Buyer Book Prepared especially for Future Homeowner
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PRECAUTIONS YO U SHO U LD B E
AWA R E OF
IN THE REAL ESTATE CLOSING PROCESS
DO NOT TRUST EMAILED INSTRUCTIONS Fraudsters often use email to send falsified wire instructions to unsuspecting victims. Please warn your buyers and sellers to only follow wire instructions they receive personally from First American Title. Additionally, we will not accept disbursement instructions for seller or buyer funds via email OR from any third party (attorney, real estate agent, etc).
W I RE F R A U D A LE RT T H I N K D I F F E R E N T LY
ALTERNATIVE INSTRUCTIONS?
Email-based, real estate fraud schemes are on the rise. One common scenario is altering wiring instructions with the intention of rerouting funds.
If your buyer or seller receives alternative wiring instructions that appear to be from First American Title, make sure they contact their escrow officer at a trusted phone number for confirmation.
Keeping this in mind, First American Title is changing the way we receive payment information. It is imperative that we are familiar with the people in our transactions.
RELYING ON EMAIL ALONE IS NO LONGER AN OPTION.
Know that our wiring instructions do not change so any communication is suspect. Our banking institution is First American Trust.
IN SHO RT – wire instructions will not
be accepted by email. New wire instructions must be hand-carried or uploaded to the First American Secure Portal.
Thank you for joining First American Title in fostering a secure real estate transaction process. Have questions or concerns? Please contact our office or your escrow officer.
For more information please contact your First American representative.
w w w.fi rs tam . c o m First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.
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Table of Contents
Quick Reference Your Escrow Number Your New Address
03 Welcome 04 The Benefits of Buying 06 Terms You Should Know 07 Key Professionals 08 Benefits of Using a REALTOR® 09 Selecting a Home 10 The Life of an Escrow 11 Closing Costs: Who Pays What
City/State/Zip Real Estate Agent Name Company Address Email Phone Fax Assistant Email
12 Obtaining a New Loan & Types of Loans
First American Title
14 The Escrow Process
Address
16 Understanding Title Insurance 18 Compare our Eagle Owner’s Policy 20 Ways to Hold Title
Escrow Officer
City/State/Zip Phone Fax Email Escrow Assistant
21 Your Title Commitment
22 What to Avoid
Insurance
23 Closing Your Escrow 24 Planning Your Move 25 Residential Resale Real Estate Purchase Contract
Previous Company
Phone
Previous Agent
Policy No.
New Company
Phone
New Agent
Policy No.
Home Warranty Company
Policy No.
Utilities and Services
AZ Buyers Guide | 2
Southwest Gas 1.877-860-6020 www.swgas.com
Dish Network 1.800-823-4929 www.dishnetwork.com
Verizon 1.877-300-4498 www.connecttoverizon.com
Cox 602-277-1000 www.cox.com
CenturyLink 800-366-8201 www.centurylink.com
Salt River Project 602-236-8888 www.srpnet.com
Direct TV 1.888-777-2454 www.directv.com
AT&T 1.800-222-0300 www.att.com
APS 602-371-7171 www.aps.com
Count on First American Title. Count on us for service. First American Title’s professionals are proud to provide the title insurance that assures people’s home ownership. Backed by First American Title Insurance Company, your transaction will be expertly completed in accordance with state-specific underwriting standards and state and federal regulatory requirements. Count on us for stability. First American Title is the principal subsidiary of First American Financial Corporation, and one of the largest suppliers of title insurance services in the nation. With roots dating back to 1889, we’ve served families for generations. Count on us for convenience. First American Title has a direct office or agent near you. We also have an extensive network of offices and agents throughout the United States, and internationally. Count on us to meet your needs. First American Financial Corporation offers more than title insurance and escrow services through its subsidiaries. Our subsidiaries also provide property data, title plant records and images, home warranties, property and casualty insurance, and banking, trust and advisory services.
AZ Buyers Guide | 3
The Benefits of Buying Not sure if you should buy a home? The rent you pay could build equity in your own real estate. Do you realize how much you pay in rent over a period of years? The chart below gives you a total picture of what is happening to your money. The rent you pay adds up to a sizeable sum.
Rent
1 YR
3 YRS
5 YRS
10 YRS
15 YRS
Return
$1,200
$14,400
$43,200
$72,000
$144,000
$216,000
$0
$1,300
$15,600
$46,800
$7,800
$156,000
$234,000
$0
$1,400
$16,800
$50,400
$84,000
$168,000
$252,000
$0
$1,500
$18,000
$54,000
$90,000
$180,000
$270,000
$0
$1,750
$21,000
$63,000
$105,000
$210,000
$315,000
$0
$2,000
$24,000
$72,000
$120,000
$240,000
$360,000
$0
$2,250
$27,000
$81,000
$135,000
$270,000
$405,000
$0
$2,500
$30,000
$90,000
$150,000
$300,000
$450,000
$0
$2,750
$33,000
$99,000
$165,000
$330,000
$495,000
$0
$3,000
$36,000
$108,000
$180,000
$360,000
$540,000
$0
$3,500
$42,000
$126,000
$210,000
$420,000
$630,000
$0
$4,000
$48,000
$144,000
$240,000
$480,000
$720,000
$0
Renting
Buying
— No interest payment deductions
— Deductions for your mortgage interest paid
— Rental amount may increase at any time
— Mortgage payments could be fixed
— Landlord approval needed for any changes
— Decorate and make changes without prior approval
— No capitalization; your money disappears forever
— The value of your property may increase in time
— Rental is temporary and is often subject to 30 day’s notice
— Your house will become a home, not a temporary living situation; you are not at the mercy of a landlord
AZ Buyers Guide | 4
How much home can you afford? This formula is only a guide and not to be construed as actual lending calculations. Contact your loan officer to determine more accurately what price range you should consider. Lenders abide by certain ratios when calculating the loan amount their customers can qualify for and the ratios vary by lender and loan program. Many use 28% of your gross monthly income as the maximum allowed for your mortgage payment (principal/interest/ taxes/insurance or PITI); for your total monthly debt, the ratio is 36%. Total monthly expenses means PITI plus long-term debt (such as auto loans) and revolving/credit-card debt. Do not include other expenses such as groceries, utilities, clothing, tuition, etc., to calculate this ratio.
Sample Mortgage Payment 30-Year Loan / Principal & Interest Only Interest Rate Loan Amount
5.50%
5.75%
6%
6.25%
6.50%
6.75%
7%
7.25%
7.50%
$250,000
1,419
1,459
1,499
1,539
1,580
1,621
1,663
1,705
1,748
$275,000
1,561
1,605
1,649
1,693
1,738
1,784
1,830
1,876
1,923
$300,000
1,703
1,751
1,799
1,847
1,896
1,946
1,996
2,047
2,098
$325,000
1,845
1,897
1,948
2,001
2,054
2,108
2,162
2,217
2,272
$350,000
1,987
2,043
2,098
2,155
2,212
2,270
2,329
2,388
2,447
$375,000
2,129
2,188
2,248
2,309
2,370
2,432
2,495
2,558
2,622
$400,000
2,271
2,334
2,398
2,463
2,528
2,594
2,661
2,729
2,797
$425,000
2,413
2,480
2,548
2,617
2,686
2,757
2,828
2,899
2,972
$450,000
2,555
2,626
2,698
2,771
2,844
2,919
2,994
3,070
3,146
$475,000
2,697
2,772
2,848
2,925
3,002
3,081
3,160
3,240
3,321
$500,000
2,839
2,918
2,998
3,079
3,160
3,243
3,327
3,411
3,496
$525,000
2,981
3,064
3,148
3,233
3,318
3,405
3,493
3,581
3,671
$550,000
3,123
3,210
3,298
3,386
3,476
3,567
3,659
3,752
3,846
$575,000
3,265
3,356
3,447
3,540
3,634
3,729
3,825
3,923
4,020
$600,000
3,407
3,501
3,597
3,694
3,792
3,892
3,992
4,093
4,195
AZ Buyers Guide | 5
Terms you should know. Appraisal
Endorsement
An estimate of value of property resulting from analysis of facts about the property; an opinion of value.
As to a title insurance policy, a rider or attachment forming a part of the insurance policy expanding or limiting coverage.
Annual Percentage Rate (APR) The borrower’s costs of the loan term expressed as a rate. This is not their interest rate.
Beneficiary The recipient of benefits, often from a deed of trust; usually the lender.
Closing Disclosure (CD) Closing Disclosure form designed to provide disclosures that will be helpful to borrowers in understanding all of the costs of the transaction. This form will be given to the consumer three (3) business days before closing.
Close of Escrow Generally the date the buyer becomes the legal owner and title insurance becomes effective.
Comparable Sales Sales that have similar characteristics as the subject real property, used for analysis in the appraisal. Commonly called “comps.”
Consummation
Hazard Insurance Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. Buyer often adds liability insurance and extended coverage for personal property.
Impounds A trust type of account established by lenders for the accumulation of borrower’s funds to meet periodic payments of taxes, mortgage insurance premiums and/or future insurance policy premiums, required to protect their security.
Legal Description A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire parcel of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.
Lien A form of encumbrance that usually makes a specific parcel of real property the security for the payment of a debt or discharge of an obligation. For example, judgments, taxes, mortgages, deeds of trust.
Occurs when the borrower becomes contractually obligated to the creditor on the loan, not, for example, when the borrower becomes contractually obligated to a seller on a real estate transaction. The point in time when a borrower becomes contractually obligated to the creditor on the loan depends on applicable State law. Consummation is not the same as close of escrow or settlement.
Loan Estimate (LE)
Deed of Trust An instrument used in many states in place of a mortgage.
The instrument by which real property is pledged as security for repayment of a loan.
Deed Restrictions
PITI
Limitations in the deed to a parcel of real property that dictate certain uses that may or may not be made of the real property.
