Arizona Real Estate Contract Changes – ATTENTION
The Arizona Real Estate Contract is about to change! This does not happen often, because of the long and arduous task of professional committees and work groups that are assembled to has out what is best for buyers and sellers regarding a real estate transaction. The newly proposed version, due out this February, is no exception. It has taken over a year to analyze, propose, has through, and finalize. Don’t forget the impact on all the secondary forms as well. Each additional form must be reviewed for any and all impact the new contract changes may have upon them.
A major change in the upcoming contract is the removal of seller warranted items. In the past, the contract had a section that listed all warranted items a seller must assure a buyer were in working order. This has been changed to wording that now states there are NO warranted items. This does a few things. To mention just a couple… A seller must still make sure the home is in substantially the same condition at closing as it was the day a contract was accepted. It also means a buyer will most likely be counting on their inspector even more than in the past. As a buyer, make sure you have a competent inspector AND that you understand the inspection process and what they cover and what they don’t. Inspections give a buyer a general sense of a homes condition. They don’t typically inspect every little thing. Talk to your inspector and understand what they inspect and how they inspect it. Also understand that during your inspection period you have the right to hire any home inspection professional for specific inspections as well as general inspections. Meaning, you can hire an HVAC company to inspect just the HVAC. Or you can hire a roof company just to inspect the roof.
Back to the contract. It is a good idea to sit down with your agent and review the most important tool you will use in buying or selling one of your greatest assets… your home. Take the time to review the paperwork before you list your home or begin your search. Make sure all your questions are asked and answered. If your professional does not know the answer we know where to find it or can even refer you for legal advice. It is best to get a good foundation/understanding of the contract and supporting documents ahead of time.
Time frames is one of the miss-understood items within a contract. When does a time period start or end. If you have a ten day inspection period when does it start or end. Days in which an action is taken, such as signing a contract, don’t count in the ten day inspection period. The inspection period starts the following day. When does it end and when do you have to have your Buyer Inspection Notice and Seller Response form returned? On the tenth day (or the last day of your inspection period, which ever is in your agreed upon contract). Turn it in on the eleventh day (in our example) and your are out of luck. It would be the same as accepting the property as it is. So, it is important to understand these types of things spelled out in the contract. I encourage you to take the time to review the contract with your agent. Arizona Real Estate Contract Changes
Another change in the contract is the leased items section. Many times the notion of solar panels comes up in this discussion. It is important to know and understand your rights and obligations on leased items. Many solar panels are leased items. Did you know a buyer would have to qualify to take over the lease? What if the seller wants to take the solar panels with them when they move? When do they remove them from the roof? What about roof repair? When does a buyer inspect the roof in coordination to the removal of the panels? Sometimes legal advice is needed to know your rights. Understand that a real estate agent is qualified to help you understand the contract, but many times questions extend far beyond and require legal advice. I again encourage you to review the contract to help you see where you may need additional advice and support.
More To Come
There will be more on the upcoming new contract in coming weeks. Just know that it is changing and you should work with a team (agent, lender, title company) that understands the changes. Many of the professionals we work with were actually part of the group that worked on developing the new contract. In fact, Realty One Groups own Jim Sexton chaired to efforts on the latest contract changes. Thanks to Jim and his team for all their hard work(s).
Contact us and we would be happy to spend time with you to review either the current or proposed Arizona Real Estate contract or any of the supporting documents. Arizona Real Estate Contract Changes
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