Hi! I am Allen Henderson and I am the broker at Henderson Real Estate. I want to welcome you to The Home Seller Resources at www.HomeAhwatukee.com.
Today weare going to discus the changes in the Arizona Real Estate Contract that have dramatically impacted buyers and sellers. The most important change I want to make you aware of today is that as of February 1, 2017 ALL Arizona properties are now sold in “As Is” condition.
The Arizona Residential Resale Real Estate Purchase Contract changed dramatically on February 1, 2017 and it is a game changer for buyers, sellers and agents. Prior to February 1, 2017, The Arizona Residential Resale Real Estate Purchase Contract (September 2016 Update) included Seller Warranties. “Section 5 Warranties, Sub Section 5a, stated that “Seller warrants and shall maintain and repair the Premises so that at the earlier of possession or COE: (1) 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.”
The February 1, 2017 Update to the contraction states (in Bold) in “Section 5 WARRANTIES, Subsection 5a., Condition of Premises: BUYER AND SELLER AGREE THE PREMISES ARE BEING SOLD IN ITS PRESENT PHYSICAL CONDITION AS OF THE DATE OF CONTRACT ACCEPTANCE. Seller makes no warranty to Buyer, either express or implied, as to the condition, zoning, or fitness for any particular use or purpose of the Premises.”
The 2017 version of the contract has removed all Seller warranties and all properties are now sold “AS IS.“ Sellers are still required to disclose known defects in the property, however, they are no longer required to warrant that the major systems in the property are in working order nor are they required to make repairs to any major systems in the property.
Buyers still have a ten day inspection period to have an inspection completed and to request any repairs or replacements of the disapproved items, discovered during the inspection period. The buyer’s repair request must be made using the The Buyer Inspection and Seller Response (BINSR) form, within the ten day inspection period. The Sellers have five days to respond to any repairs requested by the Buyer in the BINSR.
The Seller, at their option, can agree to complete some, all or none of the repairs. Once the Seller’s response is received buy the Buyer, the Buyer, at their option, can agree to the Seller’s response and continue to close the escrow, or they can give notice to cancel the contract, with the return of their earnest money.
The Buyer and Seller now need to know that properties convey “AS IS” and agents need to take extra care in guiding the Buyer and Seller through the inspection process.
Please download and review the Purchase contract. It is ten pages long and goes into detail to protect your interests. We will send you periodic updates covering sections of the contract that are important for sellers to understand before they sit down to review an offer. Take a look and be sure to contact me on my direct line at 480-392-2090 or firstname.lastname@example.org with your questions.
We are here to help!