Disbursement Date The date the amounts are to be disbursed to a buyer and seller in a purchase transaction or the date funds are to be paid to the borrower or a third party in a transaction that is not a purchase transaction.
Earnest Money Deposit Down payment made by a purchaser of real property as evidence of good faith; a deposit or partial payment.
Easement A right, privilege or interest limited to a specific purpose that one party has in the land of another.
AZ Buyers Guide | 6
Form designed to provide disclosures that will be helpful to borrowers in understanding the key features, costs and risks of the mortgage loan for which they are applying. Initial disclosure to be given to the borrower three (3) business days after application.
Mortgage
A payment that includes principal, interest, taxes, and Insurance.
Power of Attorney A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes called an “Attorney-in-Fact.”
Recording Filing documents affecting real property with the appropriate government agency as a matter of public record.
Settlement statement Provides a complete breakdown of costs involved in a real estate transaction.
TRID TILA-RESPA Integrated Disclosures
Key professionals involved in your transaction. REALTOR® A REALTOR® is a licensed real estate agent and a member of the National Association of REALTORS®, a real estate trade association. REALTORS® also belong to their state and local Association of REALTORS®. Real Estate Agent A real estate agent is licensed by the state to represent parties in the transfer of property. Every REALTOR® is a real estate agent, but not every real estate agent has the professional designation of a REALTORS®. Listing Agent A key role of the listing agent or broker is to form a legal relationship with the homeowner to sell the property and place the property in the Multiple Listing Service. Buyer’s Agent A key role of the buyer’s agent or broker is to work with the buyer to locate a suitable property and negotiate a successful home purchase. Multiple Listing Service (MLS) The MLS is a database of properties listed for sale by REALTORS® who are members of the local Association of REALTORS®. Information on an MLS property is available to thousands of REALTORS®. Title Company These are the people who carry out the title search and examination, work with you to eliminate the title exceptions you are not willing to take subject to, and provide the policy of title insurance regarding title to the real property. Escrow Officer An escrow officer leads the facilitation of your escrow, including escrow instructions preparation, document preparation, funds disbursement, and more. Lenders A financial institution that provides money to a borrower to purchase real estate, often in the form of a mortgage. Lenders play a vital role in the home buying process by assessing the borrower’s ability to repay the loan and setting the terms of the mortgage. Inspectors A licensed professional who evaluates the condition and safety of a property for a buyer or seller. They inspect the property from top to bottom, looking for defects that could be a financial burden or safety risk. Appraisers A professional who provides an unbiased estimate of a property’s value. AZ Buyers Guide | 7
Benefits of using a professional REALTOR® . Congratulations on your decision to buy a home! It’s a challenging project, and there are many ways a professional can help. Here are some of the many ways you may benefit from working with a REALTOR®: Many more home choices.
It’s a major investment.
Your REALTOR has thousands of homes to choose from through the Multiple Listing Service (MLS), so you’re more likely to find the home that’s just right for you and find it quicker. In fact, a majority of the homes for sale are listed by REALTORS® and aren’t available to you unless you are working with a REALTOR.®
You use a professional for your legal, financial and health needs. Why gamble on what may be your biggest investment without a professional at your side?
®
A number of transactions “fall out.”
Help with FSBO’s. If you consider a “For Sale By Owner,” take your REALTOR® along to help negotiate the contract.
Unfortunately, it’s true. Some transactions fall apart before closing. An experienced REALTOR® may be able to resolve problems and see your transaction through to a successful closing.
Less Liability
Knowledge of new home subdivisions.
The Paperwork
New home subdivisions will welcome you and your REALTOR.® If you’re interested in buying a new home, take your agent with you on your first visit to each subdivision. Your professional REALTOR® is an important source of information who can supply background on the builder, nearby subdivisions, and the local community.
AZ Buyers Guide | 8
You may have more protection from legal and financial liability, especially as real estate transactions become more complicated.
Your experienced REALTOR® will negotiate and prepare the purchase contract for you and assist you throughout the escrow process.
Selecting A Home The following home comparison chart is designed to help you remember the homes you visit and what you liked best and least about each one. Rate features or make notes that will help you determine what pleased or displeased you. Remembering each home would appear easy, but it can quickly become confusing. Which home was near the school? Which one had the great pool? Did it have a family room? And how many bathrooms? In the “What’s Memorable” category, note something you think is unusual and memorable about each home, such as a stained glass window, fruit trees, a child’s playhouse. This will make it easier for you to recall the property later and refer to a specific address. And, last but not least, maybe the most important question, does this house feel like home? Good luck with your search, and enjoy your house hunting adventure!
HOME 1
HOME 2
HOME 3
/
/
/
Address/ Location Asking Price No. Beds/Baths Square Footage First Impression Neighborhood School District Living Room Study/Office Kitchen Family Room Baths Master Bedroom Master Bath Bedrooms Patio Pool Landscaping Garage or Carport What’s Memorable AZ Buyers Guide | 9
The life of an escrow. The Buyer
The Seller
The Escrow Officer
The Lender
Chooses a Real Estate Agent
Chooses a Real Estate Agent
Upon receipt of order and earnest money deposit, orders title examination.
Gets pre-approval letter from Lender and provides to Real Estate Agent.
Accepts Buyer’s offer to purchase.
Accepts Buyer’s application and begins the qualification process. Provides Buyer with Loan Estimate.
Makes offer to purchase. Upon acceptance, opens escrow and deposits earnest money. Finalizes loan application with Lender. Receives a Loan Estimate from Lender. Completes and returns opening package from First American Title.
Schedules inspections and evaluates findings. Reviews title commitment/preliminary report. Provides all requested paperwork to Lender (bank statements, tax returns, etc.) All invoices and final approvals should be to the lender no later than 10 days prior to loan consummation. Lender (or Escrow Officer) prepares CD and delivers to Buyer at least 3 days prior to loan consummation.
Escrow officer or real estate agent contacts the buyer to schedule signing appointment. Buyer consummates loan, executes settlement documents, & deposits funds via wire transfer.
Documents are recorded and the keys are delivered!
AZ Buyers Guide | 10
Completes and returns opening package from First American Title, including information such as forwarding address, payoff lender contact information and loan numbers.
Orders any work for inspections and/or repairs to be done as required by the purchase agreement.
Escrow officer or real estate agent contacts the seller to schedule signing appointment. Documents are recorded and all proceeds from sale are received.
Requests necessary information from buyers and sellers via opening packages. Reviews title commitment/ preliminary report.
Upon receipt of opening packages, orders demands for payoffs. Contacts buyer or seller when additional information is required for the title commitment/preliminary report.
All demands, invoices, and fees must be collected and sent to lender at least 10 days prior to loan consummation.
Coordinates with lender on the preparation of the CD.
Reviews all documents, demands, and instructions and prepares settlement statements and any other required documents. Schedules signing appointment and informs buyer of funds due at settlement. Once loan is consummated, sends funding package to lender for review. Prepares recording instructions and submits docs for recording. Documents are recorded and funds are disbursed. Issues final settlement statement.
Orders and reviews title commitment / preliminary report, property appraisal, credit report, employment and funds verification. Collects information such as title commitment / preliminary report, appraisal, credit report, employment and funds verification. Reviews and requests additional information for final loan approval. Underwriting reviews loan package for approval.
Coordinates with Escrow Officer on the preparation of the Closing Disclosure, which is delivered to Buyer at least 3 days prior to loan consummation. Delivers loan documents to escrow.
Upon review of signed loan documents, authorizes loan funding.
Closing Costs: Who Pays Whats This chart indicates who customarily pays what costs
CASH
FHA
VA
CONV
01.
Downpayment
Buyer
Buyer
Buyer
Buyer
02.
Property Inspection (If Requested By Buyer)
Buyer
Buyer
Buyer
Buyer
03.
Property Repairs, If Any (Negotiable)
Seller
Seller
Seller
Seller
04.
New Loan Origination Fee (Negotiable)
Buyer
Buyer
Buyer
05.
Discount Points (Negotiable)
Buyer
Seller
Buyer
06.
Document Preparation Fee (Charge Seller On Fha/Va)
Seller
Seller
Buyer
07.
Credit Report
Buyer
Buyer
Buyer
08.
Appraisal Or Extension Fee (Negotiable)
Buyer
Buyer
Buyer
09.
Interest Proration On Seller’s Existing Loan
10.
Existing Loan Payoff
Seller
Seller
Seller
Seller
11.
Existing Loan Payoff Demand
Seller
Seller
Seller
Seller
12.
Loan Prepayment Penalty (If Any)
Seller
Seller
Seller
Seller
13.
Next Month’s Piti Payment
Buyer
Buyer
Buyer
14.
Prepaid Interest (Approx. 30 Days)
Buyer
Buyer
Buyer
15.
Reserve Account Balance (Credit Seller / Charge Buyer)
Prorate
Prorate
Prorate
16.
Fha Mip, Va Funding Fee, Pmi Premium
Buyer
Buyer
Buyer
17.
Assessments Payoff Or Proration (Sewer, Paving, Etc.)
Seller
18.
Taxes
Prorate
Prorate
Prorate
Prorate
19.
Tax Impounds
Buyer
Buyer
Buyer
20.
Tax Service Contract
Seller
Seller
Buyer
21.
Fire/Hazard Insurance
Buyer
Buyer
Buyer
22.
Flood Insurance
Buyer
Buyer
Buyer
23.
Homeowners Association (Hoa) Transfer Fee
Split
Split
Seller
Split
24.
Hoa/Disclosure Fee
Seller
Seller
Seller
Seller
25.
Current Hoa Payment
Prorate
Prorate
Prorate
Prorate
26.
Next Month’s Hoa Payment
Buyer
Buyer
Buyer
Buyer
27.
Home Warranty Premium (Negotiable)
28.
Homeowners Title Policy (Negotiable on all but VA loan)
Seller
Seller
Seller
Seller
29.
