Form Revision Updates
February 2024 Revisions
Real Estate Agency Disclosure and Election (READE)
Released February 2024, the Real Estate Agency Disclosure and Election (READE) form incorporates a new section emphasizing broker compensation verbiage that is already contained in other Arizona REALTORS® forms. Specifically, it states that broker compensation paid by a client is always negotiable and the amount chosen is documented in an employment agreement after discussion between the client and broker.
A new sentence, located beneath the title of the form states that “This document is not an employment agreement” to clarify that even though the subject of employment agreements and compensation is being introduced in this document, the form remains an Agency Disclosure and Election document and not a compensation agreement.
The article outlining all changes and FAQ’s is located here.
A redlined version of the revised READE form can be found here.
2023 Revisions
November
Residential Lease Agreement
The only revision to the Residential Lease Agreement (Lease) was the removal of the Move-In/ Move-Out Condition Checklist (Checklist) as a possible Addenda Incorporated into the Lease. The change was made to assist member agents who were hired to find a tenant, but not to provide property management services.
A redlined version of the revised Residential Lease Agreement can be found here and a redlined.
Move-In/Move-Out Condition Checklist
In conformance with the above change to the Residential Lease Agreement, the Move-In/ Move-Out Condition Checklist was revised to remove language that it was a part of the Lease. The Checklist also now refers to the main bedroom and bathroom as “Primary” instead of “Master”.
A redlined version of the Move-In/ Move-Out Condition Checklist form can be found here.
July
Additional Clause Addendum
A new clause was added to the Additional Clause Addendum to assist wholesale buyers and wholesale sellers in a residential real property transaction to disclose their wholesaler status as required by law.
A redlined version of the revised Additional Clause Addendum can be found here.
Buyer Contingency Addendum
The previous version of the Buyer Contingency Addendum contained an automatic cancellation if the buyer did not accept an offer, or the pending sale of the buyer’s property did not close by the date specified. Previous reversions of the form did not provide the buyer an option to waive the contingency and proceed in the transaction towards Contract close of escrow (“COE”) in such an event.
Additional revisions were made to further clarify the contingency terms and arrange the information into a more easily understandable format. Instructions and section numbers were also added to the form for clarity.
A redlined version of the revised Buyer Contingency Addendum can be found here.
Multiple Counter Offer
A revision to the form clarifies that “Seller Final Acceptance” requires the seller to sign and date the Multiple Counter Offer form and deliver it to the buyer or buyer’s broker pursuant to Section 8 of the Contract to create a binding agreement.
A redlined version of the revised Multiple Counter Offer can be found here
Multiple Offer/Counter Offer
The revision to the form clarifies that “Buyer Final Acceptance” requires the buyer to sign, date and deliver the acceptance to the seller pursuant to the Contract to create a binding agreement.
And additional language was added to the Buyer Final Acceptance section to clarify that, except as modified by the Multiple Offer/Counter Offer provisions, all other terms and conditions of the prior identified offer/counter offer(s) remain unchanged and are deemed accepted.
Multiple Offer/ Counter Offer form can be found here.
February
Seller’s Property Disclosure Statement (SPDS) (Revised): The last major revision was in 2014. The more significant revisions include: (i) a section for the seller to list the names and license numbers of all contractors and the scope of work that was performed on the Property in the past year; (ii) the Sewer/Wastewater Treatment section and the Environmental section were relocated so that sewer information is disclosed before environmental information; and (iii) added Notices to Buyer and Seller regarding subdivided properties, when a contractor’s license is required for work performed on the property and updating the SPDS on a Notice/Disclosure form. For a detailed summary of the revisions and FAQ, please read more here. See redlined SPDS HERE.
January
Fair Housing Advisory
The intention of the Fair Housing Advisory is to remind consumers that it is against the law to discriminate in any form when renting or selling property. The Fair Housing Advisory opens the door to a conversation between the agent and the public as to what constitutes a violation of Fair Housing, and effectively discloses that discrimination is illegal. Find it here:
2022 Revisions
October
Residential Resale Real Estate Purchase contract (Revised): Sections 5a and 6j of the Purchase Contract now include the words “or address” in those portions of the Purchase Contract that discuss whether seller is given the opportunity, is willing, or not willing to correct items disapproved. In other words, the parties may now “correct or address” disapproved items in whatever manner they choose. See redlined Purchase Contract here.
