A real
estate agent is vital to the home buying process and can
provide a variety of services in locating a property,
negotiating the sale, and advising the buyer. A real
estate agent is generally not qualified to discover
defects or evaluate the physical condition of property;
however, a real estate agent can assist a buyer in
finding qualified inspectors and provide the buyer with
documents and other resources that contain vital
information about a prospective new home.
This advisory is designed to make a buyer's home
purchase as smooth as possible. Some of the more common
issues that a buyer may decide to investigate or verify
concerning a home purchase are summarized in this
Advisory. Included in this Advisory are: (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. In addition, a buyer must
communicate to the real estate agents in the transaction
any special concerns the buyer may have about the
property or surrounding area, whether or not those
issues are addressed in this Advisory.
REMEMBER This Advisory is supplemental to obtaining
professional home inspections. Professional home
inspections are absolutely essential: there is no
practical substitute for a professional inspection as a
measure to discover and investigate defects or
shortcomings in a home.
Common documents a buyer should review
The documents listed below may not be relevant in every
transaction, nor is the list exhaustive.
Unless otherwise stated, the information contained in
these documents may not have been independently verified
by the real estate agent.
MLS Printout
A listing is an agreement between the seller and the
listing agent and authorizes the listing agent to submit
information to the Multiple Listing Service ("MLS"). The
MLS printout is similar to an advertisement and contains
various abbreviations and symbols. Neither the listing
agreement nor the printout is a part of the purchase
contract between the buyer and seller. The printout
contains 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. Therefore, the buyer should verify any
important information contained in the MLS, as the
information may be incomplete or an approximation. 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
ADRE website at
http://www.re.state.az.us/checklist.html
Seller's Property
Disclosure Statement ("SPDS")
Most sellers provide a SPDS. This document covers 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© 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 on the ceilings 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&R's are recorded against the property and
generally empower a homeowners' association to control
certain aspects of property use within the development.
By purchasing a home in such a 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.
Homeowners' 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 interests to
the condominium owners. In a planned community, the
ownership of the common property vests in the
homeowners' association.
If you have questions about your rights and remedies
regarding home owner associations or community
associations, please read the information provided at
http://www.re.state.az.us/communityassoc.html.
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 laws detailing this requirement.
Title Report or Title Commitment
The title report or commitment contains important
information to be provided to the buyer by the 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 a 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 a 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
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.
Affidavit of Disclosure (Affidavit applies to both
vacant land and residential properties)
If the buyer is purchasing five or fewer parcels of
land, other than subdivided land, in an unincorporated
to 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/documents/affidavit_2002.pdf
Lead-Based Paint Disclosure Form
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://aaronline.com/documents/leadsale.pdf
More information about lead-based paint may be obtained
at
http://www.re.state.az.us/leadfacts.html
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://www.dot.co.pima.az.us/assessor/arm/
and
http://co.pinal.az.us/treasurer/
• 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
Inspection Report
For the buyer's protection, the importance of having a
home inspected by a professional home inspector cannot
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 inspectors 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
• Board of Technical
Registration,
http://www.btr.state.az.us/
• Guidance on hiring a home
inspector,
http://www.realtor.com/basics/buy/inspnegot/hire.asp?gate=realtor&poe=homestore
Termites and Other Wood
Destroying Organisms
Termites are commonly found in Arizona homes.
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 past termite treatments on a
property. The SPCC publication, That You Should Know
About Wood Infestation Reports, can be found at
http://www.sb.state.az.us/wir.htm.
Additional information may be obtained at the Structural
Pest Control Commission website at
http://www.sb.state.az.us/
Common physical conditions in the
property a buyer should investigate. Every buyer and
every home is different, so the physical property
conditions requiring investigation will vary.
Repairs and New Construction
The seller may have made repairs or added a room to the
property. For example, the property may have an obvious
improvement, covered patio, or garage, or may have been
remodeled. The buyer should feel comfortable that the
work was properly done or have an expert evaluate the
work. Request copies of any invoices or other
documentation regarding the work performed.
The Registrar of Contractors' publication, Hiring a
Licensed Contractor, is available online at
http://www.rc.state.az.us/Consumer_menu.html.
The Registrar of Contractors may be contacted at
http://www.rc.state.az.us/
and a listing of various types of contractors may be
found at:
http://www.arizona-contractors.com
For information regarding permits, contact the city or
county building department.
