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Revised 2017 PURCHASE CONTRACT GUIDE TO THE ARIZONA RESIDENTIAL PURCHASE CONTRACT Erica Wilson Erica Wilson sigtitleaz com www signaturetitleaz com
Revised 2017  PURCHASE CONTRACT  GUIDE TO THE ARIZONA RESIDENTIAL PURCHASE CONTRACT  Erica Wilson  Erica.Wilson sigtitleaz...
Page 1 of 9 BUYER ATTACHMENT Document updated February 2017 This attachment should be given to the Buyer prior to the submission of any offer and is not part of the Residential Resale Real Estate Purchase Contract s terms ATTENTION BUYER You are entering into a legally binding agreement 1 Read the entire contract before you sign it 2 Review the Residential Seller s Property Disclosure Statement See Section 4a This information comes directly from the Seller Investigate any blank spaces unclear answers or any other information that is important to you 3 Review the Inspection Paragraph see Section 6a If important to you hire a qualified General home inspector Heating cooling inspector Mold inspector Pest inspector Pool inspector Roof inspector Verify square footage see Section 6b Verify the property is on sewer or septic see Section 6f 4 Confirm your ability to obtain insurance and insurability of the property during the inspection period with your insurance agent see Sections 6a and 6e 5 Apply for your home loan now if you have not done so already and provide your lender with all requested information see Section 2f It is your responsibility to make sure that you and your lender follow the timeline requirements in Section 2 and that you and your lender deliver the necessary funds to escrow in sufficient time to allow escrow to close on the agreed upon date Otherwise the Seller may cancel the contract and you may be liable for damages 6 Read the title commitment within five 5 days of receipt see Section 3c 7 Read the CC R s and all other governing documents within five 5 days of receipt see Section 3c especially if the home is in a homeowner s association 8 Conduct a thorough pre closing walkthrough see Section 6l If the property is unacceptable speak up After the closing may be too late You can obtain information through the Buyer s Advisory at www aaronline com manage risk buyer advisory 3 Remember you are urged to consult with an attorney inspectors and experts of your choice in any area of interest or concern in the transaction Be cautious about verbal representations advertising claims and information contained in a listing Verify anything important to you 4 Buyer s Check List Buyer Attachment Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved 4
Page 1 of 9  BUYER ATTACHMENT  Document updated  February 2017  This attachment should be given to the Buyer prior to the ...
Page 1 of 10 RESIDENTIAL RESALE REAL ESTATE PURCHASE CONTRACT Document updated February 2017 1 PROPERTY 1a 1 BUYER 2 SELLER BUYER S NAME S or SELLER S NAME S as identified in section 9c 3 Buyer agrees to buy and Seller agrees to sell the real property with all improvements fixtures and appurtenances thereon 4 or incidental thereto plus the personal property described herein collectively the Premises 1b 5 Premises Address Assessor s 6 City County AZ Zip Code 7 Legal Description 8 9 1c 10 Full Purchase Price paid as outlined below 11 Earnest Money 12 13 14 15 16 17 Earnest Money is in the form of Personal Check Wire Transfer Other 18 Upon acceptance of this offer the Earnest Money if any will be deposited with Escrow Company Broker s Trust Account 19 IF THIS IS AN ALL CASH SALE A Letter of Credit or a source of funds from a financial institution documenting the availability of 20 funds to close escrow is attached hereto 1d 21 Close of Escrow Close of Escrow COE shall occur when the deed is recorded at the appropriate county recorder s office 22 Buyer and Seller shall comply with all terms and conditions of this Contract execute and deliver to Escrow Company all closing 23 documents and perform all other acts necessary in sufficient time to allow COE to occur on 20 COE Date If Escrow Company or recorder s office is closed on the COE Date 24 MONTH DAY YEAR 25 COE shall occur on the next day that both are open for business 26 Buyer shall deliver to Escrow Company a cashier s check wired funds or other immediately available funds to pay any down 27 payment additional deposits or Buyer s closing costs and instruct the lender if applicable to deliver immediately available funds to 28 Escrow Company in a sufficient amount and in sufficient time to allow COE to occur on the COE Date 29 Buyer acknowledges that failure to pay the required closing funds by the scheduled COE if not cured after a cure notice is delivered 30 pursuant to Section 7a shall be construed as a material breach of this Contract and the Earnest Money shall be subject to forfeiture 31 All funds are to be in U S currency 1e 32 33 34 35 1f 36 Addenda Incorporated Additional Clause Buyer Contingency Domestic Water Well H O A 37 Lead Based Paint Disclosure Loan Assumption On site Wastewater Treatment Facility Seller Financing 38 Other Possession Seller shall deliver possession occupancy existing keys and or means to operate all locks mailbox security system alarms and all common area facilities to Buyer at COE or Broker s recommend that the parties seek independent counsel from insurance legal tax and accounting professionals regarding the risks of pre possession or post possession of the Premises Residential Resale Real Estate Purchase Contract Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved Page 1 of 10 5 Short Sale
Page 1 of 10  RESIDENTIAL RESALE REAL ESTATE  PURCHASE CONTRACT  Document updated  February 2017  1. PROPERTY 1a.  1. BUYE...
