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Service One Realty, Inc. is Dedicated to the Service Experience.
Arizona Real Estate Buyer's
Investigation Checklist
A
real estate agent is vital to the home buying process and can provide a variety
of services in locating a property, negotiating the sale, and advising the buyer.
However, an Arizona real estate agent is generally not qualified to discover
defects or evaluate the physical condition of property. But a real estate
agent can assist a buyer in finding qualified inspectors and provide the buyer
with documents and other resources that contain vital information about a prospective
new home.
This checklist is designed to make a buyer’s home purchase of Arizona real property
as smooth as possible. Some of the more common of the issues that a buyer
may decide to investigate or verify concerning a home purchase are summarized
in this checklist. Included herein are: (1) common documents that a buyer should
review; (2) physical conditions in the property the buyer should investigate;
and (3) conditions effecting the surrounding area that buyer should investigate.
In addition, a buyer must communicate to the real estate agents in the transaction
any special concerns the buyer may have about the property or surrounding area,
whether or not those issues are addressed in this checklist.
REMEMBER: This checklist
is supplemental to obtaining professional home inspections. Professional
home inspections are absolutely essential, as there is no practical substitute
for a professional inspection as a measure to discover and investigate defects
or shortcomings about a home.
COMMON DOCUMENTS THAT A
BUYER SHOULD REVIEW
The documents listed below
may not be relevant in every transaction, nor is the list exhaustive. The information
contained in these documents may not have been independently verified by the
real estate agent or any other person.
A
listing is an agreement between the seller and the listing agent and authorizes
the listing agent to submit information to the Multiple Listing Service (“MLS”).
The MLS print out is similar to an advertisement and contains various abbreviations
and symbols. Neither the listing agreement nor the MLS print out are a part
of the purchase contract between the buyer and seller. The MLS print out contains
limited description of a property, such as its size, encumbrances, utilities,
amenities, etc. The information was probably secured from the seller, builder
or a governmental agency and could be inaccurate. Therefore, the buyer should
verify any important information contained in the MLS, as the information may
be incomplete or an approximation. For more information visit: www.armls.com/
or www.tarmls.com/.
Click
here to SEARCH the Greater Phoenix MLS.
The public
report is required to be given to buyers by developers in a new home subdivision.
The purpose of this document is to point out material information about the
development that a buyer might want to know about to make a decision to purchase.
For example, the section of the Public Report entitled “Nuisances and Hazards”
will disclose adjacent land uses that may be of concern. The Public Report
is prepared by the seller/builder, could be inaccurate and should be verified.
Additional information about the Public Report may be found at the ADRE web
site at:
www.re.state.az.us/checklist.html
Seller's Property Disclosure
Statement ("SPDS") (Back
to Top)
Most sellers
provide a SPDS. This document covers a variety of questions for the seller
to answer about the property and its condition. A buyer should carefully
review the SPDS and verify those statements of concern. A sample of the
Arizona Association of REALTORS® S.P.D.S. may be found at
www.aaronline.com/docs/spds.pdf.
The ADRE advises: “Read the seller's property disclosure report, and check every
item on it. Ask to see receipts for repairs to the home. Look behind large pictures
on the wall and behind anything on the floor which conceals large areas of the
wall. Look for stains on the ceilings or carpets that might indicate water damage.
Read the purchase contract carefully to determine if there are any deadlines
for challenging the seller's disclosure report or for having your own inspections
conducted.”
www.re.state.az.us/checklist.html
Remember, your review of the S.P.D.S. is not a substitute for professional inspections.
Covenants, Conditions &
Restrictions ("CC&Rs") (Back
to Top)
The
CC&Rs are recorded against the property and generally empower a homeowners
association to control certain aspects of property use within the development.
By purchasing a home in such a development, the buyer agrees to be bound by
the CC&Rs. Thus, the CC&Rs form an enforceable contract between
the homeowners as a whole as well as between the individual homeowners.
