Realtors in Arizona use the Residential Purchase Contract when buying a home. We feel it is important you read and have an understanding of this document before you actually sit down and sign.
Naturally, we will go over each element of the residential purchase contract with you when you buy your next home, and the info below is simply a brief overview.
We’ve provided a copy of the Purchase Contract below you can download, print or view as we highlight various pages of the document.
The purchase contract is a 9 page form and will probably have a few additional addendum attached to it depending on the home you’re buying. The document is filled with a lot of boiler plate legalize the Arizona Association of Realtor’s attorneys thought important as well as many fill-ins and options.
The main points we’d like to mention here include:
The Cover Page: This page was created to give special attention to certain points in the contract that have gotten a few home buyers in trouble.
Page 1: There are a few things we’d like to point out here. Midway through page one we’ll be putting in your preferred closing date . This is the day you want to take possession of the property. Your lender will have input on the closing date as it takes a while to process your loan once you have found a sweet home. Most like 35 -45 days.
At the bottom of the page is a list of items the seller is expected to leave on premise for the you. Take a look at the items covered… it’s a long list.
Page 2: At the top of the page you’ll want to note if there is a refrigerator, washer, dryer or other personal property you are requesting be included in the sale. Your agent can talk more about this with you. Farther down on page 2 is info about your loan. Since the contract requires specific loan information, you will want to have applied and had your loan approved prior to home shopping. An important document called an LSR will be supplied by your lender and should be included with your purchase contract.
Page 3: This page is concentrates on the role and duties of the Title and Escrow Company. You will be expected to choose a title company and have their contact info available. Your real estate agent can offer some suggestions of good companies they have worked with and you may want to do your own research into the various companies.
Page 4: This page talks about disclosures the seller is asked to supply you as well as items that are warrantied to work under the contract. Lead based paint issues are also covered. NOTE: When buying a bank owned home or short sale, many items covered on Page 4 will be dismissed by special documents the banks will require you to sign. Again, your real estate agent can explain more about this.
Page 5: Here the purchase contract talks about you doing your due diligence and home inspections. Unless you specify otherwise, you’ll have 10 days to do your investigations into the home and area. There is a lot covered on page 5 and it is highly recommended to understand your rights and obligations. In addition, we believe every home buyer should hire a licensed inspector to help during this process. You can ask your agent for a referral or choose one based on your own research. We talk about home inspections on other pages and posts her at Buy A Home in Phoenix.
Page 6: There is a bit more about inspections on this page as well as some time frames for action on yours and the home sellers part. In addition, there is language about how you can cancel your offer to purchase the home based on what you’ve discovered during your inspection. A document called the BINSR is discussed. Your agent should go over the various options you have with this document. If a home warranty is being purchased, details about that are included on page 6 as well. We have information about home warranties posted in various sections of this site. You can search our site by category to find articles on a variety of subjects.
Page 7: This page focus’ on legal issues, breach of contract, remedies and such. It is not the most exciting reading, yet very important. In addition, your agent may add special requests and requirements on the bottom of page 7 in the additional terms section.
Page 8: A number of legal specifications and term are outlined on page 8. In addition, this is where earnest money information will be placed. Earnest money is the deposit you place in escrow when you buy a home. Generally, the earnest money is 1% of the offer price.
Page 8 is also where a deadline for the home seller to respond to your offer. Your real estate agent can offer suggestions for the response deadline.
Page 9: This is the last page. Yeah. The top half is where you and your agent sign the document. The bottom half is for the home seller. They can simply sign and accept your offer as written or check the box indicating they are countering your offer with some changes they would like to see. If they do check the “Counter Offer Is Attached” box, you’ll get a counter offer form back from them with the term and conditions they would like you to agree. Some times several counter offers go back and forth before you and the home seller come to terms… it’s just part of the process.
Note: The information provided on this page does not cover the contract in its entirety. You should read and understand the entire Purchase Contract before signing. If you have questions and concerns, bring them up with your Realtor and/or sit down with a good real estate attorney.