2015 Seller's Guide

Home Seller’s GuideErika Madsen

602.849.6576 - Direct/[email protected] The Property Boutique, LLC

The Madsen Team

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Home Seller's Guide

Lawyers Title of Arizona, Inc. has a long history of providing outstanding title and escrow services to the Arizona real estate industry. Lawyers Title consistently ranks as one of the top title insurance providers in the state of Arizona. At Lawyers Title we have a team united by our commitment to make the real estate transaction effective and efficient.

We offer the most comprehensive and reliable service available by utilizing skilled title and escrow officers combined with the expertise of our sales executives.

Lawyers Title is a wholly owned subsidiary of Fidelity National Financial, the #1 leader in financial strength. As part of the Fidelity family of companies, your real estate transactions are safe and secure.

Lawyers Title Of Arizona Services:• Residential Resale• Refinance & Lender Services• Builder & Developer• New Home Sales• Trustee Sales Guarantees• Foreclosure Services• Multi Site, Multi State• Commercial• 1031 Exchange Services• Home Warranty• Home Inspection

For more information please visit:

www.lawyerstitlearizona.com

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Home Seller’s Guide

Things To Consider Before Selling Your Property “By Owner”Most of us do not like to spend money unnecessarily, especially when we feel we could do the job at hand as well as the person or persons we are hiring to complete the task. It would be a good idea to consider the following questions to assess the process of handling the sale of your property yourself, before attempting to do so:

• Do you know how to determine the current market value of your home?• Do you know how and where to advertise your home most effectively and what the costs will be?• Did you know that each REALTOR® has access to a Multiple Listing Service (MLS), which is a database

of properties listed for sale by REALTORS®. Real Estate Agents refer to MLS for prospective properties to show their clients and for comparable sales when determining value for a prospective listing. Only Real Estate Agents have access to this information.

• Have you made arrangements for your home to be available for showing 12 hours a day, 7 days a week. If not, each hour that you do not provide this availability your home is “off the market”.

• Are you concerned about having strangers walking through your home?• Do you know how to determine whether or not a buyer can qualify for a home?• Are you conversant enough with real estate law to write a legal and binding real estate contract?• Do you understand the steps of an escrow and what is required of you and the buyer to complete the

transaction?• Do you know which title company, real estate attorney, termite company, inspection company and

lender to hire that will provide the best service and costs to you?• Do you have experience with resolving problems and protecting your rights in a real estate transaction?Your home is probably your largest investment. You are the only one who can determine whether or not you should attempt to sell your home by yourself. Talk to a REALTOR® before you decide. You may find that working with a professional is a lot less expensive and will get the job at hand done in a more timely and less stressful manner than attempting to do it yourself.


Home Seller's Guide

Selling A Home? It Pays To Work With A Realtor®Without the professional guidance and expertise of a REALTOR®, selling a home can often entail many unnecessary complications. The following information, as prepared by the National Association of REALTORS®, best describes the many benefits of contacting a professional REALTOR® to handle all your real estate needs. The term REALTOR® is a registered, collective membership mark which identifies real estate professionals who are members of the National Association of REALTORS® and abide by its strict Code of Ethics. A REALTOR® is bound by a Code of Ethics and pledges to protect and promote the interest of the seller by providing fair treatment for all parties involved in the transaction. Here are some ways a REALTOR® can help you sell your home:

Promotion By:

• Preparing a flyer to describe your property for public distribution.• Posting a “For Sale” sign on your property.• Advertising in the media. This includes MLS, flyers, local paper and home buyer magazines.

Viewing By:

• “Open Houses” for the buying public.• Conveniently scheduled appointments for house showings.

Networking By:

• Neighborhood mailings.• National relocation services.• The Real Estate Association.• Their personal network of clients.

Working With You By:

• Conferring with you regarding when you want to place your home on the market.• Establishing a sale price based on the following:

- Research of comparable properties. - Considering the current local market conditions.

• Establishing your probable net proceeds.• Advertising your home and making suggestions on what you can do to make your property more sell-

able.• Reviewing the necessary paper work with you.



Negotiating The Contract By:

• Reviewing the contract and your obligations.• Explaining contingencies and release clauses.• Explaining the legal disclosure requirements.• Explaining the ramifications of pest control inspections/reports.• Explaining your responsibilities regarding the condition of the property.• Examining offers closely and explaining the reasons behind a possible counter-offer.

Managing And Closing Escrow By:

• Following closely the progress of the buyer’s loan and coordinating the payoff of your existing loan.• Facilitating the appraisal process.• Staying in constant communication with the buyer’s agent to ensure a smooth escrow.• Closely monitoring contingency removal dates and discussing these with you.• Coordinating the details of the transaction with the escrow officer.• Making sure you get your check and settlement documents promptly after closing.


Home Seller's Guide

Preparing Your House For MarketFirst Impressions First

• Let the front of your house greet guests with a clean, maintained yard by fertilizing lawns, planting fresh seasonal flowers, trimming overgrown shrubbery.

• Painting can be expensive, but a little touch up goes a long way.• Make sure your front door is solid, fresh, and welcoming.• Inspect the roof for necessary repairs and any visible broken tiles or shingles.• Repair cracks in the driveway and sidewalks. Clean up oil stains.• Mend or paint neighboring fences or walls.

A Little Decoration Goes a Long Way

• Simple, inexpensive redecorating such as paint and accessories can result in a quicker sale at a higher price. Light neutral paint colors, such as off-whites, permit most every one to “imagine” their furnishings in your home.

• Clean carpets if they are heavily soiled. Spot clean stains.

Eliminate the Distractions

• Repair the minor flaws that can detract from your home’s value, such as leaky faucets, sticking windows and doors, broken handles and knobs.

• Remove cobwebs from ceilings and other areas.

Never Enough Space

• Remove all unnecessary items in your attic, basement, or other storage areas and organize all closets to show ample space.

• Remove excess furniture so rooms don’t look small and cluttered.• Have a garage sale to dispose of unneeded items-looks better now and less to move later!

Squeaky Clean Bathrooms!

• Check and repair caulking in showers and bathtubs.• Install new shower curtain liners. Keep bathrooms looking and smelling fresh.



15 Home Listing Tips1. Price Your Home Right

Your agent can research comparable sales in your area and advise you of the appropriate price range for your property.

2. Be Flexible on Financing Terms

Have your agent explain what financing options are available. Flexibility on financing terms may secure a better selling price.

3. Time it Right

Ask a real estate professional to determine whether the market cycle is poised to net you the most money.

4. Make Your Property Accessible to Buyers

Lock boxes are a great way to make your home most accessible to agents for showing. Appointment-only showings are the most restrictive. If your lifestyle is not compatible with frequent showings, your agent will help you determine a solution to suit your needs. Remember, the easier a home is to show, the better the odds are of getting the deal you want.

5. Use the Latest Marketing Technology

Make sure your agent utilizes the latest technology, such as Internet sites and social media that cater to home-buyers. In some areas, cable advertising is popular. Others use 800-number interactive voice response systems. A good agent will know where you can get the best exposure.

6. Stage Your Property Correctly

Put some items in storage, create more light, play music or otherwise improve the ambience. Your agent can offer helpful advice to create the right first impression.

7. Remember that Selling Property is not Seasonal

Do not base selling decisions on the seasons. Property sells year-round.

8. Re-Evaluate the Marketing Plan

Re-evaluate your agent’s marketing plan periodically. Make needed adjustments based on the current market and buyers.


Home Seller's Guide

9. Analyze Why You Are Not Getting Offers

Eighty percent of all buyer activity comes from signs and MLS listings. So, if you are not getting offers and are flexible with showing your home, it may be time to re-evaluate your price, not necessarily your agent.

10. First Impressions are Golden

Sales have gone south thanks to unkempt lawns, cluttered closets, unpainted front doors, hard-to-work locks, blown light bulbs, bad color, stains, unlit areas, and foul smells. Spend time on the little things. Double up on your gardening. Keep things cleaner than usual. Take serious control of your pets during this time period.

11. Make the Right Kind of Repairs

Before making improvements, prior to listing, consult a real estate professional. Some upgrades will not yield any real increase in value, while others may increase property value substantially. Ask for low-cost solutions to minor repairs that will yield the best profits.

12. Give the Sales Process Enough Time

Homes may take three to six months in any market. Estimate how much time you have before you need to sell and then plan ahead to allow extra time. You don’t want to be forced to accept a disappointing offer.

13. Screen Prospects Adequately

One of the best reasons for hiring an agent is his or her ability to pre-qualify a prospect financially so that you don’t lose valuable negotiation time. Your agent may discover when a prospect has an ulterior motive for shopping homes.

14. Believe that You Can Make a Difference

The top agents in the industry report that their sellers are responsible for at least one out of ten sales. You can network with your business and personal friends, hand out flyers, and keep your house in move-in condition. Your agent should be ready to hand you all sorts of assignments to make the team effort successful.

15. Test the Market

Never put your property on the market unless you really want a sale! Get ready for a professional sales push when you list. If your plan harbors some indecision, resolve it before you list because success is every great agent’s objective!



Home Showing Checklist F If possible, make arrangements to be out of the house to permit the agent to do “their job.” If you

are home, don’t force conversation with potential buyers. Be polite, answer questions, and point out highlights. They want to inspect your house, not make new friends.

F Protect your pets. Keep them out of the way in a restricted area or even out of the house.

F Open all blinds and drapes to make the home light and cheerful.

F Turn on additional lights and lamps as needed.

F Remove excess clutter from floor, tables, and counter tops.

F Keep your valuables safely locked up or out of sight.

F Clean the bathrooms so they sparkle!

F Don’t forget to make the bed and do the dishes.

F Dust and vacuum the house thoroughly.

F Removes excess toys and equipment from yards.

F Wash down your driveway and patios.

F Turn off all TVs. Very soft background music may be acceptable in some cases.

F Fresh flowers in the front yard, on the porch, and in the house can create a welcoming effect.


Home Seller's Guide

3© 2009 Lawyers Title Insurance Corporation 3

HOME BUYING PROCESS CHART

HOME BUYER

Interview& SelectAgent

EvaluateNeeds

& Wants

Pre-Qualifyfor

Home Loan

Find thePerfectHome

Offer toPurchase

Home

Offer Accepted;Negotiate

Terms

PurchaseAgreementAccepted

SecureLender

BeginLoan

Process

PropertyInspections

PropertyAppraisal

PurchaseHomeowner’s

Insurance

LoanApproval

RemoveFinancial

Contingencies

OPEN ESCROW

Choose Escrow & Title

Company

DepositEarnestMoney

Seller’s TransferDisclosureStatement

Title SearchPreliminary

Report

CLOSE ESCROW

DepositBalance of

Down Paymentto Escrow

Sign Closing& LoanPapers

LoanFunding

RecordDocuments

EscrowClosed!

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Choose



The Escrow ProcessEscrow is a neutral depository for funds and documents needed to complete a real estate transaction. When a buyer and seller have signed a purchase contract, a copy of that contract along with the buyer’s earnest money check are deposited into escrow. This constitutes opening of escrow and the escrow process begins and progresses as follows:

A copy of existing deed is ordered by the escrow officer, to obtain the legal description of the property and the names of the record owners.