Page 2 of 10 Residential Resale Real Estate Purchase Contract 1g 39 Fixtures and Personal Property For purposes of this Contract fixtures shall mean property attached affixed to the Premises 40 Seller agrees that all existing fixtures on the Premises personal property specified herein and means to operate fixtures and 41 property i e remote controls shall convey in this sale Including the following 42 storm windows and doors light fixtures built in appliances 43 stoves gas log pellet wood burning mailbox ceiling fans and remote controls 44 central vacuum hose and attachments media antennas satellite dishes affixed timers affixed 45 towel curtain and drapery rods outdoor fountains and lighting draperies and other window coverings 46 wall mounted TV brackets and hardware outdoor landscaping i e shrubbery fireplace equipment affixed 47 excluding TVs trees and unpotted plants floor coverings affixed 48 water misting systems shutters and awnings free standing range oven window and door screens sun shades speakers flush mounted garage door openers and remote 49 50 storage sheds controls 51 If owned by Seller the following items also are included in this sale 52 affixed alternate power systems serving in ground pool and spa hot tub equipment security and or fire systems and or alarms the Premises i e solar and covers including any mechanical or water purification systems 53 other cleaning systems water softeners 54 55 Additional existing personal property included in this sale if checked refrigerator description 56 washer description 57 dryer description 58 59 above ground spa hot tub including equipment covers and any mechanical or other cleaning systems description 60 61 other personal property not otherwise addressed description 62 other personal property not otherwise addressed description 63 Additional existing personal property included shall not be considered part of the Premises and shall be transferred with no 64 monetary value and free and clear of all liens or encumbrances 65 Leased items shall NOT be included in this sale Seller shall deliver notice of all leased items within three 3 days after Contract 66 acceptance Buyer shall provide notice of any leased items disapproved within the Inspection Period or five 5 days after receipt 67 of the notice whichever is later 68 IF THIS IS AN ALL CASH SALE Section 2 does not apply go to Section 3 2 FINANCING 2a 69 Pre Qualification An AAR Pre Qualification Form is attached hereto and incorporated herein by reference 2b 70 71 72 73 74 75 Loan Contingency Buyer s obligation to complete this sale is contingent upon Buyer obtaining loan approval without Prior to Document PTD conditions no later than three 3 days prior to the COE Date for the loan described in the AAR Loan Status Update LSU form or the AAR Pre Qualification Form whichever is delivered later No later than three 3 days prior to the COE Date Buyer shall either i sign all loan documents or ii deliver to Seller or Escrow Company notice of loan approval without PTD conditions AND date s of receipt of Closing Disclosure s from Lender or iii deliver to Seller or Escrow Company notice of inability to obtain loan approval without PTD conditions 2c 76 77 78 79 80 81 82 Unfulfilled Loan Contingency This Contract shall be cancelled and Buyer shall be entitled to a return of the Earnest Money if after diligent and good faith effort Buyer is unable to obtain loan approval without PTD conditions and delivers notice of inability to obtain loan approval no later than three 3 days prior to the COE Date If Buyer fails to deliver such notice Seller may issue a cure notice to Buyer as required by Section 7a and in the event of Buyer s breach Seller shall be entitled to the Earnest Money pursuant to Section 7b If prior to expiration of any Cure Period Buyer delivers notice of inability to obtain loan approval Buyer shall be entitled to a return of the Earnest Money Buyer acknowledges that prepaid items paid separately from the Earnest Money are not refundable 2d 83 84 85 86 Interest Rate Necessary Funds Buyer agrees that i the inability to obtain loan approval due to the failure to lock the interest rate and points by separate written agreement with the lender or ii the failure to have the down payment or other funds due from Buyer necessary to obtain the loan approval without conditions and close this transaction is not an unfulfilled loan contingency 2e 87 Loan Status Update Buyer shall deliver to Seller the LSU with at a minimum lines 1 40 completed describing the current status 88 of the Buyer s proposed loan within ten 10 days after Contract acceptance and instruct lender to provide an updated LSU to 89 Broker s and Seller upon request Residential Resale Real Estate Purchase Contract Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved Page 2 of 10 6
Page 2 of 10  Residential Resale Real Estate Purchase Contract 1g.      39. Fixtures and Personal Property  For purposes o...
