BUYING A HOME IN ARIZONA

A R I Z O N A B O R N & R A I S E D

C O N T E N T S

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COMPANY HISTORY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTRODUCTION.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WHAT OUR CLIENTS SAY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

THE PROCESS OF BUYING YOUR HOME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WHY YOU SHOULD WORK WITH A REALTOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MORTGAGE LOAN PROCESS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

GET TING PRE-APROVED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

LOAN APPL ICATION CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WHAT T ITLE AND ESCROW DO.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

THE ESCROW TIMELINE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

UNDERSTANDING ARIZONA’S “GOOD FUNDS” REQUIREMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WHAT IS T ITLE INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WHY YOU SHOULD HAVE T ITLE INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

T ITLE COMMITMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

EXPLANATION OF T ITLE COMMITMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

GENERAL T ITLE POLICY COMPARISON.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

T ITLE PREMIUMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WHAT ARE CLOSING COSTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CLOSING COST GUIDE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

APPRAISALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

THE HOME INSPECTION.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ADVANTAGES OF A HOME WARRANT Y. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IMPORTANT PROPERT Y TAX INFORMATION.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

YOUR SIGNING APPOINTMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WAYS TO TAKE T ITLE IN ARIZONA.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WHAT HAPPENS AFTER YOU SIGN.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MOVING CHECKLIST. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MARICOPA COUNT Y SCHOOL DISTRICTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

LOCAL RESOURCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

LOCAL AT TRACTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

LOCAL SPORTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ARIZONA REAL ESTATE CONTRACT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

GLOSSARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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On January 1, 2015, Grand Canyon Title Agency, Inc. was acquired by Fidelity National Title and became Grand Canyon Title Agency, A division of FNTA. Prior to the acquisition, the company operated as an independent agent for its three national underwriters: First American Title Insurance Company, Fidelity National Title Insurance Company, and Old Republic Title Insurance Company.

Founded in 1982, then locally owned, Grand Canyon Title Agency, Inc. has been providing Residential and Commercial Escrow Services, Title Insur-ance, Lender Services, Account Servicing, Trustee Sale Guarantee, Owner-ship & Real Estate Data Research in Arizona for 35 years.

Now a wholly owned subsidiary of a Fortune 500 Company, Grand Canyon Title Agency, A division of FNTA is extremely proud to be a member of the FNF family of companies. Combined with state of the art technology and unprecedented financial strength, Grand Canyon Title Agency will continue to offer the highest levels of customer service to the real estate and lender community.

C O M P A N Y H I S T O R Y

President & County Manager – Stan A. Feffer

V.P. Escrow Admin. – Heidi Velarde

V.P. Business Development – Fletcher Wilcox

V.P. Sales Manager – Ben Ashley

Director of Marketing – Amy LaDow

O U R T E A M


O U R P H I L O S O P H Y

At Grand Canyon Title Agency, a division of FNTA, our philosophy

is that our customer’s well-being is at the forefront of all our actions.

We are convinced that if we serve our customers well, our own

success will follow. We encourage innovation and creativity, and

consistently strive to find new ways to fulfill our customer’s needs.

Because of this, we anticipate the rapidly changing needs of our

clients and develop new services to meet those needs.

The dedication of our people and their expertise in their respective

positions enhance our success. Our commitment to teamwork has

proven to produce the best results.

We take great pride in the professional quality of our work. Ours is a

highly competitive business, and we aggressively seek to expand our

client relationships. Integrity and honesty are at the heart of our

business, built on rock solid business practices providing outstanding

title and escrow service to customers. The combination of

extraordinary people providing unparalleled service continues to

build exceptional customer loyalty.


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“Grand Canyon Title has continually supported our agents with marketing strategies and industry education. Their sales team is the best in the business, pairing us with unparalleled escrow service and business building tools that are impactful.”

- Sandra J. Orange Sky Realty

"Grand Canyon Title has been a positive asset to my career. When an efficient escrow officer can be professional and provide bilingual service in today's market that is a plus. Every one of my customers has been very satisfied and that is one part of my successful sale. I am proud to refer my customers and friends to Grand Canyon Title."

- Alicia R. 1st USA Realty

"I think the most of business relationships when they honor their word. When GCTA presented their services & pricing, both seemed too good to be true. After utilizing the team at GCTA, I was blown away at the standard of care, the high level of professionalism, and the ultimate quality of the product. GCTA has delivered above and beyond expectations and for that reason we will do a lot of business together for years to come.”

- Brian N. North&Co.

"Having worked with dozens of title companies over the last 30 years, I have found Grand Canyon Title Agency the most responsive title company in the business."

- Tom T. RE/Max Excalibur

W H A T O U R C L I E N T S S A Y

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C o n t a c t l i c e n s e d R e a l E s t a t e A g e n t

O b t a i n p r e - a p p r o v a l f r o m L e n d e r

M a r k e t e d u c a t i o n

V i e w p r o p e r t i e s

W r i t e o f f e r w i t h R e a l E s t a t e A g e n t

P u r c h a s e o f f e r p r e s e n t e d t o S e l l e r

A g e n t s n e g o t i a t e p u r c h a s e c o n t r a c t

O f f e r a c c e p t e d

O p e n E s c r o w w i t h G r a n d C a n y o n T i t l e A g e n c y

D e p o s i t e a r n e s t m o n e y

I n s p e c t i o n s a n d D i s c l o s u r e s

T i t l e C o m m i t m e n t

S i g n i n g o f d o c u m e n t s

A d d i t i o n a l f u n d s d e p o s i t e d i f a p p l i c a b l e

L o a n f u n d i n g

C l o s e o f E s c r o w

D o c u m e n t s r e c o r d e d a t C o u n t y R e c o r d e r ’ s O f fi c e

M o v i n g D a y !

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T H E P R O C E S S O FB U Y I N G Y O U R H O M E



It won’t cost you anything!A Realtor® who helps you buy a home is normally paid by the seller.

More choices when looking for the perfect home.Your Realtor® has access to thousands of homes to choose from through the Multiple Listing Service (MLS). This makes it much easier to find the home that is perfect for you - and find it faster. The majority of homes for sale are listed by Realtors®, and are not easily available to you unless you work with a licensed Realtor® .

Some transactions will “Fall Out”.Unfortunately, some transactions fall apart before closing. An experienced Realtor can help you avoid problems before they begin, and they can help resolve any issues you might run into.

Knowledge of new home subdivisions.New home subdivisions will welcome you and your Realtor® ! Your agent can help you on your first visit to any subdivision you are interested in. Your Realtor® is a great source of information who can provide insight on local builders, subdivisions, and the local community.

It’s a major investment.You use professionals in all other aspects of your life - medical, legal, financial, and more. Why gamble on one of the biggest investments of your life?

Help with FSBO’s.If you are interested in a “For Sale By Owner”, a Realtor can help you negotiate a contract that represents your needs.

The paperwork!Buying a home is stressful enough - a professional Realtor can help you. They can negotiate and prepare contracts for you, and assist you throughout the entire escrow process.

W H Y Y O U S H O U L D W O R K W I T H A R E A L T O R ®

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Knowledge is the Key to Understanding

Step OneLoan officer of the mortgage company, or bank, conducts a prequalification loan interview with borrowers to determine mortgage financing terms available.

Step TwoAfter contract acceptance, lender orders credit report and verifies employment and deposits.

Step ThreeLoan submission takes place, with the loan package assembled and submitted to the underwriter for their loan determination.

Step FourUpon loan approval, the borrowers are notified of any additional items necessary to fulfill the lender’s requirements before documents are drawn and sent to title and escrow.

Step FiveDocuments are prepared and sent to escrow for borrower's signing appointment.

Step SixFunding of loan takes place after lender receives and approves final signed docu-ments from escrow.

Step SevenLoan proceeds are typically wired to the title company.

Step EightUpon receipt of all funds, Grand Canyon Title records deeds at County Record-er's office.

Step NineEscrow has officially closed!


M O R T G A G E L O A N P R O C E S S

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Most Real Estate Professionals and lenders recommend that home buyers get pre-approved before selecting a home to purchase. The choice of lender is a very personal decision. Your real estate professional has access to many lenders, offering a variety of loan programs to suit your particular needs.

Reasons to get Pre-approved

1. With pre-approval you can determine which loan program best fits your needs and for which program you qualify.

2. You will learn how much you are approved to borrow. It eliminates finding your "ideal home" and then discovering you can't afford it.

3. Your monthly payment can be determined. This will allow you to budget your money before making this large investment.

4. It determines what the appropriate down payment and closing costs will be.

5. If you feel you would like and can afford a higher mortgage payment, but are not able to meet qualifications, co-mortgagor financing may be available to you.

6. It saves time once you select a home. The loan process is already underway.

7. It improves your negotiations with the seller.

G E T T I N G P R E - A P P R O V E D

Personal Property» Net cash value of your life insurance.» Year, make, and value of all vehicles.» Value of your furniture and personal property.

Employment History» Employers for the past two years with complete address-es.» Dates of employment for each place.» W-2s for most recent two years.» Tax returns for the most recent 2 years, with all sched-ules.» Year-to-date profit and loss statement and current balance sheet (if self-employed)» Explanations for any gaps in your employment.

Copies of most recent monthly statements for all loans and/or credit card balances.

Accounts» Bank statements from the most recent 3 months for all accounts, stock brokerages, mutual funds, IRAs, pensions, etc.

If applicable:» Copy of divorce papers.» Certificate of eligibility and DD214 (for VA only).» Copy of driver license and Social Security Card.

In order to expedite the mortgage loan process, please bring everything applicable on this list to make your appointment and the loan process as smooth as possible. (Refer to your lender for your specific loan payments.)

Copy of Sales Contract for the purchase of your new home.

Copy of Sales Contract and certified copy of Closing Statement for the sale of your present home.

Residence History» Past 24 months of residence with complete addresses.» Length of time you lived at each residence.» Name of landlord and his/her address (if currently renting).

Current Real Estate» Property addresses.» Estimated market values.» Outstanding loan balances (bring copy of most recent loan statement).» Amount of monthly payment.» Amount of monthly rental income, if any (copy of rental agreements).


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L O A N A P P L I C A T I O N C H E C K L I S T

During the "Escrow Period," the Title and Escrow company will order, receive, and preview the TITLE COMMIT-MENT. In addition, GCTA does all of the following:

Send out the copies of the CC&Rs and the Title Commitment to appropriate parties within 3-5 business days whenev-er possible.

Work with the seller and their lender to pay off all the loans they may have on the property.

Order all required information, forms, etc. from the Home Owner's Associa-tions if applicable.

Facilitate the actual signing of all paper-work.

Coordinate with the lender to arrange for all the funds to be received in a timely manner.

Record all documents with the County Recorders Office. Disburse copies of all documents and monies to the appropri-ate parties.

Issue Title Insurance to protect you should there be a problem with the title in the future.

Prepare Settlement Statement and Closing Documents after receipt of loan package from the lender.

Coordinate and prorate the taxes, along with any homeowners insurance payments necessary for the final docu-ments.

Review the file for all Payoffs, Home Warranty, Termite Report, Insurance, etc. and contact appropriate parties as needed.

