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Home seller guide   lawyer's title 2013
 

Home seller guide lawyer's title 2013

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    Home seller guide   lawyer's title 2013 Home seller guide lawyer's title 2013 Presentation Transcript

    • www.lawyerstitlearizona.com page 1 Home Seller's GuideHome Seller's Guide Lawyers Title of Arizona, Inc.has a long history of providing outstanding title and escrow services to the Arizona real estate industry. Lawyers Title consistently ranks as one of the top title insurance providers in the state of Arizona. At Lawyers Title we have a team united by our commitment to make the real estate transaction effective and efficient. We offer the most comprehensive and reliable service available by utilizing skilled title and escrow officers combined with the expertise of our sales executives. Lawyers Title is a wholly owned subsidiary of Fidelity National Financial, the #1 leader in financial strength. As part of the Fidelity family of companies, your real estate transactions are safe and secure. Lawyers Title Of Arizona Services: • Residential Resale • Refinance & Lender Services • Builder & Developer • New Home Sales • Trustee Sales Guarantees • Foreclosure Services • Multi Site, Multi State • Commercial • 1031 Exchange Services • Home Warranty • Home Inspection For more information please visit: www.lawyerstitlearizona.com
    • www.lawyerstitlearizona.com page 2 Home Seller’s GuideHome Seller’s Guide Things To Consider Before Selling Your Property “By Owner” Most of us do not like to spend money unnecessarily, especially when we feel we could do the job at hand as well as the person or persons we are hiring to complete the task. It would be a good idea to consider the following questions to assess the process of handling the sale of your property yourself, before attempting to do so: • Do you know how to determine the current market value of your home? • Do you know how and where to advertise your home most effectively and what the costs will be? • Did you know that each REALTOR* has access to a Multiple Listing Service (MLS), which is a database of properties listed for sale by REALTORS”. Real Estate Agents refer to MLS for prospective properties to show their clients and for comparable sales when determining value for a prospective listing. Only real estate agents have access to this information. • Have you made arrangements for your home to be available for showing 12 hours a day, 7 days a week. If not, each hour that you do not provide this availability your home is “off the market”. • Are you concerned about having strangers walking through your home? • Do you know how to determine whether or not a buyer can qualify for a home? • Are you conversant enough with real estate law to write a legal and binding real estate contract? • Do you understand the steps of an escrow and what is required of you and the buyer to complete the transaction? • Do you know which title company, real estate attorney, termite company, inspection company and lender to hire that will provide the best service and costs to you? • Do you have experience with resolving problems and protecting your rights in a real estate transaction? Your home is probably your largest investment. You are the only one who can determine whether or not you should attempt to sell your home by yourself. Talk to a REALTOR® before you decide. You may find that working with a professional is a lot less expensive and will get the job at hand done in a more timely and less stressful manner than attempting to do it yourself.
    • www.lawyerstitlearizona.com page 3 Home Seller's GuideHome Seller's Guide Selling A Home? It Pays To Work With A Realtor® Without the professional guidance and expertise of a REALTOR®, selling a home can often entail many unnecessary complications. The following information, as prepared by the National Association of REALTORS®, best describes the many benefits of contacting a professional REALTOR® to handle all your real estate needs. The term REALTOR® is a registered, collective membership mark which identifies real estate professionals who are members of the National Association of REALTORS® and abide by its strict Code of Ethics. A REALTOR® is bound by a Code of Ethics and pledges to protect and promote the interest of the seller by providing fair treatment for all parties involved in the transaction. Here are some ways a REALTOR® can help you sell your home: Promotion By: • Preparing a flyer to describe your property for public distribution. • Posting a “For Sale” sign on your property. • Advertising in the media. This includes MLS, flyers, local paper and home buyer magazines. Viewing By: • “Open Houses” for the buying public. • Conveniently scheduled appointments for house showings. Networking By: • Neighborhood mailings. • National relocation services. • The Real Estate Association. • Their personal network of clients. Working With You By: • Conferring with you regarding when you want to place your home on the market. • Establishing a sale price based on the following: -- Research of comparable properties. -- Considering the current local market conditions. • Establishing your probable net proceeds. • Advertising your home and making suggestions on what you can do to make your property more sell- able. • Reviewing the necessary paper work with you.
    • www.lawyerstitlearizona.com page 4 Home Seller’s GuideHome Seller’s Guide Negotiating The Contract By: • Reviewing the contract and your obligations. • Explaining contingencies and release clauses. • Explaining the legal disclosure requirements. • Explaining the ramifications of pest control inspections/reports. • Explaining your responsibilities regarding the condition of the property. • Examining offers closely and explaining the reasons behind a possible counter-offer. Managing And Closing Escrow By: • Following closely the progress of the buyer’s loan and coordinating the payoff of your existing loan. • Facilitating the appraisal process. • Staying in constant communication with the buyer’s agent to ensure a smooth escrow. • Closely monitoring contingency removal dates and discussing these with you. • Coordinating the details of the transaction with the escrow officer. • Making sure you get your check and settlement documents promptly after closing.
    • www.lawyerstitlearizona.com page 5 Home Seller's GuideHome Seller's Guide Preparing Your House For Market First Impressions First • Let the front of your house greet guests with a clean, maintained yard by fertilizing lawns, planting fresh seasonal flowers, trimming overgrown shrubbery. • Painting can be expensive, but a little touch up goes a long way. • Make sure your front door is solid, fresh, and welcoming. • Inspect the roof for necessary repairs and any visible broken tiles or shingles. • Repair cracks in the driveway and sidewalks. Clean up oil stains. • Mend or paint neighboring fences or walls. A Little Decoration Goes a Long Way • Simple, inexpensive redecorating such as paint and accessories can result in a quicker sale at a higher price. Light neutral paint colors, such as off-whites, permit most every one to “imagine” their furnishings in your home. • Clean carpets if they are heavily soiled. Spot clean stains. Eliminate the Distractions • Repair the minor flaws that can detract from your home’s value, such as leaky faucets, sticking windows and doors, broken handles and knobs. • Remove cobwebs from ceilings and other areas. Never Enough Space • Remove all unnecessary items in your attic, basement, or other storage areas and organize all closets to show ample space. • Remove excess furniture so rooms don’t look small and cluttered. • Have a garage sale to dispose of unneeded items-looks better now and less to move later! Squeaky Clean Bathrooms! • Check and repair caulking in showers and bathtubs. • ­Install new shower curtain liners. Keep bathrooms looking and smelling fresh.
    • www.lawyerstitlearizona.com page 6 Home Seller’s GuideHome Seller’s Guide 15 Home Listing Tips 1. Price Your Home Right Your agent can research comparable sales in your area and advise you of the appropriate price range for your property. 2. Be Flexible on Financing Terms Have your agent explain what financing options are available. Flexibility on financing terms may secure a better selling price. 3. Time it Right Ask a real estate professional to determine whether the market cycle is poised to net you the most money. 4. Make Your Property Accessible to Buyers Lock boxes are a great way to make your home most accessible to agents for showing. Appointment-only showings are the most restrictive. If your lifestyle is not compatible with frequent showings, your agent will help you determine a solution to suit your needs. Remember, the easier a home is to show, the better the odds are of getting the deal you want. 5. Use the Latest Marketing Technology Make sure your agent utilizes the latest technology, such as Internet sites and social media that cater to home-buyers. In some areas, cable advertising is popular. Others use 800-number interactive voice response systems. A good agent will know where you can get the best exposure. 6. Stage Your Property Correctly Put some items in storage, create more light, play music or otherwise improve the ambience. Your agent can offer helpful advice to create the right first impression. 7. Remember that Selling Property is not Seasonal Do not base selling decisions on the seasons. Property sells year-round. 8. Re-Evaluate the Marketing Plan Re-evaluate your agent’s marketing plan periodically. Make needed adjustments based on the current market and buyers.
    • www.lawyerstitlearizona.com page 7 Home Seller's GuideHome Seller's Guide 9. Analyze Why You Are Not Getting Offers Eighty percent of all buyer activity comes from signs and MLS listings. So, if you are not getting offers and are flexible with showing your home, it may be time to re-evaluate your price, not necessarily your agent. 10. First Impressions are Golden Sales have gone south thanks to unkempt lawns, cluttered closets, unpainted front doors, hard-to-work locks, blown light bulbs, bad color, stains, unlit areas, and foul smells. Spend time on the little things. Double up on your gardening. Keep things cleaner than usual. Take serious control of your pets during this time period. 11. Make the Right Kind of Repairs Before making improvements, prior to listing, consult a real estate professional. Some upgrades will not yield any real increase in value, while others may increase property value substantially. Ask for low-cost solutions to minor repairs that will yield the best profits. 12. Give the Sales Process Enough Time Homes may take three to six months in any market. Estimate how much time you have before you need to sell and then plan ahead to allow extra time. You don’t want to be forced to accept a disappointing offer. 13. Screen Prospects Adequately One of the best reasons for hiring an agent is his or her ability to pre-qualify a prospect financially so that you don’t lose valuable negotiation time. Your agent may discover when a prospect has an ulterior motive for shopping homes. 14. Believe that You Can Make a Difference The top agents in the industry report that their sellers are responsible for at least one out of ten sales. You can network with your business and personal friends, hand out flyers, and keep your house in move-in condition. Your agent should be ready to hand you all sorts of assignments to make the team effort successful. 15. Test the Market Never put your property on the market unless you really want a sale! Get ready for a professional sales push when you list. If your plan harbors some indecision, resolve it before you list because success is every great agent’s objective!
