Below is a list of documents that may be relevant to your real estate transaction. This list of documents is designed to make a buyer's home purchase as smooth as possible. These are some of the more common issues that a buyer may decide to investigate or verify concerning a home purchase. Remember that no amount of investigation replaces professional home inspections by properly licensed inspectors. A professional home inspection is a measure used to discover and investigate defects or shortcomings in a home.

MLS Printout: A listing is an agreement between the seller and the lisiting agent and authorizes the listing agent to submit information to the Multiple Listing Service (“MLS”). The MLS printout is similar to an advertisement and contains various abbreviations and symbols. Neither the listing agreement nor the printout is part or the purchase contract between the buyer and seller. The printout contains a limited description of a property, such as its size, encumbrances, utilities, amenities, etc. The information was probably secured from the seller, the builder, or a governmental agency and could be inaccurate, incomplete or an approximation. Therefore, the buyer should verify any important information contained in the MLS printout.

The Subdivision Public Report: This report is required to be given to buyers by the subdivider of a new home subdivision and should be read before signing any contract to purchase a new home. The purpose of this document is to point out material information about he development that a buyer might want to know when making a decision to purchase. Additional information about the Public Report may be found on the Arizona Department of Real Estate website at www.re.state.az.us/checklist.html.

Seller's Property Disclosure Statement (“SPDS”): Most sellers provide a SPDS. This document poses a variety of questions for the seller to answer about the property and its condition. A buyer should carefully review the SPDS and verify those statements of concern. Ask to see receipts for repairs to the home. Look behind large pictures on the wall and behind anything on the floor that conceals large areas. Look for stains on the ceilings or carpets that might indicate water damage. Read the purchase contract carefully to determine if there any deadlines for challenging the seller's disclosure report or having your own inspections conducted.

Covenants, Condidtions and Restrictions (“CC&Rs”): The CC&Rs are recorded against the property and generally empower the homeowner's association to control certain aspects of property use within a development. By purchasing a home in such a development, the buyer agrees to be bound by the CC&Rs. Thus, the CC&Rs form an enforceable contract. The association, the homeowners as a whole, and individual homeowners can enforce the contract. It is essential that the buyer review and agree to these restrictions prior to purchasing a home. It is advised that you read these CC&Rs since you might find some of the CC&Rs are very strict, especially those addressing landscaping, RV parking, play equipment, satellite antennas, and other common amenities—particularly if the subdivision is governed by a homeowner's association.

Homeowner's Association (“HOA”) Governing Documents : In addition to CC&Rs, HOA's may be governed by Articles of Incorporation, Bylaws, Rules and Regulations, and offer architectural control standards. The HOA is in place to enforce these rules and to preserve the value of the home in the place to enforce these rules and to preserve the value of homes in the condominium or planned community. Arizona statutes also regulate condominium and planned community HOAs.

What makes a development a condominium or planned community? Common area, that is community ownership of real estate for use by community residents, is the common denominator. In a condominium, the common property is actually deeded as undivided interests to the condominium owners. In a planned community, the ownership of the common property vests in the remedies regarding homeowner's associations or community associations, please read the information provided at www.re.state.az.us/communityassoc.html.

HOA Disclosures: If purchasing a resale home in a condominium or planned community, the seller (if fewer than 50 units in the community) or the HOA (if there are 50 or more units) must provide the buyer with a disclosure containing a variety of information, including the principal contract the association, assessments, the money held by the association as reserves and, if the statement is being furnished by the association a statement as to whether the records of the association reflect any alterations or improvements to the unit that violate the declaration.

Title Report of Title Commitment: The title report or commitment contains important information and is provided to the buyer by the title/escrow company or agent. This report or commitment lists documents that are exceptions to the title insurance (Schedule B Exceptions). Schedule B Exceptions may include encumbrances, easements, and liens against the property, some of which may affect the use of the property, such as a future addition or swimming pool. Make sure you receive and review all of the listed documents.

The title or escrow officer, legal counsel, or a surveyor may answer questions about the title commitment and Schedule B documents.

Home Warranty Policy: A home warranty may be part of the sale of the home. Buyers should read the home warranty document for coverage and limitation information. Be aware that pre-existing property conditions are generally not covered under these policies.

Affidavit of Disclosure : If the buyer is purchasing five or fewer parcels of land (whether improved of vacant), other than subdivided land, in an unincorporated area of a county, the seller must furnish the buyer with an Affidavit of Disclosure.