The escrow officer or an assistant then orders a commitment for title insurance from the company’s title department, in order to determine what will be required to close the transaction and to inform the buyer and the buyer’s lender what will remain of record against the property after closing.

Statements from the seller’s existing lender and the homeowners association are ordered in order to determine the amounts needed for payoff and/or transfer at the close of escrow.

Copies of the commitment for title insurance, covenants, conditions and restrictions and termite inspection reports are forwarded to buyer, seller and lender for their approval as received.

Upon receipt of the buyer’s loan documents from the buyer’s lender, the escrow officer prepares the settlement statement (or HUD), based on the information provided by the buyer’s new lender, the statements from homeowners association and payoff lenders and the purchase contract. The buyer and seller are contacted separately to schedule signing appointments for each. Buyer and seller sign separately. The buyer will deposit closing funds at the scheduled signing time unless other arrangements are previously made.

After signing, the loan documents are returned to the buyer’s lender for approval and funding. Upon receipt of the loan proceeds from the lender, the escrow officer will release the documents in the transaction for recording with the County Recorder on the agreed upon recording date. After recording, the funds are disbursed and copies of all documents are provided to REALTORS®, buyers and sellers and the title insurance policies are issued to the buyer and the buyer’s new lender.

In Arizona, real estate agents are authorized to write purchase contracts and escrow/title companies are authorized to complete standard documents to close a real estate transaction. As a result, attorneys are not commonly engaged in real estate closings of residential property. The real estate professionals generally involved include the real estate agents, the escrow officer and the buyer’s loan officer.

Be advised, however, that none of the above referenced professionals are allowed by law to offer legal advice. If you have a complex transaction or have questions or doubts that cannot be answered by your real estate professionals, it is important that you consult with an attorney.


Home Seller's Guide

Title Insurance Defined And Why You Should Have ItIn every real estate transaction, the matter of title insurance arises. A policy of title insurance is issued to a buyer and/or a lender to guarantee to the insured party or parties, “Free and Clear” title to the property being insured, from the beginning of time until the date and time the buyer acquires title to the property, or in the case of a lender’s policy until the date and time the lender’s loan document is recorded against the property. “Free and Clear” is defined as there being no loans, liens, encumbrances, back taxes, easements or covenants, conditions or restrictions against the property that were not disclosed on Schedule ‘B’ of the commitment for title insurance issued by the insuring company. The policy is issued for a one-time fee and will remain in effect as long as you or your heirs retain an interest in the property. This protects the buyer’s or the lender’s investment in real estate, including their legal defense against any claim or claimant. If a claim is valid, the title insurer will either resolve the title problem or pay the insured’s losses.

Why You’re At RiskThere are many title issues that can arise to cause the loss of your property or your mortgage investment. Title issues not disclosed by a most careful search of the public records, called hidden risks, are the most dangerous. Because of them, your title may be worthless or have a diminished value. Here are some title issues that can occur. You may not discover them when you buy real estate, but months or years later they can result in the loss of your property or an expensive lawsuit.

• Deeds by foreign parties• Deeds by minors• Deeds by persons of unsound mind• Deeds to or from defunct corporations• Defective acknowledgements (notary)• Discovery of will of apparent intestate• Duress in execution of instruments• Erroneous reports furnished by tax officials• False impersonation of the true owner of the land• Forged deeds, releases, etc.• Misrepresentation of wills• Mistakes in recording legal documents• Surviving children omitted from will• Administration of estate of persons absent but

not deceased

• Birth or adoption of children after date of will• Claims of creditors against property sold by heirs

or devisees• Deed of community property recited to be

separate property• Deeds by persons supposedly single, but secretly

married• Deeds delivered after death of grantor/grantee,

without consent of grantor• Deeds in lieu of foreclosure given under duress• Marital rights of spouse purportedly, but not

legally, divorced• Ultra vires deed given under false corporate

resolution



The Appraisal ProcessWhen you sell your house and the buyer is securing a new loan in order to purchase the property, the buyer’s lender requires a licensed appraiser to estimate the market value of the property to show the lender that they are making a prudent decision lending the buyer the money to buy your house. The cost of the appraisal is negotiable.

Once the buyer begins the new loan application process, the lender will order the appraisal. In order to estimate the market value of your house, the appraiser will research the houses which have sold in your subdivision and/or your immediate area. Appraisers prefer to use sales which have occurred within the past 6 months and are similar to yours in regards to square footage, year built and amenities (i.e. swimming pool, garage, single story).

The appraiser will measure your home, take photographs, and examine your house for its condition, specific improvements and amenities. You can help the appraiser by preparing a list of recent improvements and remodeling that has been done and include the approximate amounts spent for each improvement. Some appraisers will appreciate this information while others may not. However, if you had the information prepared for buyers looking at your home, then providing it for the appraiser will be a snap.

If the buyers of your property are getting an FHA or VA loan, a few special requirements will be placed on your house. You must scrape and paint all chipping or peeling paint on your house or any structures on the property. You should also replace any missing or damaged shingles and missing slats or blocks in your fence.

The lender will receive a copy of the appraisal a few days after the appraiser has been to your home. You may be told that the appraiser has some repair requirements before the lender can loan the buyer any money on your house. In that case, you must repair these problems and the appraiser will return for a re-inspection for an additional cost.


Home Seller's Guide

InspectionsThe standard Arizona Association of Realtors® purchase contract used by most real estate agents contains a provision that allows the buyer to physically inspect the property being purchased, either by himself or by a professional inspector or inspectors within the first ten days of acceptance of the contract by the seller. It is the seller’s obligation to provide the buyer access to the property during this ten day inspection period for whatever inspections the buyer requires. Below is a list of common types of inspections.

Structural Pest Control

• To determine any active infestation by wood destroying organisms.• To determine whether there is any earth to wood contact, cellulose debris or faulty grades on the property.In the event that there are wood destroying organisms or secondary issues with regard to the property, generally these issues must be addressed prior to the close of escrow and if the termite company that did the initial report does not do the repairs, then the property must be reinspected by a termite company and a clear report deposited into escrow, prior to the close of escrow.

Physical Inspection

• This inspection can encompass inspection of the roof, plumbing, electrical, heating and any other accessible area of the property.

• A detailed report or reports will be written by the inspector or inspectors with recommendations for repairs, and same will be delivered to the buyer. Subsequently the buyer will request of the seller any repairs that the buyer wishes the seller to be responsible for, which, if the seller agrees to the repairs, would be completed prior to the close of escrow.

Other Common Inspections Might Include:

• Well and Septic• Hazardous materials• Chimney• Heating and Cooling• Survey• Zoning and Building permit compliance• Structural Engineering



Home WarrantiesHome Warranties are insurance policies designed to protect a seller during the listing period and a buyer for one year after the close of escrow, against repair costs for mechanical systems and major appliances. The cost of a home warranty policy is a one time fee which either the buyer or the seller can pay at the close of escrow and which is renewable annually. There are a variety of home warranty companies and plans. The plans vary according to the optional coverage chosen by the insured which might include, but not be limited to heating, air conditioning, dishwasher, washer, dryer, refrigerator, garbage disposals, and pool or pool and spa equipment.

A Few Of The Benefits Of A Home Warranty Are Listed As Follows:

• Replacement or repair of major or minor plumbing, heating or electrical problems during the policy period at a nominal service fee per incident.

• A full network of qualified technicians at your service.• Protection of your budget against unexpected expenses for repairs or replacements of systems in your

home for the first year of ownership (or subsequent years if renewed).


Home Seller's Guide

Below is a list of costs involved in a transaction that are negotiable and there is no general tradition as to which party pays them:

• home warranty• homeowners association transfer fees

A Guide To Closing Costs - Who Pays What?Although most costs involved in a real estate transaction can be negotiated between buyer and seller, there are a lot of costs that are traditionally paid by one party or the other. We have set forth below a list of these charges:

The Seller can be expected to pay:

• owner’s policy of title insurance• homeowners association fees• real estate commissions• escrow fees (50%)• payoff all existing loans, liens and

encumbrances, including all associated costs and fees

• termite work• taxes due and payable or back taxes• recording fee (50%)• delivery fees

The Buyer can pay:

• lenders policy of title insurance• endorsement fees for title insurance• escrow fees (50%)• impounds and interest on new loan• all new loan charges (including appraisal,

origination and discount fees, document preparation, etc...).

• termite inspection fee• hazard insurance premium for first year• delivery fees• homeowners association dues required by

the association for future months• recording fee (50%)

Mandatory Costs:

FHA AND VA regulations require the seller to pay the following fees in an FHA or VA transaction, if applicable: assignment fee, flood certification fee, bring down endorsements, document preparation fees, photo/inspection fees, tax service contract, warehousing fees, or any other loan cost or charge except the following: prepaid interest, impounds on new loan, loan origination, loan discount fees or appraisal. In addition, on a VA transaction the seller is required to pay the entire escrow fee.



The Seller’s Eight Most Frequently Asked QuestionsQ. When do I get my proceeds check?

A. On the date of recording, you may request that your escrow officer either cut you a check for your proceeds or wire the funds directly into your bank account.

Q. Why do I have to pay interest on my loan pay-off past the day of recording?

A. Your lender continues to accrue interest to the date that they post your loan as being paid in full. This could be one or two days from the date your escrow officer sends your pay-off check via overnight mail or wire transfer.

Q. When do I get a refund from my impound account?

A. After your escrow officer sends your pay-off check to your existing lender, you can expect to get impound account back direct from your lender within 30-60 days. If you have any questions after that time, we suggest calling your lender.

Q. When do I cancel homeowner’s/fire insurance?

A. Please do not cancel your insurance until you have confirmed that your transaction has closed.

Q. Why does my escrow officer require that I complete a 1099 form?

A. A 1099 form is the reporting form adopted by the IRS for submitting the information required by law. Under guidelines established by the IRS, sellers of real property are required to have their sales price reported on the 1099 form.

Q. What is a Statement of information?

A. Statements of information provide title companies with the information they need to distinguish the buyers and sellers of real property from others with similar names, for the issuance of title insurance at close of escrow. After identifying the true buyers and sellers, title companies may disregard the judgements, liens or other matters on the public records under similar names.

Q. I don’t understand tax pro-rations. How do they work?

A. Each year on January 1st, the lien of that year’s property taxes attached to the land, pursuant to Arizona Law. However, the lien is not due and payable until October 1st of that year for the first half of that year’s bill and the second half of that year’s bill is not due until March 1st of the following year. Pro-rations are done to reimburse the buyer for the portion of the year that the seller has owned the property and has not yet paid taxes.