Arrange time for both Buyer and Seller to come into the office to sign all necessary documents.

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T H E F U N C T I O N O F T I T L E & E S C R O W

Step One: Escrow OpensEscrow will be opened when the title company is in receipt of a completed and signed purchase contract including all addendums and amendments.

Step Two: ReceiptsThe receipt for earnest money is delivered to both agents and the lender within 24 hours of receipt along with the escrow number and escrow officer's contact information.

Step Three: Escrow Officer Works the File» The Title Commitment is ordered and received, then sent to agents, lender, buyer and seller.» The Homeowner's Association is notified and statements are ordered.» Seller’s written mortgage loan payoffs are ordered.» Lender provides documents to escrow officer.» Upon lender’s authorization, escrow officer schedules signing appointment with buyer and seller.

Step Four:Escrow signing takes place with both buyer and seller prior to the closing escrow date on the contract. Both must bring valid photo identification for Notary Public purposes. Upon completion of signing, documentation is returned to lender for review, approval, and funding. The funding process can take 24 to 48 hours after the lender receives the documentation. Once funds are received the transaction can record.

Step Five: Escrow ClosesClose of Escrow. Documents are Recorded!

Step Six: Funds and Commissions are DisbursedOnce recording information is confirmed, the funds are disbursed, including commis-sion checks, and final closing packages are ready for pick up, delivery, or mail.

At Grand Canyon Title Agency, a division of FNTA, we take every measure to ensure a smooth transaction. Communication is the key to successful escrow; with the assistance of our Realtor clients and Lenders we provide the best possible experience for our customers.


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T H E E S C R O W T I M E L I N E

Arizona is a "good funds" state. This means no funds may be disbursed from an

escrow account until those funds are physically available for withdrawal in the

escrow agent's trust account.


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U N D E R S T A N D I N G A R I Z O N A ’ S “ G O O D F U N D S ” R E Q U I R E M E N T S

All customers’ deposits and lenders’ loan proceeds checks will need to clear the payoff bank prior to closing.

Funds are deemed good when deposited into our bank, not after receipt by the escrow officer.

Available the day of bank deposit:Electronic transfer or wire funds, your title agency check (subject to approval).

Available one day after deposit:Cashier's, official, certified and teller checks from federally insured banks only.

Available 3 days after deposit:Personal checks, credit union checks, corporate checks, all of which must be local.

Available 7 days after deposit:All non-local checks, non-FDIC insured checks.

All checks are subject to verification of payment by the customer’s bank.

Money orders, traveler's checks, drafts, foreign bank checks, third-party checks and cash are never acceptable forms of deposit.

All payment must be verified by the customer's bank prior to close of escrow. Wired funds are required to avoid a delay in your closing. The time frames are minimums only. Grand Canyon Title Agency, a division of FNTA, assumes no liabil-ity for closing delays due to failure of any party, including lender, to provide good funds.

The purchase of real estate is likely the single largest investment people make in their lifetime. It is only prudent that one would want to safeguard their rights and investment! Title insurance protects the rights and interest in the property by ensuring the transfer of ownership is properly completed and the new owner receives protection from future claims against the property. It is the most effective and accepted way to protect ownership rights.

Because land endures over generations, many people may develop rights and claims to a particular property. The current owner's rights, which often involve family and heirs, may be obscure. There may be other parties such as government agencies, public utilities, vendors or private contractors who also have rights to the property. These interests may limit the title for any buyer.

Before the real estate transaction closes, Grand Canyon Title Agency performs an extensive search of all recorded documents related to the property. These records are examined by experienced title officers to determine their potential effect on the status of ownership. This thorough examination allows any pending title flaws to be identified and cleared prior to the purchase of the property. Title insurance companies work to limit risk and prevent losses caused by defects in the title before the closing.

If title insurance companies work to eliminate risk and prevent losses caused by defects in the title BEFORE the closing, then why is a title insurance policy necessary?

Even with the most thorough search, some title flaws may still go undetected. Among the most common are forgery, invalid court proceedings, mistaken legal interpretation, defective deeds, confusion due to similarity of names, previously unrecognized rights of spouses and heirs. Protection against these flaws and other claims is provided by the title insurance policy, which is issued after your transaction is complete.

Two types of policies are customarily issued at this time: the Owner's Policy, which covers the Buyer for the full amount paid for the property, and the Lender's Policy, which covers the Lending Institution with additional coverage over the life of the loan.

Unlike other forms of insurance, the title insurance policy requires only one premium for a policy to protect the purchasers and their heirs for as long as they own the property. There are no renewal premiums or expiration dates, unless the property is refinanced with another lender. In this case, only a new lender's policy will be required.

Each policy is a contract of "indemnity." It agrees to assume the responsibility for legal defense of your title for any defect covered under the policy terms and to reimburse you for all actual financial losses up to the policy limits.


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W H A T I S T I T L E I N S U R A N C E

A defective title could be the cause of losing property. Title insurance protects against such loss.

There may be forgery in a deed or mortgage within the chain of title.

An underage person may have signed a deed or mortgage.

A person medically proven incompetent may have executed a deed or mortgage.

A deed or mortgage may have been executed by a power of attorney after its termination, and would therefore be void.

A person other than the owner, but with the same name as the owner, may have made a deed or mortgage on the property.

A testator of the will may have had a child born after the execu-tion of the will. That would entitle the child to claim his or her share of the property.

A deed or mortgage may have been procured through fraud or under duress.

Title transferred by an heir may be subject to federal estate tax lien.

An heir or other person presumed dead may appear and recov-er the property or an interest therein.A judgment or levy upon which the title is dependent may be void or voidable due to a defect in the proceeding.

If claims arise, title insurance covers attorney's fees and court costs.

Title insurance evidence clears title when an individual is ready to sell or buy property.

Investors can eliminate delays and technicalities when passing title to another.

Buyers are reimbursed for the amount of losses covered by the title insurance.

A deed or mortgage may be voidable if it was signed while the grantor was in bankruptcy.

Title insurance remains with the individual or heirs of the property as long as they retain ownership.

Only title insurance protects against claims made by non-exis-tent or divorced spouses.

There may be a defect in the recording of a document on which your title is dependent.

With identity theft on the rise, claims have risen dramatically over the last decade.


W H Y Y O U S H O U L D H A V E T I T L E I N S U R A N C E

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The Title Commitment indicates the type of title insurance requested by the proposed insured. It defines exclusions and exceptions from coverage under which the policy will be issued. This Title Commitment is issued prior to a final policy of insurance and is necessary to ensure that a policy can be offered. The Title Commitment is reviewed for the following:

Ownership Vesting

The name(s) on the Title Commitment should be the same as those for the seller on the signed purchase contract. Only the true owner of record can sell the subject property that is in the contract for sale.

Exceptions Bonds, Deeds of Trust, property taxes, Conditions Covenants and Restrictions (CC&Rs), all recorded documents, and easements of record are carefully reviewed. Experienced escrow officers and title companies go out of their way to resolve problems quickly and accurately.

Informational Notes

This is the area of the report in which important facts about the property are discovered. In some cases, these notes contain information that could affect the title of the subject property.

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T I T L E C O M M I T M E N T

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Also referred to as a Prelim or Preliminary Title Com-mitment.

Schedule A:The Schedule A of your title commitment contains general information about the transaction such as the property’s legal description, sales price, loan amount, lender, and the names and marital status of both the seller and buyer.

Schedule B:The Schedule B contains exceptions that are associated with the property such as easements, homeowner’s association by-laws, covenants, conditions and restrictions (CC&R’s), recorded easements, leases, and various other items of records that transfer along with the subject property.

They are called “exceptions” because clear title will be given and the buyer’s rights are subject to these items.

Requirements: Requirements are items that Grand Canyon Title Agency must remove and/or record with the county in order to provide a clear title to the seller. Requirements may include property tax, tax liens, judgments, assessments, homeowners association dues, or a variety of other items that may be associated with the property or property owners.

If at any time you require assistance or have questions regard-ing your title commitment, please contact your escrow officer. Our staff will be happy to assist you!

E X P L A N A T I O N O F T I T L E C O M M I T M E N T

Please note that the above coverages are subject to the specific exceptions to Title, Exclusions, and the Conditions and Stipulations as set forth in each policy form. Special conditions and deductibles apply for certain coverages in the ALTA Homeowner’s policy. Policy coverage is subject to change without notice, except as required by the Arizona Department of Insurance.

COMPARISON CoverageExtra 40-50% charge &Survey Requirement

1. Someone else owns a recorded interest in your title. X X X2. A document is not properly signed, sealed, acknowledged, or delivered. X X X3. Forgery, fraud, duress, incompetency, incapacity, or impersonation. X X X4. Defective recording of any document. X X X5. Unmarketability of title. X X X6. Lack of a right of access to and from the land. X X X

7. Mechanic’s lien protection for work or materials done prior to the policy date, except where the insured has agreed to same. X X X

X

STANDARD

COVERAGE

X

X

X

X

X

X

X X

XX X X

X X

X XX

X

X

X

X

X

X

X

X

X

X

X

X

X

XX XX XX

X X

ALTAResidential(Existing 1-4)

ALTAHomeowner’s

(Existing 1-4)EXTRA 10% CHARGE

8. Unrecorded liens by the homeowner’s association.

9. Others have rights arising out of leases, contracts, or options.

10. Someone else has an easement on your land.

11. Forced removal of the residential structure because it extends onto other land or onto any easement, or it violates a restriction shown in Schedule B, or an existing zoning law.

12. Plain understandable policy language.

13. Automatic inflation coverage increasing policy amount up to 150%.

14. Building permit/zoning violations by prior owners.

15. Subdivision Map Act Coverage.

16. Restrictive covenant violations by prior owners.

17. Enhanced access coverage.

18. Map inconsistency protection.

19. Mineral extraction structure damage.

20. Post policy encroachment.

21. Post policy forgery.

22. Living trust coverage.

23. Forced removal of existing structures including boundary walls and fences due to encroachment onto adjoining land.

24. Supplemental real estate taxes by a taxing authority for taxes not previously assessed prior to date of policy because of construction or a change in ownership before the policy date.

ALTA

G E N E R A L T I T L E P O L I C Y C O M P A R I S O N


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Extended

Just how much is title insurance going to cost you? Not as much as you probably think. Only a small percentage of closing fees go towards title insur-ance protection. Title insurance is usually less than 1 percent of the purchase price of your property and less than 10 percent of your total closing costs.

The process of providing title insurance is a highly labor-intensive business, requiring skilled personnel and the storage of data (some of which dates back over one hundred years). At Grand Canyon Title Agency, a division of FNTA, we have excelled at finding new and more efficient ways of delivering our services to you.

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T I T L E P R E M I U M S

Closing costs are often confusing. Below is a list of costs, along with expla-nations for each. When you apply for your loan, you will receive a Good Faith Estimate of these charges.

Appraisal Fee: A fee to pay an independent appraiser.

Credit Report Fee: A one time fee covering the cost of the credit report.

Document Preparation Fee: There may be a separate fee covering the preparation of the final legal papers.