Roof
The inspector might recommend that you have the roof
further inspected by a licensed roofer. If the roof is
10 years old or older, a roof inspection by a licensed
roofer is highly recommended. See the Registrar of
Contractors information on hiring a licensed contractor
online at
http://www.rc.state.az.us/Consumer_menu.html
Swimming Pools and Spas
If the home has a pool or a spa, the home inspector
might determine that the cleaning system is not working
properly or may exclude the pool or spa from the general
inspection. It would then be necessary to have a pool or
spa company inspect the pool or spa and/or evaluate any
problem. For a partial list of Arizona pool and spa
contractors, see
http://www.builderszone.com/swimming.htm
and
http://www.arizona-contractors.com/directory/poolspa/poolspa.htm
Swimming Pool Barriers
Each city and county has its own swimming pool barrier
ordinance. Pool barrier contact information for each
Arizona city and county may be found at
http://www.aaronline.com/documents/pool_contacts.aspx
The Arizona Department of Health Services Private Pool
Safety notice may be found at
http://www.hs.state.az.us/diro/admin_rules/pool_rules.htm
The state law on swimming pools is located at
http://www.azleg.state.az.us/ars/36/01681.htm
Square Footage
Square footage on the MLS printout or as listed by the
county assessor's records is often an estimate only and
generally should not be relied upon for the exact square
footage in a home. An appraiser or architect can measure
the home's size to verify the square footage. A list of
appraisers may be found at the Arizona Board of
Appraisal,
http://www.appraisal.state.az.us/Directory/directory.html
A list of architects may be found at the Board of
Technical Registration,
http://www.btr.state.az.us/
Sewer
Even if the listing or SPDS indicates that the home is
connected to the city sewer, it should be verified by a
plumber, home inspector, or other professional. Some
cities can perform this test as well.
Septic Systems and Other On-Site Wastewater
Treatment Facilities
ADEQ’s new Inspection and Transfer of Ownership rules
became effective January 1, 2002. These rules apply to
virtually all septic or alternative on-site wastewater
treatment systems approved for use on or after January
1, 2001. Inspections are to be performed, prior to
property transfer, by an inspector considered to be
qualified as per ADEQ’s list of "Provider Categories".
Older systems (installed & approved for use prior to
1/1/01), are to be inspected as per the AAR Residential
Resale Purchase Contract. (These older systems are
expected to be covered by another new inspection rule in
2003). Contact the Arizona Department of Environmental
Quality
http://www.adeq.state.az.us/
For specific information on the pre-transfer inspection
requirements, see
http://www.adeq.state.az.us/environ/water/permits/wastewater.html
Expansive Soil
The soil in some areas of Arizona has "clay-like"
tendencies, sometimes referred to as "expansive soil."
Although it is not very common for homes built on
expansive soils to experience significant movement, it
can be a major problem if it does occur. If it has been
disclosed that the home has expansive soil or if the
buyer has any concerns about evidence of cracking, the
buyer should secure an independent assessment of the
home and its structural integrity by a licensed, bonded,
and insured professional engineer.
To investigate areas in Arizona where expansive soils
exist, go to
http://www.az.nrcs.usda.gov/soils/shrinkswell.html
A list of state certified professional engineers and
firms can be found at
http://www.btr.state.az.us
Previous Fire/Flood
If it is disclosed there has been a fire or flood in the
property, a qualified inspector should be hired to
advise you regarding any possible future problems as a
result of the fire or flood damage and/or any subsequent
repairs. For example, if the property was not properly
cleaned after a flood, mold issues may result. Your
homeowners' insurance agent may be able to assist you in
obtaining information regarding fire, flood, or other
past damage to the property.
Pests
Cockroaches, rattlesnakes, black widow spiders,
scorpions and other pests are common in parts of
Arizona. Fortunately, most pests can be controlled with
pesticides. Scorpions, on the other hand, may be
difficult to eliminate. If the buyer has any concerns or
if the SPDS indicates the seller has seen scorpions or
other pests on the property, you should seek the advice
of a pest control company. A source of information on
scorpions may be found at
http://www.desertusa.com/oct96/du_scorpion.html
For information on roof rats, which have been reported
in some areas, search "roof rats" at
http://www.maricopa.gov/envsvc/
. For information on termites see
http://www.sb.state.az.us/ .