Lenders Title Policy And Endorsements
Buyer
Buyer
Buyer
30.
Account Servicing Set-Up Fee (Negotiable)
31.
Escrow Fee (Note: Charge Seller On Va Loan)
Split
Split
Seller
Split
32.
Recording Fees (Flat Rate)
Split
Split
Split
Split
33.
Reconveyance/Satisfaction Fee
Seller
Seller
Seller
Seller
34.
Courier/Express Mail Fees
Split
Split
Seller
Split
35.
Email Loan Documents
Buyer
Seller
Buyer
Buyer
Note: Prorated items will appear on Closing Statement as charges for one and credits for the other.
AZ Buyers Guide | 11
Obtaining a new loan. When and where to apply for a loan? There are many sources for home loans including banks, credit unions, mortgage companies, and mortgage brokers. Your REALTOR® may give you several names of lenders who have proven reliable in their previous transactions. Apply for your loan as soon as possible. In fact, it’s probably a good idea to know what you can afford before you begin looking for your new home. It can give you more bargaining power when negotiating with a Seller, especially in today’s market. A lender can prequalify you for a certain price range and help you avoid disappointment later. Your lender may have verification requests and order an appraisal on the property you are buying. If your lender asks for additional items, please comply promptly with those requests to avoid delaying loan approval. What is hazard (or fire) insurance? Hazard insurance covers the dwelling itself and is required by the lender to protect their “risk” in your home. Your lender or REALTOR® will explain the necessary hazard insurance coverage to you. If you are buying a condominium, a master policy already exists which includes your unit—but it does not cover your personal belongings. Contact your insurance agent early in the process, because this coverage must be provided so the lender
can release loan funds to First American Title. Hazard insurance is one of the items frequently postponed until the last minute, and this can result in delaying the closing for a day or more. Order your insurance as soon as your loan is approved; then furnish your escrow officer with the agent’s name and phone number. When you talk with your insurance agent, be sure to ask about additional coverage in a homeowner’s policy to insure your personal belongings and to protect against liability for such events as injuries to visitors.
What happens after loan approval? After loan approval and just prior to your planned closing date, the lender will send loan documents to First American Title, and your escrow officer will prepare an estimated settlement statement. This statement indicates what funds go where, and at this time your escrow officer can tell you how much money you need to bring to the closing appointment. Be aware that this amount may be higher or lower than previously estimated due to changes in such items as prepaid interest, prorated fees, courier fees, and impound accounts.
What you may need for the loan application. Be prepared to provide some of all of these items to your loan officer:
— Addresses of residences for last two years — Social Security Number — Driver’s License or other valid ID — Names and addresses of employers for last two years — Two recent pay stubs showing year-to-date earnings — Federal tax returns for last two years
checking and savings account — Loans: Names, addresses, account numbers, and payment amounts on all loans — Real estate loans: Names, addresses, account numbers, and payment amounts on all loans for other real estate you own — Credit cards: Names, addresses, account numbers, and payment amounts on all credit cards
— W-2’s for last two years
— Addresses and values of other real estate owned
— Last two months statements for all
— Value of personal property.
AZ Buyers Guide | 12
Your best estimate of the value of all your personal property (autos, boats, furniture, jewelry, television, stereo, computer, other electronics, etc.) —F or a VA loan, Certificate of Eligibility or DD214s —D ivorce decree if applicable —F unds to pay upfront for the credit report and appraisal — L etters of Explanation regarding credit inquires or special circumstances
Types of Loans Adjustable Rate Loan Adjustable or variable rate refers to the fluctuating interest rate you’ll pay over the life of the loan. The rate is adjusted periodically to coincide with changes in the index on which the rate is based. The minimum and maximum amounts of adjustment, as well as the frequency of adjustment are specified in the loan terms. An adjustable rate mortgage may allow you to qualify for a higher loan amount but maximums, caps and time frames should be considered before deciding on this type of loan.
Assumable Loan A true assumable loan is rare today. This loan used to enable a buyer to pay the seller for the equity in the home and take over the payments without meeting any requirements. Assumables these days generally require standard income, credit and funds verification by the lender before the loan can be transferred to the buyer.
Community Homebuyer’s Program This program is designed to assist first-time buyers by offering a fixed rate and a low downpayment, such as 3 to 5% down. The program doesn’t require cash reserves, and qualifying ratios are more lenient; however, the buyer’s income must fall within a certain range and a training course may be necessary if required by the program. Ask your loan officer if this program is available in your community and whether or not you might qualify.
Conventional Loan This simply describes a loan that is not obtained under any government-insured program, secured by investors. It could be a fixed rate or adjustable.
FHA Loan This program is beneficial for buyers who don’t have large downpayments. The loan is insured by the Federal Housing Administration under Housing and Urban Development (HUD) and offers easier qualifying with less cash needed upfront but the condition of the property is strictly regulated. The seller will pay a portion of the closing costs that would typically be paid by the buyer in a conventional loan program.
Fixed Rate Loan This loan has one interest rate that is constant throughout the loan.
VA Loan People who have served in the U.S. armed forces can apply for a VA loan which covers up to 100% of the purchase price and requires little or no downpayment. AZ Buyers Guide | 13
The Escrow Process What is an escrow? The escrow is the process of having a neutral party manage the exchange of money for real property. The escrow holder is known as an escrow or settlement officer or agent. The buyer deposits funds and the seller deposits a deed with the escrow holder along with all of the other documents required to remove all "contingencies" (conditions and approvals) in the purchase agreement prior to closing.
How is an escrow opened? Once a purchase agreement is signed by all necessary parties, the agent representing the party who will pay the fee selects an escrow holder and the buyer's earnest money deposit and contract are submitted to the escrow holder. From this point, the escrow holder will follow the mutual written instructions of the buyer and seller, maintaining a neutral stance to ensure that neither party has an unfair advantage over the other. The escrow holder also follows the instructions of the Buyer's new lender, the seller's existing lender, and both parties' agents. The escrow holder ensures the transparency of the transaction, while carefully maintaining the privacy of the consumers.
AZ Buyers Guide | 14
Your escrow professional may: pen escrow and, if instructed to do so, O deposit your good faith funds in a separate escrow account. rder a title search to determine ownership and O status of the subject real property. I ssue a preliminary report and begin the process of eliminating the title exceptions you and your lender are not willing to take title subject to. equest payoff information for the seller’s loans, R other liens, homeowner’s association fees, etc. oordinate with the buyer’s lender on the C preparation of the Closing Disclosure (CD). rorate fees, such as real property taxes, per the P contract, and prepare the settlement statement. et separate appointments allowing the seller and S you to sign documents and deposit funds. eview documents ensuring all conditions and R legal requirements are fulfilled; request funds from lender. hen all funds are deposited, record documents W with the County Recorder’s Office to transfer the subject real property to you. fter the recordation is confirmed, close escrow A and disburse\funds, including seller’s proceeds, loan payoffs, etc. repare and send final documents to all P parties involved. AZ Buyers Guide | 15
Understanding title insurance. The title industry and title insurance in brief.
Prior to the development of the title industry in the late 1800s, a home-buyer received a grantor’s warranty, attorney’s title opinion, or abstractor’s certificate as assurance of home ownership. The buyer relied on the financial integrity of the grantor, attorney, or abstractor for protection. Today, home-buyers look primarily to title insurance to provide this protection. Title insurance companies are regulated by state statute. They are required to post financial guarantees to ensure that any claims will be paid in a timely fashion. They also must maintain their own “title plants” which house duplicates of recorded deeds, mortgages, plats, and other pertinent county property records. What is title insurance? Title insurance provides coverage for certain losses due to defects in the title that, for the most part, occurred prior to your ownership. Title insurance protects against defects such as prior fraud or forgery that might go undetected until after closing and possibly jeopardize your ownership and investment.
Why is title insurance needed? Title insurance insures buyers against the risk that they did not acquire marketable title from the seller. It is primarily designed to reduce risk or loss caused by defects in title from the past. A loan policy of title insurance protects the interest of the mortgage lender, while an owner’s policy protects the equity of you, the buyer, for as long as you or your heirs (in certain policies) own the real property.
When is the premium due? You pay for your owner’s title insurance policy only once, at the close of escrow. Who pays for the owner’s policy and loan policy varies depending on local customs.
AZ Buyers Guide | 16
How title insurance differs. Unlike other forms of insurance, title insurance emphasizes loss prevention for the insured. Title professionals perform labor-intensive work to find and address title issues that could threaten your homeownership. This upfront analysis gives you, as a policy holder, the peace of mind that your title risk has been effectively reduced. In contrast, insurance based on loss assumption (such as auto or property and casualty insurance) requires little upfront work because claims cannot be predicted or prevented, and premium funds are needed only in the event of an accident or other covered issue. These types of insurance also require annual coverage payments, unlike title insurance which is paid for only once upon the purchase of your home or establishment of a new mortgage.
The importance of title protection. There are many title issues that could cause you to lose your real property or your mortgage investment. Even the most careful search of public records may not disclose the most dangerous threat: hidden risks. These issues may not be uncovered until years later. Without title insurance from a reputable and financially solvent company, the ownership of your home could be jeopardized.