Homeowner’s Fee: Some associations may require an upfront deposit or dues, as well as a fee to transfer their records from seller to buyer (Transfer Fee). These amounts vary for each association.

Loan Discount: A one time fee to adjust the yield on the loan to what market conditions demand (often called POINTS).

Loan Origination Fee: A one time fee charged by the lender for their administrative costs.

Miscellaneous Title Charges: The title company may charge fees for items such as a title search, title examination, document preparation, recording fees, notary fees, and closing or settlement fee.

PMI Premium: Depending on your down payment, you may have to pay an upfront fee for mortgage insurance. Lenders also may require monies to be held by them in a reserve account.

Prepaid Interest: A per diem charge that may vary depending on the day of the month your loan closes.

Taxes and Hazard Insurance: Depending on the month your property closes, you may be required to reimburse the seller for property taxes. You will have to pay a hazard insurance premium upfront and may be required by the lender to put a certain amount of taxes and insurance in a reserve account. This account is held by the lender.


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W H A T A R E C L O S I N G C O S T S ?

The SELLER can generally expect to pay for:

» Owner's title insurance premiums

» Real estate commission

» 1/2 the escrow fee (except VA)

» If agreed upon in the contract, any loan fees required by buyer’s lender

» Payoff all loans

» Interest accrued to lender being paid off, statement fees, re-conveyance fees, and any prepayment penalties

» If agreed upon in the contract, termite repairs or treatment

» If agreed upon in the contract, home warranty

» 1/2 of Recording Service Fees

» Any judgments, tax liens, etc. against the seller

» Tax proration (for any taxes unpaid at time of transfer of title)

» Any and all delinquent taxes

» Homeowner's Association transfer fees (at times split) and disclosure fee usually paid by seller according to HOA adden-dum

» Any unpaid Homeowner's Association dues

» Any bonds or assessments (according to contract)The BUYER can generally expect to pay for:

» Lender’s title policy premiums

» 1/2 of the escrow fee (except VA)

» Document preparation (if applicable)

» Notary fees (if applicable)

» 1/2 of a Recording Service Fees

» Homeowner's Association transfer fee (usually split by buyer and seller)

» Two months of Homeowner's Association dues upfront

» If agreed upon in contract, all new loan charges (except as required by lender for seller to pay)

» Interest on the new loan, from date of funding to 30 days prior to the first payment date

» If agreed upon in the contract, home warranty

» Fire insurance premium for the first year

» All pre-paids

» Termite inspection


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C L O S I N G C O S T G U I D E

Lenders use appraisals to determine the buyer's loan amount. The appraisal will be complet-ed after the buyer requests the mortgage.

An appraisal is a written estimate of a property’s market value completed by an appraiser. The value is based upon a market analysis of the prices of recent sales of similar properties in the area and the property’s physical condition. Usually, this requires an interior and exterior property inspection.

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A P P R A I S A L S

In most cases the real estate contract allows for a physical inspection period for the buyer. This is the time to identify existing and potential problems in the property. For many home buyers, this is a nerve-racking process because of all the unknown factors. This is the time to turn to a professional home inspector.

Home inspectors identify problems and assist in promoting and facilitating communication with the seller. Buying a home can be the single largest investment in a person’s life. Investing a small amount of money on the home inspection can save a substantial amount of money in the future.

Here are several details covered in a home inspection:

Structural:Inspectors look at specific areas of the house to determine the integrity of the essential internal and external structural components. Inspectors are not structural engineers, but can identify visual defects and areas requiring immediate repairs.

Electrical:Do all the outlets work? Does the house use fuses or is there a breaker box? Are there any signs of fraying wires?

Plumbing: Are there any leaks or annoying drips? Are all the mechanical systems and fixtures working properly?

Built-in Appliances: Are they functioning properly?

Safety Hazards: Inspectors are not environmental specialists, but they can identify a number of safety hazards and dangerous conditions.

Miscellaneous: Some areas that may or may not be included in the standard home inspection are septic systems, roofs, drainage, wood decks, patios, or other exterior structures.

Normally Not Included:Termite, radon, geological or land subsidence surveys, and environmental or pollution inspections should be completed separately for your own protection.


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T H E H O M E I N S P E C T I O N

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Why worry about “What if”?

Definition of a Home WarrantyHome warranties are policies designed to protect the buyer against repair costs of mechanical systems and major applianc-es.

They consist of an application fee (sometimes offered by the seller or negotiated in contract) and a small deductable (paid by the buyer) when a service call is completed.

There are a variety of plans covering items such as heating, air conditioning, dishwashers, garbage disposal, etc.

Benefits of a Home WarrantyCoverage for your major mechanical systems and built-in appliances.

A full network of well qualified technicians at your service. Your budget is protected against unexpected repair bills.

All of the above for a very low deductible/service call.

Optional coverage is available for swimming pools, wash-er/dryer, spas, well pumps, and more.

A D V A N T A G E S O F A H O M E W A R R A N T Y

Annual Tax Statement Value Notifi-cation1. Annual statements are billed for one calendar year, although they are not issued until the autumn of the current year (September or October).

2. Taxes may be paid in two halves:

a. The first installment is due October 1 and delinquent November 1.

b. The second installment is due March 1 of the following year and is delinquent May 1.

3. Always check the property description on the tax statement to avoid paying on the wrong property. The Treasurer CANNOT be held responsible for payments made to the wrong property. To assure proper posting of payments and information to your address, please furnish your parcel number when making any payments or inquiries at the Assessor's or Treasurer's office. This number can be found in paperwork supplied to you by your title insurance company and is usually in the following format: 123–45–678. Sometimes this number is followed by a letter denoting that a lot split may have occurred.

4. The law does not recognize failure to receive a tax statement as a reason for waiving interest. The Treasurer must assess interest on all delinquent payments.

February 1 - On or before this date, the Assessor is required to notify property owners of any increase in taxes or of delinquent taxes for previous years sold at auction (three-year redemption).

February 15 - Last day to file an appeal with the Assessor's office if the property owner feels that the values are excessive or that they violate the limitations of increases.

February 28 - Last day to file exemptions.

March 1 - Second half of taxes for the previous year are due and payable.

May 1 - Second half of taxes for previous year are now delinquent.

July 25 - Tax roll is certified.

September 15 - Tax statements are mailed from mid-September to October 1.

October 1 - First half of current year taxes are due and payable. You may pay for the full year at one time.

November 1 - First half of current year taxes are delinquent.

5. On or before January 31 of each year, an Assessment Notice is sent from the Assessor to each property owner at the last known address. The notice includes information for the new tax year, such as the property’s full cash value, assessed value, classifica-tion, and assessment ratio.

6. During a 45 day period after receipt of assessment notice the valuation can be protested through the County Assessor. For information call the Assessor's office at 602-506-3406.

New OwnershipThe transfer of ownership information may take 6 months or more to process; therefore new owners may not receive a tax statement of property purchased after November 1 of the previous year. If a tax statement has not been received by October 15, the new owner MUST contact the Treasurer for the statement so the payment can be made before the first half becomes delinquent (by November 1).

Mark Your CalendarJanuary 1 - Current taxes become a lien not yet payable. First day to file exemption with the Assessor's office.


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I M P O R T A N T P R O P E R T Y T A X I N F O R M A T I O N

The following is a list of items you will need to be aware of PRIOR to your signing appointment with the title company.

First, please be advised that the signing appointment is for the signing of escrow papers and loan documents ONLY and does not mean the transaction is complete. If a loan is involved for the purchase, those documents must be signed and returned to your lender for review. Once reviewed and accepted by the lender the loan funds are wired to the title company and recording can take place.

Only then is Close of Escrow complete. Close of Escrow means recordation of the Deed(s). Signing means literally signing all necessary papers and documents in order to achieve Close of Escrow.

Taking TitleDecide how you would like to hold the title to your new home. The Ways to Take Title page shows the different ways you can hold title to real property in the state of Arizona. You may wish to consult your lawyer or qualified professional (CPA) before making a decision.

IF NOT ALREADY DONE, PLEASE INFORM YOUR ESCROW OFFICER OF YOUR DECISION PRIOR TO YOUR SIGNING APPOINTMENT.

Funds to CloseArizona is a Good Funds state and as such requires funds to close to be immediately and readily available. Since cash is not

acceptable at the title company, your best choice is to have Funds to Close wired the day before your Close of Escrow date. Even a certified or cashier’s check is not considered immediate until it is deposited and cleared through the title company's trust account. That can take more than 24 hours to accom-plish.

Lender's RequirementsMake certain you have satisfied all of your lender's require-ments for obtaining a mortgage loan. Communication with your loan officer is critical for a smooth loan process.

Fire and Hazard InsuranceMake arrangements with your insurance company to provide a homeowner’s policy for your purchase. Provide the escrow officer with your agent's name, company, address, and phone number prior to your signing date.

Identification Photo identification is required by providing a US or state issued current driver's license, passport, or another form of U.S. or state government issued identification. Many docu-ments need to be notarized and therefore, no exceptions can be made to this requirement. Please verify prior to your signing appointment that the identification you have will be accepted.


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Y O U R S I G N I N G A P P O I N T M E N T

Community PropertyArizona is a community property state. There is a statutory presumption that all property acquired by husband and wife is community property. Community property is a method of co-ownership for married persons only. Upon death of one of the spouses, the deceased spouse's interest will pass by either a will or an intestate succession.

Community Property with Right of SurvivorshipA method of ownership by a husband and wife that vests title in the surviving spouse upon death of one of the spouses.

Joint Tenancy with Right of SurvivorshipA method of co-ownership that gives title to the last survivor. Title to real property can be acquired by two or more individuals. If a married couple acquires title in this way, they must specifically accept the joint tenancy to avoid the presumption of community property.

Tenancy in CommonA method of co-ownership where parties do not have survivorship rights and each owns a specific undivided interest.

Sole and SeparateReal property owned by a spouse before marriage or any acquired after marriage by gift, descent, or specific intent. If a married person acquires title as sole and separate property, his/her spouse must execute a disclaimer deed.

CorporationTitle may be taken in the name of a corporation provided the corporation is duly formed and in good standing in the state of its incorporation.

General PartnershipTitle may be taken in this manner if it is duly formed under the laws of the state of the formation of the partnership. A partnership is defined as a voluntary association of two or more persons as co-owners in a business for profit.

Limited PartnershipA partnership formed by two or more persons under the laws of the state and having one or more general partners and one or more limited partners. A certificate of limited partnership must be filed in the Office of the Secretary of State, a certified copy of which must be recorded.


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W A Y S T O T A K E T I T L E I N A R I Z O N A

After the signing, the escrow officer prepares the loan package for your lender and delivers that package for final review. This can take 24 to 48 hours after receipt of the documents by the lender and depends on the lender’s requirements.

Once the lender has final approval of your documents, they are ready to fund the loan. They notify escrow that the funds have been wired. When escrow is advised that the wired funds have been received, Close of Escrow (recordation) takes place!

After the Close Seller - Your existing loan is being paid in full. Your lender is required by law to issue a full re-conveyance of their loan. As soon as the deed of re-conveyance removing the previous Deed of Trust is received, it should

In some cases, proceeds that were wired may not reach your bank until the next business day following Close of Escrow.