Deaths and Felonies on the Property
An Arizona law states that sellers and real estate
licensees have no liability for failure to disclose to a
buyer that the property was ever the site of a natural
death, suicide, murder or felony:
http://www.azleg.state.az.us/ars/32/02156.htm
This information is often difficult to uncover; however,
the local law enforcement agency may be able to identify
calls made to the property address.
Mold
Mold has always been with us, and it is a rare home that
does not have some mold. However, over the past few
years a certain kind of mold has been identified as a
possible contributor to illnesses. Allergic individuals
may experience symptoms related to mold. Mold growth is
found underneath materials where water has damaged
surfaces, or behind walls. Look for discoloration and
leaching from plaster.
A pamphlet, Mold in may Home: What Do I Do?, prepared by
the Arizona Department of Health Services, Office of
Environmental Health states: "If you can see mold, or if
there is an earthy or musty odor, you can assume you
have a mold problem." See,
http://www.hs.state.az.us/phs/oeh/invsurv/air_qual/moldinfo.htm
The EPA website also contains valuable information at
http://www.epa.gov/iaq/pubs/moldresources.html
Additional sources may be found on the ADRE website at
http://www.re.state.az.us/consumer.html.
Good information about mold, the problems it may cause,
and how it may be removed can be found at
http://www.cdc.gov/nceh/airpollution/mold/moldfacts.htm
Other Indoor Air Quality
Concerns
There are many concerns with indoor air quality ("IAQ").
Radon gas and carbon monoxide poisoning are two of the
more common and potentially serious IAQ concerns. Both
of these concerns can be addressed by the home
inspector, usually for an additional fee. As for the
many other IAQ concerns, the EPA has a host of resource
materials and pamphlets available at
http://www.epa.gov/iaq/iaqinfo.html
and
http://www.epa.gov/iaq/pubs/index.html
Property Boundaries
If the property boundaries are of concern, a survey may
be warranted. For example, a survey may be advisable if
there is an obvious use of property by others (i.e., a
well-worn path across a property and/or parked cars on
the property) or fences or structures of adjacent
property owners that appear to be built on the subject
property. A list of surveyors may be obtained from the
Board of Technical Registration at
http://www.btr.state.az.us/ .
Flood Plain Status
If the property is in a flood zone, an additional annual
insurance premium of several hundred dollars may be
required. If the property is in an area deemed high
risk, the buyer may be required by the lender to obtain
flood hazard insurance through the National Flood
Insurance Program. To find additional detail on flood
plain status in Maricopa County, visit the Maricopa
Flood Control District at
http://www.fcd.maricopa.gov/Resources/MapApplications.asp
. In Pima County, visit the Pima County Flood Control
District at
http://www.dot.co.pima.az.us/flood/
. For information on Flood Control, Flood Plain or Flood
Hazards in other parts of the states visit
http://www.azgs.state.az.us/flood_links.htm
. FEMA's Flood Map Service Center website is
http://www.fema.gov/maps .
Homeowners Insurance (Claims History)
A home’s insurance claim history may effect its
insurability and at what cost. A home’s claim history
may be obtained from the Comprehensive Loss Underwriting
Exchange ("CLUE"). Homeowners may request a CLUE report
on their own property. Therefore, a buyer might consider
asking the seller to provide a copy of the home’s CLUE
report. A homeowner may order the report by calling
800/456-6004 or 866/527-2600, or go to
http://www.choicetrust.com
(click on "home" and then "insurance claims") and
download a request form. (note: it may take several
weeks to receive the report.) For additional insurance
information contact the Arizona Department of Insurance
at
http://www.state.az.us/id or
the Insurance Information Institute at
http://www.iii.org .
Conditions affecting the area surrounding the home the
buyer should investigateEvery property is unique;
therefore, important conditions vary.
Environmental Hazards
It is often very difficult to identify environmental
hazards. See the Arizona Department of Environmental
Quality website for environmental information at
http://www.adeq.state.az.us/.
Another source of environmental information may be found
at
http://consumerlawpage.com/brochure/home-haz.shtml
.
Superfund Sites
There are numerous sites in Arizona where the soil and
groundwater have been contaminated by improper disposal
of contaminants. To check if a property is in an area
designated by the Arizona Department of Environmental
Quality as requiring cleanup, maps are available to view
at
http://www.adeq.state.az.us/environ/waste/sps/phx.html
Freeway Construction
Although the existence of a freeway near the property
may provide highly desirable access, sometimes it
contributes to undesirable noise. To start searching for
roadway construction and planning, go to the Arizona
Department of Transportation website at
http://www.dot.state.az.us/ROADS/rdfway.htm
Check ADOT maps to find the nearest future freeway
routes and roads in the area slated for widening.