It is essential that the buyer review and agree to these restrictions prior
to purchasing a home. The ADRE advises: “Read the deed restrictions,
also called CC&Rs (covenants, conditions and restrictions). You might find
some of the CC&Rs are very strict, especially those addressing landscaping,
RV parking, play equipment, satellite antennas, and other common amenities --
particularly if the subdivision is governed by a homeowner's association.” www.re.state.az.us/checklist.html
A short but informative document on the purpose and
effect of CC&Rs may be read at www.realtor.com/BASICS/condos/ccr.asp.
Buyers should consult legal counsel if uncertain of the application of particular
provisions in the CC&Rs.
Homeowners Association
("HOA") Governing Documents (Back
to Top)
In addition
to CC&Rs, HOA's may be governed by Articles of Incorporation, Bylaws, Rules
and Regulations, and often architectural control standards. The HOA is
in place to enforce these rules and to preserve the value of homes in the condominium
or planned community. Condominium and planned community
HOA's are also regulated by
Arizona statutes. What makes a development a condominium or planned community?
Common area, that is, community ownership of real estate for use by community
residents, is the common denominator. In a condominium, the common property
is actually deeded as undivided interests to the condominium owners. In
a planned community the ownership of the common property vests in the homeowners
association. Please read the information provided
at www.re.state.az.us/communityassoc.html
If
purchasing a resale home in a condominium or planned community, the seller (if
fewer than 50 units in the community) or the HOA (if there are 50 or more units)
must provide the buyer with a disclosure containing a variety of information.
The disclosure should contain information regarding the
principal contact for the association, assessments, the money held by the association
as reserves and if the statement is being furnished by the association, a statement
as to whether the records of the association reflect any alterations or improvements
to the unit that violate the declaration. See www.azleg.state.az.us/ars/33/01260.htm
www.azleg.state.az.us/ars/33/01806.htm
for the laws detailing this requirement.
Title Report / Commitment
for Title Insurance (Back
to Top)
The title
report or commitment contains important information. The Escrow Company or Agent
providing the buyer’s title insurance will provide the buyer with a Title
Report or Title Commitment. This report or commitment will list documents
listed as exceptions to the title insurance (Schedule B Exceptions) showing
encumbrances, easements and liens against the property, some of which may effect
the use of the property, such as a future addition or swimming pool. Make sure
you receive and review all of the listed documents. Questions about the
title commitment and Schedule B documents may be answered by the title or escrow
officer, legal counsel, or a surveyor. General information regarding
title issues may be found at www.titlelawannotated.com/
or obtained from the title/escrow company employed in the transaction.
A home
warranty may be a part of the sale of the home. Buyers should read the
home warranty document for coverage and limitation information. Be aware
that pre-existing property conditions are generally not covered under these
policies.
Affidavit
of Disclosure (Back
to Top)
If the
buyer is purchasing 5 or fewer parcels of land, other than subdivided land,
in an unincorporated area of a county, the seller must furnish the buyer with
an Affidavit of Disclosure. A sample of the form may be located at
http://www.aaronline.com/documents/affidavit_2002.pdf
Lead
Based Paint Disclosure Form (Back
to Top)
If the
home was built prior to 1978, the seller must provide the buyer with a lead
based paint disclosure form. A sample lead based paint disclosure form
may be located at www.aaronline.com/docs/leadsale.pdf.
More information may be obtained at www.re.state.az.us/leadfacts.html
County Assessors Records
(Back
to Top)
The county
assessors records contain a variety of valuable information including the assessed
value of the property for tax purposes and some of the physical aspects of the
property, such as the reported square footage (which should always be
verified for accuracy).