Here are some examples of title issues that may occur: eeds by persons supposedly single, D but secretly married. Deeds in lieu of foreclosure given under duress arital rights of spouse purportedly, but not M legally, divorced. Impersonation of the true owner of the land. Deeds by minors. Deeds by persons of unsound mind. Deeds to or from defunct corporations. Defective acknowledgments by notaries. Duress in execution of instruments. Erroneous reports furnished by tax officials. Forged deeds, releases, etc. Mistakes in recording legal documents. Surviving children omitted from will. dministration of estate of persons absent but A not deceased. Birth or adoption of children after date of will. laims of creditors against real property sold by heirs C or devisees. eed of community property recited to be D separate property. Deeds by foreign parties. AZ Buyers Guide | 17
Eagle Policy® for Owners benefits you won’t get with a Standard ALTA Owner’s Policy — Post-policy Forgery — Post-policy Encroachments — Post-policy Adverse Possession
Coverage extended to homeowner when someone claims to have the insured’s title arising out of someone else’s continued use and occupancy — Post-Policy Easement by Prescription
Coverage if another claims right to use a part of the insured’s land as an easement because of continuous use over time — Building Permit and Zoning Violation
Eagle Policy ® for Owners The benefits of First American Title’s Eagle Policy® for Owners versus the Standard ALTA Owner’s Policy First American Title’s Eagle Policy® for Owners provides expanded title coverage for natural persons who purchase one‐to‐four family residences, including condominiums. Coverages included in the Eagle Policy for Owners offer ®
the highest levels of protection available to homeowners.
AZ Buyers Guide | 18
Coverage for losses up to $25,000, after a small deductible, for building permit violations and forced remediation of zoning violations, and up to the full policy amount for forced removal of structures due to zoning violations — Expanded Access
Expanded to include both vehicular and pedestrian access to and from land, based upon legal right — Encroachment of Improvements onto Easements
and Set-backs — Subdivision Violation
Homeowners are covered up to $10,000, after a small deductible, for protection against subdivision violations prior to purchase — Restrictive Covenant Violations
Coverage provided for violations of restrictive covenants, occurring before homeowner acquired land if the homeowner is forced to correct or remove the violation or if the homeowner’s title is lost or taken because of the violation — Encroachment of Boundary Walls and Fences
Protection of up to $5,000, after a small deductible, for encroachments onto a neighbor’s land, onto an easement, or over a building set-back line
Compare First American Title’s Eagle Policy® for Owners
EAGLE/ALTA Homeowners Policy
ALTA Standard Policy
P P P P P
P P P P P
P P P P P
P P P P
Protection from: 1
Someone else owns an interest in your title
2
A document is not properly signed
3
Forgery, fraud, duress in the chain of title
4
Defective recording of any document
5
There are restrictive covenants
6
There is a lien on your title because there is: a) a mortgage b) a judgement, tax, or special assessment c) a charge by a homeowner’s association
7
Title is unmarketable
8
Mechanics lien **
9
Forced removal of a structure because it:
c) violates an existing zoning law*
P P P
10
Cannot use the land for a Single-Family Residence because the use violates a restriction in Schedule B or a zoning ordinance
P
11
Unrecorded lien by a homeowners association
12
Unrecorded easements
13
Building permit violations*
14
Restrictive covenant violations
15
Post-policy forgery
16
Post-policy encroachment
18
Lack of vehicular and pedestrian access
20
Post-policy adverse possession
21
Post-policy prescriptive easement
22
Covenant violation resulting in your title reverting to a previous owner
23
Violation of building setback regulations
24
Discriminatory covenants
a) extends on another property and/or easement b) violates a restriction in Schedule B
P P P P P P P P P P P P
Other benefits: 25
Pays rent for substitute land or facilities
26
Rights under unrecorded leases
27
Plain language statements of policy coverage and restrictions
29
Coverage for boundary wall or fence encroachment **
30
Added ownership coverage leads to enhanced marketability
31
Insurance coverage for a lifetime
32
Post-policy inflation coverage with automatic increase in value up to 150% over five years
33
Post-policy Living Trust coverage
P P P P P P P P
* Deductible and maximum limits apply. Not available to investors on 1- to 4-unit residential properties. ** ** Subject to underwriting approval. See policy for exact statements of coverage. All coverages subject to special exceptions set forth in Schedule B of the policy.
As with any insurance contract, the insuring provisions express the coverage afforded by the title insurance policy and there are exceptions, exclusions and conditions to coverage that limit or narrow the coverage afforded by the policy. Also, some coverage may not be available in a particular area or transaction due to legal, regulatory, or underwriting considerations. Please contact a First American representative for further information. The services described above are typical basic services. The services provided to you may be different due to the specifics of your transaction or the location of the real property involved.
AZ Buyers Guide | 19
Vesting: Ways to hold title in Arizona.
COMMUNITY PROPERTY
JOINT TENANCY WITH RIGHT OF SURVIVORSHIP
COMMUNITY PROPERTY WITH RIGHT OF SURVIVORSHIP
TENANCY IN COMMON
Requires a valid marriage between two persons.
Parties need not be married; may be more than two joint tenants.
Requires a valid marriage between two persons.
Parties need not be married; may be more than two tenants in common.
Each spouse holds an undivided one-half interest in the estate.
Each joint tenant holds an equal and undivided interest in the estate, unity of interest.
Each spouse holds an undivided one-half interest in the estate.
Each tenant in common holds an undivided fractional interest in the estate. Can be disproportionate.
One spouse cannot partition the property by selling his or her interest.
One joint tenant can partition the property by selling his or her joint interest.
One spouse cannot partition the property by selling his or her interest.
Each tenant’s share can be conveyed, mortgaged or devised to a third party.
Requires signatures of both spouses to convey or encumber.
Requires signatures of all joint tenants to convey or encumber the whole.
Requires signatures of both spouses to convey or encumber.
Requires signatures of all tenants to convey or encumber the whole.
Each spouse can devise (will) one-half of the community property.
Estate passes to surviving joint tenants outside of probate.
Estate passes to the surviving spouse outside of probate.
Upon death the tenant’s proportionate share passes to his or her heirs by will or intestacy.
Upon death the estate of the decedent must be “cleared” through probate, affidavit or adjudication.
No court action required to “clear” title upon the death of joint tenant(s).
No court action required to “clear” title upon the first death.
Upon death the estate of the decedent must be“cleared” through probate, affidavit or adjudication.
Note: Arizona is a community property state. Property acquired by a husband and wife is presumed to be community property unless legally specified otherwise. Title may be held as “Sole and Separate.” If a married person acquires title as sole and separate, his or her spouse must execute a disclaimer deed to avoid the presumption of community property. Parties may choose to hold title in the name of an entity, e.g., a corporation; a limited liability company; a partnership (general or limited), or a trust. Each method of taking title has certain significant legal and tax consequences; therefore, you are encouraged to obtain advice from an attorney or other qualified professional.
AZ Buyers Guide | 20
What happens next for the buyer. Identity Statement You will be asked to fill out an Identity Statement that enables our title department to distinguish you from others with identical names during our search of County records. It also provides basic information that will be useful to your escrow officer.
- Seller’s property disclosure statement listing any existing problems known to the seller
Home Loan Unless you are paying cash, assuming a loan, or the seller is financing, you will need to apply for a home loan if you have not already done so. Apply as soon as possible to comply with the purchase contract and prior to insuring to avoid delaying the closing.
- Flood hazard disclosure if the real property is in a flood area
Response to Seller’s Notices If directed by the contract, you may receive the following items which require a response from you:
- Information pertaining to the Homeowners Association (HOA) or Planned Unit Development (PUD), such as Covenants, Conditions and Restrictions (CC&Rs), if applicable
- Independent inspections, such as termite and septic, and any repairs as required Title Commitment You will receive a copy of the title commitment when we complete the title search. If you have questions about the title commitment, contact your real estate agent or your escrow officer.
Consider This One escrow transaction could involve over 20 individuals, including real estate professionals, buyer, seller, attorney, escrow officer, escrow technician, title officer, loan officer, loan processor, loan underwriter, home inspector, termite inspector, insurance agent, home warranty representative, contractor, roofer, plumber, pool service, and so on. And often one transaction depends on another. When you consider the number of people involved, you can imagine the opportunities for delays and mishaps. While your experienced real estate professional, escrow, and title team can’t prevent unforeseen problems from arising, they can help to ensure as smooth a closing as possible.
Your Title Commitment The information below is to help you understand the contents of the title commitment you will receive from First American Title. Schedule A This is the information submitted to our title department by the escrow officer. It contains the basic information given to us by the buyer or real estate professional, such as the legal description of the real property, sale price, loan amount, lender, name, and marital status of buyer and seller.
Schedule B The Schedule B “exceptions” are items which are tied to the subject property, and the buyer's rights in the title will be subject to these exceptions. These may include easements, Homeowners Association by-laws, leases, Covenants, Conditions, and Restrictions (CC&Rs) and other items which will remain of record and transfer with the property. The buyer is asked to sign a receipt for the Schedule B documents which states the buyer has read and accepts the contents.
Requirements These are items that First American Title needs to delete and/or record prior to insuring title to the real property. Items that need to be addressed include: - Current property-tax status - Any assessments that are owed, such as those for a Homeowners Association - Any encumbrances (or liens) on the real property Sometimes items show up against a parcel of real property because another person has a name similar to an involved party. This is one reason we ask for an Identity Statement, to determine if items are inaccurate and can be deleted.
AZ Buyers Guide | 21
What to avoid during the closing process.
Avoid changing jobs A job change may result in your loan being denied, particularly if you are taking a lower-paying position or moving into a different field. Don’t think you’re safe because you’ve received approval earlier in the process, as the lender may call your employer to re-verify your employment just prior to funding the loan.
Avoid switching banks or moving your money to another institution After the lender has verified your funds at one or more institutions, the money should remain there until needed for the purchase.
Avoid paying off existing accounts unless your lender requests it If your loan officer advises you to pay off certain bills in order to qualify for the loan, follow that advice. Otherwise, leave your accounts as they are until your escrow closes.
Avoid making any large purchases A major purchase that requires a withdrawal from your verified funds or increases your debt can result in your not qualifying for the loan. A lender may check your credit or re-verify funds at the last minute, so avoid purchases that could impact your loan approval.
AZ Buyers Guide | 22
Closing Your Escrow What to do before the closing appointment. Your escrow officer or escrow technician will contact you to schedule your closing appointment and inform you of the funds you need to bring with you. Obtain a cashier’s check for that amount made payable to First American Title. If a wire transfer is necessary, arrange for it in advance with your escrow officer. First American Title is required by law to have funds deposited before escrow funds can be disbursed. Expect delays if you submit a personal check! If you have questions or anticipate a problem, contact your escrow officer immediately.