Funds Held in EscrowIn some cases the escrow holder will be instructed to hold funds in escrow to pay obligations which may not be completed until after escrow closes. An example might be a holdback of funds to correct a structural problem, remodeling, or termite repair work. Upon completion of the project, along with a receipt of the proper documentation and releases, the escrow officer will disburse the reserve funds. Additional charges may apply.

be recorded and the original returned to you. This may take several weeks, which is common.

Buyer - The keys to your new home will be released to you after Close of Escrow. Your Real Estate Professional will make the necessary arrangements so that the keys will be available to you. Unless otherwise specified in the Purchase Contract, posses-sion takes place after Close of Escrow (recording of the deeds).

Proceeds from the Sale Seller - A final disclosure and a check for the proceeds will be available to you after the date of sale is completed, documents are recorded, and escrow is closed.

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W H A T H A P P E N S A F T E R Y O U S I G N

Don’t Forget» Empty freezer, plan use of foods

» Defrost freezer and clean refrigerator and use charcoal to dispel odors

» Have appliances serviced for moving

» Make arrangements for TV and cable / satellite

» Clean rugs or clothing before moving

» Plan for special care needs for infants

» Check with your moving company about insurance coverage, packing and

unpacking labor, arrival day, various shipping papers, method and time of expected

payment

On Moving Day» Carry enough cash or traveler’s checks to cover cost of moving services and

expenses until you make banking connections in new city

» Carry jewelry and documents yourself or use registered mail

» Plan for transporting pets, they are poor traveling companions if unhappy

» Let a close friend or relative know route and schedule you will travel, including

overnight stops; use him/her as message headquarters

» Double check closets, drawers, shelves to be sure they are empty

» Leave all old keys and garage door openers needed by new tenant or owner with

Realtor

At Your New Address» Check on service of telephone, gas, electricity, and water

» Check pilot light on stove, hot water heater, incinerator, and furnace

» Have appliances checked

» Ask mail carrier for mail they may be holding for your arrival

» Have new address recorded on driver’s license

» Visit city offices and register for voting

» Register car within five days after arrival in state or penalty may have to be paid

when getting new license plates

» Obtain city inspection sticker and transfer motor club membership

» Apply for state driver’s license

» Register family in your new place of worship

» Register children in school

» Arrange for medical services: doctor, dentist, etc.

Give Forwarding Address» Post Office

» Charge accounts, credit cards

» Subscriptions (notice requires several weeks)

» Friends and relatives

Bank» Transfer funds, arrange check cashing in new city

» Arrange credit references

» Obtain cashier’s check necessary for closing real estate transaction. Be sure to

ask your bank if this check is drawn on an Arizona institution

Insurance» Notify company of new location for coverages: Life, Health, Fire and Auto

Utility Company» Gas, electric, water, telephone, fuel, garbage, cable

» Get refunds on any deposits made

Delivery Service» Laundry, newspaper, groceries, or water

Medical, Dental, Prescription Histories» Ask doctor and dentist for referrals

» Transfer any needed prescriptions

» Obtain birth records, medical records, etc.

School» Obtain school transcripts

Church, Clubs, Civic Organizations» Transfer memberships, get letters of introduction

Pets» Ask about regulations for licenses, vaccinations, tags, etc.


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M O V I N G C H E C K L I S T

Elementary School Districts1 – Phoenix......................................... 602 257-37552 – Riverside....................................... 602 477-89003 – Tempe........................................... 480 730-71005 – Isaac ............................................. 602 455-67006 – Washington ................................. 602 347-28027 – Wilson........................................... 602 681-22008 – Osborn ......................................... 602 707-200014 – Creighton ................................... 602 381-600017 – Tolleson...................................... 623 936-974021 – Murphy ...................................... 602 353-500025 – Liberty......................................... 623 474-660028 – Kyrene ........................................ 480 783-400031 – Balsz............................................ 602 629-640033 – Buckeye....................................... 623 925-340038 – Madison ..................................... 602 664-790040 – Glendale...................................... 623 842-810044 – Avondale .................................... 623 772-500045 – Fowler.......................................... 623 707-450047 – Arlington .................................... 623 386-203149 – Palo Verde................................... 623 327-369059 – Laveen ........................................ 602 237-910060 – Higley........................................... 480 279-700062 – Union .......................................... 623 478-500563 – Aguila........................................... 928 685-222265 – Littleton....................................... 623 478-560066 – Roosevelt ................................... 602 243-480068 – Alhambra ................................... 602 336-292071 – Sentinel....................................... 928 454-247475 – Morristown................................. 623 546-510079 – Litchfield Pk ............................... 623 535-600081 – Nadaburg ................................... 623 388-232183 – Cartwright .................................. 623 691-400086 – Mobile......................................... 520 568-228090 – Saddle Mtn.................................. 623 474-510092 – Pendergast.................................. 623 772-220094 – Paloma........................................ 928 683-2588

Unified School Districts1 – Phoenix......................................... 602 257-37904 – Mesa.............................................. 480 472-02009 – Wickenburg.................................. 928 668-535011 – Peoria ......................................... 623 486-600024 – Gila Bend ................................... 928 683-222541 – Gilbert ........................................ 480 497-330043 – Apache Jnctn ............................. 480 677-751048 – Scottsdale .................................. 480 484-610069 – Paradise Valley........................... 602 449-200080 – Chandler .................................... 480 812-700089 – Dysart ......................................... 623 876-700093 – Cave Creek ................................. 480 575-200095 – Queen Creek ............................. 480 987-593597 – Deer Valley ................................. 623 445-500098 – Fountain Hills............................. 480 664-5000

High School Districts201 – Buckeye Union......................... 623 386-9700205 – Glendale Union ....................... 623 435-6000210 – Phoenix Union......................... 602 764-1100213 – Tempe Union .......................... 480 839-0292214 – Tolleson Union ........................ 623 478-4000216 – Agua Fria Union ...................... 623 932-7000

Other School InformationOther District Informationin Maricopa County........................... 602 506-3866

AZ Dept. of EducationSchool Report Cards ......................... 602 542-5393

Secondary Schools in AZ Accredited by North Central Assoc. ................... 602 542-5393


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M A R I C O P A C O U N T Y S C H O O L D I S T R I C T S

Utilities Arizona Public Service (APS) 602 371-7171Salt River Project (SRP, Electric) 602 236-8888Salt River (SRP, Water) 602 236-3333Southwest Gas 602 861-1999Mesa Gas 480 644-2221 Water Carefree 480 488-9100Cave Creek 480 437-3582Chandler 480 782-3580Fountain Hills 480 837-3411Gilbert 480 503-6800Glendale 623 930-3190Mesa 480 644-2221Paradise Valley ci.paradise-valley.az.usPeoria 623 773-7160Phoenix 602 262-6011Scottsdale 480 312-2461Tempe 480 350-2837 Telephone CenturyLink 877 417-3983Telephone Directory Order 800 422-8793 Cable Cox Cable 623 594-1000Direct TV 888 777-2454RCI Cable 480 895-8084Mediacom Cable 480 474-2078CenturyLink Telecommunication 800 244-1111TCI 866 218-3025Time Warner 855 234-4898 Waste Services Allied Waste Transportation 480 854-9009Fountain Hills Sanitation 480 837-9444Paradise Valley 480 948-7411Parks & Sons 623 974-4791Phoenix Waste 602 262-7251

Scottsdale Solid Waste 480 312-5600Waste Management-Phoenix 602 268-2222

Automobile Information Emissions Testing 602 255-0072Motor Vehicle Division 602 255-0072

Consumer Services Registrar of Contractors 602 542-1525AZ Attorney General 602 542-5763Better Business Bureau 877 291-6222 Dog Licensing 602 506-7387 Voter Registration 602 506-1511 Environmental Programs Maricopa Environmental Services 602 506-6623Environmental Hot Line 877 692-9227Recycling Hot Line 800 253-2687 Building Information Uniform Building Code Hot Line 480 312-2633Uniform Fire Code 602 364-1003Zoning 602 506-3301 Schools AZ Office of Child Care Facilities 602 354-2539Catholic Diocese 602 354-2344Jewish Schools Federation 480 643-4900 Post Office General 800 275-8777 Newspaper Arizona Republic 602 444-1000 Emergency Services Rural Metro 911


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L O C A L R E S O U R C E S

Historic Attractions Arizona State Capital Museum 602 926-3620Casa Grande Ruin National Monument 520 723-3172Cochise Stronghold 520 826-4141Fort Apache 928 338-4625Fort Bowie National Historic Site 520 847-2500Fort Huachuca Military Museum 520 533-1127Freemont House 928 445-3122Heritage Square 602 262-5029Homolovie Ruins State Park 928 289-4106Jerome State Historic Park 928 634-5381Kartchner Caverns State Park 520 586-2283Montezuma Castle National Park 928 567-3322Niels Peterson House 602 350-5151Organ Pipe National Monument 520 387-6849San Xavier Del Bac Mission 520 294-2624Tonto Natural Bridge State Park 928 476-4202Town of Florence 520 868-7500Tubac Presidio State Historic Park 520 398-2252Wupatki National Monument 928 679-2365Yuma Territory Prison State Historic Park 520 783-4771 Local Family Attractions Bearizona 928 635-2289Castles N Coasters 602 997-7575Cracker Jax Family Fun & Sports Park 602 998-2800Desert Botanical Gardens 602 941-1255Enchanted Island at Encanto Park 602 254-2020Golfland Entertainment Centers 602 834-8319Island of Big Surf 480 994-2297Out of Africa Wildlife Park 928 567-2840The Phoenix Zoo 602 273-1341Wet & Wild Safari Water Park 623 581-8446Wildlife World Zoo 623 935-9453 Natural Wonders Canyon de Chelly National Monument 928 674-5500Chiricahua National Monument 520 824-3421Grand Canyon National Park 928 638-7888Tombstone Courthouse State Historic Park 520 457-3311Tombstone Epitaph 520 457-2211Tombstone O.K. Corral 520 457-3456


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L O C A L A T T R A C T I O N S

Stadiums Arizona Veterans Memorial Coliseum 602 252-6771Chase Ballpark 602 514-8400Gila River Arena (formerly Jobing.com Arena) 623 772-3200Sun Devil Stadium 480 965-2381University of Phoenix Stadium 623 433-7100US Airways Center 602 379-2000 Cactus League Los Angeles Angels - Tempe Diablo Stadium 480 350-5205Chicago Cubs - Sloan Park 480 668-0500Milwaukee Brewers - Maryvale Baseball Park 623 245-5500Oakland Athletics - Hohokam Stadium 602 392-0217San Diego Padres - Peoria Sports Complex 623 773-8700San Francisco Giants - Scottsdale Stadium 480 312-2586Seattle Mariners - Peoria Sports Complex 623 773-8700Kansas City Royals - Surprise Stadium 623 222-2222Texas Rangers - Surprise Stadium 623 222-2222Chicago White Sox - Camelback Ranch 623 302-5000Cincinnati Reds - Goodyear Ballpark 623 882-3120Cleveland Indians - Goodyear Ballpark 623 882-3120Colorado Rockies - Salt River Fields 480 270-5000 Basketball Phoenix Mercury - US Airways Center 602 252-9622Phoenix Suns - US Airways Center 602 379-7900 Football Arizona Cardinals - University of Phoenix Stadium 602 379-0102Arizona Rattlers - US Airways Center 602 985-3292Arizona Sun Devils - Sun Devil Stadium 480 965-2381 Baseball Arizona Diamondbacks - Chase Ballpark 602 514-8400 Hockey Phoenix Coyotes - Gila River Arena 623 772-3200 Auto Racing Phoenix International Raceway 623 463-5400 Horse Racing Turf Paradise Racecourse 602 942-1101 Golf Complete list of Arizona Golf Courses www.golfarizona.com


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L O C A L S P O R T S

of 9

Buyer Attachment • Updated: February 2017Copyright © 2017 Arizona Association of REALTORS®. All rights reserved.