Maricopa:
www.maricopa.gov/assessor/homeowner_guide.asp
Professional Home Inspection
Report (Back
to Top)
For the
buyer’s protection, the importance of having a home inspected by a professional
home inspector cannot be over-emphasized. A home inspection is a visual physical
examination, performed for a fee, designed to identify material defects in the
home. The home inspector will generally provide the buyer with a report
detailing information about the home’s condition. The inspector and the report
will point out problems and possible potential problems. The buyer should carefully
review this report with the inspector and ask the inspector about any item of
concern. Pay attention to the scope of the inspection and any portions of the
property excluded from the inspection. Information on ASHI Home inspectors
may be found at
www.ashi.com/;
Arizona ASHI information at:
www.arizona-ashi-home-inspection.com/;
American Home Inspectors at :
homeinspectortraining.com/;
Society of Professional Real Estate Inspectors: www.sprei.com/users/sprei/welcome_.html
See also,
the Board of Technical Registration at:
www.btr.state.az.us/
Termites & Other Wood
Destroying Organisms (Back
to Top)
Termites
are commonly found in Arizona homes. Investigating evidence of termites or other
wood infestation is the job of the pest inspector. The Structural Pest
Control Commission regulates these inspectors and can provide the buyer with
information regarding past termite treatments on a property. The Structural
Pest Control Commission publication “What You Should Know About Wood Infestation
Reports” is attached hereto. Additional information may be obtained at the
Structural Pest Control Commission at
www.sb.state.az.us/
COMMON PHYSICAL CONDITIONS
IN THE PROPERTY
A BUYER SHOULD INVESTIGATE
Every buyer and every home
is different, so the physical property conditions requiring investigation will
vary.
Repairs & New Construction
(Back
to Top)
The seller
may have made repairs or added a room to the property. For example, the
property may have an obvious improvement, covered patio or garage, or have been
remodeled. The buyer should feel comfortable that the work was properly
done or have an expert evaluate the work. Request copies of any invoices
or other documentation regarding the work performed. The Registrar of
Contractors publication “Hiring a Licensed Contractor” is attached hereto.
The Registrar of Contractors may be contacted at
www.rc.state.az.us/
and a listing of various types of contractors may be found at
www.arizona-contractors.com/.
For information regarding permits contact the city or county building department.
The inspector
might recommend that you have the roof further inspected by a licensed roofer.
If the house (roof) is 10 years old or older, a roof inspection by a licensed
roofer is highly recommended. A partial list of roofing contractors may
be found at:
www.arizona-contractors.com/directory/roofing/roofing.htm.
See also the Registrar of Contractors information on hiring a licensed contractor
(attached hereto) or online at:
www.rc.state.az.us/Acrobat/Misc/Hiring%20Contractor.pdf
If the
home has a pool or a spa, the home inspector might determine that the cleaning
system is not working properly or may exclude the pool or spa from the general
inspection. It would then be necessary to have a pool or spa company inspect
the pool or spa and or evaluate any problem. For a partial
list of Arizona pool and spa contractors see:
www.arizona-contractors.com/directory/poolspa/poolspa.htm
www.builderszone.com/swimming.htm
Each city
and county has its own swimming pool barrier ordinance. Pool barrier contact
information for each Arizona city and county may be found at www.aaronline.com/docs/pool_contacts.asp
. The Arizona Department of Health Services Private Pool Safety notice, which
is attached hereto, my be found at:
www.hs.state.az.us/diro/admin_rules/pool_rules.htm.
The state law on swimming pools is located at
www.azleg.state.az.us/ars/36/01681.htm
.
Square
footage on the MLS print out or as listed by the county assessor’s records is
often an estimate only and generally should not be relied upon for the exact
square footage in a home. An appraiser or architect can measure the home’s
size in order to verify the square footage. A list of appraisers may be
found at the Arizona Board of Appraisal:
www.btr.state.az.us/.
A list of architects may be found at the Board of Technical Registration at:
www.btr.state.az.us/
Even if
the listing or SPDS indicates that the home is connected to the city sewer,
it should be verified by a plumber, home inspector or other professional.
Some cities can perform this test as well.
Septic Systems & Other
On-site Wastewater Treatment Facilities
If the
property has a septic tank or other on-site wastewater treatment facility, it
must be inspected by a qualified septic tank company prior to transfer beginning
on January 1, 2002. Contact the Arizona Department of Environmental Quality
(“ADEQ”) for more information.
www.adeq.state.az.us/
The soil
in some areas of Arizona has “clay like” tendencies, sometimes referred to as
“expansive soil”. Although it is not very common for homes to experience
significant movement due to being built on expansive soils, it can be a major
problem if it occurs. If it has been disclosed that the home has expansive soil
or if the buyer has any concerns about evidence of cracking, the buyer should
secure an independent assessment of the home and its structural integrity by
a licensed, bonded and insured professional engineer. To investigate areas
in Arizona where expansive soils exist, go to
www.az.nrcs.usda.gov/soils/shrinkswell.html. A
list of State Certified Professional Engineers and Firms can be found at
btr.state.az.us/e-stru.htm.