Page 3 of 10 Residential Resale Real Estate Purchase Contract 2f 90 Loan Application Unless previously completed within three 3 days after Contract acceptance Buyer shall i provide lender 91 with Buyer s name income social security number Premises address estimate of value of the Premises and mortgage loan 92 amount sought and ii grant lender permission to access Buyer s Trimerged Residential Credit Report 2g 93 94 95 96 2h 97 Type of Financing Conventional FHA VA USDA Assumption 98 If financing is to be other than new financing see attached addendum 2i Loan Processing During Escrow Within ten 10 days after receipt of the Loan Estimate Buyer shall i provide lender with notice of intent to proceed with the loan transaction in a manner satisfactory to lender and ii provide to lender all requested signed disclosures and the documentation listed in the LSU at lines 32 35 Buyer agrees to diligently work to obtain the loan and will promptly provide the lender with all additional documentation requested Seller Carryback 99 Loan Costs All costs of obtaining the loan shall be paid by Buyer unless otherwise provided for herein 2j 100 Seller Concessions if any In addition to the other costs Seller has agreed to pay herein Seller agrees to pay up to 101 of the Purchase Price OR up to to be used only for Buyer s loan costs impounds Title Escrow Company costs 102 recording fees and if applicable VA loan costs not permitted to be paid by Buyer 2k 103 104 105 106 Changes Buyer shall immediately notify Seller of any changes in the loan program financing terms or lender described in the Pre Qualification Form attached hereto or LSU provided within ten 10 days after Contract acceptance and shall only make any such changes without the prior written consent of Seller if such changes do not adversely affect Buyer s ability to obtain loan approval without PTD conditions increase Seller s closing costs or delay COE 2l 107 108 109 110 Appraisal Contingency Buyer s obligation to complete this sale is contingent upon an appraisal of the Premises acceptable to lender for at least the purchase price If the Premises fail to appraise for the purchase price in any appraisal required by lender Buyer has five 5 days after notice of the appraised value to cancel this Contract and receive a return of the Earnest Money or the appraisal contingency shall be waived unless otherwise prohibited by federal law 2m 111 112 113 114 Appraisal Cost s Initial appraisal fee shall be paid by Buyer Seller Other at the time payment is required by lender and is non refundable If Seller is paying the initial appraisal fee the fee will will not be applied against Seller s Concessions at COE if applicable If Buyer s lender requires an updated appraisal prior to COE it will be performed at Buyer s expense Any appraiser lender required inspection cost s shall be paid for by Buyer 3 TITLE AND ESCROW 3a 115 Escrow This Contract shall be used as escrow instructions The Escrow Company employed by the parties to carry out the 116 terms of this Contract shall be 117 118 119 SIGNATURE FIRST AMERICAN TITLE ESCROW TITLE COMPANY ADDRESS CITY EMAIL PHONE STATE ZIP FAX 3b 120 Title and Vesting Buyer will take title as determined before COE If Buyer is married and intends to take title as his her sole 121 and separate property a disclaimer deed may be required Taking title may have significant legal estate planning and tax 122 consequences Buyer should obtain independent legal and tax advice 3c 123 124 125 126 127 128 129 130 131 132 Title Commitment and Title Insurance Escrow Company is hereby instructed to obtain and deliver to Buyer and Seller directly addressed pursuant to 8s and 9c or as otherwise provided a Commitment for Title Insurance together with complete and legible copies of all documents that will remain as exceptions to Buyer s policy of Title Insurance Title Commitment including but not limited to Conditions Covenants and Restrictions CC Rs deed restrictions and easements Buyer shall have five 5 days after receipt of the Title Commitment and after receipt of notice of any subsequent exceptions to provide notice to Seller of any items disapproved Seller shall convey title by warranty deed subject to existing taxes assessments covenants conditions restrictions rights of way easements and all other matters of record Buyer shall be provided at Seller s expense an American Land Title Association ALTA Homeowner s Title Insurance Policy or if not available a Standard Owner s Title Insurance Policy showing title vested in Buyer Buyer may acquire extended coverage at Buyer s own additional expense If applicable Buyer shall pay the cost of obtaining the ALTA Lender Title Insurance Policy Residential Resale Real Estate Purchase Contract Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved Page 3 of 10 7
Page 3 of 10  Residential Resale Real Estate Purchase Contract      2f.  90. Loan Application  Unless previously completed...
Page 4 of 10 Residential Resale Real Estate Purchase Contract 3d 133 134 135 136 137 138 139 140 141 142 Additional Instructions i Escrow Company shall promptly furnish notice of pending sale that contains the name and address of Buyer to any homeowner s association s in which the Premises are located ii If Escrow Company is also acting as the title agency but is not the title insurer issuing the title insurance policy Escrow Company shall deliver to Buyer and Seller upon deposit of funds a closing protection letter from the title insurer indemnifying Buyer and Seller for any losses due to fraudulent acts or breach of escrow instructions by Escrow Company iii All documents necessary to close this transaction shall be executed promptly by Seller and Buyer in the standard form used by Escrow Company Escrow Company shall modify such documents to the extent necessary to be consistent with this Contract iv Escrow Company fees unless otherwise stated herein shall be allocated equally between Seller and Buyer v Escrow Company