ATTENTION BUYER!You are entering into a legally binding agreement.

1. Read the entire contract before you sign it.

2. Review the Residential Seller’s Property Disclosure Statement (See Section 4a).• This information comes directly from the Seller.• Investigate any blank spaces, unclear answers or any other information that is important to you.

3. Review the Inspection Paragraph (see Section 6a).If important to you, hire a qualified:

• General home inspector• Heating/cooling inspector• Mold inspector• Pest inspector• Pool inspector• Roof inspector

Verify square footage (see Section 6b)Verify the property is on sewer or septic (see Section 6f)

4. Confirm your ability to obtain insurance and insurability of the propertyduring the inspection period with your insurance agent (see Sections 6a and 6e).

5. Apply for your home loan now, if you have not done so already, and provideyour lender with all requested information (see Section 2f).It is your responsibility to make sure that you and your lender follow the timeline requirements in Section 2, andthat you and your lender deliver the necessary funds to escrow in sufficient time to allow escrow to close on theagreed upon date. Otherwise, the Seller may cancel the contract and you may be liable for damages.

6. Read the title commitment within five (5) days of receipt (see Section 3c).

7. Read the CC&R’s and all other governing documents within five (5) days of receipt(see Section 3c), especially if the home is in a homeowner’s association.

8. Conduct a thorough pre-closing walkthrough (see Section 6l). If the property isunacceptable, speak up. After the closing may be too late.

You can obtain information through the Buyer’s Advisory at www.aaronline.com/manage-risk/buyer-advisory-3/.

Remember, you are urged to consult with an attorney, inspectors, and experts of your choice in any area of interest or concern in the transaction. Be cautious about verbal representations, advertising claims, and information contained in a listing. Verify anything important to you.

Document updated: February 2017BUYER ATTACHMENT

This attachment should be given to the Buyer prior to the submissionof any offer and is not part of the Residential Resale Real Estate Purchase Contract’s terms.

Buyer’s Check List4

Residential Resale Real Estate Purchase Contract • Updated: February 2017 Copyright © 2017 Arizona Association of REALTORS®. All rights reserved.

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1. PROPERTY

BUYER: BUYER’S NAME(S)

SELLER: or as identified in section 9c. SELLER’S NAME(S)

Buyer agrees to buy and Seller agrees to sell the real property with all improvements, fixtures, and appurtenances thereon or incidental thereto, plus the personal property described herein (collectively the “Premises”).

Premises Address: Assessor’s #:

City: County: AZ, Zip Code:

Legal Description:

$ Full Purchase Price, paid as outlined below

$ Earnest Money

$

$

Earnest Money is in the form of: Personal Check Wire Transfer Other Upon acceptance of this offer, the Earnest Money, if any, will be deposited with: Escrow Company Broker’s Trust Account.

IF THIS IS AN ALL CASH SALE: A Letter of Credit or a source of funds from a financial institution documenting the availability of funds to close escrow is attached hereto.

Close of Escrow: Close of Escrow (“COE”) shall occur when the deed is recorded at the appropriate county recorder’s office. Buyer and Seller shall comply with all terms and conditions of this Contract, execute and deliver to Escrow Company all closing documents, and perform all other acts necessary in sufficient time to allow COE to occur on

, 20 (“COE Date”). If Escrow Company or recorder’s office is closed on the COE Date,MONTH DAY YEAR

COE shall occur on the next day that both are open for business.

Buyer shall deliver to Escrow Company a cashier’s check, wired funds or other immediately available funds to pay any down payment, additional deposits or Buyer’s closing costs, and instruct the lender, if applicable, to deliver immediately available funds to Escrow Company, in a sufficient amount and in sufficient time to allow COE to occur on the COE Date.

Buyer acknowledges that failure to pay the required closing funds by the scheduled COE, if not cured after a cure notice is delivered pursuant to Section 7a, shall be construed as a material breach of this Contract and the Earnest Money shall be subject to forfeiture.

All funds are to be in U.S. currency.

Possession: Seller shall deliver possession, occupancy, existing keys and/or means to operate all locks, mailbox, security system/alarms, and all common area facilities to Buyer at COE or . Broker(s) recommend that the parties seek independent counsel from insurance, legal, tax, and accounting professionals regarding the risks of pre-possession or post-possession of the Premises.

Addenda Incorporated: Additional Clause Buyer Contingency Domestic Water Well H.O.A. Lead-Based Paint Disclosure Loan Assumption On-site Wastewater Treatment Facility Seller Financing Short Sale Other:

Document updated: February 2017

RESIDENTIAL RESALE REAL ESTATEPURCHASE CONTRACT

Page 1 of 10

1a.

1b.

1c.

1d.

1e.

1f.

1.

2.

3.4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.18.

19.20.

21.22.23.

24.

25.

26.27.28.

29.30.

31.

32.33.34.35.

36.37.

38.


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Residential Resale Real Estate Purchase Contract >>

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Fixtures and Personal Property: For purposes of this Contract, fixtures shall mean property attached/affixed to the Premises. Seller agrees that all existing: fixtures on the Premises, personal property specified herein, and means to operate fixtures and property (i.e.- remote controls) shall convey in this sale. Including the following:

If owned by Seller, the following items also are included in this sale:

Additional existing personal property included in this sale (if checked): refrigerator (description):

washer (description): dryer (description): above-ground spa/hot tub including equipment, covers, and any mechanical or other cleaning systems (description):

other personal property not otherwise addressed (description): other personal property not otherwise addressed (description):

Additional existing personal property included shall not be considered part of the Premises and shall be transferred with no monetary value, and free and clear of all liens or encumbrances.

Leased items shall NOT be included in this sale. Seller shall deliver notice of all leased items within three (3) days after Contract acceptance. Buyer shall provide notice of any leased items disapproved within the Inspection Period or five (5) days after receipt of the notice, whichever is later.

IF THIS IS AN ALL CASH SALE: Section 2 does not apply - go to Section 3.

2. FINANCING

Pre-Qualification: An AAR Pre-Qualification Form is attached hereto and incorporated herein by reference.

Loan Contingency: Buyer’s obligation to complete this sale is contingent upon Buyer obtaining loan approval without Prior to Document (“PTD”) conditions no later than three (3) days prior to the COE Date for the loan described in the AAR Loan Status Update (“LSU”) form or the AAR Pre-Qualification Form, whichever is delivered later. No later than three (3) days prior to the COE Date, Buyer shall either: (i) sign all loan documents; or (ii) deliver to Seller or Escrow Company notice of loan approval without PTD conditions AND date(s) of receipt of Closing Disclosure(s) from Lender; or (iii) deliver to Seller or Escrow Company notice of inability to obtain loan approval without PTD conditions.

Unfulfilled Loan Contingency: This Contract shall be cancelled and Buyer shall be entitled to a return of the Earnest Money if after diligent and good faith effort, Buyer is unable to obtain loan approval without PTD conditions and delivers notice of inability to obtain loan approval no later than three (3) days prior to the COE Date. If Buyer fails to deliver such notice, Seller may issue a cure notice to Buyer as required by Section 7a and, in the event of Buyer’s breach, Seller shall be entitled to the Earnest Money pursuant to Section 7b. If, prior to expiration of any Cure Period, Buyer delivers notice of inability to obtain loan approval, Buyer shall be entitled to a return of the Earnest Money. Buyer acknowledges that prepaid items paid separately from the Earnest Money are not refundable.

Interest Rate / Necessary Funds: Buyer agrees that (i) the inability to obtain loan approval due to the failure to lock the interest rate and “points” by separate written agreement with the lender; or (ii) the failure to have the down payment or other funds due from Buyer necessary to obtain the loan approval without conditions and close this transaction is not an unfulfilled loan contingency.

Loan Status Update: Buyer shall deliver to Seller the LSU, with at a minimum lines 1-40 completed, describing the current status of the Buyer’s proposed loan within ten (10) days after Contract acceptance and instruct lender to provide an updated LSU to Broker(s) and Seller upon request.

39.40.41.42.43.44.45.46.47.48.49.50.

51.52.53.54.

55.56.57.58.59.

60.61.62.

63.64.

65.66.67.

68.

69.

70.71.72.73.74.75.

76.77.78.79.80.81.82.

83.84.85.86.

87. 88.89.

1g.

2a.

2b.

2c.

2d.

2e.

• built-in appliances• ceiling fans and remote controls• central vacuum, hose, and attachments• draperies and other window coverings• fireplace equipment (affixed)• floor coverings (affixed)• free-standing range/oven• garage door openers and remotecontrols

• light fixtures• mailbox• media antennas/satellite dishes (affixed)• outdoor fountains and lighting• outdoor landscaping (i.e. – shrubbery,trees and unpotted plants)

• shutters and awnings• speakers (flush-mounted)• storage sheds

• storm windows and doors• stoves: gas-log, pellet, wood-burning• timers (affixed)• towel, curtain and drapery rods• wall mounted TV brackets and hardware(excluding TVs)

• water-misting systems• window and door screens, sun shades

• affixed alternate power systems servingthe Premises (i.e. – solar)

• in-ground pool and spa/hot tub equipmentand covers (including any mechanical orother cleaning systems)

• security and/or fire systems and/or alarms• water purification systems• water softeners


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Loan Application: Unless previously completed, within three (3) days after Contract acceptance Buyer shall (i) provide lender with Buyer’s name, income, social security number, Premises address, estimate of value of the Premises, and mortgage loan amount sought; and (ii) grant lender permission to access Buyer’s Trimerged Residential Credit Report.

Loan Processing During Escrow: Within ten (10) days after receipt of the Loan Estimate Buyer shall (i) provide lender with notice of intent to proceed with the loan transaction in a manner satisfactory to lender; and (ii) provide to lender all requested signed disclosures and the documentation listed in the LSU at lines 32-35. Buyer agrees to diligently work to obtain the loan and will promptly provide the lender with all additional documentation requested.

Type of Financing: Conventional FHA VA USDA Assumption Seller Carryback (If financing is to be other than new financing, see attached addendum.)

Loan Costs: All costs of obtaining the loan shall be paid by Buyer, unless otherwise provided for herein.

Seller Concessions (if any): In addition to the other costs Seller has agreed to pay herein, Seller agrees to pay up to % of the Purchase Price OR up to $ to be used only for Buyer’s loan costs, impounds, Title/Escrow Company costs, recording fees, and, if applicable, VA loan costs not permitted to be paid by Buyer.