Q. What will I need to take with me to Lawyers Title of Arizona to sign my closing documents?

A. Take one of the following: Arizona Drivers License, Arizona ID card or Military ID.


Home Seller's Guide

Moving ChecklistOld Residence

Preparing For The Move

F Leave keys & garage openers

F Travel funds (cash & checks)

F Defrost refrigerator

F Pet transportation

Address Change

F Bank accounts

F Subscriptions/magazines

F Forward address to post office

F Credit cards

Utilities

F Telephone (check for refund)

F Gas (check for refund)

F Electric (check for refund)

F Water (check for refund)

F Cable (check for refund)

F Garbage pickup

F Bottled water, propane, etc.

Documents To Obtain

F Medical records

F Dental records

F School transcripts

F Veterinary records

New Residence

Address Change

F Ask postman to hold mail for your arrival

F Utilities

F Telephone

F Electric

F Gas

F Water

F Garbage pickup

F Cable

F Bottled water, propane, etc.

Schools, Licenses, Services

F Register children for school

F Register to vote

F Register car

F Driver’s License (apply for new address)

Medical Services

F New doctor

F New dentist

F New veterinarian

Arizona law requires the seller to disclose material (important) facts aboutthe property, even if you are not asked by the buyer or a real estate agent.These disclosure obligations remain even if you and the buyer agree thatno Seller’s Property Disclosure Statement (“SPDS”) will be provided.

The SPDS is designed to assist you, the seller, in making these legally required disclosures and toavoid inadvertent nondisclosures of material facts. To satisfy your disclosure obligations and protectyourself against alleged nondisclosure, you should complete the SPDS by answering all questions astruthfully and as thoroughly as possible. Attach copies of any available invoices, warranties, inspectionreports, and leases, to insure that you are disclosing accurate information. Use the blank lines to explainyour answers. If you do not have the personal knowledge to answer a question, it is important not to guess– use the blank lines to explain the situation.

If the buyer asks you about an aspect of the property, you have a duty to disclose theinformation, even if you do not consider the information material.* You also have a legal dutyto disclose facts when disclosure is necessary to prevent a previous statement from beingmisleading or misrepresented: for example, if something changes.

If you do not make the legally required disclosures, you may be subject to civil liability.Under certain circumstances, nondisclosure of a fact is the same as saying that the fact doesnot exist. Therefore, nondisclosure may be given the same legal effect as fraud.

If you are using the Arizona Association of REALTORS® (“AAR”) Residential Resale Real Estate PurchaseContract, the seller is required to deliver “a completed AAR Residential SPDS form to the Buyer within five(5) days after Contract acceptance.” If the Seller does not provide the SPDS as the Contract requires, theSeller is potentially in breach of the Contract, thereby enabling the Buyer to cancel the transaction andreceive the earnest money deposit.

By law, sellers are not obligated to disclose that the property is or has been: (1) a site of a naturaldeath, suicide, homicide, or any other crime classified as a felony; (2) owned or occupied by a personexposed to HIV, or diagnosed as having AIDS or any other disease not known to be transmittedthrough common occupancy of real estate; or (3) located in the vicinity of a sex offender. However, thelaw does not protect a seller who makes an intentional misrepresentation. For example, if you areasked whether there has been a death on the property and you know that there was such a death, youshould not answer “no” or “I don’t know.” Instead you should either answer truthfully or respond thatyou are not legally required to answer the question.

Page 1 of 9

Residential Seller Disclosure Advisory • Updated: June 2014Copyright © 2014 Arizona Association of REALTORS®. All rights reserved.

Document updated:June 2014

RESIDENTIAL SELLERDISCLOSURE ADVISORY

WHEN IN DOUBT – DISCLOSE!

*

ALL FORMS in this book are for SAMPLE PURPOSES ONLY.Please check with http://www.aaronline.com/ or the appropriate

government agency website for the most up to date forms.

PROPERTY AND OWNERSHIPAs used herein, “Property” shall mean the real property and all fixtures and improvements thereon and appurtenances incidental thereto,plus fixtures and personal property described in the Contract.

PROPERTY ADDRESS: (STREET ADDRESS) (CITY) (STATE) (ZIP)

Does the Property include any leased land? n Yes n NoExplain: Is the Property located in an unincorporated area of the county? n Yes n No If yes, and five or fewer parcels of land other than subdivided landare being transferred, the Seller must furnish the Buyer with a written Affidavit of Disclosure in the form required by law.

LEGAL OWNER(S) OF PROPERTY: Date Purchased:

The Property is currently: n Owner-occupied n Leased n Estate n Foreclosure n Vacant If vacant, how long? If a rental property, how long? Expiration date of current lease: (Attach a copy of the lease if available.)If any refundable deposits or prepaid rents are being held, by whom and how much? Explain:

Is the legal owner(s) of the Property a foreign person or a non-resident alien pursuant to the Foreign Investment in Real Property Tax Act (FIRPTA)? n Yes n No If yes, consult a tax advisor; mandatory withholding may apply.

Is the Property located in a community defined by the fair housing laws as housing for older persons? n Yes n No Explain:

Approximate year built: . If Property was built prior to 1978, Seller must furnish the Buyer with a lead-based paint disclosure form.

NOTICE TO BUYER: If the Property is in a subdivision, a subdivision public report, which contains a variety ofinformation about the subdivision at the time the subdivision was approved, may be available by contacting the ArizonaDepartment of Real Estate or the homebuilder. The public report information may be outdated. www.azre.gov.

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18.19.20.

R Document updated:June 2014

RESIDENTIAL SELLER’S PROPERTYDISCLOSURE STATEMENT (SPDS) (To be completed by Seller)

Page 1 of 7

MESSAGE TO THE SELLER:Sellers are obligated by law to disclose all known material (important) facts about the Property to the Buyer. The SPDS is designed to assistyou in making these disclosures. If you know something important about the Property that is not addressed on the SPDS, add thatinformation to the form. Prospective Buyers may rely on the information you provide.

INSTRUCTIONS: (1) Complete this form yourself. (2) Answer all questions truthfully and as fully as possible. (3) Attach all available supportingdocumentation. (4) Use explanation lines as necessary. (5) If you do not have the personal knowledge to answer a question, use the explanation linesto explain. By signing on page 7, you acknowledge that the failure to disclose known material information about the Property may result in liability.

MESSAGE TO THE BUYER:Although Sellers are obligated to disclose all known material (important) facts about the Property, there are likely facts about the Propertythat the Sellers do not know. Therefore, it is important that you take an active role in obtaining information about the Property.

INSTRUCTIONS: (1) Review this form and any attachments carefully. (2) Verify all important information. (3) Ask about any incomplete orinadequate responses. (4) Inquire about any concerns not addressed on the SPDS. (5) Review all other applicable documents, such asCC&R’s, association bylaws, surveys, rules, and the title report or commitment. (6) Obtain professional inspections of the Property.(7) Investigate the surrounding area.

THE FOLLOWING ARE REPRESENTATIONS OF THE SELLER(S) AND ARE NOT VERIFIED BY THE BROKER(S) OR AGENT(S).

Residential Seller’s Property Disclosure Statement (SPDS)Updated: June 2014 • Copyright © 2014 Arizona Association of REALTORS®.All rights reserved.

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YES NO

n n Have you entered into any agreement to transfer your interest in the Property in any way, including rental renewals or options to purchase? Explain:

n n Are you aware if there are any association(s) governing the Property? If yes, provide contact(s) information: Name: Phone #:

Name: Phone #: If yes, are there any fees? How much? $ How often?

How much? $ How often? n n Are you aware of any association fees payable upon transfer of the Property? Explain:

n n Are you aware of any proposed or existing association assessment(s)? Explain:

n n Are you aware of any pending or anticipated disputes or litigation regarding the Property or the association(s)?Explain:

n n Are you aware of any of the following recorded against the Property? (Check all that apply):n Judgment liens n Tax liens n Other non-consensual liensExplain:

n n Are you aware of any assessments affecting the Property? (Check all that apply):n Paving n Sewer n Water n Electric n OtherExplain:

n n Are you aware of any title issues affecting the Property? (Check all that apply):n Recorded easements n Use restrictions n Lot line disputes n Encroachments n Unrecorded easements n Use permits n Other Explain:

n n Are you aware if the Property is located within the boundaries of a Community Facilities District (CFD)?If yes, provide the name of the CFD:

n n Are you aware of any public or private use paths or roadways on or across the Property?Explain:

n n Are you aware of any problems with legal or physical access to the Property? Explain: The road/street access to the Property is maintained by the n County n City n Homeowners’ Association n Privately

n n If privately maintained, is there a recorded road maintenance agreement? Explain: n n Are you aware of any violation(s) of any of the following? (Check all that apply):

n Zoning n Building Codes n Utility Service n Sanitary health regulations n Covenants, Conditions, Restrictions (CC&R’s) n Other (Attach a copy of notice(s) of violation if available.)Explain:

n n Are you aware of any homeowner’s insurance claims having been filed against the Property? Explain:

NOTICE TO BUYER: Your claims history, your credit report, the Property’s claims history and other factors mayaffect the insurability of the Property and at what cost. Under Arizona law, your insurance company may cancelyour homeowner’s insurance within 60 days after the effective date. Contact your insurance company.

BUILDING AND SAFETY INFORMATION

YES NO ROOF / STRUCTURAL:

NOTICE TO BUYER: Contact a professional to verify the condition of the roof.

n n Are you aware of any past or present roof leaks? Explain:

n n Are you aware of any other past or present roof problems? Explain:

21.22.23.24.

25.

26.27.28.

29.

30.31.32.33.34.35.36.37.38.39.40.41.42.43.

44.45.

46.47.48.49.50.51.52.53.54.55.

56.57.58.

59.60.61.

62.

63.

64.

65.66.

67.

Residential Seller’s Property Disclosure Statement (SPDS) >>

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>>Residential Seller’s Property Disclosure Statement (SPDS)Updated: June 2014 • Copyright © 2014 Arizona Association of REALTORS®.All rights reserved.

YES NOn n Are you aware of any roof repairs? Explain:

n n Is there a roof warranty? (Attach a copy of warranty if available.) n n If yes, is the roof warranty transferable? Cost to transfer n n Are you aware of any interior wall/ceiling/door/window/floor problems? Explain:

n n Are you aware of any cracks or settling involving the foundation, exterior walls or slab? Explain:

n n Are you aware of any chimney or fireplace problems, if applicable? Explain:

n n Are you aware of any damage to any structure on the Property by any of the following? (Check all that apply):

n Flood n Fire n Wind n Expansive soil(s) n Water n Hail n Other Explain:

WOOD INFESTATION:Are you aware of any of the following:

n n Past presence of termites or other wood destroying organisms on the Property?n n Current presence of termites or other wood destroying organisms on the Property?n n Past or present damage to the Property by termites or other wood destroying organisms?

Explain:

n n Are you aware of past or present treatment(s) of the Property for termites or other wood destroying organisms?If yes, date last treatment was performed: Name of treatment provider(s):

n n Is there a treatment warranty? (Attach a copy of warranty if available.) n n If yes, is the treatment warranty transferrable?

NOTICE TO BUYER: Contact Office of Pest Management for past termite reports ortreatment history. www.sb.state.az.us

HEATING & COOLING:Heating: Type(s) Approximate Age(s) Cooling: Type(s) Approximate Age(s)

n n Are you aware of any past or present problems with the heating or cooling system(s)? Explain:

PLUMBING:n n Are you aware of the type of water pipes, such as galvanized, copper, PVC, CPVC or polybutylene?

