Page 1

The Life of an Escrow Understanding your escrow transaction

Purchase Contract BUYER SELECTS A REALTOR

START

BUYER GETS PRE-APPROVED BY LENDER IF NEW LOAN NEEDED

Includes 2011 Revisions

BUYER SELECTS HOME AND SUBMITS CONTRACT WITH LOAN STATUS REPORT (LSR)

BUYER VIEWS HOMES WITH Real Estate Professional

SELLER SELECTS A REALTOR

SELLER PREPARES HOUSE FOR SHOWING & SELLING

SELLER Reviews and Accepts Contract from Buyer

Guide to Arizona Association of Realtors® Residential Resale Purchase Contract INSPECTION REPORTS SENT TO APPLICABLE PARTY, REVIEWED AND NOTIFICATION SENT

VARIOUS INSPECTIONS ORDERED

ESCROW OPENED and Preliminary Report ORDERED

Preliminary Report RECEIVED and APPROVED BY BUYER

APPRAISAL ORDERED BY & COMPLETED FOR LENDER

BUYER ADVISES Escrow CompanyOF HOME INSURANCE COMPANY

CLOSING DOCUMENTS COMPILED BY Escrow Company

LOAN DOCUMENTS PREPARED BY LENDER & SENT TO ESCROW

BUYER RECEIVES FINAL LOAN APPROVAL FROM LENDER

SEPARATE APPOINTMENTS SET: BUYER & SELLER SIGN DOCUMENTS

BUYER DEPOSITS REQUIRED FUNDS

LOAN DOCUMENTS RETURNED TO LENDER FOR REVIEW

DOCUMENTS RECORDED AND ESCROW CLOSED

LENDER "FUNDS LOAN" (SENDS FUNDS TO ESCROW)

Escrow Company ENSURES ALL CONTRACT CONDITIONS HAVE BEEN MET

AFTER RECORDING, CONFIRMED Escrow Company DISBURSES FUNDS

BUYER RECEIVES KEYS FROM Real Estate Professional

FINAL DOCUMENTS SENT TO INTERESTED PARTIES

JEANNE STEINER REALTOR® HOMESMART CELL 602.295.0980 steinerj@cox.net http://www.steiner.listingbook. com First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions.

LEGENDS BRANCH 20241 N. 67th Ave, #A-2 Glendale, AZ 85308 OFFICE 623.537.1608 © 2012 First American Financial Corporation. All rights reserved. | NYSE:FAF


branch locator For the Metropolitan Phoenix Area

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resale branches 18

1 surPrise

623.474.3370 | Fax 866.764.4710 14239 W. Bell Rd, #115 Surprise, AZ 85374 W of Litchfield/S side of Bell

2 sun CiTY

623.972.2194 | Fax 866.764.4707 10922 W. Bell Road Sun City, AZ 85351 NW corner Bell/Del Webb, Bell Camino Center

3 meTro GATeWAY

623.936.8001 | Fax 866.764.4706 10320 W. McDowell Rd, Bldg G, #7022 Avondale, AZ 85392 NW corner of McDowell and 103rd Ave

4 ArroWHeAd

623.487.0404 | Fax 866.764.4703 16165 N. 83rd Ave, #100 Peoria, AZ 85382 S of Bell/E side of 83rd Ave

5 THe leGends

623.537.1608 | Fax 888.279.8559 20241 N. 67th Ave, #A-2 Glendale, AZ 85308 E side 67th Ave/N of 101

6 AnTHem

623.551.3265 | Fax 866.764.4708 3701 W. Anthem Way, #112 Anthem, AZ 85086 Exit 229 off I-17, E on Anthem Way

7 101 CorPorATe reo CenTer 623.869.7201 | Fax 866.751.5582 19820 N. 7th St, #130 Phoenix, AZ 85024 S of 101/Off Frontage/W of 7th St

8 PHoenix CAmelbACk

602.954.3644 | Fax 866.874.1067 2850 E. Camelback Rd, #180 Phoenix, AZ 85016 N side Camelback/28th Street

AZ - 09/2011

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9 deserT ridGe

480.515.4369 | Fax 866.303.1392 20860 N. Tatum Blvd, #100 Phoenix, AZ 85050 NW corner of Tatum/Loop 101

10 CAreFree

480.575.6609 | Fax 877.331.2252 7202 E. Carefree Dr, Bldg 1, #1 Carefree, AZ 85377 NE corner of Tom Darlington/Carefree Dr.

11 kierlAnd Commons

480.948.6488 | Fax 866.895.7958 14624 N. Scottsdale Rd, #150 Scottsdale, AZ 85254 W of Scottsdale Road, S side of Greenway

12 sCoTTsdAle Forum

480.551.0480 | Fax 866.874.1064 6263 N. Scottsdale Rd, #110 Scottsdale, AZ 85250 E Side Scottsdale/S of Lincoln

13 PimA CenTer esCroW

602.685.7470 | Fax 866.269.3407 9000 E. Pima Center Pkwy, #150 Scottsdale, AZ 85258 W of Loop 101 between Via de Ventura & Pima

14 dC CrossinG

480.563.9034 | Fax 866.314.2283 18291 N. Pima Rd, #145 Scottsdale, AZ 85255 SE corner of Pima/Legacy

15 FounTAin Hills

480.816.1471 | Fax 866.314.2309 13212 N. Saguaro Blvd, #120 Fountain Hills, AZ 85268 S side Palisades/W of Saguaro

16 AHWATukee

480.753.4424 | Fax 888.279.8546 4435 E. Chandler Blvd, #100 Phoenix, AZ 85048 SW corner Chandler/45th St.

17 TemPe mCClinToCk

480.777.0051 | Fax 866.417.0638 3923 S. McClintock Dr, #410 Tempe, AZ 85282 E side of McClintock, N of US 60

18 PriCe/WArner

480.777.0614 | Fax 888.279.8548 2125 E. Warner Rd, #103 Tempe, AZ 85284 S side Warner/W of Loop 101

19 mesA

480.833.5301 | Fax 888.279.8550 3048 E. Baseline Rd, #101 Mesa, AZ 85204 N side Baseline/W of Val Vista

builder, Commercial and lenders Advantage branches 20 Homebuilder division

480.612.9000 | Fax 866.874.1068 8601 N. Scottsdale Rd, #135 Scottsdale, AZ 85253 S of Gainey Suites Dr/E side of Scottsdale

21 esPlAnAde

CommerCiAl CenTer

13 e. vAlleY lenders AdvAnTAGe

602.685.7441 | Fax 866.547.8592 9000 E. Pima Center Parkway Scottsdale, AZ 85258 W of Loop 101 between Via de Ventura & Pima

13 W. vAlleY lenders

602.567.8100 | Fax 602.567.8101 2425 E. Camelback Rd, #300 Phoenix, AZ 85016 SE corner Camelback Rd/24th St

AdvAnTAGe

602.685.7440 | Fax 866.510.3806 9000 E. Pima Center Parkway Scottsdale, AZ 85258 W of Loop 101 between Via de Ventura & Pima

Š2011 First American Financial Corporation. All rights reserved. | nYse:FAF


Resale Purchase Contract The Resale Purchase Contract’s official name is Residential Resale Real Estate Purchase Contract.

It contains the following sections:

01.

pr op ert y

02.

f i n a n cin g

03.

tit l e a n d es crow

04.

d i s c l os u r e s

05.

warra n ti es

06.

due diligence

07.

r eme d i es

08.

a d d iti on a l t er ms a n d c on d iti on s

09.

s e l l e r acc epta n c e

It is the written agreement between the buyer and seller that states the terms of their agreement including which party is responsible for individual charges. The buyers and the sellers will know from this document which party is responsible for the costs associated with completing the sale of the home and closing their escrow.

Addenda 

It contains the following documents:

       

B  u y e r ’ s I n s p e cti on N otic e a n d S e l l e r ’ s R e s p on s e ( Bi n s r ) C ou n t er O f f e r c u r e p e riod n otic e L oa n Stat u s Upd at e M u ltip l e C ou n t e r O f f er M u ltip l e O f f e r / C ou n t e r O f f er P r e - Qu a l i f ication F or m S h ort Sa l e Ad d en d u m critical d at e l i s t

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Buyer Attachment This form is to be given to the buyer. It is not part of the contract. It is to act as a reminder to the buyer as to their responsibilities and duties under the terms of the contract. It also stresses the importance of items to be read or investigated by the buyer.

2.

Added Residential.

5.

Now references (see Section 2f).

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Page 1 of 9

BUYER ATTACHMENT

Document updated: February 2011

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.

ATTENTION BUYER! You are entering into a legally binding agreement.

E L P

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).

M A

If important to you, hire a qualified: • Mold inspector • Roof inspector • Pest inspector • Pool inspector • Heating/cooling inspector

S

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 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.

6. Read the title commitment within five days of receipt (see Section 3c). 7. Read the CC&R’s and all other governing documents within five days of receipt (see Section 3c), especially if the home is in a homeowner’s association. 8. Conduct a thorough final walkthrough (see Section 6m). If the property is unacceptable, speak up. After the closing may be too late. You can obtain information through the Buyer’s Advisory at http://www.aaronline.com. 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.

4 Buyer’s Check List Buyer Attachment • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

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section 1 –

Property

Buyer’s name and Seller’s name are at the beginning of the contract. In case the seller’s name is not known at the time the contract is written, the agent needs to mark the box “as identified in Section 9c.”

1a.

Lines 1 – 2

This is the first contract to provide a space to put the seller’s name. This is very important to escrow because if it is not filled in they have to rely on interpreting the seller’s signature on the contract or the last vesting document of record to determine the identity of the seller.

1c.

Lines 8 – 14

Added two additional blank lines.

Close of escrow is still defined as recordation. If Escrow Company or recorder’s office is closed on COE date; COE shall occur on the next day that both are open for business.

1d.

Lines 15 – 22

1e.

Lines 23 – 26

Added “existing” keys to clarify that the seller is not obligated to have keys made for locks, etc.

1f.

Lines 27 – 29

Expands the list of Addenda. Added “AS-IS” and “Short Sale” Addenda. Deleted “HUD forms”.

1g.