Don’t forget your identification. You will need valid identification with your photo; a driver’s license is preferred. This is necessary so that your identity can be sworn to by a notary public. It’s a routine step, but it’s important for your protection.
What happens next? During your signing appointment at First American Title, you will sign loan documents for the home you are purchasing and you will present your identification so the documents can be notarized. You will review the settlement statement and give the escrow officer your cashier’s check. (The seller will sign at a separate appointment.) First American Title will confirm that all contract conditions have been met and ask the lender to “fund the loan.” If the loan documents are satisfactory, the lender will send funds directly to First American Title. When all necessary funds are received we will disperse escrow funds to the seller and other appropriate payees. The signed loan documents will be returned to the lender. We will record the deed at the county recorder’s office. At this time your escrow is closed.
After the Closing We recommend you keep all records pertaining to your home together in a safe place, including all purchase documents, insurance, maintenance and improvements.
Loan payments and impounds. You should receive a statement from your lender before your first payment is due. If you have not been notified, or if you have questions about your tax and insurance impounds, contact your lender. Home Warranty Repairs. If you have a home warranty policy, call your home warranty company directly for repairs. Have your policy number available when you call. Title Insurance Policy. First American Title will deliver your policy and your recorded deed. Property Taxes. You may not receive a tax statement for the current year on the home you buy; however, it is your obligation to make sure the taxes are paid when due. Check with your mortgage company to find out if taxes are included with your payment. For more information on your property taxes, contact your county treasurer’s office. AZ Buyers Guide | 23
Planning Your Move Six Weeks Before: Create an inventory sheet of items to move. Research moving options. You’ll need to decide if yours is a do-it-yourself move or if you’ll be using a moving company. Request moving quotes. Solicit moving quotes from as many moving companies and movers as possible. There can be a large difference between rates and services within moving companies.
One Week Before: Plan your itinerary. Make plans to spend the entire day at the house or at least until the movers are on their way. Someone will need to be around to make decisions. Make plans for kids and pets to be at the sitters for the day. Change of address. Visit USPS for change of address form. Bank accounts. Notify bank of address change. Make sure to have a money order for paying the moving company if you are transferring or closing accounts.
Discard unnecessary items. Moving is a great time for ridding yourself of unnecessary items. Have a yard sale or donate unnecessary items to charity.
Service automobiles. If automobiles will be driven long distances, you’ll want to have them serviced for a troublefree drive.
Packing materials. Gather moving boxes and packing materials for your move.
Cancel services. Notify any remaining service providers (newspapers, lawn services, etc) of your move.
Contact insurance companies. (Life, Health, Fire, Auto) You’ll need to contact your insurance agent to cancel/ transfer your insurance policy. Do not cancel your insurance policy until you have and closed escrow on the sale.
Start packing. Begin packing for your new location.
Seek employer benefits. If your move is work-related, your employer may provide funding for moving expenses. Your human resources rep should have information on this policy. Changing Schools. If changing schools, contact new school for registration process.
Four Weeks Before: Contact utility companies. Set utility turnoff date, seek refunds and deposits and notify them of your new address. Obtain your medical records. Contact your doctors, physicians, dentists and other medical specialists who may currently be retaining any of your family’s medical records. obtain these records or make plans for them to be delivered to your new medical facilities. Note food inventory levels. Check your cupboards, refrigerator and freezer to use up as much of your perishable food as possible. Service small engines for your move by extracting gas and oil from the machines. This will reduce the chance to catch fire during your move. Protect jewelry and valuables. Transfer jewelry and valuables to safety deposit box so they can not be lost or stolen during your move. Borrowed and rented items. Return items which you may have borrowed or rented. Collect items borrowed to others. AZ Buyers Guide | 24
Travel items. Set aside items you’ll need while traveling and those needed until your new home is established. Make sure these are not packed in the moving truck! Scan your furniture. Check furniture for scratches and dents before so you can compare notes with your mover on moving day. Prepare Floor Plan. Prepare floor plan for your new home. This will help avoid confusion for you and your movers.
Moving Day: Review the house. Once the house is empty, check the entire house (closets, the attic, basement, etc) to ensure no items are left or no home issues exist. Sign the bill of lading. Once you are satisfied with the mover’s packing your items into the truck, sign the bill of lading. If possible, accompany your mover while the moving truck is being weighed. Double check with your mover. Make sure your mover has the new address and your contact information should they have any questions during your move. Vacate your home. Make sure utilities are off, doors and windows are locked and notify your real estate agent you’ve left the property.
Your Notes:
AZ Buyers Guide | 25
Southern Arizona N Dove Mount
77
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Tanque Verde
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6390 E Tanque Verde Rd Tucson, AZ 85715 PHONE 520-885-1600 / 520-202-2626
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W VALENCIA RD
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Tucson
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Houghton
Oro Valley/La Canada
Skyline
11165 N La Canada Dr, Ste 143 Oro Valley, AZ 85737 PHONE 520-877-9200
E 22ND ST
Littletown
Casas Adobes
6760 N Oracle Rd, Ste 100B Tucson, AZ 85704 PHONE 520-575-1900
3777 E Broadway, Ste 130 Tucson, AZ 85716 PHONE 520-747-1644
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1840 E River Road Ste 200 Tucson, AZ 85718 PHONE 520-577-8707 / 520-529-1944
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8280 S. Houghton Rd, Ste 130 Tucson, AZ 85747 PHONE 520-618-7790 2890 E Skyline Dr, Ste 200 Tucson, AZ 85718 PHONE 520-529-0506
Oro Valley/Oracle
8500 N Oracle Rd, Ste 100 Oro Valley, AZ 85704 PHONE 520-297-2576 | 520-219-6451
Casa Grande
442 W Kortsen Road, Ste 101 Casa Grande, AZ 85122 PHONE 520-426-4600
First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2025 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF 24DID3342F1_CP-AZ_12
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N SOLDIER TRL S FREEMAN RD L S OLD SPA NISH T R
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W Bartlett Rd
W MCCARTNEY RD
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N Mt
W Woodruff Rd
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Branch Locator
First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2026 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF | 25DID0198BK1_CP-AZ_0225
BUYER-BROKER EXCLUSIVE EMPLOYMENT AGREEMENT
BUYER-BROKER AGREEMENT TO SHOW PROPERTY
REAL ESTATE AGENCY DISCLOSURE AND ELECTION
DISCLOSURE
ELECTION
SELLER COMPENSATION ADDENDUM
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The real estate market is cyclical and real estate values go up and down. will agree to loan money on real property. It is impossible to accurately given time.
DOCUMENT UPDATED: February 2026
A Resource for Real Estate Consumers Provided by the Arizona Association of REALTORS® and the Arizona Department of Real Estate A real estate agent is vital to the purchase of real property 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 containing vital information about a prospective property. This Advisory is designed to make the purchase of real property as smooth as possible. Some of the more common issues that a buyer may decide
to investigate or verify concerning a property 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 affectingthe 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 those issues are addressed in this Advisory.
Reminder: This Advisory is supplemental to obtaining professional property inspections. Professional property 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 property.
Please Note: The property may be subject to video and/or audio surveillance. Buyers should therefore exercise caution and not discuss features orpricingwhile in the home.
Page | 1 of 13
Arizona Department of Real Estate
BuyerAdvisory (February 2026)
Table of Contents SECTION 1
COMMON DOCUMENTS A BUYER SHOULD REVIEW 3 Purchase Contract 3 MLS Printout 3 TheSubdivision Disclosure Report (Public Report) 3 Seller’s Property Disclosure Statement (SPDS) 3 Covenants, Conditionsand Restrictions (CC&Rs)
4 Homeowner’s Association (HOA) Governing Documents 4 HOA Disclosures 4 Community Facilities District 4 Title Report or Title Commitment 4 Loan Information & Documents 4 Home Warranty Policy 5 Affidavit of Disclosure
5Lead-Based Paint Disclosure Form 5ProfessionalInspection Report 5County Assessors/Tax Records 5Termites and Other Wood Destroying Insects and Organisms 5Foreign Investment in Real Property Tax Act (FIRPTA)
SECTION 2
COMMON PHYSICAL CONDITIONS IN THE PROPERTY A BUYER SHOULD INVESTIGATE 6 Repairs, Remodelingand NewConstruction 6 Square Footage 6 Roof 6 Swimming Pools and Spas (Barriers) 6 Septic and Other On-Site Wastewater Treatment Facilities 7 Sewer
7 Water/Well Issues (Adjudications, CAGRDs) 7 Soil Problems 7 Previous Fire/Flood 7 Pests (Scorpions, Bed bugs, Roof Rats, Termites&Bark Beetles) 8 Endangered & Threatened Species 8 Deaths & Felonies on the Property
8 Indoor Environmental Concerns (Mold, Drywall, Radon Gas & Carbon Monoxide, Drug labs, Other) 8 Property Boundaries 9 Flood Insurance / Flood Plain Status 9 Insurance (Claims History) 9 Other Property Conditions (Plumbing, Cooling/Heating, Electrical systems)
SECTION 3
CONDITIONS AFFECTING THE AREA SURROUNDING THE PROPERTY THE BUYER SHOULD INVESTIGATE 9 Environmental Concerns (Environmentally Sensitive Land Ordinance) 10 Electromagnetic Fields 10 Superfund Sites
10 Military and Public Airports 11 Zoning/Planning/Neighborhood Services 11 Schools 11 City Profile Report
10 Freeway Construction & Traffic Conditions 10 Crime Statistics 10 Sex Offenders 10 Forested Areas
SECTION 4
OTHER METHODS TO GETTING INFORMATION ABOUT A PROPERTY 11 Drive around the Neighborhood
11 Talk to the Neighbors
11 Investigate your Surroundings
SECTION 5
RESOURCES 12 Market Conditions Advisory 12 Fair Housing & Disability Laws 12 Wire Fraud
12 Additional Information 12 Information about Arizona State Government Agencies and Arizona REALTORS®
BUYER ACKNOWLEDGMENT 13 Page | 2 of 13
Arizona Department of Real Estate
Buyer Advisory (February 2026)
Section 1
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 real estate broker has not independently verified the information contained in these documents.
information may become outdated, subsequent buyers can also benefit from reviewing the Public Report. Public Reports dating from January 1, 1997, are available on the Arizona Department of Real Estate (ADRE) website.