    • www.lawyerstitlearizona.com page 8 Home Seller’s GuideHome Seller’s Guide Open House Preparation Checklist FF If possible, make arrangements to be out of the house to permit the agent to do “their job.” If you are home, don’t force conversation with potential buyers. Be polite, answer questions, and point out highlights. They want to inspect your house, not make new friends. FF Protect your pets. Keep them out of the way in a restricted area or even out of the house. FF Open all blinds and drapes to make the home light and cheerful. FF Turn on additional lights and lamps as needed. FF Remove excess clutter from floor, tables, and counter tops. FF Keep your valuables safely locked up or out of sight. FF Clean the bathrooms so they sparkle! FF Don’t forget to make the bed and do the dishes. FF Dust and vacuum the house thoroughly. FF Removes excess toys and equipment from yards. FF Wash down your driveway and patios.­ FF Turn off all TVs. Very soft background music may be acceptable in some cases. FF Fresh flowers in the front yard, on the porch, and in the house can create a welcoming effect. FF Light refreshments such as tea and cookies are a nice touch-fresh baked cookies or simmering cinnamon potpourri creates a pleasant aroma (or check with your agent to see if refreshments will be provided).
    • www.lawyerstitlearizona.com page 9 Home Seller's GuideHome Seller's Guide HOME BUYING PROCESS CHART HOME BUYER Interview & Select Agent Evaluate Needs & Wants Pre-Qualify for Home Loan Find the Perfect Home Offer to Purchase Home Offer Accepted; Negotiate Terms Purchase Agreement Accepted Secure Lender Begin Loan Process Property Inspections Property Appraisal Purchase Homeowner’s Insurance Loan Approval Remove Financial Contingencies OPEN ESCROW Choose Escrow & Title Company Deposit Earnest Money Seller’s Transfer Disclosure Statement Title Search Preliminary Report CLOSE ESCROW Deposit Balance of Down Payment to Escrow Sign Closing & Loan Papers Loan Funding Record Documents Escrow Closed! 19834 Fid LT Handbook 24Pg:Layout 1 2/16/11 1:06 PM Page 3
    • www.lawyerstitlearizona.com page 10 Home Seller’s GuideHome Seller’s Guide The Escrow Process Escrow is a neutral depository for funds and documents needed to complete a real estate transaction. When a buyer and seller have signed a purchase contract, a copy of that contract along with the buyer’s earnest money check are deposited into escrow. This constitutes opening of escrow and the escrow process begins and progresses as follows: A copy of existing deed is ordered by the escrow officer, to obtain the legal description of the property and the names of the record owners. The escrow officer or an assistant then orders a commitment for title insurance from the company’s title department, in order to determine what will be required to close the transaction and to inform the buyer and the buyer’s lender what will remain of record against the property after closing. Statements from the seller’s existing lender and the homeowners association are ordered in order to determine the amounts needed for payoff and/or transfer at the close of escrow. Copies of the commitment for title insurance, covenants, conditions and restrictions and termite inspection reports are forwarded to buyer, seller and lender for their approval as received. Upon receipt of the buyer’s loan documents from the buyer’s lender, the escrow officer prepares the settlement statement (or HUD), based on the information provided by the buyer’s new lender, the statements from homeowners association and payoff lenders and the purchase contract. The buyer and seller are contacted separately to schedule signing appointments for each. Buyer and seller sign separately. The buyer will deposit closing funds at the scheduled signing time unless other arrangements are previously made. After signing, the loan documents are returned to the buyer’s lender for approval and funding. Upon receipt of the loan proceeds from the lender, the escrow officer will release the documents in the transaction for recording with the County Recorder on the agreed upon recording date. After recording, the funds are disbursed and copies of all documents are provided to REALTORS®, buyers and sellers and the title insurance policies are issued to the buyer and the buyer’s new lender. In Arizona, real estate agents are authorized to write purchase contracts and escrow/title companies are authorized to complete standard documents to close a real estate transaction. As a result, attorneys are not commonly engaged in real estate closings of residential property. The real estate professionals generally involved include the real estate agents, the escrow officer and the buyer’s loan officer. Be advised, however, that none of the above referenced professionals are allowed by law to offer legal advice. If you have a complex transaction or have questions or doubts that cannot be answered by your real estate professionals, it is important that you consult with an attorney.
    • www.lawyerstitlearizona.com page 11 Home Seller's GuideHome Seller's Guide Title Insurance Defined And Why You Should Have It In every real estate transaction, the matter of title insurance arises. A policy of title insurance is issued to a buyer and/or a lender to guarantee to the insured party or parties, “Free and Clear” title to the property being insured, from the beginning of time until the date and time the buyer acquires title to the property, or in the case of a lender’s policy until the date and time the lender’s loan document is recorded against the property. “Free and Clear” is defined as there being no loans, liens, encumbrances, back taxes, easements or covenants, conditions or restrictions against the property that were not disclosed on Schedule ‘B’ of the commitment for title insurance issued by the insuring company. The policy is issued for a one-time fee and will remain in effect as long as you or your heirs retain an interest in the property. This protects the buyer’s or the lender’s investment in real estate, including their legal defense against any claim or claimant. If a claim is valid, the title insurer will either resolve the title problem or pay the insured’s losses. Why You’re At Risk There are many title issues that can arise to cause the loss of your property or your mortgage investment. Title issues not disclosed by a most careful search of the public records, called hidden risks, are the most dangerous. Because of them, your title may be worthless or have a diminished value. Here are some title issues that can occur. You may not discover them when you buy real estate, but months or years later they can result in the loss of your property or an expensive lawsuit. • Deeds by foreign parties • Deeds by minors • Deeds by persons of unsound mind • Deeds to or from defunct corporations • Defective acknowledgements (notary) • Discovery of will of apparent intestate • Duress in execution of instruments • Erroneous reports furnished by tax officials • False impersonation of the true owner of the land • Forged deeds, releases, etc. • Misrepresentation of wills • Mistakes in recording legal documents • Surviving children omitted from will • Administration of estate of persons absent but not deceased • Birth or adoption of children after date of will • Claims of creditors against property sold by heirs or devisees • Deed of community property recited to be separate property • Deeds by persons supposedly single, but secretly married • Deeds delivered after death of grantor/grantee, without consent of grantor • Deeds in lieu of foreclosure given under duress • Marital rights of spouse purportedly, but not legally, divorced • Ultra vires deed given under false corporate resolution
    • www.lawyerstitlearizona.com page 12 Home Seller’s GuideHome Seller’s Guide The Appraisal Process When you sell your house and the buyer is securing a new loan in order to purchase the property, the buyer’s lender requires a licensed appraiser to estimate the market value of the property to show the lender that they are making a prudent decision lending the buyer the money to buy your house. The cost of the appraisal is negotiable. Once the buyer begins the new loan application process, the lender will order the appraisal. In order to estimate the market value of your house, the appraiser will research the houses which have sold in your subdivision and/or your immediate area. Appraisers prefer to use sales which have occurred within the past 6 months and are similar to yours in regards to square footage, year built and amenities (i.e. swimming pool, garage, single story). The appraiser will measure your home, take photographs, and examine your house for its condition, specific improvements and amenities. You can help the appraiser by preparing a list of recent improvements and remodeling that has been done and include the approximate amounts spent for each improvement. Some appraisers will appreciate this information while others may not. However, if you had the information prepared for buyers looking at your home, then providing it for the appraiser will be a snap. If the buyers of your property are getting an FHA or VA loan, a few special requirements will be placed on your house. You must scrape and paint all chipping or peeling paint on your house or any structures on the property. You should also replace any missing or damaged shingles and missing slats or blocks in your fence. The lender will receive a copy of the appraisal a few days after the appraiser has been to your home. You may be told that the appraiser has some repair requirements before the lender can loan the buyer any money on your house. In that case, you must repair these problems and the appraiser will return for a re-inspection for an additional cost.
    • www.lawyerstitlearizona.com page 13 Home Seller's GuideHome Seller's Guide Inspections The standard Arizona Association of Realtors® purchase contract used by most real estate agents contains a provision that allows the buyer to physically inspect the property being purchased, either by himself or by a professional inspector or inspectors within the first ten days of acceptance of the contract by the seller. It is the seller’s obligation to provide the buyer access to the property during this ten day inspection period for whatever inspections the buyer requires. Below is a list of common types of inspections. Structural Pest Control • To determine any active infestation by wood destroying organisms. • To determine whether there is any earth to wood contact, cellulose debris or faulty grades on the property. In the event that there are wood destroying organisms or secondary issues with regard to the property, generally these issues must be addressed prior to the close of escrow and if the termite company that did the initial report does not do the repairs, then the property must be reinspected by a termite company and a clear report deposited into escrow, prior to the close of escrow. Physical Inspection • This inspection can encompass inspection of the roof, plumbing, electrical, heating and any other accessible area of the property. • A detailed report or reports will be written by the inspector or inspectors with recommendations for repairs, and same will be delivered to the buyer. Subsequently the buyer will request of the seller any repairs that the buyer wishes the seller to be responsible for, which, if the seller agrees to the repairs, would be completed prior to the close of escrow. Other Common Inspections Might Include: • Well and Septic • Hazardous materials • Chimney • Heating and Cooling • Survey • Zoning and Building permit compliance • Structural Engineering
    • www.lawyerstitlearizona.com page 14 Home Seller’s GuideHome Seller’s Guide Home Warranties Home Warranties are insurance policies designed to protect a seller during the listing period and a buyer for one year after the close of escrow, against repair costs for mechanical systems and major appliances. The cost of a home warranty policy is a one time fee which either the buyer or the seller can pay at the close of escrow and which is renewable annually. There are a variety of home warranty companies and plans. The plans vary according to the optional coverage chosen by the insured which might include, but not be limited to heating, air conditioning, dishwasher, washer, dryer, refrigerator, garbage disposals, and pool or pool and spa equipment. A Few Of The Benefits Of A Home Warranty Are Listed As Follows: • Replacement or repair of major or minor plumbing, heating or electrical problems during the policy period at a nominal service fee per incident. • A full network of qualified technicians at your service. • Protection of your budget against unexpected expenses for repairs or replacements of systems in your home for the first year of ownership (or subsequent years if renewed).