Lines 30 – 52

Fixtures and Personal Property List. Added “central vacuum, hose and attachments” to the list of fixtures and personal property that are included in the sale. Omitted “TV” from “attached media antennas/satellite dishes” to clarify that attached TV’s, such as flat screens, are not included in the sale.

No contract extension is then required if COE falls on a date escrow or recorder is closed. COE is automatically extended to the next date both are open for business.

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Page 1 of 9

RESIDENTIAL RESALE REAL ESTATE

PURCHASE CONTRACT

Document updated: February 2011

1. PROPERTY 1a.

1. BUYER:

BUYER’S NAME(S)

2. SELLER:

or

SELLER’S NAME(S)

n

as identified in section 9c.

3. Buyer agrees to buy and Seller agrees to sell the real property with all improvements, fixtures, and appurtenances thereon 4. or incidental thereto, plus the personal property described herein (collectively the “Premises”). 1b.

E L P

5. Premises Address:

Assessor’s #:

6. City:

County:

7. Legal Description: 1c.

8. $

Full Purchase Price, paid as outlined below

9. $

Earnest money

10. $ 11. $

M A

12. 13. 14. 1d.

AZ, Zip Code:

15. Close of Escrow: Close of Escrow (“COE”) shall occur when the deed is recorded at the appropriate county recorder’s office. Buyer 16. and Seller shall comply with all terms and conditions of this Contract, execute and deliver to Escrow Company all closing documents, 17. 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 COE Date, 18.

S MONTH

DAY

YEAR

19. COE shall occur on the next day that both are open for business.

20. Buyer shall deliver to Escrow Company a cashier’s check, wired funds or other immediately available funds to pay any down 21. payment, additional deposits or Buyer’s closing costs, and instruct the lender, if applicable, to deliver immediately available funds to 22. Escrow Company, in a sufficient amount and in sufficient time to allow COE to occur on COE Date. 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 n . Broker(s) recommend that the parties seek appropriate counsel from insurance, legal, tax, and accounting professionals regarding the risks of pre-possession or post-possession of the Premises.

1e.

23. 24. 25. 26.

1f.

27. Addenda Incorporated: n AS IS n Additional Clause n Assumption and Carryback n Buyer Contingency n Domestic Water Well 28. n H.O.A. n Lead-Based Paint Disclosure n On-site Wastewater Treatment Facility n Short Sale 29. n Other:

1g.

30. Fixtures and Personal Property: Seller agrees that all existing fixtures on the Premises, and any existing personal property 31. specified herein, shall be included in this sale, including the following: 32. • free-standing range/oven • light fixtures • draperies and other window coverings 33. • ceiling fans • towel, curtain and drapery rods • shutters and awnings 34. • attached floor coverings • flush-mounted speakers • water-misting systems 35. • window and door screens, sun screens • storm windows and doors • solar systems 36. • garage door openers and controls • attached media antennas/ • mailbox 37. • outdoor landscaping, fountains, and lighting satellite dishes • central vacuum, hose, and attachments 38. • pellet, wood-burning or gas-log stoves • attached fireplace equipment • built-in appliances 39. • storage sheds • timers

>> Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 1 of 9

PAGE 1 of 2

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section 2 – 2a.

Financing

Line 54

Pre-Qualification. Added a place to mark if the completed new, AAR Pre-Qualification Form is or is not attached.

2b.

Line 55 – 58

Loan Contingency. If the loan contingency is not fulfilled, the buyer has no obligation to close escrow. Therefore, the Contract can be considered cancelled or terminated because it is unenforceable against the Buyer. Further, if seller agrees to allow the buyer additional time to obtain the loan, the parties should execute an amendment to the Contract extending the close of escrow date.

2c.

Lines 59 – 61

Unfulfilled Loan Contingency. The contract shall be cancelled and the Buyer entitled to a refund of Earnest Money, if after a diligent and good faith effort, the Buyer is unable to obtain loan approval without PTD conditions no later than 3 days prior to COE.

2d.

Lines 62 – 65

Interest Rate/Necessary Funds. New paragraph wherein buyer agrees that if he cannot obtain loan approval due to failure to lock the interest rate and “points” with the lender during the inspection period or failure to have the down payment or other funds due to obtain loan approval without conditions and close the transaction is not an unfulfilled loan contingency.

2e.

Lines 66 – 68

Loan Status Update (LSU). The Buyer MUST deliver an LSU to the Seller within five (5) days after contract acceptance.

2f.

Lines 69 – 71

Loan Application. The buyer must, unless previously completed during the inspection period complete, sign and deliver to the lender a loan application and grant lender permission to access Trimerged Residential Credit Report and provide lender with all requested signed disclosures and initial request documentation contained in LSU.

2h.

Lines 74 – 75

Type of Financing. Added USDA (United States Department of Agriculture) as a type of financing.

Line 76

Loan Cost. Now states buyer to pay for all costs for obtaining the loan unless otherwise provided for in the contract.

2j.

Lines 77 – 78

Seller Concessions. Seller concessions are a prevalent loan condition. The concession, if any, is specifically defined as the maximum amount that the seller agrees to pay for buyer’s loan costs, including pre-paids, impounds and Buyer’s title/escrow closing costs. (PMI Insurance is considered a loan cost. Home Warranty, Inspection fees and HOA fees are examples of items not considered loan fees or title/escrow closing costs.)

2k.

Lines 79 – 80

VA Loan Costs. Seller agrees to pay escrow fee if the buyer is obtaining a VA Loan and up to percentage or dollar amount of loan costs not permitted to be paid by buyer in addition to any other costs they have agreed to pay in the contract including Seller’s concessions.

2l.

Lines 81 – 84

Changes. Buyers must notify the Seller of any changes in the loan described in the Pre-Qualification Form attached to the contract or the LSU provided within five (5) days after contract acceptance.

2m.

Lines 85 – 88

Appraisal Contingency. The premises must appraise for at least the PURCHASE price and if it fails to appraise for the purchase price in ANY APPRAISAL REQUIRED BY THE LENDER, the Buyer has five (5) days to cancel and receive a refund of their earnest money.

2n.

Lines 89 – 90

Appraisal fee. Appraisal fee to be paid by and appraisal fees may or may not be included in the Seller concessions as indicated on line 90.

2i.

If the buyer does not deliver a notice of an unfulfilled loan contingency to the seller or the escrow company within three days prior to COE or within three days of being served a cure notice the buyer is in breach of failure to deliver the notice, and the seller is entitled to the earnest money.

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Page 2 of 9

Residential Resale Real Estate Purchase Contract >> 40. If owned by the Seller, the following items also are included in this sale: 41. • pool and spa equipment (including any mechanical or other cleaning systems) 42. • security and/or fire systems and/or alarms 43. • water softeners 44. • water purification systems 45. Additional existing personal property included in this sale (if checked):

n refrigerator n washer n dryer

as described:

46. 47. 48.

n Other:

49. 50. Additional existing personal property included shall not be considered part of the Premises and shall be transferred with no monetary 51. value, and free and clear of all liens or encumbrances. 52. Fixtures and leased items NOT included: 53. IF THIS IS AN ALL CASH SALE, GO TO SECTION 3.

E L P

2. FINANCING

n

n

2a.

54. Pre-Qualification: A completed AAR Pre-Qualification Form

2b.

55. 56. 57. 58.

2c.

59. Unfulfilled Loan Contingency: This Contract shall be cancelled and Buyer shall be entitled to a return of the Earnest Money if after 60. diligent and good faith effort, Buyer is unable to obtain loan approval without PTD conditions no later than three (3) days prior to the 61. COE Date. Buyer acknowledges that prepaid items paid separately from earnest money are not refundable.

2d.

62. 63. 64. 65.

2e.

66. Loan Status Update: Buyer shall deliver to Seller the LSU with at a minimum lines 1-40 completed describing the current status 67. of the Buyer’s proposed loan within five (5) days after Contract acceptance and instruct lender to provide an updated LSU to 68. Broker(s) and Seller upon request.

2f.

69. Loan Application: Unless previously completed, during the Inspection Period, Buyer shall (i) complete, sign and deliver to the 70. lender a loan application and grant lender permission to access Buyer’s Trimerged Residential Credit Report; and (ii) provide 71. to lender all initial requested signed disclosures and Initial Requested Documentation listed in the LSU on lines 32-35.

2g.

72. Loan Processing During Escrow: Buyer agrees to diligently work to obtain the loan and will promptly provide the lender with all 73. additional documentation required. Buyer shall sign all loan documents no later than three (3) days prior to the COE Date.

2h.

74. Type of Financing: n Conventional n FHA n VA n USDA n Assumption 75. (If financing is to be other than new financing, see attached addendum.)

is

is not attached hereto and incorporated herein by reference.

Loan Contingency: Buyer’s obligation to complete this sale is contingent upon Buyer obtaining loan approval for the loan described in the AAR Loan Status Update (“LSU”) form without Prior to Document (“PTD”) conditions no later than three (3) days prior to the COE Date. If Buyer is unable to obtain loan approval without PTD conditions, Buyer shall deliver a notice of the inability to obtain loan approval without PTD conditions to Seller or Escrow Company no later than three (3) days prior to the COE Date.

M A

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 during the Inspection Period 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.

S

n Seller Carryback n

2i.

76. Loan Costs: All costs of obtaining the loan shall be paid by the Buyer, unless otherwise provided for herein.

2j.

77. Seller Concessions (If Any): In addition to the other costs Seller has agreed to pay herein, Seller agrees to pay up to % 78. of the Purchase Price or $ for Buyer’s loan costs including pre-paids, impounds and Buyer’s title / escrow closing costs.

2k.

79. VA Loan Costs: In the event of a VA loan, Seller agrees to pay the escrow fee and up to $ of loan costs not 80. permitted to be paid by the Buyer, in addition to the other costs Seller has agreed to pay herein, including Seller’s Concessions.

2l.

81. 82. 83. 84.

Changes: Buyer shall immediately notify Seller of any changes in the loan program, financing terms, or lender described in the Pre-Qualification Form if attached hereto or LSU provided within five (5) 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.

2m.

85. 86. 87. 88.

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 refund of the Earnest Money or the appraisal contingency shall be waived.

2n.