Crime Statistics
Crime statistics, while an imperfect measurement at
best, nevertheless provide some indication of the level
of criminal activity in an area. To check the crime
statistics for the cities of Phoenix, Tempe, Glendale,
Mesa, Scottsdale, Chandler, Gilbert and Peoria, go to
http://www.faxnet1.org A
visit or phone call to other law enforcement agencies
may be required. For a list of all Arizona city links,
go to
http://www.azleague.org/links_city_town.htm
To find crime statistics on their
websites, you may need to search for "crime statistics."
Sex Offenders
Since June 1996 Arizona has had a registry and community
notification program for convicted sex offenders. This
information may be accessed at
http://www.azsexoffender.org
Note that prior to June 1996 registration was not
required, and only the higher risk sex offenders are on
the website. The presence of a sex offender in the
vicinity of the property is not a fact that is required
to be disclosed by the seller or agent.
Military and Public Airports
The legislature has mandated the identification of areas
in the immediate vicinity of military and public
airports that are susceptible to a certain level of
noise from aircraft. The boundaries of these areas have
been plotted on maps that are useful in determining if a
property falls within one of these areas. The map for
military airports may be accessed at
http://www.re.state.az.us/airport.html
Maps for many of the public airports may be viewed at
http://www.re.state.az.us/airports/airportintro.html
These maps are intended to show the areas subject to the
preponderance of airport-related nose from a given
airport. Periodic over-flights that may contribute to
noise cannot usually be determined from these maps.
Schools
Although there is no substitute for an on-site visit to
the school to talk with principals and teachers, there
is a significant amount of great information about
Arizona's schools on the Internet. Public and charter
school information may be accessed at
http://www.ade.state.az.us/schools
or
http://www.greatschools.net/modperl/go
The ADRE advises: "Call the school district serving the
subdivision to determine whether nearby schools are
accepting new students. Some school districts,
especially in the northwest part of the greater Phoenix
area, have placed a cap on enrollment. You may find that
your children cannot attend the school nearest you and
may even be transported to another community." (
http://www.re.state.az.us/checklist.html
)
Zoning/Planning/Neighborhood Services
Phoenix:
http://www.phoenix.gov/webpmo.html
Scottsdale:
http://www.ci.scottsdale.az.us/show_cat.asp?id=5
Tucson:
http://www.ci.tucson.az.us/planning.html
Other cities and towns:
http://www.azleague.org/links_city_town.htm
Other methods to obtain information about a
property
Talk to the Neighbors
Buyers should always talk to the surrounding neighbors
about the neighborhood and the history of the home the
buyer is considering for purchase. Neighbors can provide
a wealth of information.
Drive around the Neighborhood
Buyers should always drive around the neighborhood,
preferably on different days at several different times
of the day and evening, to investigate the surrounding
area.
For additional information, visit:
Arizona Association of REALTORS® ("AAR") website,
http://www.aaronline.com
Arizona Department of Real Estate
("ADRE") website,
http://www.re.state.az.us/
The National Association of
REALTORS® ("NAR") website,
http://www.realtor.com
NAR’s "Ten Steps to
Homeownership" is also a useful source of information
and may be found at:
http://www.homestore.com/finance/buyersguide/default.asp?Inksrc+REALR2LF2C0047&gate=realtor
Arizona Government
For information about Arizona Government, including
links to state agency websites and a 2002 State of
Arizona telephone directory:
http://www.az.gov/webapp/portal/subtopic.jsp?id=1225&name=Arizona+Government
Arizona city and town websites:
http://www.azleague.org/links_city_town.htm
BUYER ACKNOWLEDGEMENT
Buyer acknowledges that there may be other disclosure
issues of concern not listed in this Advisory. Buyer is
responsible for making all necessary inquiries and
consulting the appropriate persons or entities prior to
the purchase of any property.
The information in this Advisory is provided with the
understanding that it is not intended as legal or other
professional services or advice. These materials have
been prepared for general informational purposes only.
The information and links contained herein may not be
updated or revised for accuracy. If you have any
additional questions or need advice, please contact your
own lawyer or other professional representative.
Buyer’s Signature Date Buyer’s Signature Date
Alysia Carlin
(928) 308-0309 DIRECT