Lead-Based Paint Disclosure Form: If the home was built prior to 1978, the seller must provide the buyer with a lead-based paint disclosure form. Information about lead-based paint may be obtained at www.re.state.az.us/leadfacts.html .

County Assessors/Tax Records: The county assessor's records contain a variety of valuable information including the assessed value of the property for tax purposes and some of the physical aspects of the property, such as the reported square footage (which should always be verified for accuracy). Information is available on the county website, http://treasurer.maricopa.gov/parcels/.

Professional Home Inspection Report: For the buyer's protection, the importance of having a home inspected by a professional home inspector cannot be over-emphasized. A home inspection is a visual physical examination, performed for a fee, designed to identify material defects in the home. The home inspector will generally provide the buyer with a report detailing information about eh home's condition. The inspector and the report will point out existing problems and possible potential problems. The buyer should carefully review this report with the inspector and ask the inspector about any item of concern. Pay attention to the scope of the inspection and any portions of the property excluded from the inspection.

Home inspectors must be certified by the State of Arizona. A list of certified home inspectors may be found at the Arizona Board of Technical Registration website: www.btr.state.az.us . Additional information on inspections may be found at the American Society of Home Inspectors.

Termites and Other Wood Destroying Organisms: Termites are commonly found in some parts of Arizona. Investigating evidence of termites or other wood infestation is the job of the pest inspector. The Structural Pest Control Commission (“SPCC”) regulates these inspectors and can provide the buyer with information regarding past termites treatments on a property. The SPCC publication, What You Should Know About Wood Infestation Reports , can be found at www.sb.state.az.us/wir.htm . Additional information may be obtained at the SPCC website at www.sb.state.az.us .

Common Physical Conditions in the Property a Buyer Should Investigate

Every buyer and every home is different, so the physical property conditions requiring investigation will vary.

Repairs and New Construction: The seller may have made repairs or added a room to the property. For example, the property may have been remodeled. The buyer should feel comfortable that the work was properly done or have an expert evaluate the work. Request copies of any invoices or other documentation regarding the work performed. The Registrar of Contractors' (“ROC”) publication, Hiring a Licensed Contractor, is available online at www.rc.state.az.us . For information regarding permits, contract the city or county building department.

Roof: The inspector might recommend that you have the roof further inspected by a licensed roofer. If the roof is 10 years old or older, a roof inspection by a licensed roofer is highly recommended. See the ROC information on hiring a licensed contractor online at www.rc.state.az.us/Consumer_menu.html .

Swimming Pools and Spas: If the home has a pool or a spa, the home inspector might determine that the cleaning system is not working properly or may exclude the pool or spa from the general inspection. It would then be necessary to have a pool or spa company inspect the pool or spa and/or evaluate any problem.

Swimming Pool Barriers: Each city and county has its own swimming pool barrier ordinance. Pool barrier contact information for Arizona cities and counties may be found at www.aaronline.com/documents/pool_contacts.aspx . The state law on swimming pools is located at www.azleg.state.az.us/ars/36/01681.htm .

Square Footage : Square footage on the MLS printout or as listed by the county assessor's records is often only an estimate and generally should not be relied upon for exact square footage in a home. An appraiser or architect can measure the home's size to verify the square footage.

Sewer: Even if the listing of SPDS indicates that the home is connected to the city sewer, it should be verified by a plumber, home inspector, or other professional. Some cities can perform this test as well.

Septic Systems and other on-Site Wastewater Treatment: if the property has a septic tank or other on-site wastewater treatment facility that was approved by a certain date, a qualified inspector prior to transfer must inspect it. Contact the Arizona Department of Environmental Quality (“ADEQ”) at www.adeq.state.az.us/ for more information.

Expansive Soil: The soil in some areas of Arizona has “clay-like” tendencies, sometimes referred to as “expansive soil.” Although it is not very common for homes built on expansive soils to experience significant movement, it can be a major problem if it does occur. If it has been disclosed that the home has expansive soil or if the buyer has any concerns about evidence of cracking, the buyer should secure an independent assessment of the home and its structural integrity by a licensed, bonded and insured professional engineer.

Previous Fire/Flood: If it is disclosed there has been a fire or flood in the property, a qualified inspector should be hired to advise you regarding any possible future problems as a result of the fire or flood damage and/or any subsequent repairs. For example, if the property was not properly cleaned after a flood, mold issues may result. You homeowner's insurance agent may be able to assist you in obtaining information regarding fire, flood or other past damage to the property.