89. Appraisal Fee(s): Appraisal Fee(s), when required by lender, shall be paid by n Buyer 90. Appraisal Fee(s) n are n are not included in Seller Concessions, if applicable.

n Seller n Other

Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 2 of 9

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>>


section 3 –

Title and Escrow

3a.

Lines 91 – 95

Escrow. Added lines for the Escrow/Title Company’s address and email information.

3b.

Lines 96 – 97

Agents will need to remember that escrow will need to know the marital status of the Buyer(s) in order to properly prepare vesting and loan documents.

3c.

Lines 98 – 107

Title Commitment and Title Insurance. Omitted “General Warranty Deed” and replaced the term with “Warranty Deed, subject to existing taxes, assessments, covenants, conditions, restrictions, rights of way, easements and all other matters of record.” Also added to this section: “If applicable, Buyer shall pay the cost of obtaining the ALTA Lender Title Insurance Policy.” To clarify that the expense of a lender’s policy is the buyer’s obligation.

3d.

Lines 108 – 117

Additional Instructions: Escrow Company shall furnish notice of pending sale to the HOA. IF an Affidavit of Disclosure is provided, Escrow Company shall record the Affidavit at COE.

3f.

Lines 119 – 123 Release of Earnest Money – holds escrow agent harmless for release of earnest money.

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Page 3 of 9

Residential Resale Real Estate Purchase Contract >>

3. TITLE AND ESCROW 3a.

91. Escrow: This Contract shall be used as escrow instructions. The Escrow Company employed by the parties to carry out the 92. terms of this Contract shall be: 93. 94. 95.

3b. 3c.

“ESCROW/TITLE COMPANY”

ADDRESS

CITY

STATE

EMAIL

PHONE

ZIP

FAX

96. Title and Vesting: Buyer will take title as determined before COE. Taking title may have significant legal, estate planning and tax 97. consequences. Buyer should obtain legal and tax advice.

E L P

98. 99. 100. 101. 102. 103. 104. 105. 106. 107.

Title Commitment and Title Insurance: Escrow Company is hereby instructed to obtain and deliver to Buyer and Seller directly, addressed pursuant to 8t 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, an ALTA Residential Title Insurance Policy (“Plain Language”/“1-4 units”) 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.

3d. 108. 109. 110. 111. 112. 113. 114. 115. 116. 117.

Additional Instructions: (i) Escrow Company shall promptly furnish notice of pending sale that contains the name and address of the Buyer to any homeowner’s association in which the Premises is located. (ii) If the 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 the Buyer and Seller, upon deposit of funds, a closing protection letter from the title insurer indemnifying the Buyer and Seller for any losses due to fraudulent acts or breach of escrow instructions by the 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.

M A

S

3e. 118. Tax Prorations: Real property taxes payable by the Seller shall be prorated to COE based upon the latest tax information available. 3f. 119. 120. 121. 122. 123.

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 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 Earnest Money.

3g. 124. Prorations of Assessments and Fees: All assessments and fees that are not a lien as of the COE, including homeowner’s 125. association fees, rents, irrigation fees, and, if assumed, insurance premiums, interest on assessments, interest on encumbrances, 126. and service contracts, shall be prorated as of COE or n Other: 3h. 127. Assessment Liens: The amount of any assessment, other than homeowner’s association assessments, that is a lien as of the 128. COE, shall be n paid in full by Seller n prorated and assumed by Buyer. Any assessment that becomes a lien after COE is 129. the Buyer’s responsibility. 3i. 130. 131. 132. 133.

IRS and FIRPTA Reporting: Seller agrees to comply with IRS reporting requirements. If applicable, Seller agrees to complete, sign, and deliver to Escrow Company a certificate indicating whether Seller is a foreign person or a non-resident alien pursuant to the Foreign Investment in Real Property Tax Act (“FIRPTA”). Buyer and Seller acknowledge that if the Seller is a foreign person, the Buyer must withhold a tax equal to 10% of the purchase price, unless an exemption applies.

>> Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 3 of 9

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section 4 – 4a. 4b.

Lines 134 – 136

Lines 137 – 141

Disclosures

Seller Property Disclosure Statement. Added: “Residential.”

Insurance Claims History – Seller shall deliver to Buyer a written five-year insurance claims history regarding Premises (or a claims history for the length of time Seller has owned the Premises if less than five years) from Seller’s Insurance Company or an insurance support organization or consumer reporting agency, or if unavailable from these sources, from Seller, within 5 days after contract acceptance. Seller may obscure any reference to date of birth or social security number from the document. Buyer shall provide notice of any items disapproved within the Inspection Period or 5 days after receipt of the claims history whichever is later. REMEMBER: If this is not provided to the buyer in a timely manner, an additional 5 days may be given to the buyer for disapproval.

4c. 4d.

Lines 142 – 155

Lines 158 – 161

Lead Based Paint Disclosure. Added: “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.” Affidavit of Disclosure – Escrow Agent’s sole responsibility is to record the affidavit if the Seller provides it to escrow. Buyer shall provide notice of any items disapproved within the inspection period or five (5) days after receipt of the Affidavit, whichever is later. REMEMBER: If this is not provided to the buyer in a timely manner if required; an additional 5 days may be given to the buyer for disapproval.

section 5 – 5a. 5c.

Lines 166 – 171

Lines 179 – 184

Warranties

Seller Warranties – All other agreed upon repairs and corrections will be completed pursuant to Section 6j AND all personal property not included in the sale and all debris will be removed from the premises.

Buyer Warranties: Buyer warrants that Buyer is not relying on any verbal representations concerning the Premises except disclosed as follows… This is basically protection for the Agent from future lawsuits. If Buyer is purchasing based on a verbal representation from the agent they are to disclose it here.

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Residential Resale Real Estate Purchase Contract >>

4. DISCLOSURE 4a. 134. Seller Property Disclosure Statement (“SPDS”): Seller shall deliver a completed AAR Residential SPDS form to the Buyer 135. within five (5) days after Contract acceptance. Buyer shall provide notice of any SPDS items disapproved within the Inspection 136. Period or five (5) days after receipt of the SPDS, whichever is later. 4b. 137. 138. 139. 140. 141.

Insurance Claims History: Seller shall deliver to Buyer a written five-year insurance claims history regarding Premises (or a claims history for the length of time Seller has owned the Premises if less than five 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. (Seller may obscure any reference to date of birth or social security number from the document). 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.

4c. 142. 143. 144. 145. 146. 147.

Lead-Based Paint Disclosure: If the Premises were built prior to 1978, the Seller shall: (i) notify the Buyer of any known lead-based paint (“LBP”) or LBP hazards in the Premises; (ii) provide the Buyer with any LBP risk assessments or inspections of the Premises in the Seller’s possession; (iii) provide the 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 LeadBased Paint and Lead-Based Paint Hazards to Seller prior to COE.

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148. n LBP Information was provided prior to Contract acceptance and Buyer acknowledges the opportunity to conduct LBP risk 149. assessments or inspections during Inspection Period.

150. n Seller shall provide LBP Information within five (5) days after Contract acceptance. Buyer may within ten (10) days 151. or days after receipt of the LBP Information conduct or obtain a risk assessment or inspection of the Premises for the 152. presence of LBP or LBP hazards (“Assessment Period”). Buyer may within five (5) days after receipt of the LBP Information or five 153. (5) days after expiration of the Assessment Period cancel this Contract. 154. Buyer is further advised to use certified contractors to perform renovation, repair or painting projects that disturb lead-based paint in 155. residential properties built before 1978 and to follow specific work practices to prevent lead contamination.

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If Premises were constructed prior to 1978, (BUYER’S INITIALS REQUIRED)

156. 157.

If Premises were constructed prior to 1978 or later, (BUYER’S INITIALS REQUIRED)

BUYER

BUYER

BUYER

BUYER

4d. 158. 159. 160. 161.

Affidavit of Disclosure: If the Premises is located in an unincorporated area of the county, and five or fewer parcels of property other than subdivided property are being transferred, the Seller shall deliver a completed Affidavit of Disclosure in the form required by law to the 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.

4e. 162. 163. 164. 165.

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 Section 5a or otherwise 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.

S

5. WARRANTIES 5a. 166. 167. 168. 169. 170. 171.

Seller Warranties: Seller warrants and shall maintain and repair the Premises so that at the earlier of possession or COE: (i) all heating, cooling, mechanical, plumbing, and electrical systems (including swimming pool and/or spa, motors, filter systems, cleaning systems, and heaters, if any), free-standing range/oven, and built-in appliances will be in working condition; (ii) all other agreed upon repairs and corrections will be completed pursuant to Section 6j; (iii) the Premises, including all additional existing personal property included in the sale, will be in substantially the same condition as on the date of Contract acceptance; and (iv) all personal property not included in the sale and all debris will be removed from the Premises.

5b. 172. 173. 174. 175. 176. 177. 178.

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 the 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 the 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.

5c. 179. 180. 181. 182.

Buyer Warranties: Buyer warrants that Buyer has disclosed to Seller any information that may materially and adversely affect the 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:

183. 184.

>> Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 4 of 9

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section 6 – 6a.

Due Diligence

Inspection Period: States that the inspection period begins “the day after acceptance of the Contract.” Some language has changed in the list of all the inspections but the general concept of inspections is still the same but Lines 185 – 196 added Buyer to verify MLS information. Also, Buyer is advised to consult the Arizona Department of Real Estate, Buyer Advisory to assist in Buyer’s due diligence inspections and investigations. Buyer shall provide Seller and Broker(s) upon receipt at no cost copies of all inspection reports concerning the Premises obtained by buyer. Wood-Destroying Organism or Insect Inspection. Buyer shall order AND PAY for the termite inspection.

6c.

Line 200 – 204

6e.

Insurance: If Homeowner’s Insurance is a material matter to the Buyer, Buyer shall apply for and obtain written conLines 209 – 212 firmation of the availability and cost of homeowner’s insurance for the premises from Buyer’s Insurance Company during the inspection period.

6f.

Buyer’s agent needs to recognize that no longer does the contract state that the Seller will pay for any treatment up to 1% of the Sales price or as otherwise stated. It is imperative that the inspection is done during the inspection period so that if treatment is required buyer can put on their items requested to be repaired, or their items disapproved for cancellation purposes.

