PAGE April 2012
COMMON DOCUMENTS A BUYER SHOULD REVIEW
The Buyer Advisory is a resource for Real Estate ConsumersProvided by the Arizona Association of REALTORS
A real estate agent is vital to the purchase of realproperty and can provide a variety of services in locatinga property, negotiating the sale, and advising the buyer. A real estate agent is generally not qualified to discoverdefects or evaluate the physical condition of property;however, a real estate agent can assist a buyer in findingqualified inspectors and provide the buyer withdocuments and other resources containing vitalinformation about a prospective property.This advisory is designed to make the purchase of realproperty as smooth as possible. Some of the morecommon issues that a buyer may decide to investigate or verify concerning a property purchase are summarized inthis Advisory. Included in this Advisory are:(1) common documents a buyer should review;(2) physical conditions in the property the buyer shouldinvestigate; and(3) conditions affecting the surrounding area that the buyer should investigate. In addition, a buyer mustcommunicate to the real estate agents in thetransaction any special concerns the buyer may haveabout the property or surrounding area, whether ornot those issues are addressed in this Advisory.
This Advisory is supplemental to obtaining professional propertyinspections. Professional property inspections are absolutelyessential: there is no practical substitute for a professional inspection as a measure to discover and investigate defects orshortcomings in a property.
The documents listed below may not be relevant in every transaction, nor is the list exhaustive. Unless otherwise stated,the real estate agent has not independently verified the information contained in these documents.
Buyers should protect themselves by taking thetime to read the real estate purchase contract andunderstand their legal rights and obligations before they submit an offer to buy a property. Sample AAR forms areat www.aaronline.com/ForRealtors/Forms/.
A listing is an agreement between the seller andthe listing broker and may authorize the broker to submitinformation to the Multiple Listing Service (“MLS”). TheMLS printout is similar to an advertisement. Neither thelisting agreement nor the printout is a part of thepurchase contract between the buyer and seller. Theinformation in the MLS printout was probably securedfrom the seller, the builder, or a governmental agency,and could be inaccurate, incomplete or an approximation.Therefore, the buyer should verify any importantinformation contained in the MLS.
The Subdivision Disclosure Report(Public Report)
A Subdivision Disclosure Report (Public Report) isintended to point out material information about asubdivision. Subdividers (any person who offers for saleor lease six or more lots in a subdivision or who causesland to be divided 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 benefitfrom reviewing the Public Report. Public Reports datingfrom January 1, 1997, are available on the ADRE website