If yes, identify: n n Are you aware of any past or present plumbing problems? Explain:

n n Are you aware of any water pressure problems? Explain:

Type of water heater(s): n Gas n Electric n Solar Approx. age(s): n n Are you aware of any past or present water heater problems? Explain:

n n Is there a landscape watering system? If yes, type: n automatic timer n manual n bothn n If yes, are you aware of any past or present problems with the landscape watering system?

Explain: n n Are there any water treatment systems? (Check all that apply):

n water filtration n reverse osmosis n water softener n Other Is water treatment system(s) n owned n leased (Attach a copy of lease if available.)

n n Are you aware of any past or present problems with the water treatment system(s)? Explain:

68.

69.70.71.72.73.74.

75.76.77.78.79.80.

81.82.83.84.85.86.87.88.89.90.91.92.

93.94.

95.96.97.98.99.

100.101.

102.103.104.105.

106.107.108.109.110.111.112.113.114.115.116.117.118.


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Page 3 of 7


YES NOSWIMMING POOL/SPA/HOT TUB/SAUNA/WATER FEATURE:

n n Does the Property contain any of the following? (Check all that apply): n Swimming pool n Spa n Hot tub n Sauna n Water feature

n n If yes, are either of the following heated? n Swimming pool n Spa If yes, type of heat: n n Are you aware of any past or present problems relating to the swimming pool, spa, hot tub, sauna or water feature?

Explain:

ELECTRICAL AND OTHER RELATED SYSTEMS:n n Are you aware of any past or present problems with the electrical system? Explain:

n n Is there a security system? If yes, is it (Check all that apply):

n Leased (Attach a copy of lease if available.) n Owned n Monitored n Other n n Are you aware of any past or present problems with the security system? Explain:

n n Does the Property contain any of the following systems or detectors?(Check all that apply):

n Smoke/fire detection n Fire suppression (sprinklers) n Carbon monoxide detectorIf yes, are you aware of any past or present problems with the above systems? Explain:

MISCELLANEOUS:n n Are you aware of any animals/pets that have resided in the Property? If yes, what kind:

n n Are you aware of or have you observed any of the following on the Property? (Check all that apply):

n Scorpions n Rabid animals n Bee swarms n Rodents n Reptiles n Bed Bugs n Other: Explain:

n n Has the Property been serviced or treated for pests, reptiles, insects, birds or animals? If yes, how often: Name of service provider(s): Date of last service:

n n Are you aware of any work done on the Property, such as building, plumbing, electrical or other improvements or alterations or room conversions? (If no, skip to line 156.)Explain:

n n Were permits for the work required? Explain: n n If yes, were permits for the work obtained? Explain: n n Was the work performed by a person licensed to perform the work? Explain: n n Was approval for the work required by any association governing the property? Explain:

If yes, was approval granted by the association? Explain: n n Was the work completed? Explain: n n Are there any security bars or other obstructions to door or window openings? Explain: n n Are you aware of any past or present problems with any built-in appliances? Explain:

n n Are there any leased propane tanks, equipment or other systems on the Property? (Attach a copy of lease if available.)

Explain:

119.120.121.122.123.124.

125.

126.

127.128.129.130.

131.132.133.134.

135.

136.137.

138.139.140.141.142.143.144.145.146.

147.148.149.150.151.152.153.154.155.156.157.

158.159.160.

161.


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Residential Seller’s Property Disclosure Statement (SPDS)Updated: June 2014 • Copyright © 2014 Arizona Association of REALTORS®.All rights reserved.

UTILITIESDOES THE PROPERTY CURRENTLY RECEIVE THE FOLLOWING SERVICES?YES NO PROVIDER

n n Electricity: ....................................................................

n n Fuel: n Natural gas n Propane n Oil ................

n n Cable / Satellite: ..........................................................

n n Internet:........................................................................

n n Telephone: ..................................................................

n n Garbage Collection: ....................................................

n n Fire:..............................................................................

n n Irrigation:......................................................................

n n Water Source:

n n n Public n Private water co. n Hauled water ....

n Private well n Shared well If water source is a private or shared well, complete and attach Domestic Water Well/Water Use Addendum.

NOTICE TO BUYER: If the Property is served by a well, private water company or a municipal water provider, the Arizona Department of Water Resources may not have made a water supply determination.For more information about water supply, or any of the above services, contact the provider.

n n Are you aware of any past or present drinking water problems? Explain:

n n U.S. Postal Service delivery is available at: n Property n Cluster Mailbox n Post Office n Other

n n Are there any alternate power systems serving the Property? (If no, skip to line 190.)If yes, indicate type (Check all that apply):

n Solar n Wind n Generator n Other Are you aware of any past or present problems with the alternate power system(s)? Explain:

n n Are any alternate power systems serving the Property leased? Explain: If yes, provide name and phone number of the leasing company (Attach copy of lease if available):

ENVIRONMENTAL INFORMATIONYES NO

n n Are you aware of any past or present issues or problems with any of the following on the Property? (Check all that apply):

n Soil settlement/expansion n Drainage/grade n Erosion n Fissures n Dampness/moisture n Other Explain:

n n Are you aware of any past or present issues or problems in close proximity to the Property related to any of the following? (Check all that apply):

n Soil settlement/expansion n Drainage/grade n Erosion n Fissures n Other Explain:

NOTICE TO BUYER: The Arizona Department of Real Estate provides earth fissure maps to any memberof the public in printed or electronic format upon request and on its website at www.azre.gov.

n n Are you aware if the Property is subject to any present or proposed effects of any of the following? (Check all that apply):

n Airport noise n Traffic noise n Rail line noise n Neighborhood noise n Landfill n Toxic waste disposal

n Odors n Nuisances n Sand/gravel operations n Other Explain:

n n Are you aware if any portion of the Property has ever been used as a "Clandestine drug laboratory" (manufacture of, or storage of, chemicals or equipment used in manufacturing methamphetamine, ecstasy or LSD)?

NOTICE TO BUYER: The Arizona Board of Technical Registration (BTR) maintains a list of unremediated sitesat www.azbtr.gov. To determine if the property was once on the list but has been remediated, contact the BTR.

162.

163.164.165.166.167.168.169.170.171.172.173.174.

175.176.177.

178.

179.180.181.182.

183.184.

185.186.

187.188.

189.

190.

191.192.193.194.195.

196.

197.198.

199.200.201.

202.203.204.

205.206.


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Page 5 of 7


YES NO

n n Are you aware if the Property is located in the vicinity of a public or private airport?Explain:

NOTICE TO SELLER AND BUYER: Pursuant to Arizona law a Seller shall provide a written disclosure to the Buyerif the Property is located in territory in the vicinity of a military airport or ancillary military facility as delineatedon a map prepared by the State Land Department. The Department of Real Estate also is obligated to recorda document at the County Recorder’s Office disclosing if the Property is under restricted air space and tomaintain the State Land Department Military Airport Map on its website at www.azre.gov.

n n Is the Property located in the vicinity of a military airport or ancillary military facility?Explain:

n n Are you aware of the presence of any of the following on the Property, past or present? (Check all that apply): n Asbestos n Radon gas n Lead-based paint n Pesticides n Underground storage tanks n Fuel/chemical storageExplain:

n n Are you aware if the Property is located within or subject to any of the following ordinances? (Check all that apply): n Superfund / WQARF / CERCLA n Wetlands area n Natural Area Open Spaces

n n Are you aware of any open mine shafts/tunnels or abandoned wells on the Property? If yes, describe location:

n n Are you aware if any portion of the Property is in a flood plain/way? Explain:

NOTICE TO BUYER: Your mortgage lender [may] [will] require you to purchase flood insurance inconnection with your purchase of this property. The National Flood Insurance Program provides for theavailability of flood insurance and establishes flood insurance policy premiums based on the risk of floodingin the area where properties are located. Recent changes to federal law (The Biggert-Waters Flood InsuranceReform Act of 2012 and the Homeowner Flood Insurance Affordability Act of 2014, in particular) will result inchanges to flood insurance premiums that are likely to be higher, and in the future may be substantiallyhigher, than premiums paid for flood insurance prior to or at the time of sale of the property. As a result,purchasers of property should not rely on the premiums paid for flood insurance on this property previouslyas an indication of the premiums that will apply after completion of the purchase. In considering purchase ofthis property you should consult with one or more carriers of flood insurance for a better understanding offlood insurance coverage, current and anticipated future flood insurance premiums, whether the priorowner’s policy may be assumed by a subsequent purchaser of the property, and other matters related to thepurchase of flood insurance for the property. You may also wish to contact the Federal EmergencyManagement Agency (FEMA) for more information about flood insurance as it relates to this property.

n n Are you aware of any portion of the Property ever having been flooded? Explain:

n n Are you aware of any water damage or water leaks of any kind on the Property? Explain:

n n Are you aware of any past or present mold growth on the Property? If yes, explain:

SEWER/WASTEWATER TREATMENT

YES NO

n n Is the entire Property connected to a sewer? n n If no, is a portion of the Property connected to a sewer? Explain:

n n If the entire Property or a portion of the Property is connected to a sewer, has a professional verified the sewer connection?

If yes, how and when:

NOTICE TO BUYER: Contact a professional to conduct a sewer verification test.

Type of sewer: n Public n Private n Planned and approved sewer system, but not connectedName of Provider:

207.208.

209.210.211.212.213.

214.215.

216.217.218.219.220.221.222.

223.224.

225.226.227.228.229.230.231.232.233.234.235.236.237.238.

239.

240.241.

242.243.

244.

245.246.

247.248.249.

250.

251.252.


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YES NO

n n Are you aware of any past or present problems with the sewer? Explain: n n Is the Property served by an On-Site Wastewater Treatment Facility? (If no, skip to line 267.)

If yes, the Facility is: n Conventional septic system n Alternative system; type:

n n If the Facility is an alternative system, is it currently being serviced under a maintenance contract?If yes, name of contractor: Phone #: Approximate year Facility installed: (Attach copy of permit if available.)

n n Are you aware of any repairs or alterations made to this Facility since original installation? Explain: Approximate date of last Facility inspection and/or pumping of septic tank:

n n Are you aware of any past or present problems with the Facility? Explain:

NOTICE TO SELLER AND BUYER: The Arizona Department of Environmental Quality requires a Pre-Transfer Inspection of On-Site Wastewater Treatment Facilities on re-sale properties.

OTHER CONDITIONS AND FACTORSWhat other material (important) information are you aware of concerning the Property that might affect the Buyer’s decision-making process, the value of the Property, or its use? Explain:

ADDITIONAL EXPLANATIONS

SELLER CERTIFICATION: Seller certifies that the information contained herein is true and complete to the best of Seller’s knowledge as of the date signed. Seller agrees that any changes in the information contained herein will be disclosed in writing by Sellerto Buyer prior to Close of Escrow, including any information that may be revealed by subsequent inspections. Seller acknowledgesreceipt of Residential Seller Disclosure Advisory titled When in Doubt — Disclose.