Lines 213 – 217 IF SEWER connection is a material matter to the Buyer; it must be investigated during the inspection period.

6g.

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 Lines 219 – 222 prior to occupying the Premises, unless otherwise agreed to in writing. Agent should be aware that the burden both financially and responsibility wise to comply with any swimming pool regulations unless otherwise agreed to in the contract are on the buyer.

6h.

Lines 224 – 230

Buyer acknowledgement –Includes Buyer acknowledgement that Broker is not qualified nor licensed to conduct due diligence.

6i.

Lines 232 – 235

Inspection Period Notice – Buyer shall conduct all desired inspections and investigations prior to delivering such notice to Seller and all items disapproved shall be provided in a single notice.

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Residential Resale Real Estate Purchase Contract >>

6. DUE DILIGENCE 6a. 185. 186. 187. 188. 189. 190. 191. 192. 193. 194. 195. 196.

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 the Buyer, it must be investigated by the 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 provided by AAR to assist in Buyer’s due diligence inspections and investigations.

6b. 197. Square Footage: BUYER IS AWARE THAT ANY REFERENCE TO THE SQUARE FOOTAGE OF THE PREMISES, BOTH THE 198. REAL PROPERTY (LAND) AND IMPROVEMENTS THEREON, IS APPROXIMATE. IF SQUARE FOOTAGE IS A MATERIAL 199. MATTER TO THE BUYER, IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD.

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6c. 200. 201. 202. 203. 204.

Wood-Destroying Organism or Insect Inspection: IF CURRENT OR PAST WOOD-DESTROYING ORGANISMS OR INSECTS (SUCH AS TERMITES) ARE A MATERIAL MATTER TO THE BUYER, THESE ISSUES MUST BE INVESTIGATED DURING THE INSPECTION PERIOD. The 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.

6d. 205. 206. 207. 208.

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.

6e. 209. 210. 211. 212.

Insurance: IF HOMEOWNER’S INSURANCE IS A MATERIAL MATTER TO THE 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.

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6f. 213. Sewer or On-site Wastewater Treatment System: The Premises are connected to a: 214. n sewer system n septic system n alternative system

S

215. IF A SEWER CONNECTION IS A MATERIAL MATTER TO THE BUYER, IT MUST BE INVESTIGATED DURING THE 216. INSPECTION PERIOD. If the Premises are served by a septic or alternative system, the AAR On-site Wastewater Treatment 217. Facility Addendum is incorporated herein by reference. 218. 6g. 219. 220. 221. 222. 223. 6h. 224. 225. 226. 227. 228. 229. 230.

(BUYER’S INITIALS REQUIRED)

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. (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 THE 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)

231. 6i. 232. 233. 234. 235.

BUYER

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.

>>

Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 5 of 9

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section 6 –

cont.

Buyer Disapproval: If Buyer, in Buyer’s sole discretion disapproves of items as provided herein, Buyer shall deliver to Seller notice of the items disapproved and state in that notice their election. Buyer’s failure to give notice shall be deemed Buyer’s election to proceed. Buyer has three options on their items disapproved: proceed, ask for repairs or cancel.

6j.

Lines 236 – 254

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 3 days or __ prior to COE. REMEMBER: If the Seller does not complete the repairs and deliver the paid receipts to the Buyer 3 days or ____ prior to COE, the buyer could deliver a cure notice to the Seller which could extend the COE date Verbal discussions will not extend these time periods. Only a written agreement signed by both parties will extend response times or cancellation rights.

6k. 6n.

Line 255 – 257

Lines 269 – 271

Notice of Non-Working Warranted Items: Buyer shall provide Seller with notice of any non-working warranted items of which Buyer becomes aware during the inspection period or the Seller warranty for that item(s) shall be waived. Seller’s Responsibility Regarding Inspections and Walkthroughs: Seller shall make the Premises available and have all utilities on, including propane, until COE to enable Buyer to conduct these inspections and walkthrough(s). Utilities required to be on during the full contract period. Also Buyer has the right to multiple walkthroughs to complete their inspections.

section 7 – 7a.

Lines 272 – 275

Remedies

Cure Period: If a party fails to comply with the provisions of the 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 3 days after delivery of the notice “Cure Period” the failure to comply shall become a breach of contract. REMEMBER: The cure period may extend the COE.

7b.

Lines 276 – 285

Breach. Changed sub-section references due to changes in the financing section’s sub-sections. Added: “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.”

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Residential Resale Real Estate Purchase Contract >> 6j. 236. Buyer Disapproval: If Buyer, in Buyer’s sole discretion, disapproves of items as allowed herein, Buyer shall deliver to Seller notice 237. of the items disapproved and state in the notice that Buyer elects to either: 238. (1) immediately cancel this Contract and all Earnest Money shall be released to Buyer, or 239. (2) provide the Seller an opportunity to correct the items disapproved, in which case: 240. 241. 242.

(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.

243. 244. 245.

(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 COE Date.

246. 247. 248. 249.

(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 all 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.

250. VERBAL DISCUSSIONS WILL NOT EXTEND THESE TIME PERIODS. Only a written agreement signed by both parties will extend 251. response times or cancellation rights.

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252. BUYER’S FAILURE TO GIVE NOTICE OF DISAPPROVAL OF ITEMS OR CANCELLATION OF THIS CONTRACT WITHIN THE 253. SPECIFIED TIME PERIOD SHALL CONCLUSIVELY BE DEEMED BUYER’S ELECTION TO PROCEED WITH THE 254. TRANSACTION WITHOUT CORRECTION OF ANY DISAPPROVED ITEMS. 6k. 255. Notice of Non-Working Warranted Items: Buyer shall provide Seller with notice of any non-working warranted item(s) of which 256. Buyer becomes aware during the Inspection Period or the Seller warranty for that item(s) shall be waived. Delivery of such notice 257. shall not affect Seller’s obligation to maintain or repair the warranted item(s). 6l. 258. Home Warranty Plan: Buyer and Seller are advised to investigate the various home warranty plans available for purchase. The 259. parties acknowledge that different home warranty plans have different coverage options, exclusions, limitations, service fees and 260. most plans exclude pre-existing conditions.

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n A Home Warranty Plan will be ordered by n Buyer or n Seller with the following optional coverage , to be issued by 262. 263. to exceed $ , to be paid for by n Buyer n Seller 264. n Buyer declines the purchase of a Home Warranty Plan. 261.

6m. 265. 266. 267. 268.

S

at a cost not

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 the Seller have been completed, warranted items are in working condition and that the Premises is 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.

6n. 269. Seller’s Responsibility Regarding Inspections and Walkthrough(s): Seller shall make the Premises available for all inspections 270. and walkthrough(s) upon reasonable notice by Buyer. Seller shall, at Seller’s expense, have all utilities on, including any propane, 271. until COE to enable Buyer to conduct these inspections and walkthrough(s).

7. REMEDIES 7a. 272. 273. 274. 275.

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 noncompliance is not cured within three (3) days after delivery of such notice (“Cure Period”), the failure to comply shall become a breach of Contract.

7b. 276. 277. 278. 279. 280. 281. 282. 283. 284. 285.

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 the 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 2m, 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.

>> Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 6 of 9

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section 7 –

cont.

7c.

Lines 286 – 294

Alternative Dispute Resolution – ADR – If mediation does not resolve the disputes, the parties agree to binding arbitration and the decision of the arbitrator shall be final and nonappealable. Parties can opt out of arbitration and go to court.

7d.

Line 295 – 301

Exclusions from ADR – basically the same as the exclusions from mediation in the prior contract.

7e.

Lines 302 – 304

Attorney Fees and Costs – The prevailing party in any dispute or claim arising out of or relating to this Contract shall be awarded their reasonable attorney fees and costs.

section 8 –

8a.

Lines 305 – 334

A  dditional Terms and Conditions

Added 18 additional blank lines.

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Residential Resale Real Estate Purchase Contract >> 7c. 286. 287. 288. 289. 290. 291. 292. 293. 294.

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. 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.

7d. 295. 296. 297. 298. 299. 300. 301.

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 $2,500) 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.

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7e. 302. Attorney Fees and Costs: The prevailing party in any dispute or claim between Buyer and Seller arising out of or relating to this 303. Contract shall be awarded their reasonable attorney fees and costs. Costs shall include, without limitation, attorney fees, expert 304. witness fees, fees paid to investigators, and arbitration costs.

8. ADDITIONAL TERMS AND CONDITIONS 8a. 305. 306. 307.

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308. 309. 310. 311. 312. 313. 314. 315. 316. 317. 318. 319. 320. 321. 322. 323.

S

324. 325. 326. 327. 328. 329. 330. 331. 332. 333. 334.

>> Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 7 of 9

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section 8 – 8f.

Lines 342 – 347

cont.

Compensation – The contract shall constitute an irrevocable assignment of Seller’s proceeds at COE if seller is obligated to pay the commission. If Buyer is obligated to pay Broker(s), payment shall be collected from Buyer as a condition of COE. REMEMBER: To provide escrow with any commission agreements for payment at COE.

8g.

Lines 348 – 352

Copies and counterparts – includes lead based paint disclosure CANNOT be signed in counterpart.

8h.

Lines 353 – 354

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.

8i.

Lines 355 – 359

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.

8m.

Lines 368 – 371

Notice – Delivery of all notices and documentation required or permitted hereunder shall be in writing and deemed delivered and received when (1) hand delivered (2) sent via facsimile (3) sent via email or (4) send by overnight courier service – addressed to Buyer as indicated in Section 8r to Seller as indicated in Section 9a and to the escrow company indicated in Section 3a. NOTE: Those areas are the BROKERS, not the buyer and seller.

8n.

Lines 372 – 376

Earnest Money. Added: “Buyer acknowledges that failure to pay the required closing funds by the scheduled Close of Escrow, if not cured after a cure notice is delivered pursuant to Section 7a, shall be construed as a material breach of this contract and all earnest money shall be subject to forfeiture.”

8o.

Lines 377 – 382

Release of Broker(s). Added: “price and terms of sale, return on investment.” Added: “The parties understand and agree that the 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.” The seller’s initials arenow required along with the buyer’s because price, terms and investment decisions affect both buyer and seller.