Residential Buyer’s Inspection Notice and Seller’s Response (BINSR) (Revised): For a detailed summary of the revisions and FAQs, please read more here. See redlined BINSR here.
Real Estate Agency Disclosure & Election (Revised): An additional line was included to identify when multiple agents represent the buyer or seller.
Vacant Land/Lot Purchase Contract (Revised): An additional line was included to identify when multiple agents represent the buyer or seller.
Buyer-Broker Exclusive Employment Agreement (Revised): An additional line was included to identify when multiple agents represent the buyer or seller.
Disclosure of Buyer Agency and Seller Waiver and Confirmation (Revised): An additional line was included to identify when multiple agents represent the buyer or seller.
Unrepresented Seller Compensation Agreement (Revised): An additional line was included to identify when multiple agents represent the buyer or seller.
June
Additional Clause Addendum (Revised): Additional verbiage was added to lines 8-10 and states “In the event of a conflict between the terms and conditions of the Contract and this Additional Clause Addendum, the terms and conditions of this Additional Clause Addendum shall prevail.”
February
Commercial Property Owner’s Association (CPOA) Addendum (Revised): This form was revised on page 3, with the addition of lines 80 & 81 with the purpose of allowing the parties to negotiate and document which party pays any fees not previously identified by the seller on page one (1) of the Addendum.
Solar Addendum (Revised): The former Lease / Solar Loan Assumption Addendum was revised and renamed Solar Addendum. The Solar Addendum should be utilized in those transactions in which the Solar System installed on the Premises is either (1) owned outright by the Seller or owned by a utility company; or (2) leased. Read the FAQs for more information.
2021 Revisions
October
H.O.A. Condominium / Planned Community Addendum (Revised): This form was revised on page 3, with the addition of lines 75 & 76 with the purpose of allowing the parties to negotiate and document which party pays any fees not previously identified by the seller on page one (1) of the Addendum. Read the article here for more information.
Multiple Counter Offer (Revised): The primary reason for the revision is to help ensure that a Counter Offer not yet accepted is revoked by the seller before entering into a contract with the buyer. Otherwise, the seller can find themselves in the problematic position of having sold the Premises to more than one buyer. For more about the form, read the article here.
Vacant Land/lot Seller’s Property Disclosure (Revised): The Vacant Land/Lot Seller’s Property Disclosure Statement was last updated in February 2008. For a detailed summary of the revisions and FAQ’s, please read more here.
June
Counter Offer (Revised): This form has been revised at lines 22-24 to address: (1) all other terms and conditions remain the same except as modified by the Counter Offer; and (2) until the Counter Offer has been accepted, the party originating the Counter Offer may withdraw the offer to buy, sell, or lease the Premises. For more information, see the article here.
Additional Clause Addendum (Revised): A new provision has been added to this form at lines 37-44 titled “Appraisal Shortfall.” Read the FAQs for more information.
February
Buyer-Broker Exclusive Employment Agreement (Revised): The purpose of this change is to allow the buyer and their agent to insert a geographical limitation, (Line 7), should they choose to do so, meaning that the Buyer-Broker’s exclusive employment will be limited to that specific area.
Market Conditions Advisory (Revised): This form has been revised to remove both the Buyer and Seller signature lines at the bottom of the Advisory and adding instead, a “signature” and “name” line. This eliminates the confusion that the Advisory is a transactional document which must be shared with another brokerage in the transaction. Also, by making the Advisory more “generic” in nature, a customer may be given the Advisory without a question of representation by the agent.
2020 Revisions
June
Counter Offer (Revised): This form has been revised at lines 19-20. The header on line 19 has been changed from “Time of acceptance” to “Terms of Acceptance” so that it mirrors the verbiage used in Section 8o of the Residential Resale Real Estate Purchase Contract. Instead of referencing Section 8m, the verbiage on line 19 clarifies that the Counter Offer should be “delivered in person, by mail, facsimile or electronically.”
H.O.A. Condominium/Planned Community Addendum (HOA) (Revised): The intended use of this form is for: (i) sellers to disclose on page one those costs associated with the H.O.A. that are payable at close of escrow; and (ii) buyers to identify on page three their offer as to which party pays which fees. To assist the parties with properly filling out the form, the following revisions have been made: (i) line four now instructs the seller to complete the information on “page 1”; and (ii) line 70 now states: “NOTE: Lines 73-80 TO ONLY BE COMPLETED BY BUYER AND NOT SELLER!”
Buyer’s Inspection and Seller’s Response (BINSR) (Revised): This revision consists of adding additional blank lines under the “Items disapproved” heading and the “Seller’s Response” heading.
February
Commercial Property Owner’s Association (CPOA) Addendum (New): This form is intended to assist parties in a commercial transaction in which a CPOA exists to disclose and negotiate those fees imposed by a CPOA. Read the article for more information.
Residential Resale Real Estate Purchase Contract (Revised): This form has been revised as follows: (1) include the Solar Lease / Solar Loan Assumption Addendum in section 1f; (2) include smart home devices in section 1g; and (3) expand the scope of seller concessions to include all buyer’s costs allowed by Buyer’s lender. Read the article for more information.
Vacant Land/Lot Purchase Contract (Revised): This revision consists of additional verbiage being added near the bottom of the Purchase Contract cover page warning buyers to beware of wire transfer fraud and to independently confirm wiring instructions prior to wiring any money. Additionally, verbiage has been added to remind buyers to not email or transmit documents that show bank account numbers or personal identification information.
2019 Revisions
October
Buyer Pre-Closing Walkthrough: This form has been revised to make the form universally applicable so that it can be utilized in conjunction with all Arizona REALTOR® purchase contracts. More specifically, “Property” has been inserted next to “Premises” and the form now generally references the Remedies section of the purchase contracts as opposed to a specific section.
Residential Lease Agreement: The revision consists of an additional line being included under the “Broker on behalf of Tenant” and “Broker on behalf of Landlord” sections to make it easier for more than one agent to be identified on the Residential Lease Agreement when appropriate.
Vacant Land/Lot Purchase Contract: The revision removes the Market Conditions Advisory from section 1h titled Addenda Incorporated.
June
Notice / Disclosure Form (New): This form is intended to assist sellers and buyers with providing notice and/or disclosure required by the terms of the contract. Read the FAQs for more information.
Residential Seller Disclosure Advisory page (Revised): The revision consists of removing verbiage which was causing confusion and lead some members to conclude that sellers were required to convey prior inspection reports in seller’s possession to the buyer.
Buyer Attachment to the Residential Resale Real Estate Purchase Contract (Revised): This revision consists of additional verbiage being added near the bottom of the Purchase Contract cover page warning buyers to beware of wire transfer fraud and to independently confirm wiring instructions prior to wiring any money. Additionally, verbiage has been added to remind buyers to not email or transmit documents that show bank account numbers or personal identification information.
Agreement Notice Pursuant to the Short Sale Addendum to the Residential Resale Real Estate Purchase Contract (Revised): The revision consists of removing “Residential Resale Real Estate Purchase Contract” from the title so that this form can be utilized with other Arizona REALTOR® purchase contracts. Additionally, language which previously referenced section numbers of the Contract now references section headings to once again ensure that the verbiage universally applies to all Arizona REALTORS® contracts.
February
Commercial Purchase Contract (Revised): Review the FAQs which provide further information regarding the changes.
Short Sale Addendum to the Commercial Purchase Contract (Revised): “Opening of Escrow” was changed to “Contract acceptance” to coincide with revisions to the Commercial Purchase Contract. Additionally, Seller Warranties at lines 28-33 were removed.
Commercial Buyer’s Inspection Notice and Seller’s Response (Revised): The first section header is now titled “Buyer Due Diligence, Feasibility and Inspections Completed” as opposed to “Buyer Due Diligence and Inspections Completed.” Additionally, “feasibility” was inserted on line 5 to coincide with revisions to the Commercial Purchase Contract. Finally, reference to Sections as opposed to line numbers was also updated.