^ SELLER’S SIGNATURE MO/DA/YR ^ SELLER’S SIGNATURE MO/DA/YR

Reviewed and updated: Initials: / SELLER SELLER MO/DA/YR

BUYER’S ACKNOWLEDGMENT: Buyer acknowledges that the information contained herein is based only on the Seller’s actualknowledge and is not a warranty of any kind. Buyer acknowledges Buyer’s obligation to investigate any material (important) facts inregard to the Property. Buyer is encouraged to obtain Property inspections by professional independent third parties and to consider obtaining a home warranty protection plan.

NOTICE: Buyer acknowledges that by law, Sellers, Lessors and Brokers are not obligated to disclose that the Property is or has been: (1) the siteof a natural death, suicide, homicide, or any other crime classified as a felony; (2) owned or occupied by a person exposed to HIV, diagnosed ashaving AIDS or any other disease not known to be transmitted through common occupancy of real estate; or (3) located in the vicinity of a sex offender.

By signing below, Buyer acknowledges receipt only of this SPDS. If Buyer disapproves of any items provided herein, Buyershall deliver to Seller written notice of the items disapproved as provided in the Contract.

^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR

253.

254.255.256.

257.258.259.260.

261.262.263.

264.

265.266.

267.268.

269.

270.271.272.273.274.275.276.277.278.279.

280.281.282.283.

284.

285.

286.287.288.289.

290.291.292.

293.294.

295.


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Residential Seller’s Property Disclosure Statement (SPDS)Updated: J 2014 • Copyright © 2014 Arizona Association of REALTORS®.All rights reserved.

Page 1 of 9

Buyer Attachment • Updated: June 2014Copyright © 2014 Arizona Association of REALTORS®. All rights reserved.

ATTENTION BUYER!You are entering into a legally binding agreement.

1. Read the entire contract before you sign it.

2. Review the Residential Seller’s Property Disclosure Statement (See Section 4a). • This information comes directly from the Seller. • Investigate any blank spaces, unclear answers or any other information that is important to you.

3. Review the Inspection Paragraph (see Section 6a).If important to you, hire a qualified:

• Mold inspector • Roof inspector • Pest inspector • Pool inspector • Heating/cooling inspector

Verify square footage (see Section 6b)Verify the property is on sewer or septic (see Section 6f)

4. Confirm your ability to obtain insurance and insurability of the propertyduring the inspection period with your insurance agent (see Sections 6a and 6e).

5. Apply for your home loan now, if you have not done so already, and provideyour lender with all requested information (see Section 2f).It is your responsibility to make sure that you and your lender deliver the necessary funds to escrow insufficient time to allow escrow to close on the agreed upon date. Otherwise, the Seller may cancel the contract.

6. Read the title commitment within five days of receipt (see Section 3c).

7. Read the CC&R’s and all other governing documents within five days of receipt(see Section 3c), especially if the home is in a homeowner’s association.

8. Conduct a thorough final walkthrough (see Section 6m). If the property is unacceptable, speak up. After the closing may be too late.

You can obtain information through the Buyer’s Advisory at http://www.aaronline.com.

Remember, you are urged to consult with an attorney, inspectors, and experts of your choice in any areaof interest or concern in the transaction. Be cautious about verbal representations, advertising claims, andinformation contained in a listing. Verify anything important to you.

Document updated:June 2014BUYER ATTACHMENT

This attachment should be given to the Buyer prior to the submissionof any offer and is not part of the Residential Resale Real Estate PurchaseContract’s terms.

Buyer’s Check List4

Residential Resale Real Estate Purchase Contract • Updated: June 2014Copyright © 2014 Arizona Association of REALTORS®. All rights reserved.

Page 1 of 9

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1a.

1b.

1c.

1d.

1e.

1f.

1g.

1. PROPERTY

BUYER: BUYER’S NAME(S)

SELLER: or n as identified in section 9c.SELLER’S NAME(S)

Buyer agrees to buy and Seller agrees to sell the real property with all improvements, fixtures, and appurtenances thereon or incidental thereto, plus the personal property described herein (collectively the “Premises”).

Premises Address: Assessor’s #:

City: County: AZ, Zip Code:

Legal Description:

$ Full Purchase Price, paid as outlined below

$ Earnest money

$

$

Close of Escrow: Close of Escrow (“COE”) shall occur when the deed is recorded at the appropriate county recorder’s office. Buyerand Seller shall comply with all terms and conditions of this Contract, execute and deliver to Escrow Company all closing documents,and perform all other acts necessary in sufficient time to allow COE to occur on , 20 (“COE Date”). If Escrow Company or recorder’s office is closed on COE Date,

MONTH DAY YEAR

COE shall occur on the next day that both are open for business.

Buyer shall deliver to Escrow Company a cashier’s check, wired funds or other immediately available funds to pay any downpayment, additional deposits or Buyer’s closing costs, and instruct the lender, if applicable, to deliver immediately available funds toEscrow Company, in a sufficient amount and in sufficient time to allow COE to occur on COE Date.

Possession: Seller shall deliver possession, occupancy, existing keys and/or means to operate all locks, mailbox, security system/alarms, and all common area facilities to Buyer at COE or n .Broker(s) recommend that the parties seek appropriate counsel from insurance, legal, tax, and accounting professionals regardingthe risks of pre-possession or post-possession of the Premises.

Addenda Incorporated: n AS IS n Additional Clause n Buyer Contingency n Domestic Water Well n H.O.A.

n Lead-Based Paint Disclosure n Loan Assumption n On-site Wastewater Treatment Facility n Seller Financing n Short Sale

n Other:

Fixtures and Personal Property: Seller agrees that all existing fixtures on the Premises, and any existing personal propertyspecified herein, shall be included in this sale, including the following:

• free-standing range/oven • light fixtures • draperies and other window coverings• ceiling fans • towel, curtain and drapery rods • shutters and awnings• attached floor coverings • flush-mounted speakers • water-misting systems • window and door screens, sun screens • storm windows and doors • solar systems • garage door openers and controls • attached media antennas/ • mailbox• outdoor landscaping, fountains, and lighting satellite dishes • central vacuum, hose, and attachments• pellet, wood-burning or gas-log stoves • attached fireplace equipment • built-in appliances • storage sheds • timers

1.

2.

3.4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.16.17.

18.

19.

20. 21.22.

23.24.25.26.

27.28.29.

30.31.32.33.34.35.36.37.38.39.

PAGE 1 of 2

Document updated:June 2014

RESIDENTIAL RESALE REAL ESTATEPURCHASE CONTRACT

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Residential Resale Real Estate Purchase Contract >>

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If owned by the Seller, the following items also are included in this sale: • pool and spa equipment (including any mechanical or other cleaning systems)• security and/or fire systems and/or alarms • water softeners • water purification systems

Additional existing personal property included in this sale (if checked): n refrigerator n washer n dryer as described:

n Other:

Additional existing personal property included shall not be considered part of the Premises and shall be transferred with no monetaryvalue, and free and clear of all liens or encumbrances.

Fixtures and leased items NOT included:

IF THIS IS AN ALL CASH SALE, GO TO SECTION 3.

2. FINANCING Pre-Qualification: A completed AAR Pre-Qualification Form n is n is not attached hereto and incorporated herein by reference.

Loan Contingency: Buyer’s obligation to complete this sale is contingent upon Buyer obtaining loan approval for the loan describedin the AAR Loan Status Update (“LSU”) form without Prior to Document (“PTD”) conditions no later than three (3) days prior to theCOE Date. If Buyer is unable to obtain loan approval without PTD conditions, Buyer shall deliver a notice of the inability to obtainloan approval without PTD conditions to Seller or Escrow Company no later than three (3) days prior to the COE Date.

Unfulfilled Loan Contingency: This Contract shall be cancelled and Buyer shall be entitled to a return of the Earnest Money if afterdiligent and good faith effort, Buyer is unable to obtain loan approval without PTD conditions no later than three (3) days prior to theCOE Date. Buyer acknowledges that prepaid items paid separately from earnest money are not refundable.

Interest Rate / Necessary Funds: Buyer agrees that (i) the inability to obtain loan approval due to the failure to lock the interestrate and “points” by separate written agreement with the lender during the Inspection Period or (ii) the failure to have the downpayment or other funds due from Buyer necessary to obtain the loan approval without conditions and close this transaction is notan unfulfilled loan contingency.

Loan Status Update: Buyer shall deliver to Seller the LSU with at a minimum lines 1-40 completed describing the current statusof the Buyer’s proposed loan within five (5) days after Contract acceptance and instruct lender to provide an updated LSU toBroker(s) and Seller upon request.

Loan Application: Unless previously completed, during the Inspection Period, Buyer shall (i) complete, sign and deliver to thelender a loan application and grant lender permission to access Buyer’s Trimerged Residential Credit Report; and (ii) provideto lender all initial requested signed disclosures and Initial Requested Documentation listed in the LSU on lines 32-35.

Loan Processing During Escrow: Buyer agrees to diligently work to obtain the loan and will promptly provide the lender with alladditional documentation required. Buyer shall sign all loan documents no later than three (3) days prior to the COE Date.

Type of Financing: n Conventional n FHA n VA n USDA n Assumption n Seller Carryback n (If financing is to be other than new financing, see attached addendum.)

Loan Costs: All costs of obtaining the loan shall be paid by the Buyer, unless otherwise provided for herein.

Seller Concessions (If Any): In addition to the other costs Seller has agreed to pay herein, Seller agrees to pay up to %of the Purchase Price or $ for Buyer’s loan costs including pre-paids, impounds and Buyer’s title / escrow closing costs.

VA Loan Costs: In the event of a VA loan, Seller agrees to pay the escrow fee and up to $ of loan costs notpermitted to be paid by the Buyer, in addition to the other costs Seller has agreed to pay herein, including Seller’s Concessions.

Changes: Buyer shall immediately notify Seller of any changes in the loan program, financing terms, or lender described in thePre-Qualification Form if attached hereto or LSU provided within five (5) days after Contract acceptance and shall only make anysuch changes without the prior written consent of Seller if such changes do not adversely affect Buyer’s ability to obtain loanapproval without PTD conditions, increase Seller’s closing costs, or delay COE.

Appraisal Contingency: Buyer’s obligation to complete this sale is contingent upon an appraisal of the Premises acceptable to lender forat least the purchase price. If the Premises fail to appraise for the purchase price in any appraisal required by lender, Buyer has five (5)days after notice of the appraised value to cancel this Contract and receive a refund of the Earnest Money or the appraisal contingencyshall be waived.

Appraisal Fee(s): Appraisal Fee(s), when required by lender, shall be paid by n Buyer n Seller n Other Appraisal Fee(s) n are n are not included in Seller Concessions, if applicable.

40.41.42.43.44.

45.

46.

47.

48.

49.50.51.

52.

53.

54.

55.56.57.58.

59.60.61.

62.63.64.65.

66.67.68.

69.70.71.

72.73.

74.75.

