2017 Revisions

October

Solar Lease / Loan Assumption Addendum (New): This form is intended to help sellers and buyers facilitate the sale of residential property when a solar system is installed on the Premises that is subject to a lease or unpaid loan.  Read the article and FAQs for more information.

Additional Clause Addendum (Revised): The revision consists of the addition of an appraisal contingency for an all cash sale.

Seller’s Property Disclosure Statement (Revised): The revision is minor and removes a box at lines 205-206 regarding where to find a list of unremediated sites utilized as illegal drug labs.  A new box is inserted at lines 190-191 regarding solar systems.

February

Residential Resale Real Estate Purchase Contract (Revised): :  Read the article written by Martha Appel which discusses the major changes.  Additionally, review the FAQs written by General Counsel Scott Drucker which provide further information regarding the changes.

In conjunction with the revised Residential Resale Real Estate Purchase Contract (RPC), the following ancillary forms have been revised to coincide with the RPC:

2016 Revisions

June

Residential Lease Agreement (Revised):  The revision consists of the addition of a jurisdictional provision to ensure that (i) the lease is governed by Arizona law; and (ii) litigation can be brought only in a court located within the State of Arizona.

February (special forms release date for change in law)

Residential Resale Real Estate Purchase Contract (Revised):  The Protecting American’s from Tax Hikes Act (the “PATH Act”) modified the Foreign Investment in Real Property Tax Act (“FIRPTA”) by increasing the tax withholding from 10% – 15% in certain transactions.  The withholding increase is reflected in section 3i of the contract.

Vacant Land/Lot Purchase Contract (Revised):  The revision, found in section 3i, reflects the FIRPTA withholding increase due to the enactment of the PATH Act.

Commercial Real Estate Purchase Contract (Revised):   The revision, found in the “Title and Escrow” section, reflects the FIRPTA withholding increase due to the enactment of the PATH Act.

February

Pre-Qualification Form (Revised):  To ensure compliance with 12 CFR 1026.19(e)(2)(ii), a line was added to the top of the form stating “Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.”

Property Management Agreement (Revised): To ensure compliance with A.R.S. § 32-2173(A)(2)(a), the box for “days” on line 13 was removed, thereby ensuring that the Property Management Agreement is not for a period of less than 30 days. Additionally, line 14 was changed as follows: “Broker shall send Owner a reminder notice at least thirty (30) days prior to the each renewal date.”

2015 Revisions

September (special forms release date for TRID compliance)

Pre-Qualification Form (Revised):  This form is now required to be submitted in conjunction with the Residential Resale Real Estate Purchase Contract at the time of offer.

Loan Status Update (Revised):  Due to the TILA-RESPA Integrated Disclosure (TRID) rule, the major revisions include: (1) removing the five day time frame for delivering the initial LSU after Contract acceptance and replacing it with ten days; and (2) page 2 identifies additional steps in the lending process.

Residential Resale Real Estate Purchase Contract (Revised):  The major revisions include:  (1) Section 2a – requires the Pre-Qualification Form to be submitted in conjunction with the Contract at the time of offer; (2) Section 2b – provides the buyer with three options to give notice to the seller regarding the loan contingency status three days prior to close of escrow; (3) Section 2e – an LSU must be submitted within ten days after Contract acceptance; (4) Section 2f – requires the buyer to provide information to the lender within three days after Contract acceptance; and (5) page 9 includes lines for the agents and their respective brokerages’ state license numbers.

Vacant Land/Lot Purchase Contract (Revised):  The revisions include: (1) the Pre-Qualification Form is only required with certain types of financing; and (2) an LSU must be submitted within ten days after Contract acceptance; and (3) page 10 includes lines for the agents and their respective brokerages’ state license numbers.

As Is Addendum (Revised):  Reference to line numbers were changed to coincide with revisions to the Residential Resale Real Estate Purchase Contract.

Short Sale Addendum (Revised):  Reference to line numbers were changed to coincide with revisions to the Residential Resale Real Estate Purchase Contract.

February

HOA Addendum (Revised): Read the article written by Holly Eslinger, HOA Workgroup Chair, which outlines the major changes to the form. http://blog.aaronline.com/2015/01/the-new-h-o-a-condominium-planned-community-addendum/


2014 Revisions

October

Additional Clause Addendum (Revised): References to section numbers were replaced with section names so that this form may be used in conjunction with a residential or vacant land/lot transaction.

June

Residential Seller’s Property Disclosure Statement (Revised): Read the article written by AAR General Counsel Scott Drucker which outlines the major changes to the SPDS. https://www.aaronline.com/2014/06/residential-spds-release/

Vacant Land/Lot Purchase Contract (Revised): The revisions include: (1) removing the assumption/carryback box and replacing with a seller financing box in section 1h; and (2) updating the monetary amount of a claim in a small claims court.

Residential Resale Real Estate Purchase Contract (Revised): The revisions include: (1) removing the assumption/carryback box and replacing with a seller financing box in section 1h; and (2) updating the monetary amount of a claim in a small claims court.

February

Buyer Contingency Addendum (Revised): Read the article written by AAR General Counsel Scott Drucker which outlines the major changes. https://www.aaronline.com/2014/02/2014-buyer-contingency-addendum/

Mutual Cancellation of Property Management Agreement (New): This form is intended to help owners and property managers navigate the termination of a property management agreement.

Notice of Cancellation of Property Management Agreement (New): This form is intended to help owners and property managers navigate the termination of a property management agreement and ensure that proper notice is given.

Seller Financing Addendum (3 or fewer Residential Properties) (Revised): The revision added a Buyer Verification box defining Buyer and requiring Buyer’s initials on page 1.

Seller Financing Addendum; Non-Consumer Credit Transaction (Revised): The major revisions include: (1) a flash page defining consumer and non-consumer credit transaction; (2) name change from Seller Financing Addendum (Not Secured by a Dwelling) for clarification purposes; and (3) Buyer Verification box defining a non-consumer credit transaction.

Residential Lease Agreement (Revised): Read the article written by Lisa A. Suarez, chair of the workgroup, which outlines the major changes to the agreement. https://www.aaronline.com/2014/02/2014-property-management-form/

January (special, out-of-schedule forms release)

Loan Assumption Addendum (New): This form is substantially similar to the retired Assumption/Carryback Addendum. This form has two important warnings: (1) advises the seller of the importance of securing a release of liability from the lender in conjunction with the assumption; and (2) warns the parties of the risks associated with a due-on-sale clause contained in the seller’s deed of trust (or other conveyance document) and the remedies available to the seller’s lender if the due-on-sale clause is not waived.

Notice to Terminate Lease Agreement Due to Material Noncompliance (Revised): AAR header and footer added to the form.