If it
is disclosed there has been a fire or flood in the property, a qualified inspector
should be hired to advise you regarding any possible future problems as a result
of the fire or flood damage and/or any subsequent repairs. For example, if the
property was not properly cleaned after a flood, mold issues may result.
Your homeowners insurance agent may be able to assist you in obtaining information
in regard to fire, flood or other past damage to the property.
Scorpions & Other
Pests (Back
to Top)
Cockroaches,
rattlesnakes, black widow spiders, scorpions and other pests are common in parts
of Arizona. Fortunately, most pests may be controlled by application of
pesticides. Scorpions, on the other hand, may be difficult to eliminate.
If the buyer has any concerns or if the S.P.D.S. indicates the seller has had
seen scorpions or other pests on the property, you should seek the advice of
a pest control company. A source of information on scorpions may
be found at
www.desertusa.com/oct96/du_scorpion.html.
Deaths & Felonies
on the Property (Back
to Top)
In Arizona
there is a law that states 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. See
www.azleg.state.az.us/ars/32/02156.htm.
This information is often difficult to uncover, however the local law enforcement
agency may be able to identify calls made to the property address.
Mold has
always been with us, and it is a rare home that has/does not have some mold.
However, over the past few years a certain kind of mold has been identified
as a possible contributor to illnesses. Allergic
individuals may experience the symptoms related to mold. Mold growth is found
underneath materials where water has damaged surfaces, or behind walls. Look
for discoloration and leaching from plaster. A pamphlet prepared by the
Arizona Department of Health Services at www.hs.state.az.us/edc/oeh/moldfact.htm
(a copy of which is attached) states: “If you can
see mold, or if there is an earthy or musty odor, you can assume you have a
mold problem. The EPA web site also contains valuable information at
www.epa.gov/iaq/pubs/moldresources.html
Additional
sources may be found on the ADRE web site.
These web sites provide good information about mold, the problems it may cause,
and how it may be removed.
www.cdc.gov/nceh/asthma/factsheets/molds/default.htm
Other Indoor Air Quality
Concerns (Back
to Top)
There
are concerns with indoor air quality (“IAQ”). Radon gas and carbon monoxide
poisoning are two of the more common and potentially serious IAQ concerns.
Both of these concerns can be addressed by the home inspector, usually for an
additional fee. As for the many other IAQ concerns, the U.S. EPA has a
host of resource materials and pamphlets available at www.epa.gov/iaq/iaqinfo.html
and www.epa.gov/iaq/pubs/index.html.
If the
property boundaries are of concern, a survey may be warranted. For example,
a survey may be advisable if there is an obvious use of property by others (i.e.
a well worn path across a property and/or parked cars on the property) or fences
or structures of adjacent property owners that appear to be built on the subject
property. A list of surveyors may be obtained from the Board of Technical
Registration at:
www.btr.state.az.us/
If the
property is in a flood zone, an additional annual insurance premium of several
hundred dollars may be required. If the property is in an area deemed
high risk, the buyer may be required by the lender to obtain flood hazard insurance
through the National Flood Insurance Program. A quick way to see if the
property is in a flood hazard area is through the Project Impact web site at
www.esri.com/hazards/makemap.html.
To find additional detail on flood plain status in Maricopa County, call the
Maricopa Flood Control District at 602-506-1501 or and visit FEMA’s Flood Map
Service Center at www.fema.gov/maps.
https://www.floodsource.com
CONDITIONS EFFECTING THE
AREA SURROUNDING
THE HOME THAT BUYER SHOULD
INVESTIGATE
Every property is unique,
therefore important conditions vary.