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Residential Resale Real Estate Purchase Contract >> 8b. 335. 336. 337. 338.

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 the 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.

8c. 339. Permission: Buyer and Seller grant Broker(s) permission to advise the public of this Contract. 8d. 340. Arizona Law: This Contract shall be governed by Arizona law and jurisdiction is exclusively conferred on the State of Arizona. 8e. 341. Time is of the Essence: The parties acknowledge that time is of the essence in the performance of the obligations described herein. 8f. 342. 343. 344. 345. 346. 347.

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. 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 THE BROKER AND CLIENT.

8g. 348. 349. 350. 351. 352.

Copies and Counterparts: 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 Lead-Based Paint Disclosure Statement may not be signed in counterpart. All counterparts shall be deemed to constitute one instrument, and each counterpart shall be deemed an original.

E L P

8h. 353. 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 354. end at 11:59 p.m. 8i. 355. 356. 357. 358. 359.

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 days prior to the COE Date must be performed three full days prior (i.e., if COE Date is Friday the act must be performed by 11:59 p.m. on Monday).

M A

8j. 360. Entire Agreement: This Contract, and any addenda and attachments, shall constitute the entire agreement between Seller and 361. Buyer, shall supersede any other written or oral agreements between Seller and Buyer and can be modified only by a writing signed 362. by Seller and Buyer. The failure to initial any page of this Contract shall not affect the validity or terms of this Contract.

S

8k. 363. Subsequent Offers: Buyer acknowledges that Seller has the right to accept subsequent offers until COE. Seller understands that 364. any subsequent offer accepted by the Seller must be a backup offer contingent on the cancellation of this Contract. 8l. 365. Cancellation: A party who wishes to exercise the right of cancellation as allowed herein may cancel this Contract by delivering 366. notice stating the reason for cancellation to the other party or to the Escrow Company. Cancellation shall become effective 367. immediately upon delivery of the cancellation notice. 8m. 368. 369. 370. 371.

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 8r, to Seller as indicated in Section 9a and to the Escrow Company indicated in Section 3a.

8n. 372. 373. 374. 375. 376.

Earnest Money: Earnest Money is in the form of: n Personal Check n Other If applicable, Earnest Money has been received by Broker named in Section 8r and upon acceptance of this offer will be deposited with: n Escrow Company n 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 all earnest money shall be subject to forfeiture.

8o. 377. 378. 379. 380. 381. 382.

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 the 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.

383. (SELLER’S INITIALS REQUIRED) 8p. 384. 385. 386. 387. 388.

SELLER

SELLER

(BUYER’S INITIALS REQUIRED)

BUYER

BUYER

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 8r by , at a.m./p.m., Mountain Standard Time. 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 the Buyer’s Earnest Money shall be returned.

>>

Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 8 of 9

| 21 |


section 8 – 8r.

Lines 391 – 394

8s.

Lines 395 – 396

cont.

Broker on behalf of Buyer Added: “Preferred” to telephone number.

Agency confirmation – separated from the receipt section.

section 9 –

Seller Acceptance

9a.

Lines 402 – 405

Broker on behalf of Seller – more information provided for Seller’s agent.

9c.

Lines 408 – 416

This is where you mark if a counter offer is attached.

Added: “Preferred” to telephone number.

Offer rejected by seller – Month, date, year and seller’s initials.

Removed Buyer and Seller initials.

| 22 |


Page 9 of 9

Residential Resale Real Estate Purchase Contract >> 8q. 389. THIS CONTRACT CONTAINS NINE PAGES EXCLUSIVE OF ANY ADDENDA AND ATTACHMENTS. PLEASE ENSURE THAT 390. YOU HAVE RECEIVED AND READ ALL NINE PAGES OF THIS OFFER AS WELL AS ANY ADDENDA AND ATTACHMENTS. 8r. 391. Broker on behalf of Buyer: 392.

PRINT SALESPERSON’S NAME

393. 394.

AGENT CODE

PRINT FIRM NAME

FIRM ADDRESS

PREFERRED TELEPHONE

STATE

FAX

FIRM CODE

ZIP CODE

EMAIL

8s. 395. Agency Confirmation: The Broker named in Section 8r above is the agent of (check one): 396. n the Buyer; n the Seller; or n both the Buyer and Seller 8t. 397. The undersigned agree to purchase the Premises on the terms and conditions herein stated and acknowledge receipt of 398. a copy hereof including the Buyer Attachment. 399. 400. 401.

^ BUYER’S SIGNATURE

MO/DA/YR

ADDRESS

ADDRESS

CITY, STATE, ZIP CODE

CITY, STATE, ZIP CODE

9. SELLER ACCEPTANCE

M A

9a. 402. Broker on behalf of Seller: 403.

PRINT SALESPERSON’S NAME

404. 405.

E L P

^ BUYER’S SIGNATURE

S

AGENT CODE

FIRM ADDRESS

PREFERRED TELEPHONE

FAX

MO/DA/YR

PRINT FIRM NAME

STATE

FIRM CODE

ZIP CODE

EMAIL

9b. 406. Agency Confirmation: The Broker named in Section 9a above is the agent of (check one): 407. n the Seller; or n both the Buyer and Seller 9c. 408. The undersigned agree to sell the Premises on the terms and conditions herein stated, acknowledge receipt of a 409. copy hereof and grant permission to Broker named on Section 9a to deliver a copy to Buyer. 410. 411. 412. 413. 414. 415.

416.

Counter Offer is attached, and is incorporated herein by reference. Seller should sign 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

SELLER’S NAME PRINTED

SELLER’S NAME PRINTED

ADDRESS

ADDRESS

CITY, STATE, ZIP CODE

CITY, STATE, ZIP CODE

n OFFER REJECTED BY SELLER:

MONTH

DAY

, 20

Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 9 of 9

| 23 |

YEAR

MO/DA/YR

(SELLER’S INITIALS)


Addenda Buyer’s Inspection Notice and Seller’s Response ( Binsr ) Lists 6 separate items that the buyer has inspected. Buyer has verified all important MLS information and other information obtained regarding the Premises. The form was expanded to three (3) pages by adding additional blank lines on Pages 1-3. The premises address was added on Page 2-3. The additional lines were added to give the Buyer space to request repairs and to give the Seller more space to reply to the Buyers request for repairs.

— P  remises accepted – no corrections requested. Buyer accepts — the Premises in its present condition and no corrections or repairs are requested.

Page 1

buyer then checks a box

Page 3

seller’s response

Page 3

buyer’s election

— P  remises rejected – Buyer disapproves of items listed below and — elects to immediately cancel this Contract. — B  uyer elects to provide Seller an opportunity to correct the — disapproved items listed below. Then the buyer must list the items disapproved NOTICE of non-working warranted items – has a new section for the Buyer to notice non-working warranted items. This should be listed separately from the other items because the Seller is obligated to repair these items.

Seller agrees to correct the items disapproved by Buyer pursuant to terms set forth herein and Section 6j of the Contract. Seller is unwilling to correct any of the items disapproved by Buyer. Seller’s response to Buyer’s Notice is as follows:

Buyer elects to cancel this contract Buyer accepts the 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.

| 24 |


Buyer’s Inspection Notice and Seller’s Response ( Binsr )

The form was expanded to three (3) pages by adding additional blank lines on Pages 1-3. The premises address was added on Page 2-3. The additional lines were added to give the Buyer space to request repairs and to give the Seller more space to reply to the Buyers request for repairs.

Page 1 of 3

RESIDENTIAL BUYER’S INSPECTION NOTICE AND SELLER’S RESPONSE

1. Contract dated:

MONTH

DAY

Document updated: February 2011

, 20

YEAR

2. Seller: 3. Buyer: 4. Premises Address:

E L P

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 the Buyer.

M A

Buyer has verified all information deemed important including: (a) MLS or listing information; and (b) all other information obtained regarding the Premises.

S

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) Items disapproved shall not include warranted items (see page 2 regarding notice of non-working warranted items); (d) Buyer’s election is limited to the options specified below; (e) Buyer is not entitled to change or modify Buyer’s election after this notice is delivered to Seller.

Buyer elects as follows: n Premises Accepted – No corrections requested. Buyer accepts the Premises in its present condition and no corrections or repairs are requested.

n n

Premises 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.

Items disapproved:

n

>>

Notice of non-working warranted items: See page 2 Residential Buyer’s Inspection Notice and Seller’s Response • Updated: February 2011 • Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

PAGE 1 of 3

| 25 |


Binsr

Page 2 of 3

Residential Buyer’s Inspection Notice and Seller’s Response >> Premises Address: Buyer acknowledges that the 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 the 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.

NOTICE OF NON-WORKING WARRANTED ITEMS

E L P

Pursuant to Section 5a of the Contract the Seller is obligated to maintain and repair the Premises so that at the earlier of possession or COE all warranted items will be in working condition. To comply with Section 6k of the Contract, Buyer provides Seller with notice of the following non-working warranted item(s) of which Buyer has become aware during the Inspection Period.

M A

S

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 the 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.

>> Residential Buyer’s Inspection Notice and Seller’s Response • Updated: February 2011 • Copyright © 2011 Arizona Association of REALTORS . All rights reserved. ®

PAGE 2 of 3

| 26 |


Binsr

Page 3 of 3

Residential Buyer’s Inspection Notice and Seller’s Response >> Premises Address:

SELLER’S RESPONSE TO BE COMPLETED ONLY IF BUYER PROVIDES SELLER AN OPPORTUNITY TO CORRECT ITEMS DISAPPROVED ON PAGE 1. (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.

E L P

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:

M A

S

The undersigned agrees to the modified or additional terms and conditions, if any, and acknowledges receipt of a copy hereof.

BUYER’S ELECTION TO BE COMPLETED ONLY IF SELLER HAS NOT AGREED TO CORRECT ALL ITEMS DISAPPROVED (See Section 6j)

n n

Buyer elects to cancel this Contract Buyer accepts the 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.

Residential Buyer’s Inspection Notice and Seller’s Response • Updated: February 2011 • Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

PAGE 3 of 3

| 27 |


Counter Offer

Revised for consistency with the Multiple Offer/Counter Offer and Multiple Counter offer forms. The acceptance language in all three (3) forms now references the Notice section (Section 8m.) of the Purchase Contract for acceptance delivery purposes.