Changes: Buyer shall immediately notify Seller of any changes in the loan program, financing terms, or lender described in the Pre-Qualification Form attached hereto or LSU provided within ten (10) days after Contract acceptance and shall only make any such changes without the prior written consent of Seller if such changes do not adversely affect Buyer’s ability to obtain loan approval without PTD conditions, increase Seller’s closing costs, or delay COE.

Appraisal Contingency: Buyer’s obligation to complete this sale is contingent upon an appraisal of the Premises acceptable to lender for at least the purchase price. If the Premises fail to appraise for the purchase price in any appraisal required by lender, Buyer has five (5) days after notice of the appraised value to cancel this Contract and receive a return of the Earnest Money or the appraisal contingency shall be waived, unless otherwise prohibited by federal law.

Appraisal Cost(s): Initial appraisal fee shall be paid by Buyer Seller Other

at the time payment is required by lender and is non-refundable. If Seller is paying the initial appraisal fee, the fee will will not be applied against Seller’s Concessions at COE, if applicable. If Buyer’s lender requires an updated appraisal prior to COE, it will be performed at Buyer’s expense. Any appraiser/lender required inspection cost(s) shall be paid for by Buyer.

3. TITLE AND ESCROW

Escrow: This Contract shall be used as escrow instructions. The Escrow Company employed by the parties to carry out the terms of this Contract shall be:

ESCROW/TITLE COMPANY

ADDRESS CITY STATE ZIP

EMAIL PHONE FAX

Title and Vesting: Buyer will take title as determined before COE. If Buyer is married and intends to take title as his/her sole and separate property, a disclaimer deed may be required. Taking title may have significant legal, estate planning and tax consequences. Buyer should obtain independent legal and tax advice.

Title Commitment and Title Insurance: Escrow Company is hereby instructed to obtain and deliver to Buyer and Seller directly, addressed pursuant to 8s and 9c or as otherwise provided, a Commitment for Title Insurance together with complete and legible copies of all documents that will remain as exceptions to Buyer’s policy of Title Insurance (“Title Commitment”), including but not limited to Conditions, Covenants and Restrictions (“CC&Rs”); deed restrictions; and easements. Buyer shall have five (5) days after receipt of the Title Commitment and after receipt of notice of any subsequent exceptions to provide notice to Seller of any items disapproved. Seller shall convey title by warranty deed, subject to existing taxes, assessments, covenants, conditions, restrictions, rights of way, easements and all other matters of record. Buyer shall be provided at Seller’s expense an American Land Title Association (“ALTA”) Homeowner’s Title Insurance Policy or, if not available, a Standard Owner’s Title Insurance Policy, showing title vested in Buyer. Buyer may acquire extended coverage at Buyer’s own additional expense. If applicable, Buyer shall pay the cost of obtaining the ALTA Lender Title Insurance Policy.

90.91.92.

93.94.95.96.

97.98.

99.

100.101.102.

103.104.105.106.

107.108.109.110.

111.

112.113.114.

115.116.

117.

118.

119.

120.121.122.

123.124.125.126.127.128.129.130.131.132.

2f.

2g.

2h.

2i.

2j.

2k.

2l.

2m.

3a.

3b.

3c.


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Additional Instructions: (i) Escrow Company shall promptly furnish notice of pending sale that contains the name and address of Buyer to any homeowner’s association(s) in which the Premises are located. (ii) If Escrow Company is also acting as the title agency but is not the title insurer issuing the title insurance policy, Escrow Company shall deliver to Buyer and Seller, upon deposit of funds, a closing protection letter from the title insurer indemnifying Buyer and Seller for any losses due to fraudulent acts or breach of escrow instructions by Escrow Company. (iii) All documents necessary to close this transaction shall be executed promptly by Seller and Buyer in the standard form used by Escrow Company. Escrow Company shall modify such documents to the extent necessary to be consistent with this Contract. (iv) Escrow Company fees, unless otherwise stated herein, shall be allocated equally between Seller and Buyer. (v) Escrow Company shall send to all parties and Broker(s) copies of all notices and communications directed to Seller, Buyer and Broker(s). (vi) Escrow Company shall provide Broker(s) access to escrowed materials and information regarding the escrow. (vii) If an Affidavit of Disclosure is provided, Escrow Company shall record the Affidavit at COE.

Tax Prorations: Real property taxes payable by Seller shall be prorated to COE based upon the latest tax information available.

Release of Earnest Money: In the event of a dispute between Buyer and Seller regarding any Earnest Money deposited with Escrow Company, Buyer and Seller authorize Escrow Company to release the 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 kind, and from any loss, judgment, or expense, including costs and attorney fees, arising from or relating in any way to the release of the Earnest Money.

Prorations of Assessments and Fees: All assessments and fees that are not a lien as of COE, including homeowner’s association fees, rents, irrigation fees, and, if assumed, insurance premiums, interest on assessments, interest on encumbrances, and service contracts, shall be prorated as of COE or Other:

Assessment Liens: The amount of any assessment lien or bond including those charged by a special taxing district, such as a Community Facilities District, shall be prorated as of COE.

4. DISCLOSURE

Seller’s Property Disclosure Statement (“SPDS”): Seller shall deliver a completed AAR Residential SPDS form to Buyer within three (3) days after Contract acceptance. Buyer shall provide notice of any SPDS items disapproved within the Inspection Period or five (5) days after receipt of the SPDS, whichever is later.

Insurance Claims History: Seller shall deliver to Buyer a written five (5) year insurance claims history regarding the Premises (or a claims history for the length of time Seller has owned the Premises if less than five (5) years) from Seller’s insurance company or an insurance support organization or consumer reporting agency, or if unavailable from these sources, from Seller, within five (5) days after Contract acceptance. Buyer shall provide notice of any items disapproved within the Inspection Period or five (5) days after receipt of the claims history, whichever is later.

Foreign Sellers: The Foreign Investment in Real Property Tax Act (“FIRPTA”) is applicable if Seller is a non-resident alien individual, foreign corporation, foreign partnership, foreign trust, or foreign estate (“Foreign Person”). Seller agrees to complete, sign, and deliver to Escrow Company a certificate indicating whether Seller is a Foreign Person. FIRPTA requires that a foreign seller may have federal income taxes up to 15% of the purchase price withheld, unless an exception applies. Seller is responsible for obtaining independent legal and tax advice.

Lead-Based Paint Disclosure: If the Premises were built prior to 1978, Seller shall: (i) notify Buyer of any known lead-based paint (“LBP”) or LBP hazards in the Premises; (ii) provide Buyer with any LBP risk assessments or inspections of the Premises in Seller’s possession; (iii) provide Buyer with the Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards, and any report, records, pamphlets, and/or other materials referenced therein, including the pamphlet “Protect Your Family from Lead in Your Home” (collectively “LBP Information”). Buyer shall return a signed copy of the Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards to Seller prior to COE.

LBP Information was provided prior to Contract acceptance and Buyer acknowledges the opportunity to conduct LBP risk assessments or inspections during Inspection Period.

Seller shall provide LBP Information within five (5) days after Contract acceptance. Buyer may within ten (10) daysor days after receipt of the LBP Information conduct or obtain a risk assessment or inspection of the Premises for the presence of LBP or LBP hazards (“Assessment Period”). Buyer may within five (5) days after receipt of the LBP Information or five (5) days after expiration of the Assessment Period cancel this Contract.

Buyer is further advised to use certified contractors to perform renovation, repair or painting projects that disturb lead-based paint in residential properties built before 1978 and to follow specific work practices to prevent lead contamination.

If Premises were constructed prior to 1978, (BUYER’S INITIALS REQUIRED) BUYER BUYER

If Premises were constructed in 1978 or later, (BUYER’S INITIALS REQUIRED) BUYER BUYER

133.134.135.136.137.138.139.140.141.142.

143.

144.145.146.147.148.

149.150.151.

152.153.

154.155.156.

157.158.159.160.161.

162.163.164.165.166.

167. 168.169.170.171.172.

173.174.

175.176.177.178.

179. 180.

181.

182.

3d.

3e.

3f.

3g.

3h.

4a.

4b.

4c.

4d.


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Affidavit of Disclosure: If the Premises are located in an unincorporated area of the county, and five (5) or fewer parcels of property other than subdivided property are being transferred, Seller shall deliver a completed Affidavit of Disclosure in the form required by law to Buyer within five (5) days after Contract acceptance. Buyer shall provide notice of any Affidavit of Disclosure items disapproved within the Inspection Period or five (5) days after receipt of the Affidavit of Disclosure, whichever is later.

Changes During Escrow: Seller shall immediately notify Buyer of any changes in the Premises or disclosures made herein, in the SPDS, or otherwise. Such notice shall be considered an update of the SPDS. Unless Seller is already obligated by this Contract or any amendments hereto, to correct or repair the changed item disclosed, Buyer shall be allowed five (5) days after delivery of such notice to provide notice of disapproval to Seller.

5. WARRANTIES

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. However, Seller shall maintain and repair the Premises so that at the earlier of possession or COE: (i) the Premises, including all personal property included in the sale, will be in substantially the same condition as on the date of Contract acceptance; and (ii) all personal property not included in the sale and debris will be removed from the Premises. Buyer is advised to conduct independent inspections and investigations regarding the Premises within the Inspection Period as specified in Section 6a. Buyer and Seller acknowledge and understand they may, but are not obligated to, engage in negotiations for repairs/improvements to the Premises. Any/all agreed upon repairs/improvements will be addressed pursuant to Section 6j.

Warranties that Survive Closing: Seller warrants that Seller has disclosed to Buyer and Broker(s) all material latent defects and any information concerning the Premises known to Seller, excluding opinions of value, which materially and adversely affect the consideration to be paid by Buyer. Prior to COE, Seller warrants that payment in full will have been made for all labor, professional services, materials, machinery, fixtures, or tools furnished within the 150 days immediately preceding COE in connection with the construction, alteration, or repair of any structure on or improvement to the Premises. Seller warrants that the information regarding connection to a sewer system or on-site wastewater treatment facility (conventional septic or alternative) is correct to the best of Seller’s knowledge.

Buyer Warranties: Buyer warrants that Buyer has disclosed to Seller any information that may materially and adversely affect Buyer’s ability to close escrow or complete the obligations of this Contract. At the earlier of possession of the Premises or COE, Buyer warrants to Seller that Buyer has conducted all desired independent inspections and investigations and accepts the Premises. Buyer warrants that Buyer is not relying on any verbal representations concerning the Premises except disclosed as follows:

6. DUE DILIGENCE

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 Buyer, it must be investigated by 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 to assist in Buyer’s due diligence inspections and investigations.

Square Footage: BUYER IS AWARE THAT ANY REFERENCE TO THE SQUARE FOOTAGE OF THE PREMISES, BOTH THE REAL PROPERTY (LAND) AND IMPROVEMENTS THEREON, IS APPROXIMATE. IF SQUARE FOOTAGE IS A MATERIAL MATTER TO BUYER, IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD.