    • www.lawyerstitlearizona.com page 15 Home Seller's GuideHome Seller's Guide Below is a list of costs involved in a transaction that are negotiable and there is no general tradition as to which party pays them: • home warranty • homeowners association transfer fees A Guide To Closing Costs - Who Pays What? Although most costs involved in a real estate transaction can be negotiated between buyer and seller, there are a lot of costs that are traditionally paid by one party or the other. We have set forth below a list of these charges: The Seller can be expected to pay: • owner’s policy of title insurance • homeowners association fees • real estate commissions • escrow fees (50%) • payoff all existing loans, liens and • encumbrances, including all associated • costs and fees • termite work • taxes due and payable or back taxes • recording fee (50%) • delivery fees The Buyer can pay: • lenders policy of title insurance • endorsement fees for title insurance • escrow fees (50%) • impounds and interest on new loan • all new loan charges (including appraisal, • origination and discount fees, document • preparation, etc...). • termite inspection fee • ­­hazard insurance premium for first year • delivery fees • homeowners association dues required by • the association for future months • recording fee (50%) Mandatory Costs: FHA AND VA regulations require the seller to pay the following fees in an FHA or VA transaction, if applicable: assignment fee, flood certification fee, bring down endorsements, document preparation fees, photo/inspection fees, tax service contract, warehousing fees, or any other loan cost or charge except the following: prepaid interest, impounds on new loan, loan origination, loan discount fees or appraisal. In addition, on a VA transaction the seller is required to pay the entire escrow fee.
    • www.lawyerstitlearizona.com page 16 Home Seller’s GuideHome Seller’s Guide The Seller’s Eight Most Frequently Asked Questions Q. When do I get my proceeds check? A. On the date of recording, you may request that your escrow officer either cut you a check for your proceeds or wire the funds directly into your bank account. Q. Why do I have to pay interest on my loan pay-off past the day of recording? A. Your lender continues to accrue interest to the date that they post your loan as being paid in full. This could be one or two days from the date your escrow officer sends your pay-off check via overnight mail or wire transfer. Q. When do I get a refund from my impound account? A. After your escrow officer sends your pay-off check to your existing lender, you can expect to get impound account back direct from your lender within 30-60 days. If you have any questions after that time, we suggest calling your lender. Q. When do I cancel homeowner’s/fire insurance? A. Please do not cancel your insurance until you have confirmed that your transaction has closed. Q. Why does my escrow officer require that I complete a 1099 form? A. A 1099 form is the reporting form adopted by the IRS for submitting the information required by law. Under guidelines established by the IRS, sellers of real property are required to have their sales price reported on the 1099 form. Q. What is a Statement of information? A. Statements of information provide title companies with the­­­­­­­information they need to distinguish the buyers and sellers of real property from others with similar names, for the issuance of title insurance at close of escrow. After identifying the true buyers and sellers, title companies may disregard the judgements, liens or other matters on the public records under similar names. Q. I don’t understand tax pro-rations. How do they work? A. Each year on January 1st, the lien of that year’s property taxes attached to the land, pursuant to Arizona Law. However, the lien is not due and payable until October 1st of that year for the first half of that year’s bill and the second half of that year’s bill is not due until March 1st of the following year. Pro-rations are done to reimburse the buyer for the portion of the year that the seller has owned the property and has not yet paid taxes. Q. What will I need to take with me to Lawyers Title of Arizona to sign my closing documents? A. Take one of the following: Arizona Drivers License, Arizona ID card or Military ID.
    • www.lawyerstitlearizona.com page 17 Home Seller's GuideHome Seller's Guide Moving Checklist Old Residence Preparing For The Move FF Leave keys & garage openers FF Travel funds (cash & checks) FF Defrost refrigerator FF Pet transportation Address Change FF Bank accounts FF Subscriptions/magazines FF Forward address to post office FF Credit cards Utilities FF Telephone (check for refund) FF Gas (check for refund) FF Electric (check for refund) FF Water (check for refund) FF Cable (check for refund) FF Garbage pickup FF Bottled water, propane, etc. Documents To Obtain FF Medical records FF Dental records FF School transcripts FF Veterinary records New Residence Address Change FF Ask postman to hold mail for your arrival FF Utilities FF Telephone FF Electric FF Gas FF Water FF Garbage pickup FF Cable FF Bottled water, propane, etc. Schools, Licenses, Services FF Register children for school FF Register to vote FF Register car FF Driver’s License (apply for new address) ­­Medical Services FF New doctor FF New dentist FF New veterinarian
    • ALL FORMS in this book are for SAMPLE PURPOSES ONLY. Please check with http://www.aaronline.com/ or the appropriate government agency website for the most up to date forms.
    • Sellers are obligated by law to disclose all known material (important) facts about the property to the buyer. Arizona law requires that you disclose material facts about the property whether or not you are asked by the buyer or a real estate agent, or when asked to complete a disclosure form. There are also some very specific seller disclosures that you are required by statute to make. For example, sellers are required to disclose information on lead based paint in homes built prior to 1978, and if the property is in the vicinity of a military or public airport. You may also be required to complete and record an Affidavit of Disclosure if you are selling property in an unincorporated area of a county. “...you have a duty to disclose the information, regardless of whether or not you consider the information material.” If the buyer asks you about an aspect of the property, you have a duty to disclose the information, regard- less of whether or not you consider the information material. You also have a legal duty to disclose facts when disclosure is necessary to prevent a previous statement from being misleading or misrepresented: for example, if something changes. However, a seller does not generally have a legal obligation to correct defects in the property, as long as the defects are dis- closed. Any correction of the defects is a matter of contract negotiation between you and the buyer. If you do not make the legally required disclosures, you may be subject to civil liability. Under certain circum- stances, nondisclosure of a fact is the same as saying that the fact does not exist. Therefore, nondisclosure may be given the same legal effect as fraud. The Arizona Association of REALTORS® Residential Seller’s Property Disclosure Statement (“SPDS”) is designed to assist you in making these legally required disclosures and to avoid inadvertent nondisclosures of material facts. You should complete the SPDS by answering all ques- tions as truthfully and as thoroughly as possible. Attach copies of any available invoices, warranties, inspection reports, and leases, to insure that you are disclosing accurate information. Also, use the blank lines to explain your answers. If you do not have the personal knowledge to answer a question, it is important not to guess — use the blank lines to explain the situation. The SPDS is divided into six general sections: (1) Ownership and Property: This section asks for general information about the property, such as location, ownership and occupancy. Any seller, whether or not that seller has actually lived in the property, should be able to answer most, if not all, of the questions in this section. (2) Building and Safety Information: This section asks for information regarding the physical aspects of the property. You should disclose any past or present problems with the property and any work or improvements made to the property. You are also asked specifically to disclose any knowledge of past or current presence of termites or other wood destroy- ing organisms on the property, and whether scorpions or other possible “pests” have ever been present on the property. Although many sellers will answer affirmatively to these questions, they were necessitated by law- suits involving the alleged non-disclosure of these natural inhabitants. (3) Utilities: You are asked whether the property currently receives the listed utilities, and if so, to identify the provider. The water source and any known information about drinking water problems should also be disclosed. (4) Environmental Information: A variety of environmental information is requested. In addition to questions regarding environmental hazards, you are asked to disclose any issues relating to soil settlement/expan- sion, drainage/grade, or erosion; noise from the surrounding area includ- ing airport and traffic noise; and any odors or other nuisances. As a result of recent lawsuits and potential health concerns, you are asked specifical- ly if you are aware of any past or present mold growth on the property. Mold spores are everywhere and when mold spores drop in places where there is water damage or excessive moisture, or where there has been flooding, mold will grow. Thus, you are asked to disclose any conditions conducive to mold growth, such as past or present dampness/moisture, flooding, and water damage or water leaks of any kind. (5) Sewer/Waste Water Treatment: There are many questions dealing with the topic of sewer or wastewater treatment as a result of claims involving alleged misrepresentations that the property was connected to a sewer, when in fact it was not. You are asked if the entire property is connected to a sewer and if so, whether the sewer connection has been profession- ally verified. If the property is served by an on-site wastewater treatment facility, i.e., a septic or alternative wastewater system, a variety of addi- tional information is required. (6) Other Conditions and Factors – Additional Explanations: These blank lines provide space for you to disclose any other important informa- tion concerning the property that might affect the buyer’s decision-making process, the value of the property, or its use, and to make any other nec- essary explanations. Please note: By law, sellers are not obligated to disclose that the property is or has been: (1) the site of a natural death, suicide, homicide, or any other crime classified as a felony; (2) owned or occupied by a person exposed to HIV, or diagnosed as having AIDS or any other disease not known to be transmitted through common occupancy of real estate; or (3) located in the vicinity of a sex offender. However, the law does not protect a seller who makes an intentional misrepresentation. For example, if you are asked whether there has been a death on the property and you know that there was such a death, you should not answer “no” or “I don’t know”; instead you should either answer truthfully or respond that you are not legally required to answer the question. Page 1 of 9 Residential Seller Advisory • Updated: August 2012 Copyright © 2012 Arizona Association of REALTORS® . All rights reserved. Document updated: August 2012RESIDENTIAL SELLER ADVISORY WHEN IN DOUBT – DISCLOSE! SAMPLE