shall send to all parties and Broker s copies of all notices and communications directed to Seller Buyer and Broker s vi Escrow Company shall provide Broker s access to escrowed materials and information regarding the escrow vii If an Affidavit of Disclosure is provided Escrow Company shall record the Affidavit at COE 3e 143 Tax Prorations Real property taxes payable by Seller shall be prorated to COE based upon the latest tax information available 3f 144 145 146 147 148 Release of Earnest Money In the event of a dispute between Buyer and Seller regarding any Earnest Money deposited with Escrow Company Buyer and Seller authorize Escrow Company to release the Earnest Money pursuant to the terms and conditions of this Contract in its sole and absolute discretion Buyer and Seller agree to hold harmless and indemnify Escrow Company against any claim action or lawsuit of any kind and from any loss judgment or expense including costs and attorney fees arising from or relating in any way to the release of the Earnest Money 3g 149 Prorations of Assessments and Fees All assessments and fees that are not a lien as of COE including homeowner s association 150 fees rents irrigation fees and if assumed insurance premiums interest on assessments interest on encumbrances 151 and service contracts shall be prorated as of COE or Other 3h 152 Assessment Liens The amount of any assessment lien or bond including those charged by a special taxing district such as a 153 Community Facilities District shall be prorated as of COE 4 DISCLOSURE 4a 154 Seller s Property Disclosure Statement SPDS Seller shall deliver a completed AAR Residential SPDS form to Buyer 155 within three 3 days after Contract acceptance Buyer shall provide notice of any SPDS items disapproved within the Inspection 156 Period or five 5 days after receipt of the SPDS whichever is later 4b 157 Insurance Claims History Seller shall deliver to Buyer a written five 5 year insurance claims history regarding the Premises or a 158 claims history for the length of time Seller has owned the Premises if less than five 5 years from Seller s insurance company or an 159 insurance support organization or consumer reporting agency or if unavailable from these sources from Seller within five 5 days 160 after Contract acceptance Buyer shall provide notice of any items disapproved within the Inspection Period or five 5 days after 161 receipt of the claims history whichever is later 4c 162 163 164 165 166 Foreign Sellers The Foreign Investment in Real Property Tax Act FIRPTA is applicable if Seller is a non resident alien individual foreign corporation foreign partnership foreign trust or foreign estate Foreign Person Seller agrees to complete sign and deliver to Escrow Company a certificate indicating whether Seller is a Foreign Person FIRPTA requires that a foreign seller may have federal income taxes up to 15 of the purchase price withheld unless an exception applies Seller is responsible for obtaining independent legal and tax advice 4d 167 168 169 170 171 172 Lead Based Paint Disclosure If the Premises were built prior to 1978 Seller shall i notify Buyer of any known lead based paint LBP or LBP hazards in the Premises ii provide Buyer with any LBP risk assessments or inspections of the Premises in Seller s possession iii provide Buyer with the Disclosure of Information on Lead Based Paint and Lead Based Paint Hazards and any report records pamphlets and or other materials referenced therein including the pamphlet Protect Your Family from Lead in Your Home collectively LBP Information Buyer shall return a signed copy of the Disclosure of Information on Lead Based Paint and Lead Based Paint Hazards to Seller prior to COE 173 LBP Information was provided prior to Contract acceptance and Buyer acknowledges the opportunity to conduct LBP risk 174 assessments or inspections during Inspection Period 175 Seller shall provide LBP Information within five 5 days after Contract acceptance Buyer may within ten 10 days 176 or days after receipt of the LBP Information conduct or obtain a risk assessment or inspection of the Premises for the 177 presence of LBP or LBP hazards Assessment Period Buyer may within five 5 days after receipt of the LBP Information or five 178 5 days after expiration of the Assessment Period cancel this Contract 179 Buyer is further advised to use certified contractors to perform renovation repair or painting projects that disturb lead based paint in 180 residential properties built before 1978 and to follow specific work practices to prevent lead contamination 181 If Premises were constructed prior to 1978 BUYER S INITIALS REQUIRED 182 If Premises were constructed in 1978 or later BUYER S INITIALS REQUIRED BUYER BUYER BUYER BUYER Residential Resale Real Estate Purchase Contract Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved Page 4 of 10 8
Page 4 of 10  Residential Resale Real Estate Purchase Contract 3d. 133. 134. 135. 136. 137. 138. 139. 140. 141. 142.      ...
Page 5 of 10 Residential Resale Real Estate Purchase Contract 4e 183 184 185 186 Affidavit of Disclosure If the Premises are located in an unincorporated area of the county and five 5 or fewer parcels of property other than subdivided property are being transferred Seller shall deliver a completed Affidavit of Disclosure in the form required by law to Buyer within five 5 days after Contract acceptance Buyer shall provide notice of any Affidavit of Disclosure items disapproved within the Inspection Period or five 5 days after receipt of the Affidavit of Disclosure whichever is later 4f 187 188 189 190 Changes During Escrow Seller shall immediately notify Buyer of any changes in the Premises or disclosures made herein in the SPDS or otherwise Such notice shall be considered an update of the SPDS Unless Seller is already obligated by this Contract or any amendments hereto to correct or repair the changed item disclosed Buyer shall be allowed five 5 days after delivery of such