VIEWMOUNTAIN BLVDSUPERSTITION RD DR ST RDSOUTHERNRDBROADWAYDR RD RD RD UNIVERSITYINDIAN BEND RD RD RD RD RDST SCOTTSDALE HAYDEN PIMA DOBSON CAMELBACKCHAPARRALDR RDRD 56TH ST64TH ST CURRY RD RD COUNTRYCLUBDR 94TH ST RD RDRD GREENFIELD DR RD RD RD RDPECOS RD HIGLEY POWER RD RD SOSSAMAN SHAWE ELLSWORTHAVEARIZONA HWRDY RD RD RD RDPECOSGERMANN CHANDLEROCOTILLO RIGGS HUNT PINNACLE RD RDRDALMA MCQUEEN COOPER GILBERT LINDSAY VAL BASELINE BLVDCHANDLERGUADALUPE RDFIELDWILLIAMS RD HWY BEELINE COUNTRYCBDRUL H104T RD DR RD STST ST AVE 24TH16THH7TH7T RDRDCLOUDDR PKWY AYNW GR E NRDAMASSOSRECKER AVE7THBELL RDAVERDAVE Y RD THUNDERBIRDCACTUSC 40TH BLVD RD HILLS RD RDRAY RDWARNERRDCKOTNILCCM VALLEY 44TH ST RDST MCDONALD LINCOLN MTATU ST RDNORTHERNHOMEDUNLAP AVEAVEAVE AVE RANCH RD RD RDDESERJOYAVETBURENVAN RD ST WEST HWY OLD INDIANTHOMAS7THST ST AVE AVE 19TH 35TH RANCHHILLS MOUNTAIN V PEAK BROADWAYF BLVD RAY RURAL KYRENEST56TH 48 32ND 40TH RD RD 24TH RD RD ILE RD RD Q MARICOPARD APACHE RD RD SOUTHERN27TH 35TH 19TH VISTA HEIGHTS RD BUTTE TRAPACHE THOMAS PRICE DOBSON SCHOOLALMA VAL QUEEN CREEK SCHOOL 7TH CENTRAL 16TH 24TH 32ND 40TH PECOS RD EAVMILL MCDOWELLSCHOOL32ND ST ST ST CREEK RD DR GREENWAY BLVDEMPIRE 60 60 60 SKYHARBOINT’LAIRPORTR Town LakeTempe River Salt FWYMOUNTAIN RED CEIRPYWF PIMA FWY PIMAFWY FWY RBORHASKYYWF FWYFWY SUPERSTITION FWY CANYON UNMO SQUAW RED NIA FWY FWY TFWYMARICOPA MARICOPAYFW SUPERSTITION HOYWPXEMAKOH PEAKBLACK MARICOPAPIMARIVERSALT NATIONYAVAPAIMcDOWELLFORT PINAL COUNTY INDIAN COMMUNITY COMMUNITYINDIAN 202 202 202 202 17 8533 85331 1 85040 8504 0 8 85118 5118 885086 508 6 85053 85053 8 85023 5023 85212 85212 85085 85085 8 85055054 4 8505 85050 0 8514 85142 2 3 0 0 5 8 3 0 0 5 8 7 0 0 5 8 7 0 0 5 8 3 1 0 5 8 3 1 0 5 8 5 1 0 5 8 5 1 0 5 8 7 1 0 5 8 7 1 0 5 8 9 1 0 5 8 9 1 0 5 8 885009 500 9 85041 85041 8504 85 504 5 85048 85048 8 504 85042 2 85283 85283 85284 85284 8 5226 85226 850 4 8504 4 4 4 2 2 5 8 4 2 2 5 8 85202 85202 85210 8521 0 85233 85233 85225 85225 85248 85248 85249 85249 8 529 86 529 6 85297 85297 8523 852344 8 520 88 520 8852068 520 852046 85204 8 520 852055 85207 8520 37 1 2 5 8 3 1 2 5 8 85120 85120 8525 85256 6 3 0 2 5 8 3 0 2 5 85208 85201 852811 85281 8 525 87 525 7 8525 85251 1 8 525 80 525 0 8 521 852155 6 1 0 5 8 6 1 0 5 8 85 0 8506 0 06 8500 85008 8 8 85034 5034 8 501 88 501 8 4 1 0 5 8 4 1 0 5 8 85004 85004 8 501 82 501 2 8525 85253 3 85258 85258 85260 8526 8525085032852544 85032 8 85028 502 8 8502 85020 85020 85021 1 8502 85022 2 885029 502 9 8505 850511 8502 85024 4 8 85025027 7 531 853100 85083 5083 8526 85263 3 85262 85262 8525 852555 85266 8 5266 8525 85259 9 8526 85268 8 8533 85331 1 85377 85377 8526 85264 4 85119 85119 8 501 88 501 8 8 529 85 529 5 85298 85298 85209 8520 9 8528 852866 85140 85140 85143 85143 8508 850877 85282 8528 2 ANTHEMANTHEM TEMPTEMPEE SCSCOTTSDALEOTTSDALE PARADISEPARADISEVALVALLEYLEY CAREFREECAREFREE GILBERTGILBERTMESAMESA CHANDLERCHANDLER CREEKCREEKCAVECAVE O E N I XO E N I X NEW RIVERNEW RIVER First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2022 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF
