Documents required when buying a home in Arizona

Here is our next Installment in the Buying Process for Canadian Buyers.

Paperwork and documents can be daunting and time consuming, but necessary in protecting your investment in a home.

You don’t want to be ill prepared or misinformed when making a large investment, such as a home. You want to do everything possible to insure the home is in good condition and your rights to the property are protected.

To help prepare you for your home purchase we have summarized the meaning of the documents you will be receiving before you make an offer on a home and after your offer is accepted.

During the Buying Process you will be presented with several different documents to review. Some the seller will be required to produce to be in compliance with the Purchase Contract, and some will be required by the Lender if you are obtaining a loan.

All of the documents are designed to protect you, the Buyer in the purchase of your home here in Arizona.

Come prepared and know what to expect so you will have no surprises and can concentrate your time and energy on finding the perfect home in the perfect community.

Prior to Writing a Purchase Contract:

Real Estate Agency & Disclosure: Most states require Real Estate Agents to provide agency disclosure in a written explanation explaining to a client what role the broker will play in a transaction.

This document is to be signed by a prospective buyer or seller of real estate. The disclosure serves the purpose of explaining to the client whether the broker represents the buyer or seller (or both, as a dual agent) or a subagent.

Buyer Advisory: The Buyer Advisory will provide buyers with a wealth of information about issues that may be important in a real estate transaction. The Advisory is divided into three general sections: (1) common documents a buyer should review; (2) physical conditions in the property the buyer should investigate; and (3) conditions affecting the surrounding area that the buyer should investigate.

MLS Printout: A listing is an agreement between the seller and the listing broker and may authorize the broker to submit information to the Multiple Listing Service (“MLS”).

The MLS printout is similar to an advertisement. Neither the listing agreement nor the printout is a part of the purchase contract between the buyer and seller.

The information in the MLS printout was probably secured from the seller, the builder, or a governmental agency, and could be inaccurate, incomplete or an approximation. Therefore, the buyer should verify any important information contained in the MLS.

Making a Offer on a Home

Purchase Contract: Buyers should protect themselves by taking the time to read the Real Estate Purchase Contract and understand their legal rights and obligations before they submit an offer to buy a property.

During the Escrow Period

Many documents will be required during the escrow period. Keep in mind that these documents are designed to protect you; the Buyer.

HOA Addendum: A required document stating the current amount of HOA fees (including transfer fees) when the Arizona home is situated within a condominium or planned community which has a Home Owners Association Homeowner’s Association(HOA).

Title Report or Title Commitment: Many Canadian Buyers are surprised that they do not need to engage a Lawyer (unless they choose to do so) to purchase property in Arizona.

Instead, the Closing is handled by a Title Company. A Title Company is a neutral third party that works for both the buyer and the seller. They hold all monies and distribute it according to the instructions in the contract. Title Report or Title Commitment document is the instrument provided by the title agency as the “binding” instrument to insure the loan and/or the new owner of the property as to the prior owners’ acts against the property.

Home Warranty Policy: A home warranty may be part of the sale of the home. Buyers should read the home warranty document for coverage and limitation information. Be aware that pre-existing property conditions are generally not covered under these policies.

Professional Inspection Report: The importance of having a property inspected by a professional inspector cannot be over-emphasized. An inspection is a visual physical examination, performed for a fee, designed to identify material defects in the property. The inspector will generally provide the buyer with a report detailing information about the property’s condition.

Buyer’s Inspection Notice & Seller’s Response (BINSR): a document detailing the buyer’s request for repairs along with the seller’s response.

Lead Based Paint Disclosure: a document disclosing the presence or lead-based paint provided by the seller and signed by the buyer.

Termite Report: Termites are commonly found in some parts of Arizona. There is a provision placed into the Contract of Sale (Purchase Agreement) giving you, the buyer, a short time period within which to have the house inspected for wood destroying insects.

CLUE Report/Loss History Report (Comprehensive Loss Underwriting Exchange) a report detailing insurance history regarding home losses. he report is a history of any insurance claims made on the home. Lenders like to see it, and buyers like to see it, and insurers will almost certainly require it. Claim history is one indicator of home condition, and there is a strong correlation between previous claims and probability of future claims.

Cure Period Notice: is a three-day notice allowing one party to provide the other with a three-day extension for all dates/times listed within the real estate contract.

Final Walk Through: The final walk through is done prior closing to verify that nothing has materially changed since the home inspection, that the seller has completed any required repairs and has left the home in clean condition.

Loan Documents if not a cash purchase

Loan Status Report (LSR):is a standardized pre-approval letter a lender provides for purchasing residential real estate in Arizona. Prior to the creation of the Loan Status Report lenders would supply a pre-qualification letter that varied in content and quality of information. The LSR provides a form for information deemed important to both buyers and sellers of residential real estate.

Loan Status Update: a three-section document that provides updates on the buyer’s loan status report to all parties in the transaction.
Have questions? Want copies of the documents to review? Contact us here: 1-888-844-0001.

Read our Canadian Testimonials and/or U.S. Testimonials for more assurances..