notice to provide notice of disapproval to Seller 5 WARRANTIES 5a 191 192 193 194 195 196 197 198 199 Condition of Premises BUYER AND SELLER AGREE THE PREMISES ARE BEING SOLD IN ITS PRESENT PHYSICAL CONDITION AS OF THE DATE OF CONTRACT ACCEPTANCE Seller makes no warranty to Buyer either express or implied as to the condition zoning or fitness for any particular use or purpose of the Premises However Seller shall maintain and repair the Premises so that at the earlier of possession or COE i the Premises including all personal property included in the sale will be in substantially the same condition as on the date of Contract acceptance and ii all personal property not included in the sale and debris will be removed from the Premises Buyer is advised to conduct independent inspections and investigations regarding the Premises within the Inspection Period as specified in Section 6a Buyer and Seller acknowledge and understand they may but are not obligated to engage in negotiations for repairs improvements to the Premises Any all agreed upon repairs improvements will be addressed pursuant to Section 6j 5b 200 201 202 203 204 205 206 Warranties that Survive Closing Seller warrants that Seller has disclosed to Buyer and Broker s all material latent defects and any information concerning the Premises known to Seller excluding opinions of value which materially and adversely affect the consideration to be paid by Buyer Prior to COE Seller warrants that payment in full will have been made for all labor professional services materials machinery fixtures or tools furnished within the 150 days immediately preceding COE in connection with the construction alteration or repair of any structure on or improvement to the Premises Seller warrants that the information regarding connection to a sewer system or on site wastewater treatment facility conventional septic or alternative is correct to the best of Seller s knowledge 5c 207 208 209 210 Buyer Warranties Buyer warrants that Buyer has disclosed to Seller any information that may materially and adversely affect Buyer s ability to close escrow or complete the obligations of this Contract At the earlier of possession of the Premises or COE Buyer warrants to Seller that Buyer has conducted all desired independent inspections and investigations and accepts the Premises Buyer warrants that Buyer is not relying on any verbal representations concerning the Premises except disclosed as follows 211 212 6 DUE DILIGENCE 6a 213 214 215 216 217 218 219 220 221 222 223 224 Inspection Period Buyer s Inspection Period shall be ten 10 days or days after Contract acceptance During the Inspection Period Buyer at Buyer s expense shall i conduct all desired physical environmental and other types of inspections and investigations to determine the value and condition of the Premises ii make inquiries and consult government agencies lenders insurance agents architects and other appropriate persons and entities concerning the suitability of the Premises and the surrounding area iii investigate applicable building zoning fire health and safety codes to determine any potential hazards violations or defects in the Premises and iv verify any material multiple listing service MLS information If the presence of sex offenders in the vicinity or the occurrence of a disease natural death suicide homicide or other crime on or in the vicinity is a material matter to Buyer it must be investigated by Buyer during the Inspection Period Buyer shall keep the Premises free and clear of liens shall indemnify and hold Seller harmless from all liability claims demands damages and costs and shall repair all damages arising from the inspections Buyer shall provide Seller and Broker s upon receipt at no cost copies of all inspection reports concerning the Premises obtained by Buyer Buyer is advised to consult the Arizona Department of Real Estate Buyer Advisory to assist in Buyer s due diligence inspections and investigations 6b 225 Square Footage BUYER IS AWARE THAT ANY REFERENCE TO THE SQUARE FOOTAGE OF THE PREMISES BOTH THE 226 REAL PROPERTY LAND AND IMPROVEMENTS THEREON IS APPROXIMATE IF SQUARE FOOTAGE IS A MATERIAL 227 MATTER TO BUYER IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD 6c 228 229 230 231 232 Wood Destroying Organism or Insect Inspection IF CURRENT OR PAST WOOD DESTROYING ORGANISMS OR INSECTS SUCH AS TERMITES ARE A MATERIAL MATTER TO BUYER THESE ISSUES MUST BE INVESTIGATED DURING THE INSPECTION PERIOD Buyer shall order and pay for all wood destroying organism or insect inspections performed during the Inspection Period If the lender requires an updated Wood Destroying Organism or Insect Inspection Report prior to COE it will be performed at Buyer s expense 6d 233 234 235 236 Flood Hazard FLOOD HAZARD DESIGNATIONS OR THE COST OF FLOOD HAZARD INSURANCE SHALL BE DETERMINED BY BUYER DURING THE INSPECTION PERIOD If the Premises are situated in an area identified as having any special flood hazards by any governmental entity THE LENDER MAY REQUIRE THE PURCHASE OF FLOOD HAZARD INSURANCE Special flood hazards may also affect the ability to encumber or improve the Premises Residential Resale Real Estate Purchase Contract Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved Page 5 of 10 9
Page 5 of 10  Residential Resale Real Estate Purchase Contract      4e. 183. 184. 185. 186.  Affidavit of Disclosure  If t...