1 Purchase Contract Buyers should protect themselves by taking the time to read the Arizona REALTORS® Residential Resale Real Estate Purchase Contract and understand their legal rights and obligations before they submit an offer to buy a property.
https://services.azre.gov/PdbWeb/Development/Search Developments (ADRE Search Developments)
ADRE does not verify the information in the Public Report. Therefore, the Report could be inaccurate, so it should be verified by the buyer.
Residential Resale Real Estate Purchase Contract AAR Sample Residential Purchas Contract)
Contingency Waivers The Purchase Contract contains numerous contingencies, including, but not limited to, the loan contingency, the inspection contingency, and the appraisal contingency. Should a buyer elect to waive any such contingencies in conjunction with their purchase offer, adverse consequences may result that place buyer at risk of losing their Earnest Money or incurring monetary damages if buyer decides not to purchase the property after their offer is accepted. Before offering to waive any contractual contingencies, buyers should weigh the risks and consult with independent legal counsel.
4
Most sellers provide a SPDS. This document poses a variety of questions for the seller to answer about the property and its condition. The real estate broker is not responsible for verifying the accuracy of the items on the SPDS; therefore, a buyer should carefully review the SPDS and verify those statements of concern. A seller’s disclosure obligation remains even f the buyer and seller agree that no Seller’s Property Disclosure Statement will be provided. Residential Seller’s Property Disclosure Statement (AAR Sample SPDS) https://azre.gov/consumers/property-buyers-checklist-home-or-land (ADRE Property Buyer’s Checklist)
2 MLS Printout A listing is a contractual 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.
Seller’s Property Disclosure Statement (SPDS)
5
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 property in such a development, the buyer agrees to be bound by the CC&Rs. The association, the property owners as a whole, and individual property owner can enforce the CC&Rs. It is essential that the buyer review and agree to these restrictions prior to purchasing a property. https://azre.gov/consumers/property-buyers-checklist-home-or-land (ADRE Property Buyer’s Checklist)
It is the law of this state that any covenants or restrictions that are based on race, religion, color, handicap status or national origin are invalid and unenforceable. A.R.S. 32-2107.01
3 The Subdivision Disclosure Report (Public Report)
A Subdivision Disclosure Report (Public Report) is intended to point out material information about a subdivision. Subdividers (any person who offers for sale or lease six or more lots in a subdivision or who causes land to be divided into a subdivision) are required to give buyers a Public Report. Read the Public Report before signing any contract to purchas Page | 3 of 13
https://www.aaronline.com/arizona-deed-restrictions/ (Arizona Deed Restrictions webpage)
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.” Buyers should consult legal counsel if uncertain of the application of particular provisions in the CC&Rs.
Arizona Department of Real Estate
BuyerAdvisory (February 2026)
6 Homeowners Association (HOA) Governing Documents
9 Title Report or 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 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.
In addition to CC&Rs, HOAs may be governedby Articles of Incorporation, Bylaws, Rules and Regulations, and often architectural control standards. Read and understand these documents. Also, be aware that some HOAs impose fees that must be paid when the property is sold, so ask if the purchase of the property will result in any fees. Condominium and planned community HOAs are regulated by Arizona statutes. They are not under the jurisdiction of the Department of Real Estate (ADRE). Nonetheless, the Arizona’s Homeowner's Association Dispute Process is administered by the ADRE. http://bit.ly/2ebBSLH (A.R.S. 33-1260) http://bit.ly/2e8jdM3 (A.R.S. 33-1806) https://azre.gov/consumers/homeowners-association-disputeinformation (ADRE HOA Information)
https://www.homeclosing101.org/ (American Land Title Association) https://bit.ly/34KkCaQ(CFPB- What is title insurance?)
10 Loan Information and Documents
7 HOA Disclosures
Unless a buyer is paying cash, the buyer must qualify for a loan in order to complete the purchase. A buyer should complete a loan application with a lender before making an offer on a property if possible and, if not, immediately after making an offer. It will be the buyer’s responsibility to deposit any down payment and ensure that the buyer’s lender deposits the remainder of the purchase price into escrow prior to the close of escrow date. Therefore, make sure you get all requested documentation to your lender as soon as possible.
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. http://bit.ly/2ebBSLH(A.R.S.33-1260);and http://bit.ly/2e8jdM3 (A.R.S. 33-1806)
8
Facilities District Community Facilities Districts (CFDs) are special taxing districts that use bonds for the purpose of financing construction, acquisition, operation, and maintenance of public infrastructure that benefits the real property owners comprising the CFD members. Roadways, public sewers, utility infrastructure, and public parks are examples of the types of public infrastructure paid for by CFDs. CFDs have a Governing Board that may be the City Council acting as the board or a stand-alone board. Any member of a CFD may request disclosures from this board. Questions to ask include: the amount still owed and how many more payments are left in order to pay off the CFD for the property. It is important that you review the Detailed Property Tax Statement which will show the current amount due to the CFD. CFDs are most commonly found on the property’s detailed property tax statement from the County Tax Assessor. The local municipality or county can also be a source of CFD information.
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https://www.consumerfinance.gov/owning-a-home/ (Buying a house: Tools & Resources for Homebuyers) https://www.hud.gov/topics/buying_a_home (HUD.gov)
11 Home Warranty Policy
Arizona Department of Real Estate
A home warranty [policy]is a service contract that typically covers the repair and/or replacement costs of home appliances and major systems such as heating, cooling, plumbing, and possibly other components of a home that fail due to normal usage and age. Coverage varies depending on the policy. Be aware that pre-existing property conditions are generally not covered. A home warranty may be part of the sale of the home. If so, buyers should thoroughly read the home warranty contract to understand coverage, limitations, exclusions, and costs associated with the policy.
BuyerAdvisory (February 2026)
12 Affidavit of Disclosure
Apache:
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.
https://bit.ly/3CVkXTu
Coconino: http://bit.ly/2F9PstM
Graham:
Affidavit of Disclosure (AAR Sample)
http://bit.ly/2JGz2ZO
13 Lead-Based Paint Disclosure Form
La Paz:
If the home was built prior to 1978, the seller must provide the buyer with a lead-based paint disclosure form. Buyer is further advised to use certified contractors to perform renovation, repair or painting projects that disturb leadbased paint in residential properties built before 1978 and to follow specific work practices to prevent lead contamination.
Cochise: https://www.cochise.az.gov/178/ Assessor Gila: http://bit.ly/Yq3bV9
Greenlee:
https://bit.ly/40vI7P7
https://www.lapaz.gov/1 50/Assessor
Maricopa:
Mohave:
Navajo:
https://mcassessor.maricopa.gov/
https://bit.ly/2Y8QH9g
https://bit.ly/4hbczDC
Pima:
Pinal:
https://www.asr.pima.gov/
https://bit.ly/40gwL0b
Santa Cruz http://bit.ly/1yRYwXl
Yavapai https://bit.ly/40y2MC6
Lead Based Paint Disclosure (AAR Sample Form) Lead Based Paint Pamphlet (Protect Your Family pamphlet) Lead Based Paint Safety (ADRE Consumer Information)
14 Professional Inspection Report The importance of having a property inspected by a professional inspector cannot be over-emphasized. An inspection is 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. 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. Home Inspections General Information (AZ.Board of Technical Registration-Home Inspections) Consumer Guide: Home Inspections (NAR Consumer Guide -Home Inspections
16 Termitesand Other Wood-Destroying Insects and Organisms Termites and other wood-destroying insects are commonly found in some parts of Arizona. General guidance, inspection report information and the ability to search a property for past termite treatments may be found on the Arizona Department of Agriculture website. https://agriculture.az.gov/pestspest-control/termites (AZDA-Termite Information) http://bit.ly/2GiGlIR%20 (AZDA-Wood Destroying Insect Inspection Reports) https://tarf.azda.gov/ (AZDA-Search for Termite Reports)
17 Foreign Investment in Real Property Tax Act (FIRPTA)
15 County Assessors/Tax 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. The date-built information in the assessor’s records can be either the actual or effective/weighted age if the residence has been remodeled. All information on the site should be verified for accuracy.
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Arizona Department of Real Estate
Foreign Investment in Real Property Tax Act (FIRPTA) may impact the purchase of property if the legal owner(s)of the property are foreign persons or nonresident aliens pursuant to FIRPTA. If so, consult a tax advisor as mandatory withholding may apply. https://bit.ly/3w10GsF (I.R.S.FIRPTA Definitions) https://www.irs.gov/Individuals/International-taxpayers/firptawithholding (I.R.S. FIRPTA Information and FAQs)
BuyerAdvisory (February 2026)
Section 2
COMMON PHYSICAL CONDITIONS IN THE PROPERTY A BUYER SHOULD INVESTIGATE Because every buyer and every property are different, the physical property conditions requiring investigationwill vary.
1
Repairs, Remodeling and New Construction The seller may have made repairs or added a room to the property. The buyer should feel comfortable that the work was properly done or have an expert evaluate the work. Request copies of permits, invoices or other documentation regarding the work performed. USE OF LICENSED CONTRACTORS A contractor’s license is required for work performed on a property unless the aggregate contract price, including labor and material, is less than $1,000, the work performed is of a “casual or minor nature,” and no building permit is required. An unlicensed property owner may also perform work themselves if the property is intended for occupancy solely by the owner. If, however, the property is listed or offered for sale or rent within one year of the completed work, it is considered prima facie evidence that the owner performed the work for purposes of sale or rent. Owners of property who are acting as developers, who improve structures or appurtenances to structures on their property for the purpose of sale or rent, and who contract with a licensed general contractor must identify the licensed contractors’ names and license numbers in all sales documents.