Page 1 of 2 Document updated: February 2011

COUNTER OFFER

n Seller n Buyer n n Counter Offer dated

n

1.

This is a Counter Offer originated by the:

2.

This is a Counter Offer to the

3.

Seller/Landlord:

4.

Buyer/Tenant:

5.

Premises Address:

6.

Acceptance of the above Offer and/or Counter Offer is contingent upon agreement to the following:

n

Offer

Landlord

MO/DA/YR

between the following Parties:

E L P

7. 8. 9. 10. 11. 12.

Tenant.

M A

13. 14. 15. 16. 17. 18. 19.

Time for acceptance: Unless acceptance of this Counter Offer is signed by all parties and a signed copy delivered pursuant to Section 8m of the Contract and received by the originating party’s Broker named in Contract Section 8r or 9a as applicable by at a.m./p.m., Mountain Standard Time, this Counter Offer shall be considered withdrawn. Except as otherwise provided in this Counter Offer, the Parties accept and agree to all terms and conditions of the above offer / counter offer. Until this Counter Offer has been accepted in the manner described above, the Parties understand that the Premises can be sold or leased to someone else or either Party may withdraw the offer to buy, sell, or lease the Premises. The undersigned acknowledges receipt of a copy hereof.

20. 21.

n

Seller

n

Buyer

n

Landlord

n

Tenant

22. 23.

n

Seller

n

Buyer

n

Landlord

n

Tenant

24.

n

25. 26.

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.

27. 28.

n

Seller

n

Buyer

n

Landlord

n

Tenant

29. 30.

n

Seller

n

Buyer

n

Landlord

n

Tenant

31.

n

32.

The undersigned agrees to the terms and conditions of this Counter Offer and acknowledges receipt of a copy hereof.

33. 34.

n

Seller

n

Buyer

n

Landlord

n

Tenant

35. 36.

n

Seller

n

Buyer

n

Landlord

n

Tenant

S

RESPONSE

Date:

Time:

Date:

Time:

Date:

Time:

Date:

Time:

ACCEPTANCE

Date:

Time:

Date:

Time:

Counter Offer • Updated: February 2011 • Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

| 28 |


Cure Period Notice

This is the addendum created to accommodate the “Cure Period Notice” pursuant to Section 7a of the contract.

CURE PERIOD NOTICE

FOR THE AAR RESIDENTIAL RESALE REAL ESTATE PURCHASE CONTRACT (“CONTRACT”)

1. Contract Dated:

E L P

2. Buyer: 3. Seller: 4. Escrow Company: 5. Premises Address:

M A

6.

PURSUANT TO SECTION 7A OF THE CONTRACT

7.

8.

hereby delivers notice to

9.

10. 11. 12. 13. 14. 15. 16.

Buyer

Seller

S

Buyer

Document updated: January 2009

Seller

of the following non-compliance with the Contract:

17. 18. 19. 20.

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 Section 7b through 7e of the Contract and consult independent legal counsel.

21.

Cure Period Notice • Updated: January 2009 Copyright © 2009 Arizona Association of REALTORS®. All rights reserved.

| 29 |


Loan Status Update The Loan Status Update (LSU) is completed by the lender and must be provided to the Seller within five (5) days after contract acceptance. It is to establish that the Buyer intends to proceed with the lender indicated in the Pre-Qualification form or LSU on the terms described. The LSU also allows the Seller and Listing Broker to begin “tracking” the progress of the Buyer’s loan process.

Lender and Transaction Specific Information

Lender Loan document delivery and close of escrow date. Buyer Seller Property Address

Buyer marital status. Buyer to disclose if they must sell another home to qualify for the loan. Buyer to disclose if they are relying on Seller paid closing costs. Type of Loan disclosed. Occupancy disclosed. Property type disclosed.

Pre-Qualification Information

Lender has provided necessary FHA disclosures. Lender has completed a verbal discussion with Buyer for the above loan strategy including a discussion of income, assets and debts. Lender has completed a Trimerged Residential Credit Report (TMRCR). Buyer can pre-qualify for a loan amount of, assuming the principal and interest monthly payments of and a full monthly payment (including taxes, homeowners and/or flood insurance and Homeowners Association dues) does not exceed a certain dollar amount. Interest rate not to exceed. Initial requested documentation from the Buyer. Buyer Acknowledgement.

| 30 |


LOAN STATUS UPDATE (LSU)

Document updated: February 2011

1. 2. 3.

Pursuant to Section 2e of the Contract Buyer shall deliver to Seller the AAR Loan Status Update (“LSU”) describing the current status of the Buyer’s proposed loan within five (5) 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.

4.

Lender:

COMPANY

5. 6. 7.

ARIZONA LICENSE #

LOAN OFFICER

NMLS #

ADDRESS

CITY

EMAIL

PHONE

8.

Closing Loan Documents Delivery Date:

9.

Buyer(s):

10.

Seller(s):

11.

Premises Address:

12.

City:

STATE

FAX

E L P

Close of Escrow Date:

AZ ZIP Code:

PRE-QUALIFICATION INFORMATION 13. 14. 15. 16. 17. 18.

Buyer is: Buyer Buyer

n n n

Type of Loan:

19.

Occupancy Type:

20.

Property Type:

n n n n

21. YES

22. 23. 24.

ZIP

M A

Married n Unmarried n Legally Separated is n is not relying on the sale or lease of a property to qualify for this loan. is n is not relying on Seller Concessions for Buyer’s loan costs including pre-paids, impounds, appraisal fees and Buyer’s title and escrow fees. (Note: The amount that the Seller agrees to contribute, if any, shall be established in the Contract). Conventional n FHA n VA n USDA n Other:

S

NO

N/A

n n n n n n n n n

Primary

Single Family Residence Mobile Home

n n n

Secondary

Condominium

n n

Other:

Non-Owner Occupied

Planned Unit Development

n

Manufactured Home

Lender has provided Buyer with the HUD form “For Your Protection: Get a Home Inspection” (FHA loans only). 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.

25. 26. 27. 28. 29.

, 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 housing payment (which includes principal, interest, mortgage insurance, property taxes, homeowner’s insurance, HOA fees, and flood insurance, if applicable) does not exceed: $ Interest rate not to exceed %

30. 31.

Initial Requested Documentation: Lender has received the following information from the Buyer: (Additional documentation may be required). YES

32. 33. 34. 35.

n n n n

NO

n n n n

N/A

n n n n

YES

n n n n

Paystubs W-2s Personal Tax Returns Corporate Tax Returns

NO

n n n n

N/A

n n n n

Down Payment/Reserves Documentation Gift Documentation Credit/Liability Documentation Other:

36.

Additional comments:

37. 38.

Buyer has instructed, and Lender agrees to provide loan status updates on this AAR Loan Status Update form to Seller and Broker(s) within five (5) days of Contract acceptance pursuant to Section 2e of the Contract and upon request thereafter.

39.

Buyer intends to proceed with the above referenced Lender on the terms described herein. Buyer acknowledges receipt of a copy hereof.

40.

^ BUYER’S SIGNATURE

MO/DA/YR

^ BUYER’S SIGNATURE

MO/DA/YR

>> Loan Status Update • Updated: February 2011 • Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

PAGE 1 of 2

| 31 |


Loan Status Update cont. To be completed by lender. Includes date completed and lender’s initials.

Lender has received the Contract and all Addenda. Lender has sent initial Good Faith Estimate and Truth in Lending (TIL) Disclosures. Lender has received a signed Application/1003 and disclosures. Lender has identified down payment source.

Documentation yes or no

Lender has received and reviewed the Title Commitment. Payment for the appraisal has been received. Lender has ordered the appraisal. Buyer has locked the interest rate and points with Lender. Lock expiration date. Lender has received the Initial Requested Documentation listed on lines 32 – 35. Appraisal received and the Premises appraised for at least the purchase price.

Underwriting and Approval yes or no

Lender has submitted the loan package to the Underwriter. Lender has obtained loan approval with Prior to Document (“PTD”) Conditions. Appraisal conditions have been met. Buyer has loan approval without PTD Conditions.

Lender has ordered the Closing Loan Documents (“DOCs”) and Instructions. Lender has sent the DOCs to the Escrow Company. Lender has received the pre-audit from Escrow Company.

Closing yes or no

Lender has approved the pre-audit from Escrow Company. Lender has received signed DOCs 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.

| 32 |


Page 2 of 2

Loan Status Update (LSU) >> DOCUMENTATION YES NO

41. 42. 43. 44. 45. 46. 47. 48.

n n n n n n n n

n n n n n n n n

51.

Lender has received the Contract and all Addenda

/

/

Lender has sent initial Good Faith Estimate and Truth in Lending (TIL) Disclosures

/

/

Lender has received a signed Application/1003 and disclosures

/

/

Lender has identified down payment source

/

/

Lender has received and reviewed the Title Commitment

/

/

Payment for the appraisal has been received

/

/

Lender has ordered the appraisal

/

/

Buyer has locked the interest rate and points with Lender

/

/

Lock expiration date

49. 50.

DATE COMPLETED

n n n n

LENDER INITIALS

E L P

Lender has received the Initial Requested Documentation listed on lines 32-35

/

/

Appraisal received and the Premises appraised for at least the purchase price

/

/

UNDERWRITING AND APPROVAL 52. 53. 54. 55.

n n n n

n n n n

Lender has submitted the loan package to the Underwriter

/

/

Lender has obtained loan approval with Prior to Document (“PTD”) Conditions

/

/

Appraisal conditions have been met

/

/

/

/

Lender has ordered the Closing Loan Documents (“DOCs”) and Instructions

/

/

Lender has sent the DOCs to the Escrow Company

/

/

/

/

M A

Buyer has loan approval without PTD Conditions

CLOSING

56. 57. 58. 59. 60. 61. 62.

n n n n n n n

n n n n n n n

65. 66. 67.