Page 6 of 10 Residential Resale Real Estate Purchase Contract 6e 237 238 239 240 Insurance IF HOMEOWNER S INSURANCE IS A MATERIAL MATTER TO BUYER BUYER SHALL APPLY FOR AND OBTAIN WRITTEN CONFIRMATION OF THE AVAILABILITY AND COST OF HOMEOWNER S INSURANCE FOR THE PREMISES FROM BUYER S INSURANCE COMPANY DURING THE INSPECTION PERIOD Buyer understands that any homeowner s fire casualty flood or other insurance desired by Buyer or required by lender should be in place at COE 6f 241 Sewer or On site Wastewater Treatment System The Premises are connected to a sewer system alternative system 242 conventional septic system 243 IF A SEWER CONNECTION IS A MATERIAL MATTER TO BUYER IT MUST BE INVESTIGATED DURING THE INSPECTION 244 PERIOD If the Premises are served by a conventional septic or alternative system the AAR On site Wastewater Treatment Facility 245 Addendum is incorporated herein by reference BUYER S INITIALS REQUIRED 246 6g 247 248 249 250 BUYER S INITIALS REQUIRED 251 6h 252 253 254 255 256 257 258 BUYER BUYER BUYER BUYER ACKNOWLEDGMENT BUYER RECOGNIZES ACKNOWLEDGES AND AGREES THAT BROKER S ARE NOT QUALIFIED NOR LICENSED TO CONDUCT DUE DILIGENCE WITH RESPECT TO THE PREMISES OR THE SURROUNDING AREA BUYER IS INSTRUCTED TO CONSULT WITH QUALIFIED LICENSED PROFESSIONALS TO ASSIST IN BUYER S DUE DILIGENCE EFFORTS BECAUSE CONDUCTING DUE DILIGENCE WITH RESPECT TO THE PREMISES AND THE SURROUNDING AREA IS BEYOND THE SCOPE OF BROKER S EXPERTISE AND LICENSING BUYER EXPRESSLY RELEASES AND HOLDS HARMLESS BROKER S FROM LIABILITY FOR ANY DEFECTS OR CONDITIONS THAT COULD HAVE BEEN DISCOVERED BY INSPECTION OR INVESTIGATION BUYER S INITIALS REQUIRED 259 6i 260 261 262 263 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 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 6j 264 Buyer Disapproval If Buyer in Buyer s sole discretion disapproves of items as allowed herein Buyer shall deliver to Seller a 265 signed notice of the items disapproved and state in the notice that Buyer elects to either 266 1 Immediately cancel this Contract in which case 267 a If Buyer s notice specifies disapproval of items as allowed herein the Earnest Money shall be released to Buyer 268 269 270 271 272 b If Buyer s notice fails to specify items disapproved as allowed herein the cancellation will remain in effect but Buyer has failed to comply with a provision of this Contract and Seller may deliver to Buyer a cure notice as required by Section 7a If Buyer fails to cure their non compliance within three 3 days after delivery of such notice Buyer shall be in breach and Seller shall be entitled to the Earnest Money If prior to expiration of the Cure Period Buyer delivers notice specifying items disapproved as allowed herein Buyer shall be entitled to a return of the Earnest Money 273 OR 274 2 Provide Seller an opportunity to correct the items disapproved in which case 275 276 277 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 278 279 280 b If Seller agrees in writing to correct items disapproved Seller shall correct the items complete any repairs in a workmanlike manner and deliver any paid receipts evidencing the corrections and repairs to Buyer three 3 days or days prior to the COE Date 281 282 283 284 c If Seller is unwilling or unable to correct any of the items disapproved Buyer may cancel this Contract within five 5 days after delivery of Seller s response or after expiration of the time for Seller s response whichever occurs first and the Earnest Money shall be released to Buyer If Buyer does not cancel this Contract within the five 5 days as provided Buyer shall close escrow without correction of those items that Seller has not agreed in writing to correct 285 VERBAL DISCUSSIONS WILL NOT EXTEND THESE TIME PERIODS Only a written agreement signed by both parties will extend 286 response times or cancellation rights 287 BUYER S FAILURE TO GIVE NOTICE OF DISAPPROVAL OF ITEMS OR CANCELLATION OF THIS CONTRACT WITHIN 288 THE SPECIFIED TIME PERIOD SHALL CONCLUSIVELY BE DEEMED BUYER S ELECTION TO PROCEED WITH THE 289 TRANSACTION WITHOUT CORRECTION OF ANY DISAPPROVED ITEMS Residential Resale Real Estate Purchase Contract Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved Page 6 of 10 10
Page 6 of 10  Residential Resale Real Estate Purchase Contract 6e. 237. 238. 239. 240.      Insurance  IF HOMEOWNER   S IN...
Page 7 of 10 Residential Resale Real Estate Purchase Contract 6k 290 Home Warranty Plan Buyer and Seller are advised to investigate the various home warranty plans available for purchase The 291 parties acknowledge that different home warranty plans have different coverage options exclusions limitations service fees and 292 most plans exclude pre existing conditions 293 A Home Warranty Plan will be ordered by Buyer or Seller with the following optional coverage to be issued by at a cost 294 to be paid for by 295 not to exceed Buyer Seller Split evenly between Buyer and Seller 296 Buyer declines the purchase of a Home Warranty Plan BUYER S INITIALS REQUIRED 297 6l 298 299 300 301 BUYER BUYER Walkthrough s Seller grants Buyer and Buyer s inspector s reasonable access to conduct walkthrough s of the Premises for the purpose of satisfying Buyer that any corrections or repairs agreed to by Seller have been completed and the Premises are in substantially the same condition as of the date of Contract acceptance If Buyer does not conduct such walkthrough s Buyer releases Seller and Broker s from liability for any defects that could have been discovered 6m 302 Seller s Responsibility Regarding Inspections and Walkthrough s Seller shall make the Premises available for all inspections 303 and walkthrough s upon reasonable notice by Buyer Seller shall at Seller s expense have all utilities on including any propane 304 until COE to enable Buyer to conduct these inspections and walkthrough s 6n 305 306 307 308 309 IRS and FIRPTA Reporting The Foreign Investment in Real Property Tax Act FIRPTA provides that if a seller is a Foreign Person a buyer of residential real property must withhold federal income taxes up to 15 of the purchase price unless an exception applies If FIRPTA is applicable and Buyer fails to withhold Buyer may be held liable for the tax Buyer agrees to perform any acts reasonable or necessary to comply with FIRPTA and IRS reporting requirements and Buyer is responsible for obtaining independent legal and tax advice 7 REMEDIES 7a 310 311 312 313 314 Cure Period A party shall have an opportunity to cure a potential breach of this Contract If a party fails to comply