Below is an example the home buying process in Arizona, using the Arizona Association of Realtors Form RPC 5/05. Your situation may be different depending on what you negotiate and the particular property you are purchasing. This example doesn't apply when buying a new home from the builder as builders use their own contracts.

FROM MUTUAL ACCEPTANCE UNTIL THE DAY YOU CLOSE ESCROW

Please note that Arizona just started using new contracts May 1, 2005. I've made changes to the information below to reflect the changes. When we prepare an offer on a new property, I'll point out more of these changes. 

MUTUAL ACCEPTANCE: The date buyer and seller agree on the purchase contract. When you're counting days (for deadlines), the day after mutual acceptance is day number 1.

DAY 1: Your earnest money check is delivered to the escrow company. 

I recommend providing a conditional loan approval (using Form LSR) with your purchase contract, however in this example it's due today.

We will schedule the home and termite inspections. We also call the Structural Pest Control Commission at 602-255-3664 to obtain the property's termite history. The SPCC publication "What You Should Know About Wood Infestation Reports" can be found at http://www.sb.state.az.us/wir.htm. The SPCC website is http://www.sb.state.az.us.

You will need to call your insurance agent to obtain the cost of your home owner insurance for this particular property. The new contract states the seller is to provide you with a claims history for the last five years, or for the length the seller has owned the property if less than five years.

DAY 3: In this example, your offer is subject to your attorney's review and approval.

DAY 5: The seller most often provides a Seller's Disclosure Form for your review, on or before the 5th day after mutual acceptance of the purchase contract. Should you have questions or issues regarding it, we need to address them during the inspection period. 

DAY 10: This is the deadline for us to give notice to the seller should we be requesting the seller repair anything or opt to cancel based on your home inspection. The seller usually has 5 days to respond to your request.

The "LSR" Loan Status Report outlines your financing provisions. To change the terms of your loan you will need to obtain permission from the seller should it affect your ability to qualify, affect the seller's cost, and/or delay the closing.

Using the updated "LSR" you should lock your interest rate during the inspection period. Should rates rise after the inspection period, and you no longer qualify for a loan, you could possibly lose your earnest money.

If you plan on installing a pool, be sure to investigate your ability to do so during the inspection period. Many factors could prevent you have the ability to do so on a particular property.

HOA/CCRS: In this example, there is a home owner association. Keep the post marked envelope as evidence of the day you received it. You usually have 5 days to review and approve it. Be sure to make sure all documents listed on the bottom of the HOA/Condominium/Planned Community Addendum are attached.

APPRAISAL: The lender will notify us when it has been completed and if there are any issues. If you receive notice that it came in lower than the sales price, this condition will automatically be waived within five days of notification. Be sure to deal with this immediately, otherwise you could lose your earnest money if unable to close due to the fact that you will need to pay the difference in additional cash downpayment at closing. During said five days we would want to renegotiate the sales price with the seller.

TITLE: Escrow will send this to us when it is available and you will have five days to review. Check that all documents listed on the preliminary title report are attached. If not, we will need to request these documents from the title company.

A FEW DAYS BEFORE CLOSING: We will do a walk through of the property to inspect any repairs and to ensure it is in substantially the same condition as when we first viewed it. You may wish to schedule your home inspector to come to this appointment.

Escrow will contact you to come in and sign papers. You will need to bring certified funds, or make arrangements to have it wired prior to closing.

THE DAY OF CLOSING (usually 30 days after mutual acceptance): This is the day it records with the county and the funds must be available to the seller. When these are complete, you will receive your keys (unless you've negotiated a Post or Pre Possession Agreement).

HOME WARRANTY COMPANIES: In Arizona, it's common to obtain one at closing. The party paying the cost is negotiable in the purchase contract. Be sure to read what is covered and what additional items you may want to add as an upgrade.

POSSESSION OF THE PROPERTY: It's probably more common to obtain possession at the time of closing in Arizona. However, this is negotiable in the purchase contract. If the seller has post possession we usually include a written agreement to cover cost and related matters. You are advised to seek advice from your attorney, accountant and insurance agent before agreeing to said agreement to review the legal, tax and insurance issues involved with these agreements.

SUPERFUND AREAS: For more information on these areas, you can get further information by calling: Chris Whitmer/City of Scottsdale 480-312-8739, Melissa Pennington/NIBW Project Manager 800231-3075, AZ Dept. of Environmental Quality 602-207-2300, The Environmental Protection Agency 415-744-1500. Check map at http://www.adeq.state.az.us/environ/waste/sps/phx.html.

BUYER'S ADVISORY: Go to http://www.aaronline.com/documents/buy_advis.pdf. There are many links to obtain information on many items to consider when purchasing a home in AZ.

COMMON INSPECTION ITEMS: Missing roof tiles, air conditioner needs servicing, pool equipment issues (pump leak, inoperative pool lights or pop-up heads/pool vac), electrical items on older homes...these are the most common issues I see on reports.

EXISTING WARRANTIES: Should a seller say there is an existing warranty on something, including but not limited to, a new roof, A/C and/or pool replastering, you need to ensure that is is transferrable to the new buyer, and specify who is paying the transfer fee if applicable.

YOUR SITUATION: Your situation will be different than this example, however I hope this answered some of your questions, and helped you come up with new ones. I will provide a written calendar of events for your specific sale and date my calendar accordingly.

 Jill Schweitzer

RE/MAX Fine Properties

480-227-3441

jills@remax.net

www.brokerjill.com