Section 6.f Lines 241-246
- Conventional septic system is most commonly a septic system however, other alternative systems do exist
- The buyer indicates what their belief is as it relates to the sewer or septic connection
- The buyer is advised that if the connection to a sewer connection is a material matter to the buyer the buyer must investigate during the inspection period
- The On-Site Wastewater Treatment Facility Addendum is incorporated into the agreement
- BUYER INITIALS ARE REQUIRED
Section 6.g Lines 247-251
- Buyer is tasked with investigating all state, county and municipal pool barrier regulations.
- Buyer acknowledges receipt of Arizona Department of Health Services approved private pool safety notice (azdhs.gov/phs/oeh/pool_rules.htm).
- Link for AZ Department of Health Services is provided on the Buyer Advisory.
- Providing the link on the Buyer Advisory may not meet the burden of duty required of the agent.
Section 6.h Lines 252-259
- Buyer acknowledges that Brokers are not qualified or licensed to conduct due diligence with respect to the premises or surrounding area
- Buyer is advised to consult with qualified licensed professionals to assist in their due diligence efforts
- The buyer holds the broker harmless from defects or conditions that could have been discovered by inspection or investigation
- The hold harmless provision MUST be initialed in every transaction
Section 6.i Lines 260-263
- Prior to the conclusion of the inspection period the buyer shall deliver to the seller a signed notice of any/all items disapproved.
- The BINSR is available for this purpose
- Prior to delivery buyer shall conducted all desired inspections
- The buyer has ONE opportunity to deliver notice of disapproved items
Contract Default Timeline Reminders:
Preliminary Title 5 Days
Inspection Period 10 Days
SPDS Inspection period or 3 days whichever is later
Claims History Inspection period or 5 days whichever is later
Affidavit of Disclosure Inspection period or 5 days whichever is later
Changes during escrow 5 Days from delivery of notice
Section 6.j Lines 264-289
Buyer has sole discretion to disapprove
Buyer has three choices:
1. Accept premises in current condition
2. Allow the seller a chance to correct disapproved items
3.Cancel the contract
On the BINSR there is not a place to renegotiate the repairs or price. Money, credit or adjustment of purchase price should never be put on the BINSR.
Verbal extensions of inspection period are not enforceable, they must be in writing.
Buyer’s failure to take any action shall be deemed buyer agreement to proceed without correction of any/all disapproved items
What happens if a Buyer, within the inspection period, delivers to Seller a notice electing to cancel the contract as permitted in Section 6j, but fails to identify items disapproved?
Section 6j(1)(b) addresses this scenario and explains that if Buyer’s notice fails to specify items disapproved as permitted in the contract, the cancellation will remain in effect but Buyer has failed to comply with a provision of the contract and Seller may deliver to Buyer a cure notice. If Buyer fails to cure before expiration of the cure period, Buyer shall be in breach and Seller shall be entitled to the earnest money.
Section 6.k Lines 290-297
- Buyer to indicate whether or not the buyer is requesting a home warranty.
- Not all home warranty plans are created equal.
- Party responsible to order –If you are indicating the seller to order do not write TBD in the issued by section.
Section 6.l Lines 298-301
- Seller grants buyer REASONABLE access to conduct walk-through for the purpose of satisfying the buyer that the agreed to repairs are complete and that warranted items are in working order
- If buyer fails to do a walk-through the seller is released from liability for any defects that could have been discovered
- Always provide a minimum of two options for home warranty and preferably three options.
- Sellers may at sellers option elect to purchase a seller home warranty
At the final walk-through the seller had not made the agreed repairs, and the buyer delivered a three-day Cure Period Notice to the seller. The buyer wants the home, but does not want to close the transaction until the agreed repairs have been made. The seller has now delivered a three-day Cure Period Notice to the buyer because the buyer has failed to close the transaction. Can the seller cancel the transaction if the buyer does not close within three days?
Section 6.m Lines 302-304
- Seller shall make the premises available for all inspections and walk-through upon reasonable notice by the buyer.
- Seller shall have all utilities on, including propane until COE in order to allow buyer to conduct inspections and walk-through.
Section 6.n Lines 305-309
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.