Revisions to Arizona Real Estate: A Professional’s Guide to Law and Practice (3rd Ed. 2018)

Revisions to Arizona Real Estate: A Professional’s Guide to Law and Practice (3rd Ed. 2018):

  • Chapter 1 – ADRE Licensing and Regulatory Authority

    Updated

    • Website addresses
    • Information regarding Unlicensed Real Estate Assistants
  • Chapter 2 – The Standard of Care and A Broker’s Duties
    Updated information on unique issues by geographical area

  • Chapter 4 – Broker Employment Agreements

    Added information about

    • Arbitrations between two (or more) cooperating brokers
    • Mandatory Mediation and Arbitration
    • Leads and referrals, referral agreements
    • Teams, team toolkit
    • “Assistants, Transaction Coordinators, and Administrators – Independent Contractors or Employees?”
    • “Ten Ways to Successfully Defend and Department of Labor Audit
  • Chapter 5 – Advertising and Marketing
    Updated Advertising Regulation information

  • Chapter 6 – Real Property Contracts
    • Removed references to AAR’s transaction management system
    • Updated information about As Is transactions
  • Chapter 7 – Interpreting the AAR Residential Resale Contract

    Added

    Updated

    • residential Purchase contract line references throughout book
    • Loan Contingency language
    • information regarding Prior To Document (PTD) conditions
    • Loan Processing During Escrow information
    • appraisal fee information
    • Title and vesting information
    • Assessment Liens information
    • Warranties Section
    • Buyer Disapproval information
    • “Broker on Behalf of Buyer” and “Broker on Behalf of Seller” information
    • Removed “Notice of Nonworking Warranted Items” information
    • New information on IRS & FIRPTA Reporting (Foreign Sellers)
  • Chapter 8 – Residential Contract Related Forms and Other Addenda
    • Updated Pre-qualification form information; removed references to “GFE”
    • Updated Loan Status Update delivery days (from 5 days to 10 days)
    • Removed reference to buyer’s offer without pre-qualification form and seller’s cure notice
    • Updated days seller has to deliver completed SPDS to buyer (from within 5 days after contract acceptance to 3 days)
    • Added language regarding buyer consulting with flood insurance carriers about insurance
    • Removed language regarding buyer providing seller with notice of nonworking warranted items on the BINSR
    • Added information regarding “Option one: Contingent on Accepted Offer for Buyer’s Property” including updating buyer delivering sale documents to seller from within 5 days of accepted offer to 3 days)
    • Removed paragraph regarding the sale being “contingent on the Closing of the Pending Sale of Buyer’s Property” and “Provisions Applicable to both options”
    • Removed reference to “All Cash Sale”
    • Removed reference to “As Is Addendum” “Assumption/Carryback Addendum”
    • Added “Loan Assumption Addendum” “Referral Agreement” “Seller Financing Addendums” “Solar Addendum”
    • Added information on “AAR Forms – Use and Misuse” and “AAR Forms Copyright”
    • Added Q&As regarding AAR Forms
    • Added information on FIRPTA, Home Warranty Policies, and Community Facilities Districts
    • Added wire fraud information
  • Chapter 9 – Short Sale Transactions
    • Removed references to the HUD-1 and the Federal Home Affordable Foreclosure Alternatives (HAFA) Program
    • Added information on Trust Properties
  • Chapter 10 – REO Transactions

    Removed

    • Information regarding “Protecting Tenants at Foreclosure Act of 2009
    • Reference to ADRE Substantive Policy Statement No. 2008.02 regarding Subdivision Public Report requirements
  • Chapter 12 – Vacant Land Transactions
    • Removed appraisal contingency information in the Financing Section paragraph
    • Updated the written notice time frame in the Title and Escrow Section paragraph – from “5 days after receipt of the title commitment to provide” to “prior to the expiration of the Due Diligence Period to provide written notice”
    • Removed the language regarding buyer providing notice of any items disapproved in the Disclosures Section paragraph
    • Updated the inspections defaults from 15 days to 30 days
    • Added insurance to the list of due diligence items address in the subsections
    • In the Remedies Section paragraph, updated the small claims amount from $2,500 to $3,500
  • Chapter 13 – Commercial Transactions
    Added information regard Air Commercial Real Estate Association Forms

  • Chapter 14 – Sale of Manufactured and Mobile Homes
    • Updated the name of the Arizona Department of Fire, Building and Life Safety (ADFBLS) to the Arizona Department of Housing (ADOH)
    • Added HB 2072 which expanded the exemption for real estate licensees in A.R.S. §41-4028, location of mobile homes
    • Added Q&As regarding mobile homes
  • Chapter 15 – Financing and Loan Defaults

    Added

    • information on VA Loans, FHA Loans, Conventional Loans and information on Seller Carryback financing
    • Q&As regarding the Seller Financing Addenda
    • Alternative Financing Issues – loan assumptions, Agreement for Sale
    • A.R.S. §33-814, anti-deficiency protection
    • information on “when a lender can sue for a deficiency after a trustee’s sale”
    • information on an Anti-deficiency case
  • Chapter 16 – Disclosure
    • Removed “Meth Lab (and other Dangerous Drug Lab) Disclosure information
    • Added Stigmatized Property information
  • Chapter 19 – Homeowner’s Associations
    • Updated HOA Disputes contact information
    • Added “What is an HOA Reserve Study and Why is it Important” paragraph
    • Added “AAR Helps Arizona Property Owners Maintain the Right to Use “For Sale” Signs information
    • Updated AAR HOA/Condominium/Planned Community Addendum” paragraph
    • Added AAR Legislative Successes on HOAs information
  • Chapter 21 – Fair Housing

    Added

    • A.R.S. §41-1492.08 which requires a person who believes they have been discriminated against to submit written notice. . .
    • Disparate Impact information
    • “REALTOR Commitment to a Market Free of Discrimination” information
  • Chapter 22 – RESPA
    • Removed reference to “Good Faith Estimate”
    • Added Dodd-Frank Act footer
  • Chapter 23 – Antitrust
    Changed Sherman Antitrust Act fine amount from $350,000 to $1,000,000

  • Chapter 24 – Leasing & Property Management
    • Removed “Tenant’s Rights after Foreclosure” paragraph
    • Commingling monies – changed “broker deposit monies not exceeding” $500 to $3,000
    • Added list of AAR Property Management forms
    • Changed “finder fee may not exceed” from $100 to $200 and “tenant may receive such a finder fee up to” from six time to five times
    • Added Prepossession and Post Possession Risk information
  • Chapter 25 – Miscellaneous Real Estate Issues
    • Added Wire Fraud information
    • Updated website addresses, local association list, MLS list
  • Chapter 29 – NAR Code of Ethics
    • Updated website addresses
    • Updated time frame to waive right to hearing from 20 days to 15 days
    • Added ability to “remand the matter for a new hearing by a different hearing panel based on perceived procedural deficiency(ies),” for appeal hearings

    If you are relatively new to the real estate industry, or an industry veteran interested in staying abreast of these changes, you can order the third edition in e-book format here.

    K. Michelle Lind is an attorney and the Chief Executive Officer for the Arizona Association of REALTORS®, the largest trade association in Arizona, representing approximately 50,000 members. She is the author of Arizona Real Estate: A Professional’s Guide to Law & Practice.