Arizona Real Estate Purchase Agreement

The Arizona Real Estate Purchase Agreement serves as a legally binding contract, establishing the nuanced terms and conditions for the sale of real property within the state. This document encompasses critical elements such as the purchase price, earnest money deposit, closing date, and assorted contingencies, providing a structured foundation for a transparent and regulated real estate transaction specific to Arizona.

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Arizona Real Estate Purchase Agreement

Fulfilling the legal aspects of a purchase contract will ensure you have a legally binding agreement. Not including one of the writing requirements or necessary disclosures risks your contract being ineligible in a court of law.

Writing Requirement

  • A contract requires the following four (4) elements to be enforceable under Arizona laws:
    • Firstly, the contract should be written, and it must always contain the property’s legal description.
    • Secondly, the parties must mutually consent to the agreement and have due consideration of the exchange of valuables.
    • Thirdly, the seller and buyer must be legally competent to sign the deal.
    • Fourth and lastly, the contract can’t violate any Arizona laws.
  • Sellers must also include various other information:
    • Names of parties
    • Purchase price
    • Contingencies
    • Closing Date
    • Both parties’ signatures
  • Sellers can also ask for an Earnest Money Deposit. Also known as a Good Faith Deposit, it secures the buyer’s right to purchase the property. Generally, Arizona sellers will ask for around 1% of the property’s purchase price. However, it can vary depending on the property’s worth and whether it’s in high demand. This money can go towards the purchase of the house.

Required Disclosures

Arizona has nine (9) disclosures you must note to ensure your contract’s legal. Not all disclosures will be required in every instance, but check to see which applies to your property.

  • Property Disclosure Statement: The seller uses this form to disclose what they know about the property’s condition to the buyer.
  • Condo Disclosure Form: The seller must complete and present this form if the property is part of a homeowners’ association or a condominium community.
  • Buyer Enquiry: Sellers must disclose all information related to answering an inquiry from a buyer.
  • C.L.U.E.: Sellers must provide a Comprehensive loss underwriting exchange report showing the insurance filed on the property in the last five (5) years.
  • Affidavit for Land in Unincorporated Areas: It’s a written affidavit regarding land (with five or fewer parcels) in unincorporated areas.
  • Military Airport Disclosure: The seller must state whether the property is in the vicinity of a military airport.
  • Notice of Soil Remediation: The seller must provide the buyer with a written notice of any soil remediation.
  • Swimming Pool Disclosure: Sellers must provide a Department of Health Services notice should the property contain a swimming pool.
  • Lead-Based Paint Disclosure: Sellers must always notify the buyer if they’re aware of lead-based paint on the property. However, it’s only applicable to houses built before or in 1978.