    • OWNERSHIP AND PROPERTY As used herein, “Property” shall mean the real property and all fixtures and improvements thereon and appurtenances incidental thereto, plus fixtures and personal property described in the Contract. PROPERTY ADDRESS: (STREET ADDRESS) (CITY) (STATE) (ZIP) Does the property include any leased land? n Yes n No Is the Property located in an unincorporated area of the county? n Yes n No If yes, and five or fewer parcels of land other than subdivided land are being transferred, the Seller must furnish the Buyer with a written Affidavit of Disclosure in the form required by law. LEGAL OWNER(S) OF PROPERTY: Date Purchased: Is the legal owner(s) of the Property a foreign person or a non-resident alien pursuant to the Foreign Investment in Real Property Tax Act (FIRPTA)? n Yes n No If yes, consult a tax advisor; mandatory withholding may apply. Is the property located in a community defined by the fair housing laws as housing for older persons? n Yes n No Explain: Approximate year built: . If Property was built prior to 1978, Seller must furnish the Buyer with a lead-based paint disclosure form. NOTICE TO BUYER: IF THE PROPERTY IS IN A SUBDIVISION, A SUBDIVISION PUBLIC REPORT, WHICH CONTAINS A VARIETY OF INFOR- MATION ABOUT THE SUBDIVISION AT THE TIME THE SUBDIVISION WAS APPROVED, MAY BE AVAILABLE BY CONTACTING THE ARIZONA DEPARTMENT OF REAL ESTATE OR THE HOMEBUILDER. THE PUBLIC REPORT INFORMATION MAY BE OUTDATED. The Property is currently: n Owner-occupied n Leased n Estate n Foreclosure n Vacant If vacant, how long? If a rental property, how long? Expiration date of current lease: (Attach a copy of the lease if available.) If any refundable deposits or prepaid rents are being held, by whom and how much? Explain: YES NO n n Have you entered into any agreement to transfer your interest in the Property in any way, including rental renewals or options to purchase? Explain: n n Are you aware if there are any association(s) governing this Property? If yes, provide contact(s) information: Name: Phone #: If yes, are there any fees? How much? $ How often? n n Are you aware of any transfer fees or other fees due upon transfer of the Property? Explain: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. R Document updated: August 2012 RESIDENTIAL SELLER’S PROPERTY DISCLOSURE STATEMENT (SPDS) (To be completed by Seller) Page 1 of 6 MESSAGE TO THE SELLER: Sellers are obligated by law to disclose all known material (important) facts about the Property to the Buyer. The SPDS is designed to assist you in making these disclosures. If you know something important about the Property that is not addressed on the SPDS, add that information to the form. Prospective Buyers may rely on the information you provide. INSTRUCTIONS: (1) Complete this form yourself. (2) Answer all questions truthfully and as fully as possible. (3) Attach all available supporting documentation. (4) Use explanation lines as necessary. (5) If you do not have the personal knowledge to answer a question, use the explanation lines to explain. By signing below you acknowledge that the failure to disclose known material information about the Property may result in liability. MESSAGE TO THE BUYER: Although Sellers are obligated to disclose all known material (important) facts about the Property, there are likely facts about the Property that the Sellers do not know. Therefore, it is important that you take an active role in obtaining information about the Property. INSTRUCTIONS: (1) Review this form and any attachments carefully. (2) Verify all important information. (3) Ask about any incomplete or inadequate responses. (4) Inquire about any concerns not addressed on the SPDS. (5) Review all other applicable documents, such as CC&R’s, association bylaws, surveys, rules, and the title report or commitment. (6) Obtain professional inspections of the Property. (7) Investigate the surrounding area. THE FOLLOWING ARE REPRESENTATIONS OF THE SELLER(S) AND ARE NOT VERIFIED BY THE BROKER(S) OR AGENT(S). Residential Seller’s Property Disclosure Statement (SPDS) Updated: August 2012 • Copyright © 2012 Arizona Association of REALTORS® . All rights reserved. Page 1 of 6 >> SAMPLE
    • YES NO n n Are you aware of any proposed or existing association assessment(s)? Explain: n n Are you aware of any pending or anticipated disputes or litigation regarding the Property or the association(s)? Explain: n n Are you aware of any of the following recorded against the Property? (Check all that apply): n Judgment liens n Tax liens n Other non-consensual liens Explain: n n Are you aware of any assessments affecting this Property? (Check all that apply): n Paving n Sewer n Water n Electric n Other Explain: n n Are you aware of any title issues affecting this Property? (Check all that apply): n Recorded easements n Use restrictions n Lot line disputes n Encroachments n Unrecorded easements n Use permits n Other Explain: n n Are you aware of any public or private use paths or roadways on or across this Property? Explain: n n Are you aware of any problems with legal or physical access to the Property? Explain: The road/street access to the Property is maintained by the n County n City n Homeowners’ Association n Privately n n If privately maintained, is there a recorded road maintenance agreement? Explain: n n Are you aware of any violation(s) of any of the following? (Check all that apply): n Zoning n Building Codes n Utility Service n Sanitary health regulations n Covenants, Conditions, Restrictions (CC&R’s) n Other (Attach a copy of notice(s) of violation if available.) Explain: n n Are you aware of any homeowner’s insurance claims having been filed against the Property? Explain: NOTICE TO BUYER: YOUR CLAIMS HISTORY, YOUR CREDIT REPORT, THE PROPERTY'S CLAIMS HISTORY AND OTHER FACTORS MAY AFFECT THE INSURABILITY OF THE PROPERTY AND AT WHAT COST. UNDER ARIZONA LAW, YOUR INSURANCE COMPANY MAY CANCEL YOUR HOMEOWNER’S INSURANCE WITHIN 60 DAYS AFTER THE EFFECTIVE DATE. CONTACT YOUR INSURANCE COMPANY. BUILDING AND SAFETY INFORMATION YES NO STRUCTURAL: n n Are you aware of any past or present roof leaks? Explain: n n Are you aware of any other past or present roof problems? Explain: n n Are you aware of any roof repairs? Explain: n n Is there a roof warranty? (Attach a copy of warranty if available.) n n If yes, is the roof warranty transferable? Cost to transfer NOTICE TO BUYER: CONTACT A PROFESSIONAL TO VERIFY THE CONDITION OF THE ROOF. n n Are you aware of any interior wall/ceiling/door/window/floor problems? Explain: n n Are you aware of any cracks or settling involving the foundation, exterior walls or slab? Explain: n n Are you aware of any chimney or fireplace problems, if applicable? Explain: 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 2 of 6 R Residential Seller’s Property Disclosure Statement (SPDS) Updated: August 2012 • Copyright © 2012 Arizona Association of REALTORS® . All rights reserved. Page 2 of 6 >> SAMPLE
    • YES NO n n Are you aware of any damage to any structure on the Property by any of the following? (Check all that apply): n Flood n Fire n Wind n Expansive soil(s) n Water n Hail n Other Explain: WOOD INFESTATION: Are you aware of any of the following: n n Past presence of termites or other wood destroying organisms on the Property? n n Current presence of termites or other wood destroying organisms on the Property? n n Past or present damage to the Property by termites or other wood destroying organisms? Explain: n n Are you aware of past or present treatment of the Property for termites or other wood destroying organisms? If yes, date last treatment was performed: Name of treatment provider: n n Is there a treatment warranty? (Attach a copy of warranty if available.) n n If yes, is the treatment warranty transferrable? NOTICE TO BUYER: CONTACT STATE OF ARIZONA STRUCTURAL PEST CONTROL COMMISSION FOR PAST TERMITE REPORTS OR TREATMENT HISTORY. HEATING & COOLING: Heating: Type(s) Cooling: Type(s) n n Are you aware of any past or present problems with the heating or cooling system(s)? Explain: PLUMBING: n n Are you aware of the type of water pipes, such as galvanized, copper, PVC, CPVC or polybutylene? If yes, identify: n n Are you aware of any past or present plumbing problems? Explain: n n Are you aware of any water pressure problems? Explain: Type of water heater(s): n Gas n Electric n Solar Approx. age(s): n n Are you aware of any past or present water heater problems? Explain: n n Is there a landscape watering system? If yes, type: n automatic timer n manual n both n n If yes, are you aware of any past or present problems with the landscape watering system? Explain: n n Are there any water treatment systems? (Check all that apply): n water filtration n reverse osmosis n water softener n Other Is water treatment system(s) n owned n leased (Attach a copy of lease if available.) n n Are you aware of any past or present problems with the water treatment system(s)? Explain: SWIMMING POOL/SPA/HOT TUB/SAUNA/WATER FEATURE: n n Does the Property contain any of the following? (Check all that apply): n Swimming pool n Spa n Hot tub n Sauna n Water feature n n If yes, are either of the following heated? n Swimming pool n Spa If yes, type of heat: n n Are you aware of any past or present problems relating to the swimming pool, spa, hot tub, sauna or water feature? Explain: 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. 101. 102. 103. 104. 105. 106. 107. 108. 109. 110. 111. 112. 113. 114. 115. 116. 117. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 3 of 6 R Residential Seller’s Property Disclosure Statement (SPDS) Updated: August 2012 • Copyright © 2012 Arizona Association of REALTORS® . All rights reserved. Page 3 of 6 >> SAMPLE
