Welcome back to our multipart series regarding the Arizona real estate purchase and sales contract. Over the last week, we have discussed the a real estate agency and disclosure agreement, the loan status report, and the first two pages of the Arizona real estate contract. However, we’re going to switch gears due to the fact that today just moments ago I received the new, revised 2011 Arizona real estate purchase contract which will be effective and required by Phoenix Association of realtors and Scottsdale Association of realtors agents starting March 1 of this year.
The most obvious changes to the purchase agreement are in regards to section 2 on page 2 FINANCING: this section has expanded in detail the requirements for a prequalification letter which is new as well as the obligation to provide loan status updates or LSU. Further, section 2 financing notes that interest rates or necessary funds do not qualify someone to cancel the contract per the loan contingency allowance. Importantly, Lions 77 and 78 highlight seller concessions if any: indicating other costs seller has agreed to pay as a percentage of the purchase price or flat dollar amount inclusive of escrow and loan costs. This was an important addition to the contract as lenders limit the amount of contribution and often times contribution amounts after the initial meeting of the minds were not sent to the lender; thus, the mortgage bank would only find out about this at the close of escrow with either a denial or re-underwriting as the only option to approve these seller concessions.The last line of page 2, line 90 indicates if the appraisal fee is included in seller concessions.
If you are thinking about buying an Arizona home or any real estate in greater Phoenix and financing the real estate purchase is part of your offer, I strongly encourage you to use the new and updated Arizona real estate purchase and sales agreement. Yes, it is not yet required; however, it greatly protects the buyer with specific language outlining your requirements as a buyer and of equal importance what remedies you have should the financing not be approved.
If you have any questions about the Arizona real estate purchase contract or the updated version, please feel free to call me to go over in detail. I would be happy to help.
Daniel J Wexler, your Phoenix Arizona real estate expert. 480-200-9097
if you are looking for a vacation home in greater Phoenix, Scottsdale or the many beautiful cities in the East Valley, please take a look at the Wexzilla.com Best Buy’s list and our real estate deal of the day.
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