76.

77.78.

79.80.

81.82.83.84.

85.86.87. 88.

89.90.

2a.

2b.

2c.

2d.

2e.

2f.

2g.

2h.

2i.

2j.

2k.

2l.

2m.

2n.


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3. TITLE AND ESCROW Escrow: This Contract shall be used as escrow instructions. The Escrow Company employed by the parties to carry out theterms of this Contract shall be:

“ESCROW/TITLE COMPANY”

ADDRESS CITY STATE ZIP

EMAIL PHONE FAX

Title and Vesting: Buyer will take title as determined before COE. Taking title may have significant legal, estate planning and taxconsequences. Buyer should obtain legal and tax advice.

Title Commitment and Title Insurance: Escrow Company is hereby instructed to obtain and deliver to Buyer and Seller directly,addressed pursuant to 8t and 9c or as otherwise provided, a Commitment for Title Insurance together with complete and legible copiesof all documents that will remain as exceptions to Buyer’s policy of Title Insurance (“Title Commitment”), including but not limited toConditions, Covenants and Restrictions (“CC&Rs”); deed restrictions; and easements. Buyer shall have five (5) days after receipt of theTitle Commitment and after receipt of notice of any subsequent exceptions to provide notice to Seller of any items disapproved. Sellershall convey title by warranty deed, subject to existing taxes, assessments, covenants, conditions, restrictions, rights of way, easementsand all other matters of record. Buyer shall be provided at Seller’s expense an American Land Title Association (“ALTA”) Homeowner’sTitle Insurance Policy, or if not available, an ALTA Residential Title Insurance Policy (“Plain Language”/“1-4 units”) or, if not available, aStandard Owner’s Title Insurance Policy, showing title vested in Buyer. Buyer may acquire extended coverage at Buyer’s own additionalexpense. If applicable, Buyer shall pay the cost of obtaining the ALTA Lender Title Insurance Policy.

Additional Instructions: (i) Escrow Company shall promptly furnish notice of pending sale that contains the name and address of theBuyer to any homeowner’s association in which the Premises is located. (ii) If the Escrow Company is also acting as the title agencybut is not the title insurer issuing the title insurance policy, Escrow Company shall deliver to the Buyer and Seller, upon deposit offunds, a closing protection letter from the title insurer indemnifying the Buyer and Seller for any losses due to fraudulent acts or breachof escrow instructions by the Escrow Company. (iii) All documents necessary to close this transaction shall be executed promptly bySeller and Buyer in the standard form used by Escrow Company. Escrow Company shall modify such documents to the extentnecessary to be consistent with this Contract. (iv) Escrow Company fees, unless otherwise stated herein, shall be allocated equallybetween Seller and Buyer. (v) Escrow Company shall send to all parties and Broker(s) copies of all notices and communicationsdirected to Seller, Buyer and Broker(s). (vi) Escrow Company shall provide Broker(s) access to escrowed materials and informationregarding the escrow. (vii) If an Affidavit of Disclosure is provided, Escrow Company shall record the Affidavit at COE.

Tax Prorations: Real property taxes payable by the Seller shall be prorated to COE based upon the latest tax information available.

Release of Earnest Money: In the event of a dispute between Buyer and Seller regarding any Earnest Money deposited withEscrow Company, Buyer and Seller authorize Escrow Company to release Earnest Money pursuant to the terms and conditions ofthis Contract in its sole and absolute discretion. Buyer and Seller agree to hold harmless and indemnify Escrow Company againstany claim, action or lawsuit of any kind, and from any loss, judgment, or expense, including costs and attorney fees, arising from orrelating in any way to the release of Earnest Money.

Prorations of Assessments and Fees: All assessments and fees that are not a lien as of the COE, including homeowner’sassociation fees, rents, irrigation fees, and, if assumed, insurance premiums, interest on assessments, interest on encumbrances, and service contracts, shall be prorated as of COE or n Other:

Assessment Liens: The amount of any assessment, other than homeowner’s association assessments, that is a lien as of the COE, shall be n paid in full by Seller n prorated and assumed by Buyer. Any assessment that becomes a lien after COE is the Buyer’s responsibility.

IRS and FIRPTA Reporting: Seller agrees to comply with IRS reporting requirements. If applicable, Seller agrees to complete, sign,and deliver to Escrow Company a certificate indicating whether Seller is a foreign person or a non-resident alien pursuant to theForeign Investment in Real Property Tax Act (“FIRPTA”). Buyer and Seller acknowledge that if the Seller is a foreign person, theBuyer must withhold a tax equal to 10% of the purchase price, unless an exemption applies.

91.92.

93.

94.

95.

96.97.

98.99.

100.101.102.103.104.105.106.107.

108.109.110.111.112.113.114.115.116.117.

118.

119.120.121.122.123.

124.125.126.

127.128.129.

130.131.132.133.

3a.

3b.

3c.

3d.

3e.

3f.

3g.

3h.

3i.


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4. DISCLOSURE Seller Property Disclosure Statement (“SPDS”): Seller shall deliver a completed AAR Residential SPDS form to the Buyerwithin five (5) days after Contract acceptance. Buyer shall provide notice of any SPDS items disapproved within the InspectionPeriod or five (5) days after receipt of the SPDS, whichever is later.

Insurance Claims History: Seller shall deliver to Buyer a written five-year insurance claims history regarding Premises (or a claimshistory for the length of time Seller has owned the Premises if less than five years) from Seller’s insurance company or an insurancesupport organization or consumer reporting agency, or if unavailable from these sources, from Seller, within five (5) days after Contractacceptance. (Seller may obscure any reference to date of birth or social security number from the document). Buyer shall providenotice of any items disapproved within the Inspection Period or five (5) days after receipt of the claims history, whichever is later.

Lead-Based Paint Disclosure: If the Premises were built prior to 1978, the Seller shall: (i) notify the Buyer of any known lead-base dpaint (“LBP”) or LBP hazards in the Premises; (ii) provide the Buyer with any LBP risk assessments or inspections of the Premises inthe Seller’s possession; (iii) provide the Buyer with the Disclosure of Information on Lead-based Paint and Lead-based PaintHazards, and any report, records, pamphlets, and/or other materials referenced therein, including the pamphlet “Protect Your Familyfrom Lead in Your Home” (collectively “LBP Information”). Buyer shall return a signed copy of the Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards to Seller prior to COE.

n LBP Information was provided prior to Contract acceptance and Buyer acknowledges the opportunity to conduct LBP risk assessments or inspections during Inspection Period.

n Seller shall provide LBP Information within five (5) days after Contract acceptance. Buyer may within ten (10) daysor days after receipt of the LBP Information conduct or obtain a risk assessment or inspection of the Premises for the presence of LBP or LBP hazards (“Assessment Period”). Buyer may within five (5) days after receipt of the LBP Information or five(5) days after expiration of the Assessment Period cancel this Contract.

Buyer is further advised to use certified contractors to perform renovation, repair or painting projects that disturb lead-based paint inresidential properties built before 1978 and to follow specific work practices to prevent lead contamination.

If Premises were constructed prior to 1978, (BUYER’S INITIALS REQUIRED) BUYER BUYER

If Premises were constructed in 1978 or later, (BUYER’S INITIALS REQUIRED) BUYER BUYER

Affidavit of Disclosure: If the Premises is located in an unincorporated area of the county, and five or fewer parcels of propertyother than subdivided property are being transferred, the Seller shall deliver a completed Affidavit of Disclosure in the form requiredby law to the Buyer within five (5) days after Contract acceptance. Buyer shall provide notice of any Affidavit of Disclosure itemsdisapproved within the Inspection Period or five (5) days after receipt of the Affidavit of Disclosure, whichever is later.

Changes During Escrow: Seller shall immediately notify Buyer of any changes in the Premises or disclosures made herein, inthe SPDS, or otherwise. Such notice shall be considered an update of the SPDS. Unless Seller is already obligated by Section 5aor otherwise by this Contract or any amendments hereto, to correct or repair the changed item disclosed, Buyer shall be allowedfive (5) days after delivery of such notice to provide notice of disapproval to Seller.

5. WARRANTIES Seller Warranties: Seller warrants and shall maintain and repair the Premises so that at the earlier of possession or COE: (i) allheating, cooling, mechanical, plumbing, and electrical systems (including swimming pool and/or spa, motors, filter systems, cleaningsystems, and heaters, if any), free-standing range/oven, and built-in appliances will be in working condition; (ii) all other agreed uponrepairs and corrections will be completed pursuant to Section 6j; (iii) the Premises, including all additional existing personal propertyincluded in the sale, will be in substantially the same condition as on the date of Contract acceptance; and (iv) all personal propertynot included in the sale and all debris will be removed from the Premises.

Warranties that Survive Closing: Seller warrants that Seller has disclosed to Buyer and Broker(s) all material latent defects andany information concerning the Premises known to Seller, excluding opinions of value, which materially and adversely affect theconsideration to be paid by Buyer. Prior to the COE, Seller warrants that payment in full will have been made for all labor,professional services, materials, machinery, fixtures, or tools furnished within the 150 days immediately preceding the COE inconnection with the construction, alteration, or repair of any structure on or improvement to the Premises. Seller warrants that theinformation regarding connection to a sewer system or on-site wastewater treatment facility (conventional septic or alternative) iscorrect to the best of Seller’s knowledge.

Buyer Warranties: Buyer warrants that Buyer has disclosed to Seller any information that may materially and adversely affect theBuyer’s ability to close escrow or complete the obligations of this Contract. At the earlier of possession of the Premises or COE,Buyer warrants to Seller that Buyer has conducted all desired independent inspections and investigations and accepts the Premises.Buyer warrants that Buyer is not relying on any verbal representations concerning the Premises except disclosed as follows:

134.135.136.

137.138.139.140.141.

142.143.144.145.146.147.

148.149.

150.151.152.153.

154.155.

156.

157.

158.159.160.161.

162.163.164.165.

166.167. 168.169.170.171.

172.173.174.175.176.177.178.

179. 180.181.182.

183.184.

4a.

4b.

4c.

4d.

4e.

5a.

5b.

5c.


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6. DUE DILIGENCE Inspection Period: Buyer’s Inspection Period shall be ten (10) days or days after Contract acceptance. During theInspection Period Buyer, at Buyer’s expense, shall: (i) conduct all desired physical, environmental, and other types of inspectionsand investigations to determine the value and condition of the Premises; (ii) make inquiries and consult government agencies,lenders, insurance agents, architects, and other appropriate persons and entities concerning the suitability of the Premises and thesurrounding area; (iii) investigate applicable building, zoning, fire, health, and safety codes to determine any potential hazards,violations or defects in the Premises; and (iv) verify any material multiple listing service (“MLS”) information. If the presence of sexoffenders in the vicinity or the occurrence of a disease, natural death, suicide, homicide or other crime on or in the vicinity is amaterial matter to the Buyer, it must be investigated by the Buyer during the Inspection Period. Buyer shall keep the Premises freeand clear of liens, shall indemnify and hold Seller harmless from all liability, claims, demands, damages, and costs, and shall repairall damages arising from the inspections. Buyer shall provide Seller and Broker(s) upon receipt, at no cost, copies of all inspectionreports concerning the Premises obtained by Buyer. Buyer is advised to consult the Arizona Department of Real Estate BuyerAdvisory provided by AAR to assist in Buyer’s due diligence inspections and investigations.

