I hope that you all have started off the New Year in strong fashion. In keeping with the theme of the New Year and new changes, the Arizona Association of Realtors is not to be left out. Effective February 1st, 2017, the Arizona Residential Purchase Contract is changing in a big way and my clients need to understand the changes. I know this may be a little boring to some of you, but informing and protecting my clients is always my number one priority. I promise that this information will save you a lot of time and money on your next real estate transaction.
Starting February 1st, all residential sales will be AS-IS! I repeat, all residential sales will be AS-IS! Those two little words strike fear in the heart of buyers, but that is because most people don’t fully understand the true meaning of AS-IS. Most buyers fear that if they buy an AS-IS home that they won’t get to inspect the property or have any disclosures from the seller. This couldn’t be further from the truth. Let me break down the affect that this change will have on the sales process moving forward.
In a current sales contract, there are home systems that are called “warranted items.” These warranted items included all heating, cooling, mechanical, plumbing, and electrical systems of a home. The seller warranted that these items would be working at close of escrow even if they were not working at the time the contract was accepted. For example, if my air conditioner wasn’t working when I agreed to a contract with a buyer, I would have had to repair it to working condition by close of escrow. These “warranted items” no longer exist in the new Arizona Residential Purchase Contract.
Starting February 1st, if you purchase a home it will be AS-IS without any warranted items. For example, if you agree to buy a home and at the time of contract acceptance the air conditioning was not working, the seller does not have to repair it. Now, don’t get freaked out, as a buyer you will still have an allotted inspection period and the seller will still give you their disclosures, but knowing the status of certain home systems while writing your contract will save a lot of time.
In my opinion, these changes are going to help take the ambiguity out of the “warranted items” and allow for a much smoother sales process. The new Arizona Residential Purchase Contract contract will allow the buyer and seller to be on the same page as there is less room for interpretation of certain home systems that come up during the inspection period. If you have any further questions regarding the new contract please do not hesitate to call me at 602-561-0445 or you can find more information about the new Arizona Residential Purchase Contract at https://www.aaronline.com/