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.
Required Seller Disclosures in Arizona
Residential real estate purchase agreements commonly contain promises and provisions guaranteeing a property’s condition. Many states legally require sellers to disclose explicit information concerning a property’s condition. In states where this is required and a seller willfully hides such information, they can be sued for fraud.
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. (127 Ariz. 213 (1980))
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. This is known as a Comprehensive Loss Underwriting Exchange (CLUE) report.
Depending on the circumstances, a seller may also be required to provide the following statutory disclosure requirements:
Condo Disclosure Information. Required if property sold is managed by a homeowner’s association or condominium/planned community. (Ariz. Rev. Stat § 33-1806 & 33-1260)
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. (Ariz. Rev. Stat § 33-434.01 & 49-701.02)
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. (Ariz. Rev. Stat § 33-422)
Military Airport Disclosure. Required disclosure for sellers of property located within the vicinity of a military airport. (Ariz. Rev. Stat § 28-8484)