S

Lender has approved the pre-audit from Escrow Company

/

/

Lender has received signed DOCs from all parties

/

/

All lender Quality Control Reviews have been completed

/

/

All Prior to Funding (“PTF”) Conditions have been met and buyer has obtained

/

/

Funds have been ordered

/

/

All funds have been received by Escrow Company

/

/

loan approval without conditions

63. 64.

Lender has received the pre-audit from Escrow Company

n n n n

Close of escrow occurs when the deed has been recorded at the appropriate county recorder’s office.

^ LOAN OFFICER’S SIGNATURE

MO/DA/YR

Loan Status Update • Updated: February 2011 • Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

PAGE 2 of 2

| 33 |


Multiple Counter Offer

The form was revised to clarify when the Seller was agreeing to the terms of the Multiple Counter Offer or submitting an additional Counter Offer.

Page 1 of 2 Document updated: February 2011

MULTIPLE COUNTER OFFER

1.

This is a Multiple Counter Offer originated by the Seller to the:

2.

n

3.

Seller:

4.

Buyer:

5.

Premises Address:

6.

Acceptance of the above Offer and/or Counter Offer is contingent upon agreement to the following:

7. 8. 9. 10. 11.

Offer

n

Counter Offer dated

E L P

Seller is making one or more counter offer(s) to other prospective buyers on terms that may or may not be the same as contained herein. Acceptance of this Multiple Counter Offer by Buyer shall not be binding unless and until it is subsequently finally accepted by Seller and the final acceptance is delivered per Section 8m of the Contract to the Buyer’s Broker within the time specified (“Final Acceptance”). Until Final Acceptance, the parties understand that the Premises can be sold to someone else and/or either party may withdraw any offer/counter offer to buy or sell the Premises.

12.

M A

13. 14. 15. 16. 17.

between the following Parties:

Unless acceptance of this Multiple Counter Offer is signed by Buyer and a signed copy delivered pursuant to Section 8m of the

S

at

a.m./p.m., Mountain

18.

Contract and received by Broker named in Contract Section 9a by

19.

Standard Time, this Multiple Counter Offer shall be considered withdrawn. Seller acknowledges receipt of a copy hereof.

20.

Seller:

21.

Seller:

n

Date: Date:

Time: Time:

BUYER RESPONSE

22. 23. 24. 25.

An additional counter/multiple counter offer is attached and is incorporated by reference. Buyer should sign both this Multiple Counter Offer and the additional counter/multiple counter offer. If there is a conflict between this Multiple Counter Offer and the additional counter/multiple counter offer, the provisions of the additional counter/multiple counter offer shall be controlling.

26.

Buyer:

Date:

Time:

27.

Buyer:

Date:

Time:

n

BUYER ACCEPTANCE

28.

The Buyer agrees to the terms and conditions of this Multiple Counter Offer and acknowledges receipt of a copy hereof.

29.

Buyer:

Date:

Time:

30.

Buyer:

Date:

Time:

>> Multiple Counter Offer • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

PAGE 1 of 2

| 34 |


Multiple Counter Offer

Page 2 of 2

Multiple Counter Offer >>

n

SELLER RESPONSE

31. 32. 33. 34.

An additional counter/multiple counter offer is attached and is incorporated by reference. Seller should sign both this Multiple Counter Offer and the additional counter/multiple counter offer. If there is a conflict between this Multiple Counter Offer and the additional counter/multiple counter offer, the provisions of the additional counter/multiple counter offer shall be controlling.

35.

Seller:

Date:

Time:

36.

Seller:

Date:

Time:

n

E L P

SELLER FINAL ACCEPTANCE

37. 38. 39.

Signature by Seller below and delivery to Buyer or Buyer’s Broker as indicated above creates a binding agreement. Seller revokes all other counter offers by separate notice and agrees to sell the Premises to the Buyer subject to the terms and conditions contained herein.

40.

Seller:

41.

Seller:

Date:

M A Date:

S

Multiple Counter Offer • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

PAGE 2 of 2

| 35 |

Time: Time:


Multiple Offer/Counter Offer

This is a new form that mirrors the Multiple Counter Offer form and was created to be used by Buyers that intend to make offers on multiple properties.

Page 1 of 2 Document updated: February 2011

MULTIPLE OFFER/COUNTER OFFER

n

1.

This is a Multiple

2.

n

3.

Seller:

4.

Buyer:

5.

Premises Address:

6. 7. 8. 9. 10. 11.

Offer

n

Counter Offer originated by the Buyer to the:

Offer n Counter Offer dated

between the following Parties:

E L P

Acceptance of the above Offer/Counter Offer is contingent upon agreement to the following: Buyer is making one or more offer(s) to other prospective sellers on terms that may or may not be the same as contained herein. Acceptance of this Offer/Counter Offer by Seller shall not be binding unless and until it is subsequently finally accepted by Buyer and the final acceptance copy is delivered per Section 8m of the Contract to the Seller’s Broker within the time specified (“Final Acceptance”). Until Final Acceptance, the parties understand that the Premises can be sold to someone else and/or either party may withdraw any offer/counter offer to buy or sell the Premises.

12.

M A

13. 14. 15.

S

16. 17. 18.

Unless acceptance of this Multiple Offer/Counter Offer is signed by Seller and a signed copy delivered pursuant to Section 8m of the Contract and received by Broker named in Contract Section 8r by at a.m./p.m., Mountain Standard Time, this Multiple Offer/Counter Offer shall be considered withdrawn. Buyer acknowledges receipt of a copy hereof.

19.

Buyer:

20.

Buyer:

n

Date:

Time:

Date:

Time:

SELLER RESPONSE

21. 22. 23.

An additional counter offer is attached and is incorporated by reference. Seller should sign both this Multiple Offer/Counter Offer and the additional counter offer. If there is a conflict between this Multiple Offer/Counter Offer and the additional counter offer, the provisions of the additional counter offer shall be controlling.

24.

Seller:

Date:

Time:

25.

Seller:

Date:

Time:

n

SELLER ACCEPTANCE

26.

The Seller agrees to the terms and conditions of this Multiple Offer/Counter Offer and acknowledges receipt of a copy hereof.

27.

Seller:

Date:

Time:

28.

Seller:

Date:

Time:

>> Multiple Offer/Counter Offer • February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

26

PAGE 1 of 2

| 36 |


Multiple Offer/Counter Offer

Page 2 of 2

Multiple Offer/Counter Offer >>

n

BUYER RESPONSE TO SELLER ADDITIONAL COUNTER OFFER

29. 30. 31.

An additional counter offer/multiple counter offer is attached and incorporated by reference. If there is a conflict between this Multiple Offer/Counter Offer and the additional counter/multiple counter offer, the provisions of the additional counter or multiple counter offer shall be controlling.

32.

Buyer:

Date:

33.

Buyer:

Date:

n

E L P

BUYER FINAL ACCEPTANCE

34. 35.

Signature by Buyer below and delivery to Seller or Seller’s Broker as indicated above creates a binding agreement. Buyer revokes all other offers by separate notice and agrees to purchase the Premises subject to the terms and conditions contained herein.

36.

Buyer:

Date:

37.

Buyer:

Date:

Time: Time:

M A

S

Multiple Offer/Counter Offer • February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

PAGE 2 of 2

| 37 |

27


Pre-Qualification Form THE FORM REPLACES THE LOAN STATUS REPORT (LSR). The form provides more information than what was provided in the LSR. It was developed to provide information on the Buyer’s ability to qualify for a loan without a Good Faith Estimate (GFE). The form sets forth the loan amount for which the buyer can pre-qualify, assuming a maximum monthly housing payment. This form contains two sections: The Pre-Qualification information sets forth Buyer specifics regarding the Buyer’s ability to qualify for financing and the new lender information.

Buyer marital status. Buyer to disclose if they must sell another home to qualify for the loan. Buyer to disclose if they are relying on Seller paid closing costs. Type of Loan disclosed.

PRE-QUALIFICATION INFORMATION

Occupancy disclosed. Property type disclosed. Lender has provided necessary FHA disclosures.

Items for Selection

Lender has completed a verbal discussion with Buyer for the above loan strategy including a discussion of income, assets and debts. Lender has completed a Trimerged Residential Credit Report (TMRCR). Buyer can pre-qualify for a loan amount of, assuming the principal and interest monthly payments of and a full monthly payment (including taxes, homeowners and/or flood insurance and Homeowners Association dues) does not exceed a certain dollar amount. Interest rate not to exceed. Initial requested documentation from the Buyer. Additional documentation requested.

lender INFORMATION

Lender certification of information contained in the document. An expiration date.

For Completion

Lender information. Buyer acknowledgement.

| 38 |


PRE-QUALIFICATION FORM

Document updated: February 2011

PRE-QUALIFICATION INFORMATION 1. 2.

Purpose: This Pre-Qualification Form is to be used in conjunction with an AAR Residential Resale Real Estate Purchase Contract (“Contract”) and is to be completed by the Lender as indicated on lines 34 and 35.

3. 4. 5. 6. 7. 8. 9. 10.

(“Buyer”) and submits the following: Lender has consulted with Buyer is: n Married n Unmarried n Legally Separated Buyer n is n is not relying on the sale or lease of a property to qualify for this loan. Buyer n is n is not relying on Seller Concessions for Buyer’s loan costs including pre-paids, impounds, appraisal fees and Buyer’s title and escrow fees. (Note: The amount that the Seller agrees to contribute, if any, shall be established in the Contract). Type of Loan: n Conventional n FHA n VA n USDA n Other:

11.

Property Type:

n n n

Occupancy Type:

12. YES

13. 14. 15.

NO

Primary Single Family Residence Mobile Home

n n n

n n

Secondary Condominium

E L P

Other:

N/A

n n n n n n n n n

Non-Owner Occupied

n

Planned Unit Development

Manufactured Home

Lender has provided Buyer with the HUD form “For Your Protection: Get a Home Inspection” (FHA loans only). 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.

16. 17. 18. 19. 20.

, 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 housing payment (which includes principal, interest, mortgage insurance, property taxes, homeowner’s insurance, HOA fees, and flood insurance, if applicable) does not exceed: $ Interest rate not to exceed %

21. 22.

