Arizona Real Estate Purchase Agreement

***Please note, anything on this site does NOT represent legal advice. You should consult a licensed attorney before signing any documents (or sending them out to clients).

What sections are important for an Arizona Purchase Agreement?

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Note: This is written from the Landlords perspective

Here is a quick list of the main components of a Property Purchase Agreement for Arizona:

• The Date this agreement goes into affect and whom the parties are (buyer and seller)

• What the seller is selling, a home, and it’s state (completed)

• The legal description/address of the property, includes lot information

• Payment agreement information - is there earnest money, closing costs included?

• The total sales price to the seller

• If this agreement allows the buyer to get financing and it that falls through if it is still valid (happens a lot)

• Who the earnest deposit goes to and how much it is. If they don’t submit it, this agreemet is void

• Who is paying for which parts of the title insurance, and exceptions

• If there is a land survey and who pays for that - might need to confirm where the property boundaries are

• If there are any issues, then the buyer can raise an Objection, how long do they have to do that

• If the Seller doesn’t fix the objection, then the agreement is null and they get their money back, unless the buyer agrees in writing this is OK

• Material disclosure - the seller must disclose any real issues with the property that could effect its value

• Airport disclosure - if you are located close to an airport, you should disclose it

• If the Buyer wishes to get a pest control inspection, they can and how long does the Seller have to fix any issues

• Property condition - the Buyer is OK with the property as it is now

• The Seller provides no other warranties on the property unless you have agreed to something. Anything the manufacturer warranties can move to the Buyer

• How to handle lender repairs, and who pays for them. If the lender wants too many repairs, then the agreement can be cancelled

• The Seller will use licensed contractors and complete any work that was agreed on. If the Seller doesn’t finish it, the Buyer can and get reimbursement

• The closing date and what happens if they don’t close on time

• After closing the Seller will give the buyer a Warranty Deed, and make sure there are no taxes owed (this is typically done by the Title company)

• After closing the Buyer is now responsible for the property, and they must have proper insurance on it

• What are considered Seller expenses (any current Liens penalties, taxes, half of most fees)

• What are considered Buyer expenses (fees for creating their loan, half of escrow fees, any fees that the loan needed like Appraisals or inspections and credit checks)

• Fees for loan insurance are typically paid by the Buyer

• If the expenses are more than agreed to, both parties can back out of the deal

• What things are pro-rated and paid for at closing (this years taxes, HOA fees, heating/cooling, etc)

• The Seller is responsible for the property until closing date, so if anything happens they must restore it back to that state. If not the Buyer has options to terminate, extend closing, or insurance payouts can go to the Buyer to fix it

• If the Buyer doesn’t fulfill their end of the agreement, the Seller has some recourse (keep the deposit, sue, etc)

• If the Seller cannot complete repairs or any commitment they made, they can extend closing or cancel and return the earnest money

• Who is responsible for paying fees in case of a court action, typically whoever loses or if agreeing to something else

• Agreements that the escrow agent isn’t part of the deal or liable for it, just holding the money

• How the earnest money is used after closing

• The escrow agents should notify both parties if money is requested during the process (through the post office)

• The seller agrees that there is nothing else against the property, like a lein, etc from a third party. This is typically what title insurance covers

• If there are any tax withholding under IRS laws, “foreign person laws” - Title agencies help with this kind of questions

• Where to send the information about any notices to the agreement

• How to contact the Buyer and the Seller, their addresses and telephone numbers

• The Buyer cannot assign the agreement to someone else without approval

• Which state the laws are acceptable under and when the date goes in service

• If the Seller has a spouse, they are in agreement with this document and sign off on it

• What happens if either party brings an issue up in court, how the document and agreement will change. If something in the agreement is not enforceable, then how it can be changed

• Broker fees - are there any other parties involved, typically not since this is a buyer agreement

• Buyer should consult an attorney for this document, it’s always a good idea anyways

• The currency is in US dollars

• The dates this agreement goes into effect and signatures by each party

• It is also advised to issue a receipt to the Buyer for their earnest deposit. This keeps it clear who paid what and when. Title companies usually do this part

• There can also be language about what the loan type is, FBA, VA, etc. and what the rates are

• If the Seller doesn’t do everything they promised, the Buyer also has recourse (sue possibly)

The Main point of this is to keep an open communication line with your Buyer! People who communicate have less issues.