Wood-Destroying Organism or Insect Inspection: IF CURRENT OR PAST WOOD-DESTROYING ORGANISMS OR INSECTS (SUCH AS TERMITES) ARE A MATERIAL MATTER TO BUYER, THESE ISSUES MUST BE INVESTIGATED DURING THE INSPECTION PERIOD. Buyer shall order and pay for all wood-destroying organism or insect inspections performed during the Inspection Period. If the lender requires an updated Wood-Destroying Organism or Insect Inspection Report prior to COE, it will be performed at Buyer’s expense.

Flood Hazard: FLOOD HAZARD DESIGNATIONS OR THE COST OF FLOOD HAZARD INSURANCE SHALL BE DETERMINED BY BUYER DURING THE INSPECTION PERIOD. If the Premises are situated in an area identified as having any special flood hazards by any governmental entity, THE LENDER MAY REQUIRE THE PURCHASE OF FLOOD HAZARD INSURANCE. Special flood hazards may also affect the ability to encumber or improve the Premises.

4e.

4f.

5a.

5b.

5c.

6a.

6b.

6c.

6d.

183.184.185.186.

187.188.189.190.

191.192.193.194.195.196.197.198.199.

200.201.202.203.204.205.206.

207.208.209.210.

211.212.

213.214.215.216.217.218. 219.220.221.222.223.224.

225.226.227.

228.229.230. 231.232.

233.234.235.236.


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Insurance: IF HOMEOWNER’S INSURANCE IS A MATERIAL MATTER TO BUYER, BUYER SHALL APPLY FOR AND OBTAIN WRITTEN CONFIRMATION OF THE AVAILABILITY AND COST OF HOMEOWNER’S INSURANCE FOR THE PREMISES FROM BUYER’S INSURANCE COMPANY DURING THE INSPECTION PERIOD. Buyer understands that any homeowner’s, fire, casualty, flood or other insurance desired by Buyer or required by lender should be in place at COE.

Sewer or On-site Wastewater Treatment System: The Premises are connected to a: sewer system conventional septic system alternative system

IF A SEWER CONNECTION IS A MATERIAL MATTER TO BUYER, IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD. If the Premises are served by a conventional septic or alternative system, the AAR On-site Wastewater Treatment Facility Addendum is incorporated herein by reference.

(BUYER’S INITIALS REQUIRED) BUYER BUYER

Swimming Pool Barrier Regulations: During the Inspection Period, Buyer agrees to investigate all applicable state, county, and municipal Swimming Pool barrier regulations and agrees to comply with and pay all costs of compliance with said regulations prior to occupying the Premises, unless otherwise agreed in writing. If the Premises contains a Swimming Pool, Buyer acknowledges receipt of the Arizona Department of Health Services approved private pool safety notice.


BUYER ACKNOWLEDGMENT: BUYER RECOGNIZES, ACKNOWLEDGES, AND AGREES THAT BROKER(S) ARE NOT QUALIFIED, NOR LICENSED, TO CONDUCT DUE DILIGENCE WITH RESPECT TO THE PREMISES OR THE SURROUNDING AREA. BUYER IS INSTRUCTED TO CONSULT WITH QUALIFIED LICENSED PROFESSIONALS TO ASSIST IN BUYER’S DUE DILIGENCE EFFORTS. BECAUSE CONDUCTING DUE DILIGENCE WITH RESPECT TO THE PREMISES AND THE SURROUNDING AREA IS BEYOND THE SCOPE OF BROKER’S EXPERTISE AND LICENSING, BUYER EXPRESSLY RELEASES AND HOLDS HARMLESS BROKER(S) FROM LIABILITY FOR ANY DEFECTS OR CONDITIONS THAT COULD HAVE BEEN DISCOVERED BY INSPECTION OR INVESTIGATION.


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.

Buyer Disapproval: If Buyer, in Buyer’s sole discretion, disapproves of items as allowed herein, Buyer shall deliver to Seller a signed notice of the items disapproved and state in the notice that Buyer elects to either:

(1) Immediately cancel this Contract, in which case:

(a) If Buyer’s notice specifies disapproval of items as allowed herein, the Earnest Money shall be released to Buyer.

(b) If Buyer’s notice fails to specify items disapproved as allowed herein, the cancellation will remain in effect but Buyer hasfailed to comply with a provision of this Contract and Seller may deliver to Buyer a cure notice as required by Section 7a. If Buyer fails to cure their non-compliance within three (3) days after delivery of such notice, Buyer shall be in breach and Seller shall be entitled to the Earnest Money. If, prior to expiration of the Cure Period, Buyer delivers notice specifying items disapproved as allowed herein, Buyer shall be entitled to a return of the Earnest Money.

OR

(2) Provide 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 itemsdisapproved. Seller’s failure to respond to Buyer in writing within the specified time period shall conclusively be deemedSeller’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 aworkmanlike manner and deliver any paid receipts evidencing the corrections and repairs to Buyer three (3) daysor days prior to the COE Date.

(c) If Seller is unwilling or unable to correct any of the items disapproved, Buyer may cancel this Contract within five (5) daysafter delivery of Seller’s response or after expiration of the time for Seller’s response, whichever occurs first, and theEarnest 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.

VERBAL DISCUSSIONS WILL NOT EXTEND THESE TIME PERIODS. Only a written agreement signed by both parties will extend response times or cancellation rights.

BUYER’S FAILURE TO GIVE NOTICE OF DISAPPROVAL OF ITEMS OR CANCELLATION OF THIS CONTRACT WITHIN THE SPECIFIED TIME PERIOD SHALL CONCLUSIVELY BE DEEMED BUYER’S ELECTION TO PROCEED WITH THE TRANSACTION WITHOUT CORRECTION OF ANY DISAPPROVED ITEMS.

6e.

6f.

6g.

6h.

6i.

6j.

237.238.239.240.

241.242.

243.244.245.

246.

247.248.249.250.

251.

252.253.254.255.256.257.258.

259.

260.261.262.263.

264.265.266.

267.

268.269.270.271.272.

273.

274.

275.276.277.

278.279.280.

281.282.283.284.

285.286.

287.288.289.


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Page 7 of 10

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Home Warranty Plan: Buyer and Seller are advised to investigate the various home warranty plans available for purchase. The parties acknowledge that different home warranty plans have different coverage options, exclusions, limitations, service fees and most plans exclude pre-existing conditions.

A Home Warranty Plan will be ordered by Buyer or Seller with the following optional coverage , to be issued by

not to exceed $ , to be paid for by Buyer Seller at a cost

Split evenly between Buyer and Seller Buyer declines the purchase of a Home Warranty Plan.


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 Seller have been completed, and the Premises are 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.

Seller’s Responsibility Regarding Inspections and Walkthrough(s): Seller shall make the Premises available for all inspections and walkthrough(s) upon reasonable notice by Buyer. Seller shall, at Seller’s expense, have all utilities on, including any propane, until COE to enable Buyer to conduct these inspections and walkthrough(s).

IRS and FIRPTA Reporting: The Foreign Investment in Real Property Tax Act (“FIRPTA”) provides that, if a seller is a Foreign Person, a buyer of residential real property must withhold federal income taxes up to 15% of the purchase price, unless an exception applies. If FIRPTA is applicable and Buyer fails to withhold, Buyer may be held liable for the tax. Buyer agrees to perform any acts reasonable or necessary to comply with FIRPTA and IRS reporting requirements and Buyer is responsible for obtaining independent legal and tax advice.

7. REMEDIES

Cure Period: A party shall have an opportunity to cure a potential breach of this Contract. If a party fails to comply with any provision of this Contract, the other party shall deliver a notice to the non-complying party specifying the non-compliance. If the non-compliance is not cured within three (3) days after delivery of such notice (“Cure Period”), the failure to comply shall become a breach of Contract. If Escrow Company or recorder’s office is closed on the last day of the Cure Period, and COE must occurto cure a potential breach, COE shall occur on the next day that both are open for business.

Breach: In the event of a breach of Contract, the non-breaching party may cancel this Contract and/or proceed against the breaching party in any claim or remedy that the non-breaching party may have in law or equity, subject to the Alternative Dispute Resolution obligations set forth herein. In the case of Seller, because it would be difficult to fix actual damages in the event of Buyer’s breach, the Earnest Money may be deemed a reasonable estimate of damages and Seller may, at Seller’s option, accept the Earnest Money as Seller’s sole right to damages; and in the event of Buyer’s breach arising from Buyer’s failure to deliver the notice required by Section 2b, or Buyer’s inability to obtain loan approval due to the waiver of the appraisal contingency pursuant to Section 2l, Seller shall exercise this option and accept the Earnest Money as Seller’s sole right to damages. An unfulfilled contingency is not a breach of Contract. The parties expressly agree that the failure of any party to comply with the terms and conditions of Section 1d to allow COE to occur on the COE Date, if not cured after a cure notice is delivered pursuant to Section 7a, will constitute a material breach of this Contract, rendering the Contract subject to cancellation.

Alternative Dispute Resolution (“ADR”): Buyer and Seller agree to mediate any dispute or claim arising out of or relating to this Contract in accordance with the REALTORS® Dispute Resolution System, or as otherwise agreed. All mediation costs shall be paid equally by the parties. In the event that mediation does not resolve all disputes or claims, the unresolved disputes or claims shall be submitted for binding arbitration. In such event, the parties shall agree upon an arbitrator and cooperate in the scheduling of an arbitration hearing. If the parties are unable to agree on an arbitrator, the dispute shall be submitted to the American Arbitration Association (“AAA”) in accordance with the AAA Arbitration Rules for the Real Estate Industry. The decision of the arbitrator shall be final and nonappealable. Judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction. Notwithstanding the foregoing, either party may opt out of binding arbitration within thirty (30) days after the conclusion of the mediation conference by notice to the other and, in such event, either party shall have the right to resort to court action.

Exclusions from ADR: The following matters are excluded from the requirement for ADR hereunder: (i) any action brought in the Small Claims Division of an Arizona Justice Court (up to $3,500) so long as the matter is not thereafter transferred or removed from the small claims division; (ii) judicial or nonjudicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or agreement for sale; (iii) an unlawful entry or detainer action; (iv) the filing or enforcement of a mechanic’s lien; or (v) any matter that is within the jurisdiction of a probate court. Further, the filing of a judicial action to enable the recording of a notice of pending action (“lis pendens”), or order of attachment, receivership, injunction, or other provisional remedies shall not constitute a waiver of the obligation to submit the claim to ADR, nor shall such action constitute a breach of the duty to mediate or arbitrate.

Attorney Fees and Costs: The prevailing party in any dispute or claim between Buyer and Seller arising out of or relating to this Contract shall be awarded their reasonable attorney fees and costs. Costs shall include, without limitation, attorney fees, expert witness fees, fees paid to investigators, and arbitration costs.

6k.

6l.

6m.

6n.

7a.

7b.

7c.

7d.

7e.

290.291.292.

293.

294.295.296.

297.

298.299.300.301.

302.303.304.

305.306.307.308.309.

310.311.312. 313.314.

315. 316.317.318.319.320.321.322.323.324.

325.326.327.328.329.330.331.332.333.

334.335.336.337.338.339.340.

341.342.343.


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Page 8 of 10

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8. ADDITIONAL TERMS AND CONDITIONS8a. 344.

