We've got a new Arizona residential purchase contract coming out today! If you are planning on buying or selling a home in Arizona in the next few years here's the few big changes you need to know about.
1. Earnest money is now due at time of contract acceptance (or next business day if title company is already closed.) This was previously loosely defined. It was also added into the contract that all funds must be in US currency.
2. The new contract better defines that all existing fixtures will convey with the property. A fixture is "fixed" to the premises. Write vanity mirrors into the contract because they are technically fixed to the bathroom wall.
3. Biggest Change: NO MORE SELLER WARRANTIES! Homes will now be sold in the present physical condition. This means the home will convey in the same manner in which it was initially seen. Buyers can still ask for repairs to be taken care of but sellers no longer have to repair warranted items.
4. The new contract removes the appraisal contingency for a cash buyer. They also added that the second appraisal (if necessary) must be paid for by the buyers.
5. Clearly defining FIRPTA and does it apply to you? If you are a foreign citizen FIRPTA may apply to you based on sales price and buyers intention (primary residence vs. non) with the property.
6. Sellers must disclosed within 3 days and on the sellers disclosure the leased items in the home. This could include: pool equipment, water softeners, and RO systems. The Arizona Association of Realtors is working on a separate form for solar equipment.
7. The need for flood hazard insurance must be determined during the due diligence period. Check if the house your buying is within a flood zone here.
8. Lastly, the as-is addendum will be going away. Homes will no longer be sold "as-is" and will be sold in their present physically condition.