Initial Requested Documentation: Lender has received the following information from the Buyer: (Additional documentation may be required). YES

23. 24. 25. 26.

n n n n

NO

N/A

M A YES

S

n n n n

n n n n

n n n n

Paystubs W-2s Personal Tax Returns Corporate Tax Returns

NO

n n n n

N/A

n n n n

Down Payment/Reserves Documentation Gift Documentation Credit/Liability Documentation Other:

27.

Additional comments:

28. 29.

Buyer has instructed, and Lender agrees to provide loan status updates on the AAR Loan Status Update form to Seller and Broker(s) within five (5) days of Contract acceptance pursuant to Section 2e of the Contract and upon request thereafter.

LENDER INFORMATION 30. 31. 32.

The lender identified below has prepared the information listed above with the 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 the Buyer’s credit or financial profile will render this pre-qualification null and void.

33.

The above pre-qualification expires on

34.

Lender:

COMPANY

35. 36. 37. 38. 39. 40.

DATE

ARIZONA LICENSE #

LOAN OFFICER

NMLS #

ADDRESS

CITY

EMAIL

PHONE

^ LOAN OFFICER’S SIGNATURE

.

STATE

ZIP

FAX

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

Pre-Qualification Form • Updated: February 2011 • Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

| 39 |

MO/DA/YR


Short Sale Addendum

This form was revised to remove the line requiring the Buyer to pay all loan costs as it has become more common that the Seller will pay some loan costs in short sale transactions. As a result, the parties responsible for paying loan costs in a short sale transaction will be as set forth in the Purchase Contract.

Page 1 of 2

SHORT SALE ADDENDUM

TO THE RESIDENTIAL RESALE REAL ESTATE PURCHASE CONTRACT

Document updated: February 2011

1. Seller: 2. Buyer: 3. Premises Address: 4. Date:

E L P

5. The following additional terms and conditions are hereby included as part of the Contract between Seller and Buyer for the above 6. referenced Premises. Delivery of all notices and documentation shall be deemed delivered and received when sent as required by 7. Section 8m of the Contract. 8. 9. 10. 11. 12.

CONTINGENT UPON ACCEPTABLE SHORT SALE AGREEMENT

Buyer and Seller acknowledge that there is more debt owing against the Premises than the purchase price. Therefore, this Contract is contingent upon an agreement between the Seller and Seller’s creditor(s), acceptable to both, to sell the Premises for less than the loan amount(s) (“short sale”). Buyer and Seller acknowledge that it may take weeks or months to obtain creditor(s) approval of a short sale.

M A

13. Nothing shall limit a Seller from accepting subsequent offers from subsequent buyer(s) and submitting the back-up contract(s) to 14. Seller’s creditor(s) for consideration. All parties understand and agree that Seller’s creditor(s) may elect to allow the Seller to sell the 15. Premises only to the holder of the Contract with terms and conditions most acceptable to creditor(s). 16.

DOCUMENTATION TO CREDITOR(S)

17. 18. 19. 20.

Seller shall submit to creditor(s) a copy of this Contract, including this and other Addenda, and any other documentation required by the creditor(s) for approval of this sale within five (5) days after Contract acceptance. Seller agrees to diligently work to obtain short sale approval and will promptly provide the creditor(s) with all additional documentation required, including an appraisal, at Seller’s expense, if required. Seller instructs creditor(s) to provide approval status updates to Broker(s) and Buyer upon request.

21.

TERMS UPON ACCEPTABLE SHORT SALE AGREEMENT

S

22. Agreement Notice: If Seller and Seller’s creditors enter into a short sale agreement, the Seller shall immediately deliver notice 23. to Buyer (“Agreement Notice”). 24. Time Periods: The date of Seller’s delivery of the Short Sale Agreement Notice to Buyer shall be deemed the date of Contract 25. acceptance for purposes of all applicable Contract time periods. 26. Escrow and Earnest Money: Buyer shall promptly open Escrow and deposit Earnest Money as described in the Contract upon receipt 27. of Agreement Notice. 28. 29. 30. 31. 32. 33. 34.

Seller Warranties: Buyer hereby waives Seller’s warranties as set forth in Lines 163-166 of Section 5a of the Contract that all listed items shall be in working condition at the earlier of possession or COE. However, Seller warrants and shall maintain and repair the Premises so that, pursuant to lines 167-168 of the Contract, at the earlier of possession or COE, the Premises, including all heating, cooling, mechanical, plumbing, and electrical systems (including swimming pool and/or spa, motors, filter systems, cleaning systems, and heaters, if any), free-standing range/oven, built-in appliances and additional existing personal property included in the sale, will be in substantially the same condition as on the date of Contract acceptance and all personal property not included in the sale and all debris will be removed from the Premises.

35. Close of Escrow: Close of Escrow shall occur thirty (30) days or

days after delivery of Agreement Notice.

36. Creditor Requirements: Buyer and Seller agree to cooperate with Creditor(s) and sign additional Creditor disclosure(s) or execute 37. additional addendum(a) required by Creditor(s) as a condition of approval of the short sale, provided that Buyer and Seller incur no 38. additional cost or liability. 39.

BUYER CANCELLATION

40. Buyer may unilaterally cancel this Contract by notice to Seller at any time before receipt of a short sale Agreement Notice from Seller.

>> Short Sale Addendum to the Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 1 of 2

PAGE 1 of 2

| 40 |


Short Sale Addendum Page 2 of 2

Short Sale Addendum to the Residential Resale Real Estate Purchase Contract >> 41.

LEGAL AND TAX ADVICE

42. Seller acknowledges that Broker is not qualified to provide financial, legal, or tax advice regarding a short sale transaction. 43. Therefore, the Seller is advised to obtain professional tax advice and consult independent legal counsel immediately 44. regarding the tax implications and advisability of entering into a short sale agreement. (SELLER’S INITIALS REQUIRED)

45.

46.

SELLER

SELLER

UNFULFILLED CONTINGENCY

47. In the event that Seller and Seller’s creditor(s) are unable to reach a short sale agreement acceptable to both, at the sales price contained 48. herein, Seller shall promptly notify Buyer of same, and the Contract shall be deemed cancelled due to the unfulfilled short sale contin49. gency. If applicable, Buyer shall be entitled to a return of any Earnest Money. 50.

E L P

OTHER TERMS AND CONDITIONS

51. 52. 53. 54. 55.

M A

56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71.

S

72. 73. 74. 75. In the event that any provision contained in this Addendum conflicts in whole or in part with any terms contained in the Contract, 76. the provisions of this Addendum shall prevail and the conflicting terms are hereby considered deleted and expressly waived by 77. both Buyer and Seller.

78. 79.

Short Sale Addendum to the Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS®. All rights reserved. Page 2 of 2

| 41 |


Critical Date List

CRITICAL DATE LIST SELLER: ________________________________________________________________________________________________ BUYER: ________________________________________________________________________________________________ PROPERTYADDRESS: ____________________________________________________________________________________ Escrow Company________________________________________Escrow Number: ____________________________________ Escrow Officer:

________________________________________Fax: ______________________________________________

Listing Agent Name: ______________________________________Company: ________________________________________

E L P

Phone: ________________________________________________Fax: ______________________________________________ Selling Agent Name: ______________________________________Company:__________________________________________ Phone: ________________________________________________Fax: ______________________________________________ This is a Critical Date List, for the transaction listed above as of this date: ____/____/____ .

Any time this document is modified in any way copies should be sent to the Principals and Agents. ACTION

DATE DUE

M A

DATE DONE

Mutual Acceptance of Purchase Contract: ......................................................N/A

____/____/____

Earnest monies deposited to escrow: ......................................................Immediately

____/____/____

S.P.D.S. completed and delivered to Buyer by: ....................................____/____/____

____/____/____

B.I.N.S.R. (Buyers Inspection Notice & Sellers Response) due by:......____/____/____

____/____/____

Sellers response to B.I.N.S.R. due by: ..................................................____/____/____

____/____/____

Buyer to apply for Homeowners Insurance by: ....................................____/____/____

____/____/____

Receipt of Title Commitment/Sch. B: ....................................................____/____/____

____/____/____

Deadline for Buyer disapproval of above:..............................................____/____/____

____/____/____

HOA documents ordered: ......................................................................____/____/____

____/____/____

HOA documents received and accepted by Buyer: ..............................____/____/____

____/____/____

In the event of low appraisal Buyer must cancel by: ............................____/____/____

____/____/____

Repairs (if any) completed no later than: ..............................................____/____/____

____/____/____

Buyers walk through inspection no later than: ......................................____/____/____

____/____/____

Failure to qualify notice delivered by Buyer no later than: ....................____/____/____

____/____/____

Buyer to sign closing and loan documents no later than:......................____/____/____

____/____/____

Recordation of Documents (COE): ........................................................____/____/____

____/____/____

Keys Delivered:......................................................................................____/____/____

____/____/____

S

OTHER ACTIONS REQUIRED SPECIFIC TO TRANSACTION

ACTION

DATE DUE

DATE DONE

“ADWR” Registration of Existing Well: ..................................................____/____/____

____/____/____

Septic/Alernative System Certification: ..................................................____/____/____

____/____/____

Lead Paint Disclosure: ..........................................................................____/____/____

____/____/____

Home Protection Plan Ordered: ............................................................____/____/____

____/____/____

Other: ....................................................................................................____/____/____

____/____/____

CURE PERIOD ACTIVATED Date: ____/____/____ Reason:___________________________________________________________ Cure Deadline: ____/____/____ Date Cured: ____/____/____ or Date Cancelled: ____/____/____ Date: ____/____/____

Reason:__________________________________________________________

Cure Deadline: ____/____/____ Date Cured: ____/____/____ or Date Cancelled: ____/____/____ ©ARIZONAASSOCIATION OF REALTORS®

| 42 |

CDL DRAFT 3/22/05


notes ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________

| 43 |


DIVISION HEADQUARTERS 9000 E. Pima Center Parkway, Scottsdale, AZ 85258 Phone 602.685.7000 | Fax 800.523.5338 | www.ThinkFirstAmerican.com

Maricopa County Revised May 20, 2011 First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions.

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Purchase Contract Guide to Residential Resale - Jeanne Steiner, Realtor  

Purchase Contract Guide to Residential Resale: s simple, step-by-step guide to Arizona Association of Realtors Residential Resale Purchase C...

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