🏡 Arizona Residential Purchase Contract (2024)

9 Key Sections Every Buyer & Seller Should Know

The Arizona Association of Realtors (AAR) Residential Purchase Contract is the backbone of the sales process and is the single most important document to understand.  Here are the 9 key sections with explanations that will help make the buying or selling process in Arizona easier for you.  You can access the Purchase Contract here for reference:  AAR Purchase Contract

Please note that the AAR is very proactive and updates forms twice a year.  As of the publication date, this 8/2024 version is the most recent.

1. Property

📍 What’s Being Sold, Who The Parties Are

  • Buyer, Seller, address, parcel #

  • Price, financing terms, earnest money, closing date

  • Fixtures & personal property included

2. Financing

💳 How It’s Paid For

  • Loan type: Conventional, FHA, VA, etc.

  • Loan contingency rules

  • Appraisal contingency rules

  • Buyer must apply promptly

  • Seller concessions for closing costs

3. Title & Escrow

📑 Who Handles the Paperwork

  • Escrow company manages the closing

  • Title commitment shows liens/easements

  • Buyer to review title commitment
  • Title insurance requirements

  • Seller provides a clear, insurable title

4. Disclosure

📢 What Buyers Need to Know:  Seller Disclosures

  • Seller’s Property Disclosure (SPDS)

  • 5-year insurance claim history

  • Lead-based paint (pre-1978 homes)

  • FIRPTA (foreign seller) notice

  • Seller duties for changes during escrow

5. Warranties

🛠️ Condition of the Property

  • Sold in its present physical condition 

  • Seller maintains condition until closing

  • Buyer can request repairs or cancel

6. Due Diligence

🔍 Buyer’s Inspection Period

  • 10-day (typical) inspection window

  • Home, pest, roof, pool, septic, square footage, insurance, etc.

  • Final walkthrough before closing

  • Buyer can cancel within the inspection period due to the disapproval of items found during inspections

7. Remedies

⚖️ What If Someone Defaults?

  • Cure notice: 3 days to fix a breach

  • If not cured, contract may be cancelled

  • Risk of loss: major damage lets parties walk

8. Additional Terms

📌 Fine Print & Extras

  • Time is of the essence

  • Risk-of-loss & assignment rights

  • Entire agreement in writing

  • Acceptance deadline
  • Buyer Broker and Buyer information
  • Blank section:  additional items the buyer would like to clarify or ask for

9. Seller Acceptance

✍️ Making It Official

  • Seller accepts, rejects, or counters

  • Binding when signed & delivered

✅ Quick Takeaway

This contract balances buyer protections and seller obligations. Timelines are included to make sure the transaction closes by the agreed-upon close of escrow date.  The contract is very clear about the buyer's due diligence when investigating the home and the surrounding area.  Understanding each section ensures fewer surprises and smoother closings.  

BONUS:  The best tool for buyers to use during their home inspection period:  The Buyer's Advisory.

If you have any questions, don't hesitate to contact me!  Call or text me at 623-252-9350 or email me at cinda@cindarose.com.