    • YES NO ELECTRICAL AND OTHER RELATED SYSTEMS: n n Are you aware of any past or present problems with the electrical system? Explain: n n Is there a security system? If yes, is it (Check all that apply): n Leased (Attach copy of lease if available) n Owned n Monitored n Other n n Are you aware of any past or present problems with the security system? Explain: n n Does the Property contain any of the following systems or detectors?(Check all that apply): n Smoke/fire detection n Fire suppression (sprinklers) n Carbon monoxide detector If yes, are you aware of any past or present problems with the above systems? Explain: MISCELLANEOUS: n n Are you aware of or have you observed any of the following on the Property? (Check all that apply): n Scorpions n Rabid animals n Bee swarms n Rodents n Reptiles n Other: Explain: How often is the Property serviced or treated for pests, reptiles, insects or animals? Name of service provider: Date of last service: n n Are you aware of any work done on the Property, such as building, plumbing, electrical or other improvements? (If no, skip to line 144.) Explain: n n Are you aware of any rooms added to the Property or converted to bedrooms? n n Were permits for the work required? Explain: n n If yes, were permits for the work obtained? Explain: n n Was the work performed by a person licensed to perform the work? Explain: n n Was approval for the work required by any association governing the property? Explain: If yes, was approval granted by the association? Explain: n n Was the work completed? Explain: n n Are there any security bars or other obstructions to door or window openings? Explain: n n Are you aware of any past or present problems with any built-in appliances? Explain: n n Are there any leased propane tanks, equipment or other systems on the Property? Explain: UTILITIES DOES THE PROPERTY CURRENTLY RECEIVE THE FOLLOWING SERVICES? YES NO PROVIDER n n Electricity: .................................................................... n n Fuel: n Natural gas n Propane n Oil .............. n n Cable: .......................................................................... n n Telephone: .................................................................. n n Garbage Collection: .................................................... n n Fire:.............................................................................. n n Irrigation:...................................................................... n n Water Source: n Public n Private water co. n Private well n Shared well n Hauled water If water source is a private or shared well, complete and attach DOMESTIC WATER WELL/WATER USE ADDENDUM. If source is public, a private water company, or hauled water, Provider is: NOTICE TO BUYER: IF THE PROPERTY IS SERVED BY A WELL, PRIVATE WATER COMPANY OR A MUNICIPAL WATER PROVIDER, THE ARIZONA DEPARTMENT OF WATER RESOURCES MAY NOT HAVE MADE A WATER SUPPLY DETERMINATION. FOR MORE INFORMATION ABOUT WATER SUPPLY, CONTACT THE WATER PROVIDER. 118. 119. 120. 121. 122. 123. 124. 125. 126. 127. 128. 129. 130. 131. 132. 133. 134. 135. 136. 137. 138. 139. 140. 141. 142. 143. 144. 145. 146. 147. 148. 149. 150. 151. 152. 153. 154. 155. 156. 157. 158. 159. 160. 161. 162. 163. 164. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 4 of 6 R Residential Seller’s Property Disclosure Statement (SPDS) Updated: August 2012 • Copyright © 2012 Arizona Association of REALTORS® . All rights reserved. Page 4 of 6 >> SAMPLE
    • YES NO n n Are you aware of any past or present drinking water problems? Explain: n n Are there any alternate power systems serving the Property? If yes, indicate type (Check all that apply): n Solar n Wind n Generator n Other If yes, are you aware of any past or present problems with the alternate power system(s)? Explain: ENVIRONMENTAL INFORMATION YES NO n n Are you aware of any past or present issues or problems with any of the following on the Property? (Check all that apply): n Soil settlement/expansion n Drainage/grade n Erosion n Fissures n Dampness/moisture n Other Explain: n n Are you aware of any past or present issues or problems in close proximity to the Property related to any of the following? (Check all that apply): n Soil settlement/expansion n Drainage/grade n Erosion n Fissures n Other Explain: NOTICE TO BUYER: THE ARIZONA DEPARTMENT OF REAL ESTATE PROVIDES EARTH FISSURE MAPS TO ANY MEMBER OF THE PUBLIC IN PRINTED OR ELECTRONIC FORMAT UPON REQUEST AND ON ITS WEBSITE AT www.azre.gov. n n Are you aware if the Property is subject to any present or proposed effects of any of the following? (Check all that apply): n Airport noise n Traffic noise n Rail line noise n Neighborhood noise n Landfill n Toxic waste disposal n Odors n Nuisances n Sand/gravel operations n Other Explain: n n Are you aware if any portion of the Property has ever been used as a "Clandestine drug laboratory" (manufacture of, or storage of, chemicals or equipment used in manufacturing methamphetamine, ecstasy or LSD)? NOTICE TO BUYER: THE ARIZONA BOARD OF TECHNICAL REGISTRATION (BTR) MAINTAINS A LIST OF UNREMEDIATED SITES AT www.azbtr.gov. TO DETERMINE IF THE PROPERTY WAS ONCE ON THE LIST BUT HAS BEEN REMEDIATED, CONTACT THE BTR AT 602-364-4948. n n Are you aware if the Property is located in the vicinity of an airport (military, public, or private)? Explain: NOTICE TO SELLER AND BUYER: PURSUANT TO ARIZONA LAW A SELLER SHALL PROVIDE A WRITTEN DISCLOSURE TO THE BUYER IF THE PROPERTY IS LOCATED IN TERRITORY IN THE VICINITY OF A MILITARY AIRPORT OR ANCILLARY MILITARY FACILITY AS DELINEATED ON A MAP PREPARED BY THE STATE LAND DEPARTMENT. THE DEPARTMENT OF REAL ESTATE ALSO IS OBLIGATED TO RECORD A DOCUMENT AT THE COUNTY RECORDER’S OFFICE DISCLOSING IF THE PROPERTY IS UNDER RESTRICTED AIR SPACE AND TO MAINTAIN THE STATE LAND DEPARTMENT MILITARY AIRPORT MAP ON ITS WEBSITE AT www.azre.gov. n n Are you aware of the presence of any of the following on the Property, past or present? (Check all that apply): n Asbestos n Radon gas n Lead-based paint n Pesticides n Underground storage tanks n Fuel/chemical storage Explain: n n Are you aware if the Property is located within any of the following? (Check all that apply): n Superfund/ WQARF/ CERCLA n Wetlands area n n Are you aware of any open mine shafts/tunnels or abandoned wells on the Property? If yes, describe location: n n Are you aware if any portion of the Property is in a flood plain/way? Explain: n n Are you aware of any portion of the Property ever having been flooded? Explain: n n Are you aware of any water damage or water leaks of any kind on the Property? Explain: n n Are you aware of any past or present mold growth on the Property? If yes, explain: 165. 166. 167. 168. 169. 170. 171. 172. 173. 174. 175. 176. 177. 178. 179. 180. 181. 182. 183. 184. 185. 186. 187. 188. 189. 190. 191. 192. 193. 194. 195. 196. 197. 198. 199. 200. 201. 202. 203. 204. 205. 206. 207. 208. 209. 210. 211. 212. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 5 of 6 R Residential Seller’s Property Disclosure Statement (SPDS) Updated: August 2012 • Copyright © 2012 Arizona Association of REALTORS® . All rights reserved. Page 5 of 6 >> SAMPLE
    • SEWER/WASTEWATER TREATMENT YES NO n n Is the entire Property connected to a sewer? Explain: n n If yes, has a professional verified the sewer connection? If yes, how and when: NOTICE TO BUYER: CONTACT A PROFESSIONAL TO CONDUCT A SEWER VERIFICATION TEST. Type of sewer: n Public n Private n Planned and approved sewer system, but not connected Name of Provider n n Are you aware of any past or present problems with the sewer? Explain: n n Is the Property served by an On-Site Wastewater Treatment Facility? (If no, skip to line 226.) If yes, the Facility is: n Conventional septic system n Alternative system; type: n n If the Facility is an alternative system, is it currently being serviced under a maintenance contract? If yes, name of contractor: Phone #: Approximate year Facility installed: (Attach copy of permit if available.) n n Are you aware of any repairs or alterations made to this Facility since original installation? Explain: Approximate date of last Facility inspection and/or pumping of septic tank: n n Are you aware of any past or present problems with the Facility? Explain: NOTICE TO SELLER AND BUYER: THE ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY REQUIRES A PRE-TRANSFER INSPECTION OF ON-SITE WASTEWATER TREATMENT FACILITIES ON RE-SALE PROPERTIES. OTHER CONDITIONS AND FACTORS What other material (important) information are you aware of concerning the Property that might affect the buyer’s decision-making process, the value of the Property, or its use? Explain: ADDITIONAL EXPLANATIONS SELLER CERTIFICATION: Seller certifies that the information contained herein is true and complete to the best of Seller’s knowledge as of the date signed. Seller agrees that any changes in the information contained herein will be disclosed in writing by Seller to Buyer prior to Close of Escrow, including any information that may be revealed by subsequent inspections. ^ SELLER’S SIGNATURE MO/DA/YR ^ SELLER’S SIGNATURE MO/DA/YR Reviewed and updated: Initials: / SELLER SELLER MO/DA/YR BUYER’S ACKNOWLEDGMENT: Buyer acknowledges that the information contained herein is based only on the Seller’s actual knowledge and is not a warranty of any kind. Buyer acknowledges Buyer’s obligation to investigate any material (important) facts in regard to the Property. Buyer is encouraged to obtain Property inspections by professional independent third parties and to consider obtaining a home warranty protection plan. NOTICE: Buyer acknowledges that by law, Sellers, Lessors and Brokers are not obligated to disclose that the Property is or has been: (1) the site of a natural death, suicide, homicide, or any other crime classified as a felony; (2) owned or occupied by a person exposed to HIV, diagnosed as having AIDS or any other disease not known to be transmitted through common occupancy of real estate; or (3) located in the vicinity of a sex offender. By signing below, Buyer acknowledges receipt only of this SPDS. If Buyer disapproves of any items provided herein, Buyer shall deliver to Seller written notice of the items disapproved as provided in the Contract. ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR 213. 214. 215. 216. 217. 218. 219. 220. 221. 222. 223. 224. 225. 226. 227. 228. 229. 230. 231. 232. 233. 234. 235. 236. 237. 238. 239. 240. 241. 242. 243. 244. 245. 246. 247. 248. 249. 250. 251. Residential Seller’s Property Disclosure Statement (SPDS) >> Page 6 of 6 R Residential Seller’s Property Disclosure Statement (SPDS) Updated: August 2012 • Copyright © 2012 Arizona Association of REALTORS® . All rights reserved. Page 6 of 6 SAMPLE
