10 things you may want to know about the Residential Purchase contract
1. Possession is at close of escrow unless otherwise negotiated.
2. Fixtures and Personal Property automatically included in your sale. Items
included but not limited to: Range, dishwasher and basically anything attached
to the walls or property. That big screen TV attached to the MAY also be
included unless otherwise disclosed (its a gray area on relies on intent). Those
hand sown curtains and the family chandelier is also included unless disclosed.
So take these types of items down and replace with something different or DISCLOSE
everywhere. Make sure its put in listing and purchase contract. We may not have known
that a certain item may hold a sentimental value or a financial value, like a 50" LCD TV. If
your not sure, ASK and PUT IT ON THE CONTRACTS! Tip: Put a sign on what's not included.
3. Tax prorations. Real property taxes payable by the Seller shall be
prorated to COE (close of escrow) based upon the latest tax
information available.
4. Release of earnest money. In the event of a dispute between Buyer and Seller
regarding and Earnest Money deposited with Escrow Company, Buyer and
Seller authorize Escrow Company to release Earnest Money pursuant to the
terms and conditions of this Contract in its sole and absolute discretion. Buyer
and seller agree to hold harmless and indemnify Escrow Company against any
claim, action or lawsuit of any knd, and from any loss, judgment, or expense, in
cluding costs and attorney fee, arising from or relating in any way to the release
of Earnest Money.
5. Seller property disclosure statement ("SPDS") Seller shall deliver a completed
AAR SPDS form to the Buyer withing fieve (5) days after Contract acceptance.
6. Seller Warranties: Seller warrants and shall maintain and repair the Premises
so that, at the earlier of possession or COE: (i) all heating, cooling, mechanical,
plumbing, and electrical systems (including swimming pool and/or spa, motors,
filter systems, cleaning systems, and heaters, if any), free-standing range/oven,
and built-in appliances will be in working condition; (ii) all other agreed upon re
pairs and corrections will be completed pursuant to Section 6j; (iii) the
Premises, including all additional existing personal property included in the sale,
will be in substantially the same condition as on the date of Contract
acceptance; and (iv) all personal property not included in the sale and all debris
will be removed from the Premises.
7. Inspection Period: Buyer’s Inspection Period shall be ten (10) days or days after
Contract acceptance. During the Inspection Period, Buyer, at Buyer’s expense,
shall (i) conduct all desired physical, environmental, and other types of
inspections and investigations to determine the value and condition of the
Premises; (ii) make inquiries and consult government agencies, lenders,
insurance agents, architects, and other appropriate persons and entities
concerning the suitability of the Premises and the surrounding area; (iii)
investigate applicable building, zoning, fire, health, and safety codes to
determine any potential hazards, violations or defects in the Premises; and (iv)
verify any material multiple listing service ("MLS") information. If the presence
of sex offenders in the vicinity or the occurrence of a disease, natural death,
suicide, homicide or other crime on or in the vicinity is a material matter to the
Buyer, it must be investigated by the Buyer during the Inspection Period.
Buyer shall keep the Premises free and clear of liens, shall indemnify and hold
Seller harmless from all liability, claims, demands, damages, and costs, and
shall repair all damages arising from the inspections. Buyer shall provide Seller
and Broker(s) upon receipt, at no cost, copies of all inspection reports
concerning the Premises obtained by Buyer. Buyer is advised to consult the
Arizona Department of Real Estate Buyer Advisory provided by AAR to assist
in Buyer’s due diligence inspections and investigations.
8. Inspection Period Notice: Prior to expiration of the Inspection Period, Buyer
shall deliver to Seller a signed notice of any items disapproved. AAR’s Buyer’s
Inspection Notice and Seller’s Response form is available for this purpose.
Buyer shall conduct all desired inspections and investigations prior
to delivering such notice to Seller and all Inspection Period items disapproved
shall be provided in a single notice.
9. Buyer Disapproval: If Buyer, in Buyer’s sole discretion, disapproves of items as
allowed herein, Buyer shall deliver to Seller notice of the items disapproved
and state in the notice that Buyer elects to either: (1) immediately cancel this
Contract and all Earnest Money shall be released to Buyer, or (2) provide the
Seller an opportunity to correct the items disapproved, in which case: (a) Seller
shall respond in writing within five (5) days or days after delivery to Seller of
Buyer’s notice of items disapproved. Seller’s failure to respond to Buyer in
writing within the specified time period shall conclusively be deemed Seller’s
refusal to correct any of the items disapproved. (b) If Seller agrees in writing to
correct items disapproved, Seller shall correct the items, complete any repairs
in a workmanlike manner and deliver any paid receipts evidencing the
corrections and repairs to Buyer three (3) days or days prior to COE Date. (c)
If Seller is unwilling or unable to correct any of the items disapproved, Buyer
may cancel this Contract within five (5) days after delivery of Seller’s response
or after expiration of the time for Seller’s response, whichever occurs first, and
all Earnest Money shall be released to Buyer. If Buyer does not cancel this
Contract within the five (5) days as provided, Buyer shall close escrow without
correction of those items that Seller has not agreed in writing to correct.
10. Walkthrough(s): Seller grants Buyer and Buyer’s inspector(s) reasonable
access to conduct walkthrough(s) of the Premises for the purpose of satisfying
Buyer that any corrections or repairs agreed to by the Seller have been
completed, warranted items are in working condition and that the Premises is
in substantially the same condition as of the date of Contract acceptance. If
Buyer does not conduct such walkthrough(s), Buyer releases Seller and
Broker(s) from liability for any defects that could have been discovered.

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