Pests: Cockroaches, rattlesnakes, black widow spiders, scorpions, termites and other pests are common in parts of Arizona. Fortunately, most can be controlled with pesticides. Scorpions, on the other hand, may be difficult to eliminate. If the buyer has any concerns of if the SPDS indidcates the seller has seen scorpions or other pests on the property, you should seek the advice of a pest control company. A source of information on scorpions may be found at www.desertusa.com/oct96/du_scorpion.html . For information on roof rats, which have been reported in some areas, search “roof rats” at www.maricopa.gov/envsvc . For information on termites, see www.sb.state.az.us .

Deaths and Felonies on the Property: An Arizona law states that sellers and real estate licensees have no liability for failure to disclose to a buyer that the property was ever the site of a natural death, suicide, murder or felony. This information is often difficult to uncover; however, the local law enforcement agency may be able to identify calls made to the property address.

Mold: Mold has always been with us, and it is a rare home that does not have some mold. However, over the past few years a certain kind of mold has been identified as a possible contributor to illnesses. Allergic individuals may experience symptoms related to mold. Mold growth is found underneath materials where water has damaged surfaces, or behind walls.

A pamphlet, Mold in my Home: What Do I Do?, prepared by the Arizona Department of Health Services, Office of Environmental Health, state ”If you can see mold, or if there is an earthy or musty odor, you can assume you have a mold problem.” See www.hs.state.az.us/phs/oeh/invsurv/air_qual/mold_contents.htm .

Other Indoor Air Quality Concern : Radon gas and carbon monoxide poisoning are two of the more common an potentially serious indoor air quality (“IAQ”) concerns. The home inspector, usually for an additional fee, can address both of these concerns. As for the many other IAQ concerns, the EPA has a host of resources material and pamphlets available. at www.epa.gov/iaq/pubs/index.html.

Property Boundaries : If the property boundaries are of concern, a survey may be warranted. For example, a survey may be advisable if there is an obvious use of property by others (i.e., a well-worn path across a property and/or parked cars on the property) or fences or structures of adjacent property owner that appear to be built on the property. A list of surveyors may be obtained from the Board of Technical Registration at www.btr.state.az.us .

Flood Plain Status: If the property is in a flood zone, an additional annual insurance premium of several hundred dollars may be required. If the property is in an area deemed high risk, the buyer may be required by the lender to obtain flood hazard insurance through the National Flood Insurance Program. To find additional details on flood plain status see www.fcd.maricopa.gov/Resources/MapApplications.asp .

Homeowner's Insurance (Claims History): Many factors affect the availability and cost of homeowner's insurance. Depending on the insurance company, these factors may include past insurance claims filed on the home being purchased, past insurance claims filed by the buyer on previous homes, and the buyer's credit score. Some insurance companies use a database known as the Comprehensive Loss Underwriting Exchange (“C.L.U.E.”) in their underwriting practices to track the insurance claim history of a home and of the person applying for insurance coverage. These companies may use such information to cancel a buyer's homeowner's insurance policy after close of escrow and can do so because, in Arizona, an insurance company may cancel a homeowner's insurance policy during the first 60 days after issuance for any reason.

To reduce the risk of homeowner's insurance cancellation, a buyer should ask their insurance agent about the company's underwriting practices and request that their insurance agent confirm in writing the availability and cost of homeowner's insurance early in any real estate transaction. And, although a buyer cannot directly obtain the claims history of a home, a buyer may ask the seller to provide a copy. However, be aware that obtaining a claims history or C.L.U.E. report on a home will not give a buyer all the necessary information to determine insurability, since not all insurance companies use this information or use it in the same manner. Homeowners may request a five-year claims history from their insurance agent or purchase a C.L.U.E. report online at www.choicetrust.com or by calling 800-456-6004 or 866-527-2600.

CONDITIONS AFFECTING THE AREA SURROUNDING THE HOME

Every property is unique and below is a list of other various items that could affect your home purchase.

Environmental Hazards: www.adeq.state.az.us

Superfund Sites: www.adeq.state.az.us/environ/waste/sps/phx.html

Freeway Construction: www.dot.state.az.us

Crime Statistics: www.faxnet1.org

Sex Offenders: www.azsexoffender.org

Schools: www.ade.state.az.us

Talk to the Neighbors and Drive Around the Neighborhood.