by K. Michelle Lind, Esq., AAR Chief Executive Officer

By educating buyers and sellers about what they can expect, you can manage their expectations and avoid misunderstandings that can lead to disputes. Assist your clients in becoming more informed by educating them about the following documents involved in a real estate transaction.

  • Purchase Contract: Provide your client with a sample copy of the purchase contract early in the relationship. In a resale transaction using the AAR Resale Contract, point out important provisions, such as the fixtures and personal property that will be conveyed with the home, the seller’s warranties, and the buyer’s financing obligations and disapproval rights. In a new home transaction, emphasize to the buyer that new home contracts are not standardized and generally do not allow the buyer an opportunity to disapprove items or to cancel.
  • Public Report: Explain the importance of the Public Report to the buyer of a new home and explain that the Public Report should be read before signing a new home contract. Although some of the Public Report information becomes outdated, subsequent buyers may also benefit from reviewing the Public Report. 
  • Seller’s Property Disclosure Statement (“SPDS”): Use the SPDS Seller Advisory to educate the seller about the importance of the SPDS. Explain to the buyer that the SPDS is a disclosure of what the seller actually knows; it is not a representation of every possible defect. Inform the buyer to carefully review the SPDS and verify any important information during the Inspection Period.
  • Homeowners Association (“HOA”) Documents: Explain to the buyer that the Covenants, Conditions and Restrictions (“CC&Rs”) may impact the buyer’s use of the property. Tell the new home buyer to read the CC&Rs before signing the purchase contract. In a resale transaction using the AAR Resale Contract, inform the buyer that the CC&Rs must be reviewed within five days after receipt.
  • Title Commitment: Tell the buyer to closely review the title commitment, paying particular attention to the Schedule B Exceptions. Refer the buyer to the escrow officer or an attorney if there are questions or concerns about the title commitment.

*This article is of a general nature and reflects only the opinion of the author at the time it was drafted. It is not intended as definitive legal advice, and you should not act upon it without seeking independent legal counsel.

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AAR was proud to be a sponsor of the IREM CCIM Economic Forecast this year! There was a phenomenal turnout of professionals from the commercial real estate community. The day included several insightful panels covering industrial, muti-family, retail and office real estate.

Some insight (and predictions) that came out of the mulit-family panel included:

  • Slowing in single family homes has helped multi-families and rent grow
  • There has been and there will continue to be great rent growth on value add product
    • These include amenities, club house upgrades and residence upgrades including granite, new appliances, cabinet upgrades and adding in unit washer/dryer
  • Not just millennials are renting – people of all ages, and people with much higher incomes, are choosing to rent and choosing to live in a more urban environment
  • In the Valley there are currently 250,000 rental homes – and only 4% vacancy!

The conference also honored Valley and sports legend Jerry Colangelo, who served as keynote speaker and also received

Overall the forecast for 2015 was more of the same from 2014 – not bad, not great, but steady. Here are some shots from the conference!

IREM CCIM January 2015-1 IREM CCIM January 2015-11 IREM CCIM January 2015-10 IREM CCIM January 2015-9 IREM CCIM January 2015-8 IREM CCIM January 2015-7 IREM CCIM January 2015-6 IREM CCIM January 2015-5 IREM CCIM January 2015-4 IREM CCIM January 2015-3 IREM CCIM January 2015-2

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2015 Professional Standards Workshop Recap

January 23, 2015

Last Wednesday we held our annual Professional Standards Workshop and we had a great turnout and awesome speakers! Everyone left with new knowledge and a greater ability to help lead our real estate community here in Arizona with a better understanding of our code of ethics. The day was MC’d by AAR President, Jim Sexton […]

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The Use of Drones Is Still Up In The Air

January 19, 2015

Stay Away From Drones – For Now Updated January 15, 2015 The use of drones is an innovative tool for marketing real estate. However, recently there has been a lot of controversy over whether real estate agents, amongst others, are allowed to use drones or unmanned aircraft systems (UAS) for that purpose. More specifically, the […]

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2015 REALTOR® Day Success

January 16, 2015

“Such an exciting day to witness our members from all over Arizona engage in the political process, speak directly with their legislators and positively impact legislation regarding homeownership. And an added bonus, I got to catch up with old friends and connect and make new friends.” – President-elect, Paula Monthofer Tuesday, January 13, 2015, was […]

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The New H.O.A. Condominium / Planned Community Addendum

January 15, 2015

As the Chair of the HOA Addendum workgroup, I am excited to introduce to you a newly revised HOA Condominium / Planned Community Addendum (the “HOA Addendum”), that will take effect on February 2, 2015.[1] In the past, the HOA Addendum has been justifiably viewed as a buyer form in that it is completed entirely by […]

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