Buyer Advisory Revisions – April 2017
The Arizona Association of REALTORS® has released a revised Buyer Advisory with an effective date of April 2017. In addition to updated links, the following five substantive revisions have been made:
- Homeowners Association (HOA) Governing Documents. See Page 4, #6. In 2016, the Arizona legislature passed legislation moving the Homeowners Association Dispute Process from the Arizona Department of Fire, Building and Life Safety to the Arizona Department of Real Estate (ADRE). Accordingly, HOA complaints are now filed with ADRE, which then refers cases to the Office of Administrative Hearings as may be appropriate. The Buyer Advisory has been revised to reflect this change.
- Foreign Investment in Real Property Tax Act. See Page 5, #17. Previously, the Buyer Advisory explained that FIRPTA may impact the transaction if the legal owners of the property are foreign persons or non-resident aliens. However, the Internal Revenue Service defines the term “Foreign Person” to include non-resident aliens. For this reason, the two terms were duplicative and the revised Buyer Advisory now makes reference only to “Foreign Persons.”
- Interior Environmental Concerns. See page 8, #17. What was previously referred to as “Chinese Drywall” is now commonly known throughout the industry as “Imported Drywall.” The Buyer Advisory was therefore revised to use this broader term. Additionally, language was added explaining health issues residents may experience as a result of imported drywall.
- Flood Insurance/Flood Plain Status. See page 9, #15. A flood elevation survey is an important tool that determines a building’s elevation. In turn, a flood elevation certificate is a document that ensures that a building meets FEMA’s minimum elevation requirements. Because this survey and certificate may help determine a property’s insurability and premium rate, language addressing these items has been added to the Buyer Advisory.
- Wire Fraud. See page 12. Wire transfer fraud is on the rise in Arizona and across the entire country. Because fraudulent wiring instructions conveyed to a buyer can result in the loss of substantial amounts of money, language has been added to the Buyer Advisory warning of this scheme to defraud.
The links contained in the Buyer Advisory periodically change without notice. If you find a link that is broken, or if you have a recommendation to other websites that you feel would be beneficial for the Buyer Advisory, please contact Jan Steward.Tags: FIRPTA, Flood Insurance/Flood Plain Status, Foreign Investment in Real Property Tax Act, Homeowners Association (HOA) Governing Documents, Interior Environmental Concerns, Wire Fraud