with any provision of this Contract the other party shall deliver a notice to the non complying party specifying the non compliance If the non compliance is not cured within three 3 days after delivery of such notice Cure Period the failure to comply shall become a breach of Contract If Escrow Company or recorder s office is closed on the last day of the Cure Period and COE must occur to cure a potential breach COE shall occur on the next day that both are open for business 7b 315 316 317 318 319 320 321 322 323 324 Breach In the event of a breach of Contract the non breaching party may cancel this Contract and or proceed against the breaching party in any claim or remedy that the non breaching party may have in law or equity subject to the Alternative Dispute Resolution obligations set forth herein In the case of Seller because it would be difficult to fix actual damages in the event of Buyer s breach the Earnest Money may be deemed a reasonable estimate of damages and Seller may at Seller s option accept the Earnest Money as Seller s sole right to damages and in the event of Buyer s breach arising from Buyer s failure to deliver the notice required by Section 2b or Buyer s inability to obtain loan approval due to the waiver of the appraisal contingency pursuant to Section 2l Seller shall exercise this option and accept the Earnest Money as Seller s sole right to damages An unfulfilled contingency is not a breach of Contract The parties expressly agree that the failure of any party to comply with the terms and conditions of Section 1d to allow COE to occur on the COE Date if not cured after a cure notice is delivered pursuant to Section 7a will constitute a material breach of this Contract rendering the Contract subject to cancellation 7c 325 326 327 328 329 330 331 332 333 Alternative Dispute Resolution ADR Buyer and Seller agree to mediate any dispute or claim arising out of or relating to this Contract in accordance with the REALTORS Dispute Resolution System or as otherwise agreed All mediation costs shall be paid equally by the parties In the event that mediation does not resolve all disputes or claims the unresolved disputes or claims shall be submitted for binding arbitration In such event the parties shall agree upon an arbitrator and cooperate in the scheduling of an arbitration hearing If the parties are unable to agree on an arbitrator the dispute shall be submitted to the American Arbitration Association AAA in accordance with the AAA Arbitration Rules for the Real Estate Industry The decision of the arbitrator shall be final and nonappealable Judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction Notwithstanding the foregoing either party may opt out of binding arbitration within thirty 30 days after the conclusion of the mediation conference by notice to the other and in such event either party shall have the right to resort to court action 7d 334 335 336 337 338 339 340 Exclusions from ADR The following matters are excluded from the requirement for ADR hereunder i any action brought in the Small Claims Division of an Arizona Justice Court up to 3 500 so long as the matter is not thereafter transferred or removed from the small claims division ii judicial or nonjudicial foreclosure or other action or proceeding to enforce a deed of trust mortgage or agreement for sale iii an unlawful entry or detainer action iv the filing or enforcement of a mechanic s lien or v any matter that is within the jurisdiction of a probate court Further the filing of a judicial action to enable the recording of a notice of pending action lis pendens or order of attachment receivership injunction or other provisional remedies shall not constitute a waiver of the obligation to submit the claim to ADR nor shall such action constitute a breach of the duty to mediate or arbitrate 7e 341 Attorney Fees and Costs The prevailing party in any dispute or claim between Buyer and Seller arising out of or relating to this 342 Contract shall be awarded their reasonable attorney fees and costs Costs shall include without limitation attorney fees expert 343 witness fees fees paid to investigators and arbitration costs Residential Resale Real Estate Purchase Contract Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved Page 7 of 10 11
Page 7 of 10  Residential Resale Real Estate Purchase Contract      6k. 290. Home Warranty Plan  Buyer and Seller are advi...
Page 8 of 10 Residential Resale Real Estate Purchase Contract 8 ADDITIONAL TERMS AND CONDITIONS 8a 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 Residential Resale Real Estate Purchase Contract Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved Page 8 of 10 12
Page 8 of 10  Residential Resale Real Estate Purchase Contract     8. ADDITIONAL TERMS AND CONDITIONS 8a. 344. 345. 346. 3...
Page 9 of 10 Residential Resale Real Estate Purchase Contract 8b 390 391 392 393 Risk of Loss If there is any loss or damage to the Premises between the date of Contract acceptance and COE or possession whichever is earlier by reason of fire vandalism flood earthquake or act of God the risk of loss shall be on Seller provided however that if the cost of repairing such loss or damage would exceed ten percent 10 of the purchase price either Seller or Buyer may elect to cancel the Contract 8c 394 Permission Buyer and Seller grant Broker s permission to advise the public of this Contract 8d 395 Arizona Law This Contract shall be governed by Arizona law and jurisdiction is exclusively conferred on the State of Arizona 8e 396 Time is of the Essence The parties acknowledge that time is of the essence in the performance of the obligations described 397 herein 8f 398 399 400 401 402 403 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 BROKER AND CLIENT 8g 404 405 406 407 408 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 Disclosure of Information on Lead Based Paint and Lead Based Paint Hazards may not be signed in counterpart All counterparts shall