If the square footage is important, you should have it confirmed by one of these experts during the inspection period in a resale transaction and prior to executing a contract on a new home transaction. https://difi.az.gov/industry/RealEstateAppraisers (Licensed Real Estate Appraisers)
3 Roof If the roof is 10 years old or older, a roof inspection by a licensed roofing contractor highly recommended. www.azroofing.org(Arizona Roofing Contractors Association) https://roc.az.gov/before-hire (Before you Hirea Contractor)
4
If the property has a pool or a spa, the home inspector may Exclude the pool or spa form the general inspection so an inspection by a pool or spa company may be necessary. Pool Barrier Laws (AAR-Pool Barrier Laws & Information) Pool enclosures; requirements; exceptions; enforcement ( A.R.S. 361681 Swimming Pool Enclosures) Residential Pool Safety Notice (AZ Dept. of Health Services)
5
https://roc.az.gov/before-hire (Before you Hire a Contractor–Tips) https://remodelingdoneright.nari.org/ (National Association of the Remodeling Industry) https://apps-secure.phoenix.gov/PDD/Search/Permits (Phoenix Building Permit Search) https://www.tucsonaz.gov/Departments/PlanningDevelopment-Services/Permits (Tucson Building Permit Records) Other cities- search Planning & Development
2 Square Footage Square footage on the MLS printout or as listed by the county assessor’s records is often only an estimate and generally should not be relied upon for the exact square footage. An appraiser or architect can measure the property’s size to verify the square footage.
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Swimming Pools and Spas
Arizona Department of Real Estate
Septic and Other On-Site Wastewater Treatment Facilities If the home is not connected to a public sewer, it is served by an on-site wastewater treatment facility (conventional septic or alternative system). A qualified inspector must inspect any such facility within six months prior to transfer of ownership. For information on current inspection and transfer of ownership requirements, contact the specific county environmental/health agency where the property is located or the Arizona Department of Environmental Quality (ADEQ). ADEQ - Notice of Transfer Filing Information (Notice of Transfer and Inspection Information)
BuyerAdvisory (February 2026)
6
Sewer Even if the listing or SPDS indicates that the property is connected to the city sewer, a plumber, home inspector, or other professional should verify it. Some counties and cities can perform this test as well.
7
Water/Well Issues
If it has been disclosed that the property is subject to any such soil conditions or if the buyer has any concerns about the soil condition or observes evidence of cracking, the buyer should secure an independent assessment of the property and its structural integrity by a licensed, bonded, and insured professional engineer.
The property may receive water from a municipal system, a private water company, or a well. You should investigate the availability and quality of the water to the property, as well as the water provider. A list of Arizona’s water companies is available at the Arizona Corporation Commission.
https://azgs.arizona.edu/geohazards/problem-soils (Problem Soils -UA Science AZ Geological Survey) https://azgs.arizona.edu/geohazards/earth-fissuressubsidence (Information on Land Subsidence & Earth Fissures) www.btr.state.az.us (State Certified Engineers& Firms)
https://www.azcc.gov/utilities/water (Arizona Corporation Commission-Utilities Water) https://new.azwater.gov/aaws/statutesrules (Assured and Adequate Water Supply)
9
If it is disclosed there has been a fire or flood on 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 insurance agent may be able to assist you in obtaining information regarding fire, flood, or other past damage to the property.
Adjudications: Arizona is undertaking several Stream
Adjudications, which are court proceedings to determine the extent and priority of water rights in an entire river system.
For information regarding water uses and watersheds affected by these adjudications, and the forms upon sale of the property, visit the Department of Water Resources online.
10 Pests
https://new.azwater.gov/adjudications Department of Water Resources –Adjudications)
CAGRDs: The Central Arizona Groundwater Replenishment District (CAGRD) functions to replenish groundwater used by its members, individual subdivisions and service areas of member water providers. Homeowners in a CARD pay an annual assessment fee which is collected through the county property tax process based on the amount of ground water served to member homes. www.cagrd.com Arizona Ground Water Replenishment District)
8
Cockroaches, rattlesnakes, black widow spiders, scorpions, termites, and other pests are common in parts of Arizona. Fortunately, most pests can be controlled with pesticides.
Scorpions: Scorpions, on the other hand, may be
difficult to eliminate. If buyer has any concerns or if the SPDS indicates the seller has seen scorpions or other pests on the property, seek the advice of a pest control company. Bed Bugs: Infestations are on the rise in Arizona and nationally.
Roof Rats: Roof Rats have been reported in some areas by Maricopa County Environmental Services.
Termites: Consumer Information is available from the Arizona Department of Agriculture.
Soil Problems The soil in some areas of Arizona has “clay-like” tendencies, sometimes referred to as “expansive soil.” Other areas are subject to fissure, subsidence, and other soil conditions. Properties built on such soils may experience significant movement causing a major problem.
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Previous Fire/Flood
Arizona Department of Real Estate
Bark Beetles: Bark beetles have been reported in some forested areas.
https://agriculture.az.gov/pests-pest-control/household-pests/scorpions (Scorpions – Information) https://agriculture.az.gov/pests-pest-control/household-pests/bed-bugs (Bed Bugs – Information) https://agriculture.az.gov/pestspest-control/household-pests/roof-rats (Roof Rats) https://agriculture.az.gov/pestspest-control/termites (Termite Information) https://agriculture.az.gov/pestspest-control/agriculture-pests/bark-beetles (Bark Beetles – Information)
BuyerAdvisory (February 2026)
11 Endangered & Threatened Species
Imported Drywall: There have been reports of problematic drywall, produced in China, used in Arizona homes. Residents in homes with problem drywall report health issues such as respiratory irritation, and other problems such as copper corrosion and sulfur odors. Visit the Consumer Product Safety Commission website for more information.
Certain areas in the state may have issues related to federally listed endangered or threatened species that may affect land uses. Further information may be obtained on the U.S. Fish and Wildlife website or by contacting the appropriate planning/development service department. Arizona Ecological Services Field Office | U.S.Fish & Wildlife Service (fws.gov) (Arizona Ecological Services)(Arizona Endangered Species)
Radon Gas and Carbon Monoxide: Radon gas and carbon monoxide poisoning are two of the more common and potentially serious indoor air quality (IAQ) concerns. Both of these concerns can be addressed by the home inspector, usually for an additional fee. For information on radon levels in the state, visit Arizona Radiation Regulatory Agency online.
12 Death and Felonies on the Properties 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. This information is often difficult to uncover; however, the local law enforcement agency may be able to identify incidents related to a property address.
U.S. Environmental Protection Agency – Radon (General Information) Radon – Az. Map of Radon Zones (EPA) AZ Dept of Health Service (General About Radon)
Real Estate Sales &Leases Disclosure (A.R.S. § 32-2156)
Drug labs: Residual contamination arising from the illicit manufacture of methamphetamine and other drugs carried out in clandestine drug laboratories presents a serious risk of harm to human and environmental health.
13 Indoor Environmental Concerns Attention has been given to the possible health effects of mold in homes, apartments, and commercial buildings. Certain types of molds may cause health problems in some people while triggering only common allergic responses in others. Mold is often not detectable by a visual inspection. To determine if the premises you are purchasing, or leasing contains mold or airborne health hazards, you may retain an environmental expert to perform an indoor air quality test. This is particularly important if any of the inspection reports or disclosure documents indicate the existence of past or present moisture, standing water, visible water stains, or water intrusion in the Premises. 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.” Epa.gov/indoor-air-quality-iaq (EPA-Indoor Air Quality) https://www.epa.gov/mold (EPA-Mold) https://www.cdc.gov/mold-health/about/index.html (CDC-Mold Information)
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Other: For information on other indoor environmental concerns, the EPA has a host of resource materials and pamphlets online. bit.ly2kRk7jm (Drywall Information Center) https://bit.ly/4j9kR0J (EPA-Carbon Monoxide Indoors) https://www.epa.gov/asbestos (Asbestos Information) http://bit.ly/2qUZcSt (Voluntary Guidelines -Laboratory Cleanup Methamphetamine & Fentanyl Formaldehyde | US EPA (EPA Formaldehyde)
14 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 property. For more information, visit the Arizona Professional Land Surveyors online. A search for surveyors may be found online at the Board of Technical Registration. https://www.azpls.org/secure/find_surveyor.asp (AZ BTR Land Surveyors)
Arizona Department of Real Estate
BuyerAdvisory (February 2026)
15
Flood Insurance/Flood Plain Status Your mortgage lender may require you to purchase flood insurance in connection with your purchase of the property. The National Flood Insurance Program provides for the availability of flood insurance and established flood insurance policy premiums based on the risk of flooding in the area where properties are located. Changes to the federal law (The BiggertWaters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014, in particular) will result in changes to flood insurance premiums that are likely to be higher, and in the future, may be substantially higher than premiums paid for flood insurance prior to or at the time of sale of the property. As a result, purchasers of property should not rely on the premiums paid for flood insurance on the property previously as an indication of the premiums that will apply after completion of the purchase. In considering purchase of the property, you should consult with one or more carriers of flood insurance for a better understanding of flood insurance coverage, current and anticipated future flood insurance premiums, whether the prior owner’s policy may be assumed by a subsequent purchase of the property, and other matters related to the purchase of flood insurance for the property. If community floodplain information is not available for a specific property, and in order to obtain flood insurance, it may be necessary to have an elevation survey and obtain an elevation certificate. This is necessary to determine a properties insurability and premium rate. You may also wish to contact the Federal Emergency Management Agency (FEMA) for
more information about flood insurance as it relates to the property. National Flood InsuranceProgram (FEMA) https://www.realtor.com/flood-risk/ (Flood Risk Information) E l e v a t i o n C e r t i f i c a t e s (General Info) Flooding in Arizona (AZ Geological Survey) https://www.fcd.maricopa.gov/5308/Flood-Control-District (Maricopa County Flood Control District-Services)
Other Arizona Counties: Consult County Websites.
