Arizona Real Estate Contract Changes
The top four changes to the Arizona Real Estate Contract
The new Arizona Real Estate Contract is now in use and there are many changes you should be aware of before entering into any real estate transaction. Let’s cover the top four here.
- Earnest Money: The previous contract stated a buyers Earnest Money had been received by Broker. This was an issue if the agent did not collect the funds at the time the offer was written. Today’s contracts language on Earnest Money has been moved from line 380 in the back of the contract to page one and it does not list who will deposit the money. Now anyone can deposit the money when escrow is opened.
- Fixtures and Personal Property: The language in this section has been changed to help clarify what in the fixture list should be included in the sale.
- Seller Warranties: This has frequently been the source of much confusion. The new contract has removed Seller Warranties and the premises are to be sold in its present physical condition as of the date of contract acceptance. As a result, the AS-IS Addendum has been removed and all contracts will be AS-IS going forward. Additionally, the section for Notice of Non-Working Warranted Items has also been removed. See our note on Home Inspections below.
- Broker on Behalf of Client: The previous contract only allowed one agent to be placed on a contract. A second space has been added to the new contract to allow for a second agent to be added. This allows for agent teams to play a larger role in representing a client in a transaction and for the team leader to record the transaction.
The new residential real estate contract went through an extensive revision and review process over that last year. Many smaller committees made up from area experts in numerous different sections of the real estate industry from brokers, agents, and escrow officers to lenders and home inspectors. Recommendations were made to the full committee and a comment period was given before the adoption of the new contract. No contract is ever perfect because EVERY real estate transaction is unique! A well-trained agent not only handles transactions, but also spends hours in continuing education to fully understand the nuances of the contract and can better guide you through your unique real estate deal.
When looking to buy or sell real estate in the Scottsdale, Arizona metro area, be sure to contact ScottsdaleScott.
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Agent: Scott Farmer, 7975 N. Hayden Road, Suite A101, Scottsdale, AZ 85258, 480-370-3214
Broker: Realty One Group
Member: Scottsdale Association of REALTORS
Member: National Association of REALTORS