    • Page 1 of 9 Buyer Attachment • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. ATTENTION BUYER! You are entering into a legally binding agreement. 1. Read the entire contract before you sign it. 2. Review the Residential Seller’s Property Disclosure Statement (See Section 4a). • This information comes directly from the Seller. • Investigate any blank spaces, unclear answers or any other information that is important to you. 3. Review the Inspection Paragraph (see Section 6a). If important to you, hire a qualified: • Mold inspector • Roof inspector • Pest inspector • Pool inspector • Heating/cooling inspector Verify square footage (see Section 6b) Verify the property is on sewer or septic (see Section 6f) 4. Confirm your ability to obtain insurance and insurability of the property during the inspection period with your insurance agent (see Sections 6a and 6e). 5. Apply for your home loan now, if you have not done so already, and provide your lender with all requested information (see Section 2f). It is your responsibility to make sure that you and your lender 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. Document updated: February 2011BUYER ATTACHMENT This attachment should be given to the Buyer prior to the submission of any offer and is not part of the Residential Resale Real Estate Purchase Contract’s terms. Buyer’s Check List4 SAMPLE
    • Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. Page 1 of 9 >> 1a. 1b. 1c. 1d. 1e. 1f. 1g. 1. PROPERTY BUYER: BUYER’S NAME(S) SELLER: or n as identified in section 9c. SELLER’S NAME(S) Buyer agrees to buy and Seller agrees to sell the real property with all improvements, fixtures, and appurtenances thereon or incidental thereto, plus the personal property described herein (collectively the “Premises”). Premises Address: Assessor’s #: City: County: AZ, Zip Code: Legal Description: $ Full Purchase Price, paid as outlined below $ Earnest money $ $ Close of Escrow: Close of Escrow (“COE”) shall occur when the deed is recorded at the appropriate county recorder’s office. Buyer and Seller shall comply with all terms and conditions of this Contract, execute and deliver to Escrow Company all closing documents, and perform all other acts necessary in sufficient time to allow COE to occur on , 20 (“COE Date”). If Escrow Company or recorder’s office is closed on COE Date, MONTH DAY YEAR COE shall occur on the next day that both are open for business. Buyer shall deliver to Escrow Company a cashier’s check, wired funds or other immediately available funds to pay any down payment, additional deposits or Buyer’s closing costs, and instruct the lender, if applicable, to deliver immediately available funds to Escrow Company, in a sufficient amount and in sufficient time to allow COE to occur on 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. Addenda Incorporated: n AS IS n Additional Clause n Assumption and Carryback n Buyer Contingency n Domestic Water Well n H.O.A. n Lead-Based Paint Disclosure n On-site Wastewater Treatment Facility n Short Sale n Other: Fixtures and Personal Property: Seller agrees that all existing fixtures on the Premises, and any existing personal property specified herein, shall be included in this sale, including the following: • free-standing range/oven • light fixtures • draperies and other window coverings • ceiling fans • towel, curtain and drapery rods • shutters and awnings • attached floor coverings • flush-mounted speakers • water-misting systems • window and door screens, sun screens • storm windows and doors • solar systems • garage door openers and controls • attached media antennas/ • mailbox • outdoor landscaping, fountains, and lighting satellite dishes • central vacuum, hose, and attachments • pellet, wood-burning or gas-log stoves • attached fireplace equipment • built-in appliances • storage sheds • timers 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. PAGE 1 of 2 Document updated: February 2011 RESIDENTIAL RESALE REAL ESTATE PURCHASE CONTRACT Page 1 of 9 SAMPLE
    • Residential Resale Real Estate Purchase Contract >> Page 2 of 9 Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. Page 2 of 9 >> If owned by the Seller, the following items also are included in this sale: • pool and spa equipment (including any mechanical or other cleaning systems) • security and/or fire systems and/or alarms • water softeners • water purification systems Additional existing personal property included in this sale (if checked): n refrigerator n washer n dryer as described: n Other: Additional existing personal property included shall not be considered part of the Premises and shall be transferred with no monetary value, and free and clear of all liens or encumbrances. Fixtures and leased items NOT included: IF THIS IS AN ALL CASH SALE, GO TO SECTION 3. 2. FINANCING Pre-Qualification: A completed AAR Pre-Qualification Form n is n 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. Unfulfilled Loan Contingency: This Contract shall be cancelled and Buyer shall be entitled to a return of the Earnest Money if after diligent and good faith effort, Buyer is unable to obtain loan approval without PTD conditions no later than three (3) days prior to the COE Date. Buyer acknowledges that prepaid items paid separately from earnest money are not refundable. 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. Loan Status Update: Buyer shall deliver to Seller the LSU with at a minimum lines 1-40 completed describing the current status of the Buyer’s proposed loan within five (5) days after Contract acceptance and instruct lender to provide an updated LSU to Broker(s) and Seller upon request. Loan Application: Unless previously completed, during the Inspection Period, Buyer shall (i) complete, sign and deliver to the lender a loan application and grant lender permission to access Buyer’s Trimerged Residential Credit Report; and (ii) provide to lender all initial requested signed disclosures and Initial Requested Documentation listed in the LSU on lines 32-35. Loan Processing During Escrow: Buyer agrees to diligently work to obtain the loan and will promptly provide the lender with all additional documentation required. Buyer shall sign all loan documents no later than three (3) days prior to the COE Date. Type of Financing: n Conventional n FHA n VA n USDA n Assumption n Seller Carryback n (If financing is to be other than new financing, see attached addendum.) Loan Costs: All costs of obtaining the loan shall be paid by the Buyer, unless otherwise provided for herein. Seller Concessions (If Any): In addition to the other costs Seller has agreed to pay herein, Seller agrees to pay up to % of the Purchase Price or $ for Buyer’s loan costs including pre-paids, impounds and Buyer’s title / escrow closing costs. VA Loan Costs: In the event of a VA loan, Seller agrees to pay the escrow fee and up to $ of loan costs not permitted to be paid by the Buyer, in addition to the other costs Seller has agreed to pay herein, including Seller’s Concessions. 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. 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. Appraisal Fee(s): Appraisal Fee(s), when required by lender, shall be paid by n Buyer n Seller n Other Appraisal Fee(s) n are n are not included in Seller Concessions, if applicable. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 2a. 2b. 2c. 2d. 2e. 2f. 2g. 2h. 2i. 2j. 2k. 2l. 2m. 2n. SAMPLE
    • Residential Resale Real Estate Purchase Contract >> Page 3 of 9 Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. Page 3 of 9 >> 3. TITLE AND ESCROW Escrow: This Contract shall be used as escrow instructions. The Escrow Company employed by the parties to carry out the terms of this Contract shall be: “ESCROW/TITLE COMPANY” ADDRESS CITY STATE ZIP EMAIL PHONE FAX Title and Vesting: Buyer will take title as determined before COE. Taking title may have significant legal, estate planning and tax consequences. Buyer should obtain legal and tax advice. 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. 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. Tax Prorations: Real property taxes payable by the Seller shall be prorated to COE based upon the latest tax information available. 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. Prorations of Assessments and Fees: All assessments and fees that are not a lien as of the COE, including homeowner’s association fees, rents, irrigation fees, and, if assumed, insurance premiums, interest on assessments, interest on encumbrances, and service contracts, shall be prorated as of COE or n Other: Assessment Liens: The amount of any assessment, other than homeowner’s association assessments, that is a lien as of the COE, shall be n paid in full by Seller n prorated and assumed by Buyer. Any assessment that becomes a lien after COE is the Buyer’s responsibility. 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. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. 101. 102. 103. 104. 105. 106. 107. 108. 109. 110. 111. 112. 113. 114. 115. 116. 117. 118. 119. 120. 121. 122. 123. 124. 125. 126. 127. 128. 129. 130. 131. 132. 133. 3a. 3b. 3c. 3d. 3e. 3f. 3g. 3h. 3i. SAMPLE
    • Residential Resale Real Estate Purchase Contract >> Page 4 of 9 Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. Page 4 of 9 >> 4. DISCLOSURE Seller Property Disclosure Statement (“SPDS”): Seller shall deliver a completed AAR Residential SPDS form to the Buyer within five (5) days after Contract acceptance. Buyer shall provide notice of any SPDS items disapproved within the Inspection Period or five (5) days after receipt of the SPDS, whichever is later. 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. 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 Lead- Based Paint and Lead-Based Paint Hazards to Seller prior to COE. n LBP Information was provided prior to Contract acceptance and Buyer acknowledges the opportunity to conduct LBP risk assessments or inspections during Inspection Period. n Seller shall provide LBP Information within five (5) days after Contract acceptance. Buyer may within ten (10) days or days after receipt of the LBP Information conduct or obtain a risk assessment or inspection of the Premises for the presence of LBP or LBP hazards (“Assessment Period”). Buyer may within five (5) days after receipt of the LBP Information or five (5) days after expiration of the Assessment Period cancel this Contract. 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. If Premises were constructed prior to 1978, (BUYER’S INITIALS REQUIRED) BUYER BUYER If Premises were constructed 1978 or later, (BUYER’S INITIALS REQUIRED) BUYER BUYER 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. 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. 5. WARRANTIES 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. 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. 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: 134. 135. 136. 137. 138. 139. 140. 141. 142. 143. 144. 145. 146. 147. 148. 149. 150. 151. 152. 153. 154. 155. 156. 157. 158. 159. 160. 161. 162. 163. 164. 165. 166. 167. 168. 169. 170. 171. 172. 173. 174. 175. 176. 177. 178. 179. 180. 181. 182. 183. 184. 4a. 4b. 4c. 4d. 4e. 5a. 5b. 5c. SAMPLE