Square Footage: BUYER IS AWARE THAT ANY REFERENCE TO THE SQUARE FOOTAGE OF THE PREMISES, BOTH THEREAL PROPERTY (LAND) AND IMPROVEMENTS THEREON, IS APPROXIMATE. IF SQUARE FOOTAGE IS A MATERIALMATTER TO THE BUYER, IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD.

Wood-Destroying Organism or Insect Inspection: IF CURRENT OR PAST WOOD-DESTROYING ORGANISMS OR INSECTS(SUCH AS TERMITES) ARE A MATERIAL MATTER TO THE BUYER, THESE ISSUES MUST BE INVESTIGATED DURING THEINSPECTION PERIOD. The Buyer shall order and pay for all wood-destroying organism or insect inspections performed during theInspection Period. If the lender requires an updated Wood-Destroying Organism or Insect Inspection Report prior to COE, it will beperformed at Buyer’s expense.

Flood Hazard: Flood hazard designations or the cost of flood hazard insurance shall be determined by Buyer during theInspection Period. If the Premises are situated in an area identified as having any special flood hazards by any governmentalentity, the lender may require the purchase of flood hazard insurance. Special flood hazards may also affect the ability toencumber or improve the Premises.

Insurance: IF HOMEOWNER’S INSURANCE IS A MATERIAL MATTER TO THE BUYER, BUYER SHALL APPLY FOR ANDOBTAIN WRITTEN CONFIRMATION OF THE AVAILABILITY AND COST OF HOMEOWNER’S INSURANCE FOR THEPREMISES FROM BUYER’S INSURANCE COMPANY DURING THE INSPECTION PERIOD. Buyer understands that anyhomeowner’s, fire, casualty, or other insurance desired by Buyer or required by lender should be in place at COE.

Sewer or On-site Wastewater Treatment System: The Premises are connected to a:

n sewer system n septic system n alternative system

IF A SEWER CONNECTION IS A MATERIAL MATTER TO THE BUYER, IT MUST BE INVESTIGATED DURING THEINSPECTION PERIOD. If the Premises are served by a septic or alternative system, the AAR On-site Wastewater TreatmentFacility Addendum is incorporated herein by reference.

(BUYER’S INITIALS REQUIRED) BUYER BUYER

Swimming Pool Barrier Regulations: During the Inspection Period, Buyer agrees to investigate all applicable state, county, andmunicipal Swimming Pool barrier regulations and agrees to comply with and pay all costs of compliance with said regulations prior tooccupying the Premises, unless otherwise agreed in writing. If the Premises contains a Swimming Pool, Buyer acknowledges receiptof the Arizona Department of Health Services approved private pool safety notice.


BUYER ACKNOWLEDGMENT: BUYER RECOGNIZES, ACKNOWLEDGES, AND AGREES THAT BROKER(S) ARE NOTQUALIFIED, NOR LICENSED, TO CONDUCT DUE DILIGENCE WITH RESPECT TO THE PREMISES OR THE SURROUNDINGAREA. BUYER IS INSTRUCTED TO CONSULT WITH QUALIFIED LICENSED PROFESSIONALS TO ASSIST IN BUYER’S DUEDILIGENCE EFFORTS. BECAUSE CONDUCTING DUE DILIGENCE WITH RESPECT TO THE PREMISES AND THESURROUNDING AREA IS BEYOND THE SCOPE OF THE BROKER’S EXPERTISE AND LICENSING, BUYER EXPRESSLYRELEASES AND HOLDS HARMLESS BROKER(S) FROM LIABILITY FOR ANY DEFECTS OR CONDITIONS THAT COULDHAVE BEEN DISCOVERED BY INSPECTION OR INVESTIGATION.


Inspection Period Notice: Prior to expiration of the Inspection Period, Buyer shall deliver to Seller a signed notice of any itemsdisapproved. AAR’s Buyer’s Inspection Notice and Seller’s Response form is available for this purpose. Buyer shall conduct alldesired inspections and investigations prior to delivering such notice to Seller and all Inspection Period items disapproved shall beprovided in a single notice.

185.186.187.188.189.190.191.192.193.194.195.196.

197.198.199.

200.201.202.203.204.

205.206.207.208.

209.210.211.212.

213.

214.

215.216.217.

218.

219.220.221.222.

223.

224.225.226.227.228.229.230.

231.

232.233.234.235.

6a.

6b.

6c.

6d.

6e.

6f.

6g.

6h.

6i.


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Buyer Disapproval: If Buyer, in Buyer’s sole discretion, disapproves of items as allowed herein, Buyer shall deliver to Seller noticeof the items disapproved and state in the notice that Buyer elects to either:

(1) immediately cancel this Contract and all Earnest Money shall be released to Buyer, or(2) provide the Seller an opportunity to correct the items disapproved, in which case:

(a) Seller shall respond in writing within five (5) days or days after delivery to Seller of Buyer’s notice of itemsdisapproved. Seller’s failure to respond to Buyer in writing within the specified time period shall conclusively be deemedSeller’s refusal to correct any of the items disapproved.

(b) If Seller agrees in writing to correct items disapproved, Seller shall correct the items, complete any repairs in aworkmanlike manner and deliver any paid receipts evidencing the corrections and repairs to Buyer three (3) daysor days prior to COE Date.

(c) If Seller is unwilling or unable to correct any of the items disapproved, Buyer may cancel this Contract within five (5) daysafter delivery of Seller’s response or after expiration of the time for Seller’s response, whichever occurs first, and allEarnest Money shall be released to Buyer. If Buyer does not cancel this Contract within the five (5) days as provided,Buyer shall close escrow without correction of those items that Seller has not agreed in writing to correct.

VERBAL DISCUSSIONS WILL NOT EXTEND THESE TIME PERIODS. Only a written agreement signed by both parties will extendresponse times or cancellation rights.

BUYER’S FAILURE TO GIVE NOTICE OF DISAPPROVAL OF ITEMS OR CANCELLATION OF THIS CONTRACT WITHIN THESPECIFIED TIME PERIOD SHALL CONCLUSIVELY BE DEEMED BUYER’S ELECTION TO PROCEED WITH THETRANSACTION WITHOUT CORRECTION OF ANY DISAPPROVED ITEMS.

Notice of Non-Working Warranted Items: Buyer shall provide Seller with notice of any non-working warranted item(s) of whichBuyer becomes aware during the Inspection Period or the Seller warranty for that item(s) shall be waived. Delivery of such not iceshall not affect Seller’s obligation to maintain or repair the warranted item(s).

Home Warranty Plan: Buyer and Seller are advised to investigate the various home warranty plans available for purchase. Theparties acknowledge that different home warranty plans have different coverage options, exclusions, limitations, service fees andmost plans exclude pre-existing conditions.

n A Home Warranty Plan will be ordered by n Buyer or n Seller with the following optional coverage , to be issued by at a cost notto exceed $ , to be paid for by n Buyer n Seller

n Buyer declines the purchase of a Home Warranty Plan.

Walkthrough(s): Seller grants Buyer and Buyer’s inspector(s) reasonable access to conduct walkthrough(s) of the Premises for thepurpose of satisfying Buyer that any corrections or repairs agreed to by the Seller have been completed, warranted items are inworking condition and that the Premises is in substantially the same condition as of the date of Contract acceptance. If Buyer doesnot conduct such walkthrough(s), Buyer releases Seller and Broker(s) from liability for any defects that could have been discovered.

Seller’s Responsibility Regarding Inspections and Walkthrough(s): Seller shall make the Premises available for all inspectionsand walkthrough(s) upon reasonable notice by Buyer. Seller shall, at Seller’s expense, have all utilities on, including any propane,until COE to enable Buyer to conduct these inspections and walkthrough(s).

7. REMEDIES Cure Period: A party shall have an opportunity to cure a potential breach of this Contract. If a party fails to comply with any provisionof this Contract, the other party shall deliver a notice to the non-complying party specifying the non-compliance. If the non-compliance is not cured within three (3) days after delivery of such notice (“Cure Period”), the failure to comply shall become abreach of Contract.

Breach: In the event of a breach of Contract, the non-breaching party may cancel this Contract and/or proceed against the breachingparty in any claim or remedy that the non-breaching party may have in law or equity, subject to the Alternative Dispute Resolutionobligations set forth herein. In the case of the Seller, because it would be difficult to fix actual damages in the event of Buyer’sbreach, the Earnest Money may be deemed a reasonable estimate of damages and Seller may, at Seller’s option, accept theEarnest Money as Seller’s sole right to damages; and in the event of Buyer’s breach arising from Buyer’s failure to deliver the noticerequired by Section 2b, or Buyer’s inability to obtain loan approval due to the waiver of the appraisal contingency pursuant to Section2m, Seller shall exercise this option and accept the Earnest Money as Seller’s sole right to damages. An unfulfilled contingency is nota breach of Contract. The parties expressly agree that the failure of any party to comply with the terms and conditions of Section 1dto allow COE to occur on the COE Date, if not cured after a cure notice is delivered pursuant to Section 7a, will constitute a materialbreach of this Contract, rendering the Contract subject to cancellation.

236.237.238.239.

240.241.242.

243.244.245.

246.247.248.249.

250.251.

252.253.254.

255.256.257.

258.259.260.

261.

262.263.264.

265.266.267.268.

269.270.271.

272.273.274.275.

276.277.278.279.280.281.282.283.284.285.

6j.

6k.

6l.

6m.

6n.

7a.

7b.


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Alternative Dispute Resolution (“ADR”): Buyer and Seller agree to mediate any dispute or claim arising out of or relating to thisContract in accordance with the REALTORS® Dispute Resolution System, or as otherwise agreed. All mediation costs shall be paidequally by the parties. In the event that mediation does not resolve all disputes or claims, the unresolved disputes or claims shall besubmitted for binding arbitration. In such event, the parties shall agree upon an arbitrator and cooperate in the scheduling of anarbitration hearing. If the parties are unable to agree on an arbitrator, the dispute shall be submitted to the American ArbitrationAssociation (“AAA”) in accordance with the AAA Arbitration Rules for the Real Estate Industry. The decision of the arbitrator shall befinal and nonappealable. Judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction.Notwithstanding the foregoing, either party may opt out of binding arbitration within thirty (30) days after the conclusion of themediation conference by notice to the other and in such event either party shall have the right to resort to court action.

Exclusions from ADR: The following matters are excluded from the requirement for ADR hereunder: (i) any action brought in theSmall Claims Division of an Arizona Justice Court (up to $3,500) so long as the matter is not thereafter transferred or removed fromthe small claims division; (ii) judicial or nonjudicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, oragreement for sale; (iii) an unlawful entry or detainer action; (iv) the filing or enforcement of a mechanic’s lien; or (v) any matter that iswithin the jurisdiction of a probate court. Further, the filing of a judicial action to enable the recording of a notice of pending action (“lispendens”), or order of attachment, receivership, injunction, or other provisional remedies shall not constitute a waiver of theobligation to submit the claim to ADR, nor shall such action constitute a breach of the duty to mediate or arbitrate.

