Arizona Property Purchase Agreement: What You Need to Know
If you`re looking to buy a property in Arizona, it`s essential to have a proper understanding of the purchase agreement. A purchase agreement is a legally binding contract that outlines the terms and conditions of a real estate transaction.
Here are some key things you need to know about Arizona property purchase agreements.
Purpose of the Agreement
The primary purpose of a purchase agreement is to establish the terms and conditions of the sale. It outlines the responsibilities of both the buyer and the seller, including the purchase price, closing date, property condition, and any contingencies.
Contingencies
A contingency is a condition that must be met before the sale can be completed. Common contingencies in Arizona include a satisfactory home inspection, appraisal, and financing. These contingencies give the buyer an opportunity to back out of the contract or renegotiate the terms if the conditions are not met.
Disclosures
Arizona law requires the seller to disclose any known defects or issues with the property. These disclosures can include structural problems, water damage, or previous repairs that were done. It`s essential to review these disclosures thoroughly to make informed decisions about the property.
Earnest Money
When a buyer submits an offer on a property, they are usually required to provide earnest money. Earnest money is a deposit that shows the buyer`s commitment to the purchase. The amount of earnest money varies, but it`s typically around 1% to 3% of the purchase price.
Closing Costs
Closing costs are the fees and expenses associated with the sale of the property. These costs can include title insurance, appraisal fees, and attorney fees. In Arizona, it`s common for the buyer and seller to split closing costs, but the exact amount can vary.
Final Thoughts
A property purchase agreement is a crucial document in any real estate transaction. It`s essential to review all the terms and conditions carefully and to seek legal advice if necessary. If you`re purchasing a property in Arizona, understanding the purchase agreement is a vital step to ensure a smooth and successful transaction.