    • Residential Resale Real Estate Purchase Contract >> Page 5 of 9 Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. Page 5 of 9 >> 6. DUE DILIGENCE Inspection Period: Buyer’s Inspection Period shall be ten (10) days or days after Contract acceptance. During the Inspection Period Buyer, at Buyer’s expense, shall: (i) conduct all desired physical, environmental, and other types of inspections and investigations to determine the value and condition of the Premises; (ii) make inquiries and consult government agencies, lenders, insurance agents, architects, and other appropriate persons and entities concerning the suitability of the Premises and the surrounding area; (iii) investigate applicable building, zoning, fire, health, and safety codes to determine any potential hazards, violations or defects in the Premises; and (iv) verify any material multiple listing service (“MLS”) information. If the presence of sex offenders in the vicinity or the occurrence of a disease, natural death, suicide, homicide or other crime on or in the vicinity is a material matter to 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. Square Footage: BUYER IS AWARE THAT ANY REFERENCE TO THE SQUARE FOOTAGE OF THE PREMISES, BOTH THE REAL PROPERTY (LAND) AND IMPROVEMENTS THEREON, IS APPROXIMATE. IF SQUARE FOOTAGE IS A MATERIAL MATTER TO THE BUYER, IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD. Wood-Destroying Organism or Insect Inspection: IF CURRENT OR PAST WOOD-DESTROYING ORGANISMS OR INSECTS (SUCH AS TERMITES) ARE A MATERIAL MATTER TO 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. 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. 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. Sewer or On-site Wastewater Treatment System: The Premises are connected to a: n sewer system n septic system n alternative system IF A SEWER CONNECTION IS A MATERIAL MATTER TO THE BUYER, IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD. If the Premises are served by a septic or alternative system, the AAR On-site Wastewater Treatment Facility Addendum is incorporated herein by reference. (BUYER’S INITIALS REQUIRED) BUYER BUYER Swimming Pool Barrier Regulations: During the Inspection Period, Buyer agrees to investigate all applicable state, county, and municipal Swimming Pool barrier regulations and agrees to comply with and pay all costs of compliance with said regulations prior to occupying the Premises, unless otherwise agreed in writing. If the Premises contains a Swimming Pool, Buyer acknowledges receipt of the Arizona Department of Health Services approved private pool safety notice. (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) 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. 185. 186. 187. 188. 189. 190. 191. 192. 193. 194. 195. 196. 197. 198. 199. 200. 201. 202. 203. 204. 205. 206. 207. 208. 209. 210. 211. 212. 213. 214. 215. 216. 217. 218. 219. 220. 221. 222. 223. 224. 225. 226. 227. 228. 229. 230. 231. 232. 233. 234. 235. 6a. 6b. 6c. 6d. 6e. 6f. 6g. 6h. 6i. SAMPLE
    • Residential Resale Real Estate Purchase Contract >> Page 6 of 9 Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. Page 6 of 9 >> Buyer Disapproval: If Buyer, in Buyer’s sole discretion, disapproves of items as allowed herein, Buyer shall deliver to Seller notice of the items disapproved and state in the notice that Buyer elects to either: (1) immediately cancel this Contract and all Earnest Money shall be released to Buyer, or (2) provide the Seller an opportunity to correct the items disapproved, in which case: (a) Seller shall respond in writing within five (5) days or days after delivery to Seller of Buyer’s notice of items disapproved. Seller’s failure to respond to Buyer in writing within the specified time period shall conclusively be deemed Seller’s refusal to correct any of the items disapproved. (b) If Seller agrees in writing to correct items disapproved, Seller shall correct the items, complete any repairs in a workmanlike manner and deliver any paid receipts evidencing the corrections and repairs to Buyer three (3) days or days prior to COE Date. (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. VERBAL DISCUSSIONS WILL NOT EXTEND THESE TIME PERIODS. Only a written agreement signed by both parties will extend response times or cancellation rights. BUYER’S FAILURE TO GIVE NOTICE OF DISAPPROVAL OF ITEMS OR CANCELLATION OF THIS CONTRACT WITHIN THE SPECIFIED TIME PERIOD SHALL CONCLUSIVELY BE DEEMED BUYER’S ELECTION TO PROCEED WITH THE TRANSACTION WITHOUT CORRECTION OF ANY DISAPPROVED ITEMS. Notice of Non-Working Warranted Items: Buyer shall provide Seller with notice of any non-working warranted item(s) of which Buyer becomes aware during the Inspection Period or the Seller warranty for that item(s) shall be waived. Delivery of such notice shall not affect Seller’s obligation to maintain or repair the warranted item(s). Home Warranty Plan: Buyer and Seller are advised to investigate the various home warranty plans available for purchase. The parties acknowledge that different home warranty plans have different coverage options, exclusions, limitations, service fees and most plans exclude pre-existing conditions. n A Home Warranty Plan will be ordered by n Buyer or n Seller with the following optional coverage , to be issued by at a cost not to exceed $ , to be paid for by n Buyer n Seller n Buyer declines the purchase of a Home Warranty Plan. 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. Seller’s Responsibility Regarding Inspections and Walkthrough(s): Seller shall make the Premises available for all inspections and walkthrough(s) upon reasonable notice by Buyer. Seller shall, at Seller’s expense, have all utilities on, including any propane, until COE to enable Buyer to conduct these inspections and walkthrough(s). 7. REMEDIES Cure Period: A party shall have an opportunity to cure a potential breach of this Contract. If a party fails to comply with any provision of this Contract, the other party shall deliver a notice to the non-complying party specifying the non-compliance. If the non- compliance is not cured within three (3) days after delivery of such notice (“Cure Period”), the failure to comply shall become a breach of Contract. 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. 236. 237. 238. 239. 240. 241. 242. 243. 244. 245. 246. 247. 248. 249. 250. 251. 252. 253. 254. 255. 256. 257. 258. 259. 260. 261. 262. 263. 264. 265. 266. 267. 268. 269. 270. 271. 272. 273. 274. 275. 276. 277. 278. 279. 280. 281. 282. 283. 284. 285. 6j. 6k. 6l. 6m. 6n. 7a. 7b. SAMPLE
    • Residential Resale Real Estate Purchase Contract >> Page 7 of 9 Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. Page 7 of 9 >> 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. 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. Attorney Fees and Costs: The prevailing party in any dispute or claim between Buyer and Seller arising out of or relating to this Contract shall be awarded their reasonable attorney fees and costs. Costs shall include, without limitation, attorney fees, expert witness fees, fees paid to investigators, and arbitration costs. 8. ADDITIONAL TERMS AND CONDITIONS 286. 287. 288. 289. 290. 291. 292. 293. 294. 295. 296. 297. 298. 299. 300. 301. 302. 303. 304. 305. 306. 307. 308. 309. 310. 311. 312. 313. 314. 315. 316. 317. 318. 319. 320. 321. 322. 323. 324. 325. 326. 327. 328. 329. 330. 331. 332. 333. 334. 7c. 7d. 7e. 8a. SAMPLE
    • Residential Resale Real Estate Purchase Contract >> Page 8 of 9 Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. Page 8 of 9 >> 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. Permission: Buyer and Seller grant Broker(s) permission to advise the public of this Contract. Arizona Law: This Contract shall be governed by Arizona law and jurisdiction is exclusively conferred on the State of Arizona. Time is of the Essence: The parties acknowledge that time is of the essence in the performance of the obligations described herein. 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. 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. 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. 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). Entire Agreement: This Contract, and any addenda and attachments, shall constitute the entire agreement between Seller and Buyer, shall supersede any other written or oral agreements between Seller and Buyer and can be modified only by a writing signed by Seller and Buyer. The failure to initial any page of this Contract shall not affect the validity or terms of this Contract. Subsequent Offers: Buyer acknowledges that Seller has the right to accept subsequent offers until COE. Seller understands that any subsequent offer accepted by the Seller must be a backup offer contingent on the cancellation of this Contract. Cancellation: A party who wishes to exercise the right of cancellation as allowed herein may cancel this Contract by delivering notice stating the reason for cancellation to the other party or to the Escrow Company. Cancellation shall become effective immediately upon delivery of the cancellation notice. 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. 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. 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. (SELLER’S INITIALS REQUIRED) (BUYER’S INITIALS REQUIRED) SELLER SELLER 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. 335. 336. 337. 338. 339. 340. 341. 342. 343. 344. 345. 346. 347. 348. 349. 350. 351. 352. 353. 354. 355. 356. 357. 358. 359. 360. 361. 362. 363. 364. 365. 366. 367. 368. 369. 370. 371. 372. 373. 374. 375. 376. 377. 378. 379. 380. 381. 382. 383. 384. 385. 386. 387. 388. 8b. 8c. 8d. 8e. 8f. 8g. 8h. 8i. 8j. 8k. 8l. 8m. 8n. 8o. 8p. SAMPLE
    • Residential Resale Real Estate Purchase Contract >> Page 9 of 9 Residential Resale Real Estate Purchase Contract • Updated: February 2011 Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. Page 9 of 9 THIS CONTRACT CONTAINS NINE PAGES EXCLUSIVE OF ANY ADDENDA AND ATTACHMENTS. PLEASE ENSURE THAT YOU HAVE RECEIVED AND READ ALL NINE PAGES OF THIS OFFER AS WELL AS ANY ADDENDA AND ATTACHMENTS. Broker on behalf of Buyer: PRINT SALESPERSON’S NAME AGENT CODE PRINT FIRM NAME FIRM CODE FIRM ADDRESS STATE ZIP CODE PREFERRED TELEPHONE FAX EMAIL Agency Confirmation: The Broker named in Section 8r above is the agent of (check one): n the Buyer; n the Seller; or n both the Buyer and Seller The undersigned agree to purchase the Premises on the terms and conditions herein stated and acknowledge receipt of a copy hereof including the Buyer Attachment. ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR ADDRESS ADDRESS CITY, STATE, ZIP CODE CITY, STATE, ZIP CODE 9. SELLER ACCEPTANCE Broker on behalf of Seller: PRINT SALESPERSON’S NAME AGENT CODE PRINT FIRM NAME FIRM CODE FIRM ADDRESS STATE ZIP CODE PREFERRED TELEPHONE FAX EMAIL Agency Confirmation: The Broker named in Section 9a above is the agent of (check one): n the Seller; or n both the Buyer and Seller The undersigned agree to sell the Premises on the terms and conditions herein stated, acknowledge receipt of a copy hereof and grant permission to Broker named on Section 9a to deliver a copy to Buyer. 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 MO/DA/YR SELLER’S NAME PRINTED SELLER’S NAME PRINTED ADDRESS ADDRESS CITY, STATE, ZIP CODE CITY, STATE, ZIP CODE n OFFER REJECTED BY SELLER: , 20 MONTH DAY YEAR (SELLER’S INITIALS) 389. 390. 391. 392. 393. 394. 395. 396. 397. 398. 399. 400. 401. 402. 403. 404. 405. 406. 407. 408. 409. 410. 411. 412. 413. 414. 415. 416. 8q. 8r. 8s. 8t. 9a. 9b. 9c. SAMPLE