Residential Lease Agreement (Revised): Clarification verbiage was added to lines 208-209 to reflect the requirements in the Arizona Residential Landlord and Tenant Act. More specifically, the added verbiage states, “Tenant may be present at the move-out inspection and, upon request, the Tenant shall be notified when the move-out inspection will occur.”
Move-In / Move-Out Condition Checklist (Revised): On page 6 under the title “Tenant Agrees,” the following sentence was included – “Tenant may be present at the move-out inspection and, upon request, the Tenant shall be notified when the move-out inspection will occur.” The added verbiage more accurately reflects the requirements in the Arizona Residential Landlord and Tenant Act.
Cure Period Notice (Revised): This form has been updated so that the form will universally apply to all Arizona REALTORS® purchase contracts, including the revised Commercial Real Estate Purchase Contract. Additionally, language which previously referenced Section 7a of the Contract now references the “the Remedies Section” to once again ensure that the verbiage universally applies to all Arizona REALTORS® contracts.
2018 Revisions
October
Buyer Contingency Addendum (Revised): This form was revised to clear up issues that have arisen since the form’s last revision in 2014. Among the many changes made, some of the more significant revisions include: (1) Seller’s ability to cure Buyer for not submitting Accepted Offer documents to Seller ; (2) a section related to time periods has been added so that the parties will have a clearer understanding of when the Contract timelines begin – upon Contract acceptance or after an Accepted Offer; and (3) Seller’s may request an update regarding the status of the sale of Buyer’s Property. For more information on the changes, please see the frequently asked questions (FAQs).
Critical Date List (Revised): Lines 38 and 39 have been revised to update the deadlines related to the On-Site Wastewater Treatment Facility. Additionally, a new line 40 (lines thereafter have been renumbered) has been added for providing notice of any items disapproved within the On-Site Wastewater Facility Documents.
August (special forms release date for change in law)
Notice of Abandonment (Revised): The Arizona Residential Landlord and Tenant Act changed a landlord’s obligations when dealing with abandoned personal property. Read the article for more information.
June
On-Site Wastewater Treatment Facility Addendum (Revised): The major revisions include: (1) completing the Facility inspection changed from three days prior to close of escrow to 20 days after Contract acceptance; and (2) requiring when repairs must be performed has been clarified. Read the FAQs for more info.
Cure Period Notice (Revised): The verbiage under the title was revised so that this form may be used in conjunction with the Residential Resale Real Estate Purchase Contract AND the Vacant Land/Lot Purchase Contract.
February
Wire Fraud Advisory (New): This document advises clients about criminals targeting social media and email to steal information. It further warns them about wire transfer fraud. This document is not an AAR copyrighted form but is available as a downloadable Word Document on the Arizona REALTORS® website and PDF in zipForm®. Read the article for more information.
Additional Clause Addendum (Revised): Due to the FHA/VA Amendatory Clause, the revision includes the addition of the term “unless prohibited by federal law” to the end of line 30, which is found in the Section titled Non-Refundable Earnest Money section.
Residential Lease Owner’s Property Disclosure Statement (Revised): The revision is minor and removes lines 112-114 regarding where to find a list of unremediated sites previously utilized as a clandestine drug laboratory due to the repeal of applicable Arizona law.
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 previously utilized as a clandestine drug laboratory due to the repeal of applicable Arizona law. A new box is inserted at lines 190-191 regarding solar systems.
February
Residential Resale Real Estate Purchase Contract (Revised): : Read the article which discusses the major changes. Additionally, review the FAQs 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:
- Additional Clause Addendum
- Appraisal Contingency Notice
- Buyer-Broker Exclusive Employment Agreement
- Buyer Pre-Closing Walkthrough
- Counter Offer
- Loan Status Update
- Multiple Counter Offer
- Multiple Offer/Counter Offer
- Pre-Qualification Form
- Residential Buyer’s Inspection Notice and Seller’s Response
- Residential Seller’s Property Disclosure Statement
- Short Sale Addendum to Listing Contract
- Short Sale Addendum
- Unfulfilled Loan Contingency Notice
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 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 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 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 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.