be deemed to constitute one instrument and each counterpart shall be deemed an original 8h 409 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 410 end at 11 59 p m 8i 411 412 413 414 415 Calculating Time Periods In computing any time period prescribed or allowed by this Contract the day of the act or event from which the time period begins to run is not included and the last day of the time period is included Contract acceptance occurs on the date that the signed Contract and any incorporated counter offer is delivered to and received by the appropriate Broker Acts that must be performed three 3 days prior to the COE Date must be performed three 3 full days prior i e if the COE Date is Friday the act must be performed by 11 59 p m on Monday 8j 416 Entire Agreement This Contract and any addenda and attachments shall constitute the entire agreement between Seller and 417 Buyer shall supersede any other written or oral agreements between Seller and Buyer and can be modified only by a writing signed 418 by Seller and Buyer The failure to initial any page of this Contract shall not affect the validity or terms of this Contract 8k 419 Subsequent Offers Buyer acknowledges that Seller has the right to accept subsequent offers until COE Seller understands that 420 any subsequent offer accepted by Seller must be a backup offer contingent on the cancellation of this Contract 8l 421 Cancellation A party who wishes to exercise the right of cancellation as allowed herein may cancel this Contract by delivering 422 notice stating the reason for cancellation to the other party or to Escrow Company Cancellation shall become effective immediately 423 upon delivery of the cancellation notice 8m 424 425 426 427 Notice Unless otherwise provided delivery of all notices and documentation required or permitted hereunder shall be in writing and deemed delivered and received when i hand delivered ii sent via facsimile transmission iii sent via electronic mail if email addresses are provided herein or iv sent by recognized overnight courier service and addressed to Buyer as indicated in Section 8q to Seller as indicated in Section 9a and to Escrow Company indicated in Section 3a 8n 428 429 430 431 432 433 Release of Broker s Seller and Buyer hereby expressly release hold harmless and indemnify Broker s in this transaction from any and all liability and responsibility regarding financing the condition square footage lot lines boundaries value rent rolls environmental problems sanitation systems roof wood infestation building codes governmental regulations insurance price and terms of sale return on investment or any other matter relating to the value or condition of the Premises The parties understand and agree that Broker s do not provide advice on property as an investment and are not qualified to provide financial legal or tax advice regarding this real estate transaction 434 SELLER S INITIALS REQUIRED 8o 435 436 437 438 439 SELLER SELLER BUYER S INITIALS REQUIRED BUYER BUYER Terms of Acceptance This offer will become a binding Contract when acceptance is signed by Seller and a signed copy delivered in person by mail facsimile or electronically and received by Broker named in Section 8q 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 Buyer s Earnest Money shall be returned 8p 440 THIS CONTRACT CONTAINS TEN 10 PAGES EXCLUSIVE OF ANY ADDENDA AND ATTACHMENTS PLEASE ENSURE 441 THAT YOU HAVE RECEIVED AND READ ALL TEN 10 PAGES OF THIS OFFER AS WELL AS ANY ADDENDA AND 442 ATTACHMENTS Residential Resale Real Estate Purchase Contract Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved Page 9 of 10 13
Page 9 of 10  Residential Resale Real Estate Purchase Contract 8b. 390. 391. 392. 393.      Risk of Loss  If there is any ...
Page 10 of 10 Residential Resale Real Estate Purchase Contract 8q 443 Broker on behalf of Buyer 444 445 446 447 448 PRINT AGENT S NAME AGENT MLS CODE PRINT AGENT S NAME AGENT STATE LICENSE NO AGENT MLS CODE AGENT STATE LICENSE NO PRINT FIRM NAME FIRM MLS CODE FIRM ADDRESS PREFERRED TELEPHONE STATE FAX ZIP CODE FIRM STATE LICENSE NO EMAIL 8r 449 Agency Confirmation Broker named in Section 8q above is the agent of check one 450 Buyer Seller or both Buyer and Seller 8s 451 The undersigned agree to purchase the Premises on the terms and conditions herein stated and acknowledge receipt of 452 a copy hereof including the Buyer Attachment 453 454 455 456 BUYER S SIGNATURE MO DA YR BUYER S NAME PRINTED BUYER S SIGNATURE MO DA YR BUYER S NAME PRINTED ADDRESS ADDRESS CITY STATE ZIP CODE CITY STATE ZIP CODE 9 SELLER ACCEPTANCE 9a 457 Broker on behalf of Seller 458 459 460 461 462 PRINT AGENT S NAME AGENT MLS CODE PRINT AGENT S NAME AGENT MLS CODE PRINT FIRM NAME AGENT STATE LICENSE NO FIRM MLS CODE FIRM ADDRESS PREFERRED TELEPHONE AGENT STATE LICENSE NO STATE FAX ZIP CODE FIRM STATE LICENSE NO EMAIL 9b 463 Agency Confirmation Broker named in Section 9a above is the agent of check one 464 Seller or both Buyer and Seller 9c 465 The undersigned agree to sell the Premises on the terms and conditions herein stated acknowledge receipt of a 466 copy hereof and grant permission to Broker named in Section 9a to deliver a copy to Buyer 467 468 469 470 471 472 473 Counter Offer is attached and is incorporated herein by reference Seller must sign and deliver both this offer and the Counter Offer If there is a conflict between this offer and the Counter Offer the provisions of the Counter Offer shall be controlling SELLER S SIGNATURE MO DA YR SELLER S SIGNATURE SELLER S NAME PRINTED SELLER S NAME PRINTED ADDRESS ADDRESS CITY STATE ZIP CODE CITY STATE ZIP CODE OFFER REJECTED BY SELLER MONTH DAY 20 YEAR Residential Resale Real Estate Purchase Contract Updated February 2017 Copyright 2017 Arizona Association of REALTORS All rights reserved Page 10 of 10 14 MO DA YR SELLER S INITIALS
Page 10 of 10  Residential Resale Real Estate Purchase Contract    8q. 443. Broker on behalf of Buyer  444. 445. 446. 447....