    • The following additional terms and conditions are hereby included as a part of the Contract between Seller and Buyer for the above referenced Premises. All terms and conditions of the Contract are hereby included herein and delivery of all notices and documentation shall be deemed delivered and received when sent as required by Section 8m of the Contract. A. Seller and Buyer agree that the Premises is being sold in its existing condition (“AS IS”) and Seller makes no warranty to Buyer, either express or implied, as to the (1) condition of the Premises, including, but not limited to, Seller’s Warranties in Lines 166-168 of Section 5a, which Buyer hereby waives; (2) zoning of the Premises; or (3) Premises’ fitness for any particular use or purpose. However, Seller warrants and shall maintain and repair the Premises so that, pursuant to lines 169-170, at the earlier of possession or COE, 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 all personal property not included in the sale and all debris will be removed from the Premises. B. Buyer is advised to conduct independent inspection(s) and investigations regarding the Premises within the Inspection Period as specified in Section 6a. Buyer retains the rights pursuant to Section 6j. Seller shall not be obligated to correct any defects that may be discovered during Buyer’s inspection(s) and investigations or otherwise. C. Notwithstanding the foregoing, if an On-Site Wastewater Treatment Facility (conventional septic or alternative system) (“Facility”) has been installed on the Premises, Seller and Buyer agree to complete and execute the AAR On-Site Wastewater Treatment Facility Addendum and Seller agrees to pay for the Facility inspections, fees or repairs as set forth therein. D. Seller acknowledges that selling the Premises “AS IS” does not relieve Seller of the legal obligation to disclose all known material latent defects to Buyer. E. In the event that any provision contained in this Addendum conflicts in whole or in part with any of the terms contained in the Contract, the provisions of this Addendum shall prevail and the conflicting terms are hereby considered deleted and expressly waived by both Buyer and Seller. F. Other Terms and Conditions: __________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________ BUYER ACKNOWLEDGES THAT BUYER IS HEREBY ADVISED TO SEEK APPROPRIATE COUNSEL REGARDING THE RISKS OF BUYING A PROPERTY IN “AS IS” CONDITION. 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. 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 or any other matter relating to the value or condition of the Premises. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. Page 1 of 2 Document updated: February 2011“AS IS” ADDENDUM Seller: Buyer: Premises Address: Date: 1. 2. 3. 4. PAGE 1 of 2 “As Is” Addendum • Updated: February 2011 • Copyright © 2009 Arizona Association of REALTORS® . All rights reserved. SAMPLE
    • The following additional terms and conditions are hereby included as part of the Contract between Seller and Buyer for the above referenced Premises. Delivery of all notices and documentation shall be deemed delivered and received when sent as required by Section 8m of the Contract. 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. Nothing shall limit a Seller from accepting subsequent offers from subsequent buyer(s) and submitting the back-up contract(s) to 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 Premises only to the holder of the Contract with terms and conditions most acceptable to creditor(s). DOCUMENTATION TO CREDITOR(S) 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. TERMS UPON ACCEPTABLE SHORT SALE AGREEMENT Agreement Notice: If Seller and Seller’s creditors enter into a short sale agreement, the Seller shall immediately deliver notice to Buyer (“Agreement Notice”). Time Periods: The date of Seller’s delivery of the Short Sale Agreement Notice to Buyer shall be deemed the date of Contract acceptance for purposes of all applicable Contract time periods. Escrow and Earnest Money: Buyer shall promptly open Escrow and deposit Earnest Money as described in the Contract upon receipt of Agreement Notice. Seller Warranties: Buyer hereby waives Seller’s warranties as set forth in Lines 166-168 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 169-170 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. Close of Escrow: Close of Escrow shall occur thirty (30) days or days after delivery of Agreement Notice. Creditor Requirements: Buyer and Seller agree to cooperate with Creditor(s) and sign additional Creditor disclosure(s) or execute additional addendum(a) required by Creditor(s) as a condition of approval of the short sale, provided that Buyer and Seller incur no additional cost or liability. BUYER CANCELLATION Buyer may unilaterally cancel this Contract by notice to Seller at any time before receipt of a short sale Agreement Notice from Seller. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. Page 1 of 2 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 Document updated: February 2011 SHORT SALE ADDENDUM TO THE RESIDENTIAL RESALE REAL ESTATE PURCHASE CONTRACT Seller: Buyer: Premises Address: Date: 1. 2. 3. 4. SAMPLE
    • LEGAL AND TAX ADVICE Seller acknowledges that Broker is not qualified to provide financial, legal, or tax advice regarding a short sale transaction. Therefore, the Seller is advised to obtain professional tax advice and consult independent legal counsel immediately regarding the tax implications and advisability of entering into a short sale agreement. (SELLER’S INITIALS REQUIRED) SELLER SELLER UNFULFILLED CONTINGENCY 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 herein, Seller shall promptly notify Buyer of same, and the Contract shall be deemed cancelled due to the unfulfilled short sale contin- gency. If applicable, Buyer shall be entitled to a return of any Earnest Money. OTHER TERMS AND CONDITIONS In the event that any provision contained in this Addendum conflicts in whole or in part with any terms contained in the Contract, the provisions of this Addendum shall prevail and the conflicting terms are hereby considered deleted and expressly waived by both Buyer and Seller. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. Short Sale Addendum to the Residential Resale Real Estate Purchase Contract >> Page 2 of 2 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 SAMPLE
    • 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. Lender: COMPANY ARIZONA LICENSE # LOAN OFFICER NMLS # ADDRESS CITY STATE ZIP EMAIL PHONE FAX Closing Loan Documents Delivery Date: Close of Escrow Date: Buyer(s): Seller(s): Premises Address: City: AZ ZIP Code: PRE-QUALIFICATION INFORMATION 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: Occupancy Type: n Primary n Secondary n Non-Owner Occupied Property Type: n Single Family Residence n Condominium n Planned Unit Development n Manufactured Home n Mobile Home n Other: YES NO N/A n n n Lender has provided Buyer with the HUD form “For Your Protection: Get a Home Inspection” (FHA loans only). n n n Lender has completed a verbal discussion with Buyer including a discussion of income, assets and debts. n n n Lender has obtained a Tri-Merged Residential Credit Report. Based on the information provided, Buyer can pre-qualify for a loan amount of: $ , assuming a monthly principal and interest loan payment of $ , provided that the total monthly 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 % Initial Requested Documentation: Lender has received the following information from the Buyer: (Additional documentation may be required). YES NO N/A YES NO N/A n n n Paystubs n n n Down Payment/Reserves Documentation n n n W-2s n n n Gift Documentation n n n Personal Tax Returns n n n Credit/Liability Documentation n n n Corporate Tax Returns n n n Other: Additional comments: 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. Buyer intends to proceed with the above referenced Lender on the terms described herein. Buyer acknowledges receipt of a copy hereof. ^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. Document updated: February 2011LOAN STATUS UPDATE (LSU) Loan Status Update • Updated: February 2011 • Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. PAGE 1 of 2 >> SAMPLE
    • Loan Status Update (LSU) >> Page 2 of 2 Loan Status Update • Updated: February 2011 • Copyright © 2011 Arizona Association of REALTORS® . All rights reserved. PAGE 2 of 2 DOCUMENTATION n n Lender has received the Contract and all Addenda / / n n Lender has sent initial Good Faith Estimate and Truth in Lending (TIL) Disclosures / / n n Lender has received a signed Application/1003 and disclosures / / n n Lender has identified down payment source / / n n Lender has received and reviewed the Title Commitment / / n n Payment for the appraisal has been received / / n n Lender has ordered the appraisal / / n n Buyer has locked the interest rate and points with Lender / / Lock expiration date n n Lender has received the Initial Requested Documentation listed on lines 32-35 / / n n Appraisal received and the Premises appraised for at least the purchase price / / UNDERWRITING AND APPROVAL n n Lender has submitted the loan package to the Underwriter / / n n Lender has obtained loan approval with Prior to Document (“PTD”) Conditions / / n n Appraisal conditions have been met / / n n Buyer has loan approval without PTD Conditions / / CLOSING n n Lender has ordered the Closing Loan Documents (“DOCs”) and Instructions / / n n Lender has sent the DOCs to the Escrow Company / / n n Lender has received the pre-audit from Escrow Company / / n n Lender has approved the pre-audit from Escrow Company / / n n Lender has received signed DOCs from all parties / / n n All lender Quality Control Reviews have been completed / / n n All Prior to Funding (“PTF”) Conditions have been met and buyer has obtained / / loan approval without conditions n n Funds have been ordered / / n n All funds have been received by Escrow Company / / Close of escrow occurs when the deed has been recorded at the appropriate county recorder’s office. ^ LOAN OFFICER’S SIGNATURE MO/DA/YR 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. YES NO DATE COMPLETED LENDER INITIALS SAMPLE