345.

346.

347.

348.

349.

350.

351.

352.

353.

354.

355.

356.

357.

358.

359.

360.

361.

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374.

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381.

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Page 9 of 10

Risk of Loss: If there is any loss or damage to the Premises between the date of Contract acceptance and COE or possession, whichever is earlier, by reason of fire, vandalism, flood, earthquake, or act of God, the risk of loss shall be on Seller, provided, however, that if the cost of repairing such loss or damage would exceed ten percent (10%) of the purchase price, either Seller or Buyer may elect to cancel the Contract.

Permission: Buyer and Seller grant Broker(s) permission to advise the public of this Contract.

Arizona Law: This Contract shall be governed by Arizona law and jurisdiction is exclusively conferred on the State of Arizona.

Time is of the Essence: The parties acknowledge that time is of the essence in the performance of the obligations described herein.

Compensation: Seller and Buyer acknowledge that Broker(s) shall be compensated for services rendered as previously agreed by separate written agreement(s), which shall be delivered by Broker(s) to Escrow Company for payment at COE, if not previously paid. If Seller is obligated to pay Broker(s), this Contract shall constitute an irrevocable assignment of Seller’s proceeds at COE. If Buyer is obligated to pay Broker(s), payment shall be collected from Buyer as a condition of COE. COMMISSIONS PAYABLE FOR THE SALE, LEASING, OR MANAGEMENT OF PROPERTY ARE NOT SET BY ANY BOARD OR ASSOCIATION OF REALTORS®, OR MULTIPLE LISTING SERVICE, OR IN ANY MANNER OTHER THAN BETWEEN BROKER AND CLIENT.

Copies and Counterparts: A fully executed facsimile or electronic copy of the Contract shall be treated as an original Contract. This Contract and any other documents required by this Contract may be executed by facsimile or other electronic means and in any number of counterparts, which shall become effective upon delivery as provided for herein, except that the Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards may not be signed in counterpart. All counterparts shall be deemed to constitute one instrument, and each counterpart shall be deemed an original.

Days: All references to days in this Contract shall be construed as calendar days and a day shall begin at 12:00 a.m. and end at 11:59 p.m.

Calculating Time Periods: In computing any time period prescribed or allowed by this Contract, the day of the act or event from which the time period begins to run is not included and the last day of the time period is included. Contract acceptance occurs on the date that the signed Contract (and any incorporated counter offer) is delivered to and received by the appropriate Broker. Acts that must be performed three (3) days prior to the COE Date must be performed three (3) full days prior (i.e. – if the COE Date is Friday the act must be performed by 11:59 p.m. on Monday).

Entire Agreement: This Contract, and any addenda and attachments, shall constitute the entire agreement between Seller and Buyer, shall supersede any other written or oral agreements between Seller and Buyer and can be modified only by a writing signed by Seller and Buyer. The failure to initial any page of this Contract shall not affect the validity or terms of this Contract.

Subsequent Offers: Buyer acknowledges that Seller has the right to accept subsequent offers until COE. Seller understands that any subsequent offer accepted by Seller must be a backup offer contingent on the cancellation of this Contract.

Cancellation: A party who wishes to exercise the right of cancellation as allowed herein may cancel this Contract by delivering notice stating the reason for cancellation to the other party or to Escrow Company. Cancellation shall become effective immediately upon delivery of the cancellation notice.

Notice: Unless otherwise provided, delivery of all notices and documentation required or permitted hereunder shall be in writing and deemed delivered and received when: (i) hand-delivered; (ii) sent via facsimile transmission; (iii) sent via electronic mail, if email addresses are provided herein; or (iv) sent by recognized overnight courier service, and addressed to Buyer as indicated in Section 8q, to Seller as indicated in Section 9a and to Escrow Company indicated in Section 3a.

Release of Broker(s): Seller and Buyer hereby expressly release, hold harmless and indemnify Broker(s) in this transaction from any and all liability and responsibility regarding financing, the condition, square footage, lot lines, boundaries, value, rent rolls, environmental problems, sanitation systems, roof, wood infestation, building codes, governmental regulations, insurance, price and terms of sale, return on investment or any other matter relating to the value or condition of the Premises. The parties understand and agree that Broker(s) do not provide advice on property as an investment and are not qualified to provide financial, legal, or tax advice regarding this real estate transaction.

(SELLER’S INITIALS REQUIRED) (BUYER’S INITIALS REQUIRED) SELLER SELLER BUYER BUYER

Terms of Acceptance: This offer will become a binding Contract when acceptance is signed by Seller and a signed copy delivered in person, by mail, facsimile or electronically, and received by Broker named in Section 8q by , at a.m./p.m., Mountain Standard Time. Buyer may withdraw this offer at any time prior to receipt of Seller’s signed acceptance. If no signed acceptance is received by this date and time, this offer shall be deemed withdrawn and Buyer’s Earnest Money shall be returned.

THIS CONTRACT CONTAINS TEN (10) PAGES EXCLUSIVE OF ANY ADDENDA AND ATTACHMENTS. PLEASE ENSURE THAT YOU HAVE RECEIVED AND READ ALL TEN (10) PAGES OF THIS OFFER AS WELL AS ANY ADDENDA AND ATTACHMENTS.

>>

8b.

8c.

8d.

8e.

8f.

8g.

8h.

8i.

8j.

8k.

8l.

8m.

8n.

8o.

8p.

390.391.392.393.

394.

395.

396.397.

398.399.400.401.402.403.

404.405.406.407.408.

409.410.

411.412.413.414.415.

416.417.418.

419.420.

421.422.423.

424.425.426.427.

428.429.430.431.432. 433.

434.

435. 436. 437. 438. 439.

440. 441. 442.


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Broker on behalf of Buyer:

PRINT AGENT’S NAME AGENT MLS CODE AGENT STATE LICENSE NO.


PRINT FIRM NAME FIRM MLS CODE

FIRM ADDRESS STATE ZIP CODE FIRM STATE LICENSE NO.

PREFERRED TELEPHONE FAX EMAIL

Agency Confirmation: Broker named in Section 8q above is the agent of (check one): Buyer; Seller; or both Buyer and Seller

The undersigned agree to purchase the Premises on the terms and conditions herein stated and acknowledge receipt of a copy hereof including the Buyer Attachment.

^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR

^ BUYER’S NAME PRINTED BUYER’S NAME PRINTED

ADDRESS ADDRESS

CITY, STATE, ZIP CODE CITY, STATE, ZIP CODE

9. SELLER ACCEPTANCE

Broker on behalf of Seller:



PRINT FIRM NAME FIRM MLS CODE

FIRM ADDRESS STATE ZIP CODE FIRM STATE LICENSE NO.

PREFERRED TELEPHONE FAX EMAIL

Agency Confirmation: Broker named in Section 9a above is the agent of (check one): Seller; or both Buyer and Seller

The undersigned agree to sell the Premises on the terms and conditions herein stated, acknowledge receipt of a copy hereof and grant permission to Broker named in Section 9a to deliver a copy to Buyer.

Counter Offer is attached, and is incorporated herein by reference. Seller must sign and deliver both this offer and the Counter Offer. If there is a conflict between this offer and the Counter Offer, the provisions of the Counter Offer shall be controlling.

SELLER’S SIGNATURE MO/DA/YR ^ SELLER’S SIGNATURE MO/DA/YR

SELLER’S NAME PRINTED ^ SELLER’S NAME PRINTED

ADDRESS ADDRESS

CITY, STATE, ZIP CODE CITY, STATE, ZIP CODE

OFFER REJECTED BY SELLER: , 20MONTH DAY YEAR (SELLER’S INITIALS)

Page 10 of 10


8q.

8r.

8s.

9a.

9b.

9c.

443.

444.

445.

446.

447.

448.

449.450.

451.452.

453.

454.

455.

456.

457.

458.

459.

460.

461.

462.

463.464.

465.466.

467.468.

469.

470.

471.

472.

473.

Credit Report FeeAssessed by the lender for a required credit report from a credit bureau.

DeedA document which, when properly executed and delivered, conveys title of real property.

DisclosureTo make known or public. When dealing with real property, all disclosures should be made in writing.

Discount PointsA negotiable fee paid to the lender to secure financing for the buyer. Discount points are upfront interest charges to reduce the interest rate on the loan over the life, or portion, of the loan's term. One discount point equals one percent of the loan amount.

Earnest MoneyMoney deposited by a buyer as evidence of good faith.

EncumbranceAnything that effects or limits the ownership of real property, such as mortgages, liens, easements or restrictions of any kind.

Escrow FeeCharges by the title company to service the transaction and to escrow money and documents, usually paid by the buyer.

Escrow The deposit of documents and funds with instructions to a neutral third party to carry out the provisions of an agreement or contract.

AgencyA legal relationship in which someone (principal) hires some-one else (agent) to represent them to a third party.

Application FeeA fee to cover some of the charges of the loan process.

Appraisal FeeA fee charged by the lender for an appraisal.

Assessed ValueThe value placed on property by the County Assessor as a basis for taxation.

Balloon PaymentAn instance in which the final installment payment on a note is greater than the preceding payments, and pays the note in full.

Chain of TitleA history of conveyances and encumbrances affecting the title of real property.

Conventional MortgageA mortgage securing a loan made by investors without govern-ment underwriting, which is not FHA insured or VA guaran-teed.

Convey or ConveyanceProcess of transferring ownership of property from one person to another.

Courier FeeCharges for delivery.


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G L O S S A R Y O F T E R M S

SurveySurvey of property required by the lender or title insurer. Survey will show lot size, easements, any encroachments, locations of improvements, etc.

Tax Service FeesRequired by the lender for collection and disbursement of taxes by a servicing company.

Termite Inspection(Wood Infestation)Required by buyer or lender to show property is free and clear of active termites and any wood destroying insects.

Title PolicyInsurance policy of the ownership of real propertyagainst defects in title.

Title Means ownership in dealing with real property.

Underwriting FeeCharges by the lender to underwrite a loan.

VA Funding FeeVeteran's Administration charge for originating a VA loan.

Warehouse FeeCharged by the lender to hold the loan locally before selling it in the secondary mortgage market to an investor.

ZoningAct of city authorities specifying type of use for property.

Fair Market ValueThe price at which a willing seller would sell and a willing buyer would buy, neither being under abnormal pressure.

Loan Origination FeeNormally 1% of the loan amount, charged by thelender to the buyer.

MortgageA legal document that provides security for repayment of a promissory note.

Mortgage Title PolicyRequired by lenders to ensure a valid lien. It does not protect the buyer. Also required for 2nd mortgages.

Owner's Title PolicyInsures the buyer against loss due to any defects of the title not excepted to or excluded from the policy.

PointsPaid by the buyer or seller. One point is equal to one percent of the loan amount.

PrincipalThe employer of an agent in an agency relationship.

Recording FeeCharged by the County Recorder to record documents in the public records.

Septic InspectionThe septic system must be certified by a state approved inspec-tor.


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G L O S S A R Y O F T E R M S


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N O T E S


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N O T E S

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N O T E S


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BUYING A HOME IN ARIZONA - Grand Canyon Title Agency

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