It is
often very difficult to identify environmental hazards. See the Arizona Department
of Environmental Quality for environmental information at:
www.adeq.state.az.us/.
Another source of environmental information may be found at :
consumerlawpage.com/brochure/home-haz.shtml.
A light-weight but fun and free search of environmental hazards by zip code
may be conducted at www.nearmyhome.com.
There
are numerous sites in Arizona where the soil and groundwater have been contaminated
by improper disposal of contaminants. To check if a property is in an
area designated by the Arizona Department of Environmental Quality as requiring
cleanup, maps are available to view at www.adeq.state.az.us/environ/waste/sps/phx.html.
Although
the existence of a freeway near the property may provide highly desirable access,
sometimes it contributes to undesirable noise. To start searching about
roadway construction and planning, go to the Arizona Department of Transportation’s
site at
www.dot.state.az.us/ROADS/rdfway.htm.
Check Arizona Department of Transportation maps to find the nearest future freeway
routes, and whether roads in the area are slated for widening.
Crime
statistics, while an imperfect measurement at best, nevertheless provide some
indication of the level of criminal activity in an area. To check the
crime statistics for the cities of Phoenix, Tempe, Glendale, Mesa, Scottsdale,
Chandler, Gilbert and Peoria, go to www.faxnet1.org.
A visit or phone call to other law enforcement agencies may be required.
For a list of all Arizona city links, click here:
www.azleague.org/links_city_town.htm.
For crime statistics available on their web sites, you may have to search.
If, like Tucson, for instance, a search engine is provided, search for “crime
statistics.”
Since
June 1996 Arizona has had a registry and community notification program for
convicted sex offenders. This information may be accessed at www.azsexoffender.org.
Note that prior to June 1996 registration was not required and only the higher
risk sex offenders are on the web site. The presence of a sex offender in the
vicinity of the property is not a fact that is required to be disclosed by law.
Military & Public
Airports (Back
to Top)
The legislature
has mandated the identification of areas in the immediate vicinity of military
and public airports that are susceptible to a certain level of noise from aircraft.
The boundaries of these areas have been plotted on maps that are useful in determining
if a property falls within one of these areas. The map for military airports
may be accessed at
www.re.state.az.us/airport.html
and the maps for many of the public airports may be viewed at
www.re.state.az.us/airports/airportintro.html.
Note these maps are intended to show the areas subject to the preponderance
of airport related noise from a given airport. Periodic over flights that
may contribute to noise cannot usually be determined from these maps.
Although
there is no substitute for an on site visit to the school to talk with principals
and teachers, there is a significant amount of great information about Arizona’s
schools on the Internet. Public and charter school information may be
accessed at www.ade.state.az.us/schools/
or
kk. The ADRE advises: “Call the school district serving the subdivision
to determine whether nearby schools are accepting new students. Some school
districts, especially in the northwest part of the greater Phoenix area, have
placed a cap on enrollment. You may find that your children cannot attend the
school nearest you and may even be transported to another community.”
www.re.state.az.us/checklist.html
OTHER METHODS TO GAIN INFORMATION
ABOUT A PROPERTY
Buyers
should always talk to the surrounding neighbors about the neighborhood and the
history of the home the buyer is considering for purchase. Neighbors can
provide a wealth of information.
Drive Around the Neighborhood
(Back
to Top)
Buyers
should always drive around the neighborhood, preferably at several different
times of the day and evening, to investigate the surrounding area.
For additional information
visit: (Back
to Top)
Arizona
Department of Real Estate - www.re.state.az.us/
Arizona Association of REALTORS®
- www.aaronline.com
There may be other disclosure
issues of concern not listed in this checklist. Buyer is responsible
for making all necessary inquires and consulting the appropriate persons or
entities prior to the purchase of any property.
The information in this
checklist provided with the understanding that it is not intended as
legal or other professional services or advice. These materials have been
prepared for general informational purposes only. The information
and links that are contained herein may not be updated or revised for accuracy.
If you have any additional questions or need advice, please contact your
lawyer or other professional representative.
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