An Arizona residential real estate purchase agreement (“Contract for Sale and Purchase of Real Estate”) is a contract which commits a buyer to an offer to purchase real estate, according to specific terms agreed by the buyer and seller. Negotiated specifics include the purchase price, financing method, closing date, and more.
Do Sellers in Arizona Have to Disclose Property Defects?
Arizona does require real estate sellers to disclose all known material defects with a property. While state law does not require a specific form of disclosure, the Arizona Department of Real Estate endorses this form created by the Arizona Association of REALTORS for most purposes. Unlike some states, the buyer and seller cannot waive any disclosure requirements by agreement.
Arizona state law specifies the following items are NOT considered material defects in a property, and a seller does not have a duty to disclose them to a potential buyer:
- Whether a death, suicide, homicide, or other felony has been committed on the property
- Whether an owner or occupant of the property has had HIV/AIDS, or another disease “not known to be transmitted through common occupancy of real estate”
- Whether the property is located in the vicinity of a sex offender
Required Seller Disclosures in Arizona
Arizona sellers of real estate must complete the following disclosures in order for a real estate purchase agreement 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 about a specific aspect of the property, the seller must disclose all known information about that topic.
- Comprehensive Loss Underwriting Exchange (CLUE): The standard Arizona real estate contract requires sellers to provide the buyer with a report showing a five-year history of insurance claims filed on the property.
Depending on the circumstances, a seller may also have to provide the following disclosures:
- Lead-Based Paint Disclosure: Any home constructed earlier than 1978 must come with a disclosure upon the transfer of the property which includes any information about the presence of lead on the premises, as well as educational materials that communicate the health risks associated with lead exposure.
- Swimming Pool Barrier Disclosure: Sellers who have a property with a pool must provide a standardized notice to the buyer from the Department of Health Services.
- Condominium Disclosure Information: Required for sellers managing a homeowner’s association, condominium, or planned community.
- Notice of Soil Remediation: Prior to transferring ownership of the property, the seller must give written notice of soil remediation to the buyer.
- Disclosure Affidavit for Land in Unincorporated Areas: Sellers of property on unincorporated land must furnish a written affidavit of disclosure to the buyer at least seven days before the transfer of the property. The buyer must acknowledge receipt of the affidavit.
- Military Airport Disclosure: Required when a property is located within territory in the vicinity of a military airport.
Sources
- 1 Ariz. Rev. Stat. § 32-2156
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A. No criminal, civil or administrative action may be brought against a transferor or lessor of real property or a licensee for failing to disclose that the property being transferred or leased is or has been:
1. The site of a natural death, suicide or homicide or any other crime classified as a felony.
2. Owned or occupied by a person exposed to the human immunodeficiency virus or diagnosed as having the acquired immune deficiency syndrome or any other disease that is not known to be transmitted through common occupancy of real estate.
3. Located in the vicinity of a sex offender.
B. Failing to disclose any fact or suspicion as set forth in subsection A shall not be grounds for termination or rescission of any transaction in which real property has been or will be transferred or leased.
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