The Arizona residential real estate purchase agreement (“residential purchase and sale agreement”) is a legally binding contract between a buyer and seller for the purchase of a residential property. The agreement specifies the amount to be paid to the seller, the buyer’s financing information, and the transaction’s closing date.
Do Sellers in Arizona Have to Disclose Property Defects?
Arizona does require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.
Required Seller Disclosures in Arizona
In Arizona, sellers are required to complete a real estate purchase agreement and the following disclosures in order for it to be considered legally binding:
- Buyer Inquiry. Sellers are only required to disclose material information about the property; however, if a buyer makes an inquiry regarding a specific aspect of the property, the seller must disclose any and all information pertaining to it.
- Comprehensive Loss Underwriting Exchange (CLUE). The standard Arizona real estate contract requires sellers to provide the buyer with a copy of a report showing a five-year history of insurance claims filed on the property.
Depending on the circumstances, a seller may also be required to provide the following statutory disclosure requirements:
- Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.
- Swimming Pool Barrier Disclosure. Sellers who have a property with a pool are required to provide a department of health services notice to the buyer.
- Condominium Disclosure Information. This disclosure form is required for sellers managing a homeowner’s association or condominium or planned community.
- Notice of Soil Remediation. Prior to transferring ownership of the property, the seller is required to give written notice of the remediation to the buyer.
- Disclosure Affidavit for Land in Unincorporated Areas. Sellers of property on unincorporated land are required to furnish a written affidavit of disclosure to the buyer at least seven days before the transfer of the property and the buyer shall acknowledge receipt of the affidavit.
- Military Airport Disclosure. Arizona sellers are required to disclose that the property is located within territory in the vicinity of a military airport.