COMMON DOCUMENTS A BUYER SHOULD REVIEW

These documents listed below may not be relevant in every transaction, nor is the list exhaustive.  Unless otherwise stated, the information contained in these documents should be verified by the buyer and/or your real estate agent.

MLS Printout:  A listing is an agreement between the seller and the listing agent and authorized the listing agent to submit information to the Multiple Listing Service ("MLS").  The MLS printout is similar to an advertisement and contains various abbreviation and symbols.  Neither the listing agreement nor the printout is a part of the purchase contract between the buyer and seller.  The printout contains a limited description of a property, such as its size, encumbrances, utilities, amenities, etc.  The information 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.  For more information, visit http://www.armls.com or http://www.tarmls.com.

The Public Report:  This report is required to be given to buyers by developers in a new home subdivision.  The purpose of this document is to point out material information about the development that a buyer might want to know when making a decision to purchase.  For example, the section of the Public Report entitled "Nuisances and Hazards" will disclose adjacent land uses that may be of concern.  The Public Report is prepared by the seller/builder, could be inaccurate, and should be verified.  Additional information about the Public Report may be found on the Arizona Department of Real Estate ("ADRE") website at http://www.re.state.az.us/checklist.html.

Seller's Property Disclosure Statement:  Most sellers provide a SPDS.  This document poses a variety of questions for the seller to answer about the property and its condition.  A buyer should carefully review the SPDS and verify those statements of concern.  A sample of the Arizona Association of REALTORS® ("AAR") SPDS may be found at http://www.aaronline.com/docs/spds_samp.pdf.

The ADRE advises: "Read the seller's property disclosure report, and check every item on it.  Ask to see receipts for repairs to the home.  Look behind large pictures on the wall and behind anything on the floor that conceals large areas of the wall.  Look for stains of the ceiling or carpets that might indicate water damage.  Read the purchase contract carefully to determine if there are any deadlines for challenging the seller's disclosure report or for having your own inspections conducted."      http://www.re.state.az.us/checklist.html.  Remember, your review of the SPDS is not a substitute for professional inspections.

Covenants, Conditions and Restrictions(CC&Rs):  The CC&Rs are recorded against the property and generally empower a homeowner's association to control certain aspects of property use within the development.  By purchasing a home in such development, the buyer agrees to be bound by the CC&Rs.  Thus, the CC&Rs form an enforceable contract.  The association, the homeowners as a whole, and individual homeowners can enforce the contract.  It is essential that the buyer review and agree to these restrictions prior to purchasing a home.  The ADRE advises: "Read the deed restrictions, also called CC&Rs (covenants, conditions and restrictions).  You might find some of the CC&Rs are very strict, especially those addressing landscaping, RV parking, play equipment, satellite antennas, and other common amenities-particularly if the subdivision is governed by a homeowner's association."  http://www.re.state.az.us/checklist.html   A short but informative document on the purpose and effect of CC&Rs may be read at http://www.realtor.com/BASICS/condos/ccr.asp    Buyers should consult legal counsel if uncertain of the application of particular provisions in the CC&Rs.

Homeowner's Association ("HOA") Governing Documents:  In addition to CC&Rs, HOA's may be governed by Articles of Incorporation, Bylaws, Rules and Regulations, and often architectural control standards.  The HOA is in place to enforce these rules and to preserve the value of homes in the condominium or planned community.  Condominium and planned community HOA's are also regulated by Arizona Statutes.  What makes a development a condominium or planned community?  Common area, that is, community ownership of real estate for use by community residents, is the common denominator.  In a condominium, the common property is actually deeded as undivided interest to the condominium owners.  In a planned community, the ownership of the common property vests in the homeowner's association.  For general information about HOA's, see the Community Association Institute website at  http://www.caionline.org/.

HOA Disclosures:  If purchasing a resale home in a condominium or planned community, the seller (if fewer than 50 units in the community) or the HOA (if there are 50 or more units) must provide the buyer with a disclosure containing a variety of information.  The disclosure should contain information regarding the principal contact for the association, assessments, the money held by the association as reserves and, if the statement is being furnished by the association, a statement as to whether the records of the association reflect any alterations or improvements to the unit that violate the declaration.  See http://www.azleg.state.az.us/ars/33/01260.htm  and http://www.azleg.state.az.us/ars/33/01806.htm  for the laws detailing this requirement. 

Title Report and Title Commitment:  The title report or commitment contains important information and is provided to the buyer by the Title/Escrow Company or Agent.  This report or commitment lists documents that are exceptions to the title insurance (Schedule B Exceptions).  Schedule B Exceptions may include encumbrances, easements, and liens against the property, some of which may affect the use of the property, such as future addition or swimming pool.  Make sure you receive and review all of the listed documents.  Questions about the title commitment and Schedule B documents may be answered by the title or escrow officer, legal counsel, or surveyor.  General information regarding title issues may be found at  http://www.titlelawannotated.com/  or obtained from the title/escrow company employed in the transaction.

Affidavit of Disclosure:  If the buyer is purchasing five or fewer parcels of land (whether improved or vacant), other than subdivided land, in an unincorporated area of a county, the seller must furnish the buyer with an Affidavit of Disclosure.  A sample form is located at  http://www.aaronline.com/docs/affidavit2.pdf .

Lead-Based Paint Disclosure:  If the home was built prior to 1978, the seller must provide the buyer with a lead-based paint disclosure form.  A sample form is located at  http://www.aaronline.com/docs/leadsale.pdf .  More information about lead-based paint may be obtained at  http://www.re.state.az.us/leadfacts.html. 

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.

County Assessor's Records:  The county assessor's records contain a variety of valuable information including the assessed value of the property for tax purposes and some of the physical aspects of the property, such as the reported square footage (which should always be verified for accuracy).  Coconino: http://co.coconino.az.us/assessor/  

Maricopa:  http://www.maricopa.gov/assessor/homeowner_guide.asp                   

Pima:  http://dot.co.pima.az.us/assessor/arm                                                     

Yavapai:  http://www.co.yavapai.az.us/departments/assessor/assessormain.asp   

For other counties, see Counties listing:  http://www.az.gov/webapp/portal/

Professional Home Inspections Report:   For the buyer's protection, the importance of having a home inspected by a professional home inspector can not be over-emphasized.  A home inspection is a visual physical examination, performed for a fee, designed to identify material defects in the home.  The home inspector will generally provide the buyer with a report detailing information about the home's condition.  The inspector and the report will point out existing problems and possible potential problems.  The buyer should carefully review this report with the inspector and ask the inspector about any item of concern.  Pay attention to the scope of the inspection and any portions of the property excluded from the inspection.  Information on home inspections can be found on the following websites:                                                American Society of Home Inspectors  http://www.ashi.com/    

Arizona ASHI  http://www.arizona-ashi-home-inspection.com/                          

American Home Inspectors   http://homeinspectortraining.com/   

Society of Professional Real Estate Inspectors  http://www.tiac.net/users/sprei/welcome_html  

Board of Technical Registration   http://www.btr.state.az.us/   

Termite and Other Wood Destroying Organisms:  Termites are commonly found in some parts of Arizona.  Investigating evidence of termites or other wood infestation is the job of the pest inspector.  The Structural Pest Control Commission (SPCC) regulates these inspectors and can provide the buyer with information regarding the past termite treatments on a property.  The SPCC publication, What You Should Know About Wood Infestation Reports, can be found at  http://www.sb.state.az.us/wie.htm.  Additional information may be obtained at the Structural Pest Control Commission website at  http://www.sb.state.az.us/.