May 2011 1 Initials
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Arizona Department of Real Estate
A resource for real estate consumers provided by
Arizona Association of REALTORS
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 thebuyer. A real estate agent is generally not qualified to discover defects or evaluatethe physical condition of property; however, a real estate agent can assist a buyerin finding qualified inspectors and provide the buyer with documents and otherresources containing vital information about a prospective property. This advisory is designed to make the purchase of real property assmooth as possible. Some of the more common issues that a buyer may decide toinvestigate or verify concerning a property purchase are summarized in this Advisory. Included in this Advisory are: (1) common documents a buyer shouldreview; (2) physical conditions in the property the buyer should investigate; and(3) conditions affecting the surrounding area that the buyer should investigate. Inaddition, a buyer must communicate to the real estate agents in the transactionany special concerns the buyer may have about the property or surrounding area, whether or not those issues are addressed in this Advisory.
REMEMBER: This Advisory is supplemental to obtaining professionalproperty inspections. Professional property inspections are absolutelyessential: there is no practical substitute for a professional inspection as ameasure to discover and investigate defects or shortcomings in a property.
COMMON DOCUMENTS A BUYER SHOULD REVIEW
The documents listed below may not be relevant in every transaction, nor is thelist exhaustive. Unless otherwise stated, the real estate agent has notindependently verified the information contained in these documents.
Buyers should protect themselves by taking the time to read the real estatepurchase contract and understand their legal rights and obligations before they submit an offer to buy a property. Sample AAR forms are at www.aaronline.com/ForRealtors/Forms/.
A listing is an 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 buyerand seller. The information in the MLS printout was probably secured from theseller, 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.
The Subdivision Disclosure Report (Public Report)
A Subdivision Disclosure Report (Public Report) is intended to point outmaterial information about a subdivision. Subdividers (any person who offersfor sale or lease six or more lots in a subdivision or who causes land to bedivided into a subdivision) are required to give buyers an ADRE Public Report.Read the Public Report before signing any contract to purchase property in asubdivision. Although some of the information may become outdated, subsequent buyers can also benefit from reviewing the Public Report. PublicReports dating from January 1, 1997, are available on the ADRE website athttp://services.azre.gov/publicdatabase/SearchDevelopments.aspx.The ADRE does not verify the information in the Public Report therefore theReport could be inaccurate so it should be verified. For additional information,go to www.azre.gov/PublicInfo/PropertyBuyerChecklist.aspx