16 Insurance (Claims History) Many factors affect the availability and cost of homeowner’s insurance. Property owners may request a five-year claims history from their insurance company, an insurance support organization or consumer reporting agency. Consumer Resources(naic.org) (Helping You Navigate Insurance and Make Better Informed Decisions)
17 Other Property Conditions Plumbing: Check functionality. Cooling/Heating: Make sure the cooling and heating systems are adequate. If it is important to you, hire a qualified heating/cooling inspector. U.S. Environmental Protection Agency (EPA - Phaseout of Ozone-Depleting Substances -ODS)
Electrical Systems: Checkfor functionality and safety.
Section 3
CONDITIONS AFFECTING THE AREA SURROUNDING THE PROPERTY THE BUYER SHOULD INVESTIGATE Every property is unique; therefore, important conditions vary.
Environmental Concerns It is often very difficult to identify environmental hazards. The Arizona Department of Environmental Quality (ADEQ) website contains environmental information regarding the locations of open and closed landfills (Solid Waste Facilities), wildfire information, as well as air and water quality
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Arizona Department of Real Estate
information, as well as air and water quality information (and more). https://azdeq.gov/landfills (ADEQ-Landfills) https://www.azdeq.gov/solidwaste (ADEQ-Solid Waste Facilities) https://wildlandfire.az.gov/ (Wildfire FAQs and Resources1
BuyerAdvisory (February 2026)
6 Sex Offenders
1 Environmentally Sensitive Land Ordinance Approximately two-thirds of the City of Scottsdale is affected by the Environmentally Sensitive Land Ordinance (ESLO), which requires some areas on private property to be retained in their natural state and designated as National Area Open Space (NAOS). https://www.scottsdaleaz.gov/codes/eslo (ELS and NAOS)
https://www.azdps.gov/services/public/offender (RegisteredSex Offender and Community Notification) https://www.nsopw.gov/
2 Electric and Magnetic Fields (EMFs) For information on electric and magnetic fields, and whether they pose a health risk to you or your family, visit the National Institute of Environmental Health Sciences website. https://www.niehs.nih.gov/health/topics/agents/emf/index.cfm (National Institute of Environmental Health Sciences)
3 Superfund Sites There are numerous sites in Arizona where the soil and groundwater have been contaminated by improper disposal of contaminants. Maps may be viewed on ADEQ’s website to see if a property is in an area designated by the ADEQ as requiring cleanup. https://azdeq.gov/superfund-sites (AZ ADEQ-Superfund Sites) https://www.epa.gov/superfund (EPA Supefund)
4 Freeway Construction and Traffic Conditions Although the existence of a freeway near the property may provide highly desirable access, sometimes it contributes to undesirable noise. To search for roadway construction and planning, visit the Arizona Department of Transportation (ADOT) website. https://azdot.gov/projects (ADOT statewide projects) https://az511.com (ADOT Road Conditions)
5 Crime Statistics Crime statistics, an imperfect measurement at best, provide some indication of the level of criminal activity in an area. https://communitycrimemap.com/ (Crime Statistics-All Arizona Cities)
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Since June 1996, Arizona has maintained a registry and community notification program for convicted sex offenders. 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 the seller or real estate broker is required to disclose.
Arizona Department of Real Estate
(National Sex Offender Public Site)
7 ForestedAreas Life in a forested area has unique benefits and concerns. As with other natural disasters that affect the United States in any given year including flooding, tornados, hurricanes, and earthquakes, having information regarding wildfire risk will be crucial for Buyers here in the Southwest. To get the most up to date information on the community you are seeking to purchase in, search by city name, zip code and/or contact county/city fire authority for more information on issues particular to a community. www.wildfirerisk.org (Search - Community Wildfire Risk) AZ Dept of Forestry & Fire Management (Arizona Fire Wise Communities) https://www.nfpa.org/Public-Education/By-topic/Wildfire/Firewise-USA (Public Education/Fire Wise USA)
8 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 maps for military and public airports may be accessed on the Arizona Department of Real Estate (ADRE) website. Additionally, the boundaries of military and public airports in Maricopa County may be viewed on the county website. These maps are intended to show the area subject to a preponderance of airport-related noise from a given airport. Periodic overflights that may contribute to noise cannot usually be determined from these maps. Vacant land or lots may be for sale within areas of high noise or accident potential zones. Because the zoning of these lots may conflict with the buyer’s ability to develop the property, the buyer should verify whether development is prohibited Zoning regulations for these areas may be found at A.R.S.§288481. Buyer Advisory (February 2026)
Airport Boundary Maps
11 City Profile Report
(ADRE - Maps of Public Airports &
Information on demographics, finances and other factors are drawn from an array of sources, such as U.S. Census Bureau of Labor, Internal Revenue Service, Federal Bureau of Investigation, and the National Oceanic and Atmospheric Administration and may be viewed on Homefair’s Website.
Military Airports Boundary Maps) https://www.skyharbor.com/FlightPaths (Phoenix Sky Harbor Airport- General Information)
9
Zoning/Planning/Neighborhood Services
https://www.moving.com/real-estate/city-profile/ (Find City Stats & Information)
Information may be found on community websites. City of Phoenix
12 ADRE: Topics to Research Before Purchasing Real Estate
(Planning & Zoning) Neighborhood Services – Phoenix https:www.tucsonaz.gov/Departments/PlanningDevelopment-Services (Tucson)
10 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 information about Arizona’s schools on the Internet. Visit the Arizona Department of Education website for more information.
The Arizona Department of Real Estate provides online resources, links, and Information on various topics a consumer may wish to research before purchasing real estate. The topics span many opportunities for education, ranging from Airport Disclosure Information and Resources on Environmental Hazards to Title Insurance and Water Availability. http://azre.gov/consumers/topics-research-purchasing-real-estate (ADRE-Topics to Research Before Purchasing Real Est
https://www.azed.gov/ (Arizona Department of Education)
Section 4
OTHER METHODS OF GETTING INFORMATION ABOUT A PROPERTY 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.
Investigate Your Surroundings Google Earth is an additional method to investigate the surrounding area: Google Earth
Talk to the Neighbors Neighbors can provide a wealth of information. Buyers should always talk to the surrounding residents about the neighborhood and the history of the property the buyer is considering for purchase.
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Arizona Department of Real Estate
Buyer Advisory (February 2026)
Section 5
RESOURCES Market Conditions Advisory The real estate market is cyclical and real estate values go up and down. The financial market also changes, affecting the terms on which a lender will agree to loan money on real property. It is impossible to accurately predict what the real estate or financial market conditions will be like at any given time. The ultimate decision on the price a buyer is willing to pay and the price a seller is willing to accept for a specific property rest solely with the individual buyer or seller. The parties to a real estate transaction must decide on what price and terms they are willing to buy or sell considering market conditions, their own financial resources, and their own unique circumstances. The parties must, upon careful deliberation, decide how much risk they are willing to assume in a transaction. Any waiver of contingencies, rights or warranties in the Contract may have adverse consequences. Buyer and Seller acknowledge that they understand these risks. Buyer and Seller assume all responsibility should the return on investment, tax consequences, credit effects, or financing terms not meet their expectations. The parties understand and agree that the Broker(s) do not provide advice on property as an investment. Broker(s) are not qualified to provide financial, legal, or tax advice regarding a real estate transaction. Therefore, Broker(s) makes no representation regarding the above items. Buyer and seller are advised to obtain professional tax and legal advice regarding the advisability of entering into a transaction. Market Conditions Advisory Arizona REALTORS®– (Sample Forms)
https://www.aaronline.com/manage-risk/other-advisories/ (Arizona REALTORS® Fair Housing Advisory) Fair Housing Rights and Obligation (HUD.gov) http://www.ada.gov/pubs/ada.htm (Americans with DisabilitiesAct)
Wire Fraud Beware of wiring instructions sent via email. Cyber criminals may hack email accounts and send emails with fake wiring instructions. You should independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone number prior to wiring any money. https://www.aaronline.com/manage-risk/other-advisories/ (Arizona REALTORS® Wire Fraud Advisory) Mortgage Closing Scams (CFPB-How to Protect Yourself)
Additional Information NATIONAL ASSOCIATION OF REALTORS®(NAR) https://www.nar.realtor/
Ten Step Guide to Buying a Home (Realtor.com) http://bit.ly/3pQqXX7
Home Closing 101
www.homeclosing101.org
Fair Housing and Disability Laws It is illegal under the Fair Housing Act and Arizona Fair Housing laws for a property owner/ seller, landlord, property manager or real estate professional to discriminate in the sale, rental, and financing of housing and in other housingrelated activities against another person based on certain protected characteristics.
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The National Association of REALTORS® Code of Ethics also prohibits discrimination or aiding in discrimination. It is unlawful to discriminate on the basis of race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, and disability.
Arizona Department of Real Estate
Information about Arizona Government, State Agencies and Arizona REALTORS® Arizona Department of Real Estate Consumer Information http://www.azre.gov
Arizona Association of REALTORS® www.aaronline.com
Buyer Advisory (February 2026)
BUYER ACKNOWLEDGMENT Buyer acknowledges receipt of all 13-pages of this Advisory. Buyer further 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 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 SIGNATURE
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Arizona Department of Real Estate
Buyer Advisory (February 2026)
Loan Status Update (LSU)
REAL ESTATE AGENCY DISCLOSURE AND ELECTION
DISCLOSURE
ELECTION
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