Attorney Fees and Costs: The prevailing party in any dispute or claim between Buyer and Seller arising out of or relating to thisContract shall be awarded their reasonable attorney fees and costs. Costs shall include, without limitation, attorney fees, expertwitness fees, fees paid to investigators, and arbitration costs.

8. ADDITIONAL TERMS AND CONDITIONS

286.287.288.289.290.291.292.293.294.

295.296.297.298.299.300.301.

302.303.304.

305.

306.

307.

308.

309.

310.

311.

312.

313.

314.

315.

316.

317.

318.

319.

320.

321.

322.

323.

324.

325.

326.

327.

328.

329.

330.

331.

332.

333.

334.

7c.

7d.

7e.

8a.


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Risk of Loss: If there is any loss or damage to the Premises between the date of Contract acceptance and COE or possession,whichever is earlier, by reason of fire, vandalism, flood, earthquake, or act of God, the risk of loss shall be on the Seller, provided,however, that if the cost of repairing such loss or damage would exceed ten percent (10%) of the purchase price, either Seller orBuyer may elect to cancel the Contract.

Permission: Buyer and Seller grant Broker(s) permission to advise the public of this Contract.

Arizona Law: This Contract shall be governed by Arizona law and jurisdiction is exclusively conferred on the State of Arizona.

Time is of the Essence: The parties acknowledge that time is of the essence in the performance of the obligations described herein.

Compensation: Seller and Buyer acknowledge that Broker(s) shall be compensated for services rendered as previously agreed byseparate written agreement(s), which shall be delivered by Broker(s) to Escrow Company for payment at COE, if not previously paid.If Seller is obligated to pay Broker(s), this Contract shall constitute an irrevocable assignment of Seller’s proceeds at COE. If Buyer isobligated to pay Broker(s), payment shall be collected from Buyer as a condition of COE. COMMISSIONS PAYABLE FOR THESALE, LEASING, OR MANAGEMENT OF PROPERTY ARE NOT SET BY ANY BOARD OR ASSOCIATION OF REALTORS®, ORMULTIPLE LISTING SERVICE, OR IN ANY MANNER OTHER THAN BETWEEN THE BROKER AND CLIENT.

Copies and Counterparts: A fully executed facsimile or electronic copy of the Contract shall be treated as an original Contract. ThisContract and any other documents required by this Contract may be executed by facsimile or other electronic means and in anynumber of counterparts, which shall become effective upon delivery as provided for herein, except that the Lead-Based PaintDisclosure Statement may not be signed in counterpart. All counterparts shall be deemed to constitute one instrument, and eachcounterpart shall be deemed an original.

Days: All references to days in this Contract shall be construed as calendar days and a day shall begin at 12:00 a.m. andend at 11:59 p.m.

Calculating Time Periods: In computing any time period prescribed or allowed by this Contract, the day of the act or event fromwhich the time period begins to run is not included and the last day of the time period is included. Contract acceptance occurs on thedate that the signed Contract (and any incorporated counter offer) is delivered to and received by the appropriate Broker. Acts thatmust be performed three days prior to the COE Date must be performed three full days prior (i.e., if COE Date is Friday the act mustbe performed by 11:59 p.m. on Monday).

Entire Agreement: This Contract, and any addenda and attachments, shall constitute the entire agreement between Seller andBuyer, shall supersede any other written or oral agreements between Seller and Buyer and can be modified only by a writing signedby Seller and Buyer. The failure to initial any page of this Contract shall not affect the validity or terms of this Contract.

Subsequent Offers: Buyer acknowledges that Seller has the right to accept subsequent offers until COE. Seller understands thatany subsequent offer accepted by the Seller must be a backup offer contingent on the cancellation of this Contract.

Cancellation: A party who wishes to exercise the right of cancellation as allowed herein may cancel this Contract by deliveringnotice stating the reason for cancellation to the other party or to the Escrow Company. Cancellation shall become effectiveimmediately upon delivery of the cancellation notice.

Notice: Unless otherwise provided, delivery of all notices and documentation required or permitted hereunder shall be in writing anddeemed delivered and received when: (i) hand-delivered; (ii) sent via facsimile transmission; (iii) sent via electronic mail, if emailaddresses are provided herein; or (iv) sent by recognized overnight courier service, and addressed to Buyer as indicated in Section8r, to Seller as indicated in Section 9a and to the Escrow Company indicated in Section 3a.

Earnest Money: Earnest Money is in the form of: n Personal Check n Other If applicable, Earnest Money has been received by Broker named in Section 8r and upon acceptance of this offer will be deposited with: n Escrow Company n Broker’s Trust Account. Buyer acknowledges that failure to pay the required closing funds by the scheduled COE, if not cured after a cure notice is delivered pursuant to Section 7a, shall be construed as a material breach of thiscontract and all earnest money shall be subject to forfeiture.

Release of Broker(s): Seller and Buyer hereby expressly release, hold harmless and indemnify Broker(s) in this transactionfrom any and all liability and responsibility regarding financing, the condition, square footage, lot lines, boundaries, value,rent rolls, environmental problems, sanitation systems, roof, wood infestation, building codes, governmental regulations,insurance, price and terms of sale, return on investment or any other matter relating to the value or condition of thePremises. The parties understand and agree that the Broker(s) do not provide advice on property as an investment and arenot qualified to provide financial, legal, or tax advice regarding this real estate transaction.

(SELLER’S INITIALS REQUIRED) (BUYER’S INITIALS REQUIRED) SELLER SELLER BUYER BUYER

Terms of Acceptance: This offer will become a binding Contract when acceptance is signed by Seller and a signed copy deliveredin person, by mail, facsimile or electronically, and received by Broker named in Section 8r by , at a.m./p.m., Mountain Standard Time. Buyer may withdraw this offer at any time prior to receipt of Seller’s signed acceptance. If no signed acceptance is received by thisdate and time, this offer shall be deemed withdrawn and the Buyer’s Earnest Money shall be returned.

335.336.337.338.

339.

340.

341.

342.343.344.345.346.347.

348.349.350.351.352.

353.354.

355.356.357.358.359.

360.361.362.

363.364.

365.366.367.

368.369.370.371.

372.373.

374.375.376.

377.378. 379. 380.381.382.

383.

384.385.386.387.388.

8b.

8c.

8d.

8e.

8f.

8g.

8h.

8i.

8j.

8k.

8l.

8m.

8n.

8o.

8p.


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Page 9 of 9

THIS CONTRACT CONTAINS NINE PAGES EXCLUSIVE OF ANY ADDENDA AND ATTACHMENTS. PLEASE ENSURE THATYOU HAVE RECEIVED AND READ ALL NINE PAGES OF THIS OFFER AS WELL AS ANY ADDENDA AND ATTACHMENTS.

Broker on behalf of Buyer:

PRINT SALESPERSON’S NAME AGENT CODE PRINT FIRM NAME FIRM CODE

FIRM ADDRESS STATE ZIP CODE

PREFERRED TELEPHONE FAX EMAIL

Agency Confirmation: The Broker named in Section 8r above is the agent of (check one): n the Buyer; n the Seller; or n both the Buyer and Seller

The undersigned agree to purchase the Premises on the terms and conditions herein stated and acknowledge receipt ofa copy hereof including the Buyer Attachment.

^ BUYER’S SIGNATURE MO/DA/YR ^ BUYER’S SIGNATURE MO/DA/YR

ADDRESS ADDRESS

CITY, STATE, ZIP CODE CITY, STATE, ZIP CODE

9. SELLER ACCEPTANCE Broker on behalf of Seller:

PRINT SALESPERSON’S NAME AGENT CODE PRINT FIRM NAME FIRM CODE

FIRM ADDRESS STATE ZIP CODE

PREFERRED TELEPHONE FAX EMAIL

Agency Confirmation: The Broker named in Section 9a above is the agent of (check one):

n the Seller; or n both the Buyer and Seller

The undersigned agree to sell the Premises on the terms and conditions herein stated, acknowledge receipt of acopy hereof and grant permission to Broker named on Section 9a to deliver a copy to Buyer.

Counter Offer is attached, and is incorporated herein by reference. Seller should sign both this offer and the Counter Offer. If there is a conflict between this offer and the Counter Offer, the provisions of the Counter Offer shall be controlling.

^ SELLER’S SIGNATURE MO/DA/YR ^ SELLER’S SIGNATURE MO/DA/YR

SELLER’S NAME PRINTED SELLER’S NAME PRINTED

ADDRESS ADDRESS

CITY, STATE, ZIP CODE CITY, STATE, ZIP CODE

n OFFER REJECTED BY SELLER: , 20 MONTH DAY YEAR (SELLER’S INITIALS)

389.390.

391.

392.

393.

394.

395.396.

397.398.

399.

400.

401.

402.

403.

404.

405.

406.407.

408.409.

410.411.

412.

413.

414.

415.

416.

8q.

8r.

8s.

8t.

9a.

9b.

9c.

The following additional terms and conditions are hereby included as part of the Contract between Seller and Buyer for the abovereferenced Premises. Delivery of all notices and documentation shall be deemed delivered and received when sent as required bySection 8m of the Contract.

Buyer and Seller acknowledge that there is more debt owing against the Premises than the purchase pr ice. Therefore, this Contractis contingent upon an agreement between the Seller and Seller’s creditor(s), acceptable to both, to sell the Premises for less thanthe loan amount(s) (“short sale”). Buyer and Seller acknowledge that it may take weeks or months to obtain creditor(s) approval ofa short sale.

Nothing shall limit a Seller from accepting subsequent offers from subsequent buyer(s) and submitting the back-up contract(s) toSeller’s creditor(s) for consideration. All parties understand and agree that Seller’s creditor(s) may elect to allow the Seller to sell thePremises only to the holder of the Contract with terms and conditions most acceptable to creditor(s).

Seller shall submit to creditor(s) a copy of this Contract, including this and other Addenda, and any other documentation required by thecreditor(s) for approval of this sale within five (5) days after Contract acceptance. Seller agrees to diligently work to obtain short saleapproval and will promptly provide the creditor(s) with all additional documentation required, including an appraisal, at Seller’s expense, ifrequired. Seller instructs creditor(s) to provide approval status updates to Broker(s) and Buyer upon request.

Agreement Notice: If Seller and Seller’s creditors enter into a short sale agreement, the Seller shall immediately deliver noticeto Buyer (“Agreement Notice”).

Time Periods: The date of Seller’s delivery of the Short Sale Agreement Notice to Buyer shall be deemed the date of Contractacceptance for purposes of all applicable Contract time periods.

Escrow and Earnest Money: Buyer shall promptly open Escrow and deposit Earnest Money as described in the Contract upon receiptof Agreement Notice.

Seller Warranties: Buyer hereby waives Seller’s warranties as set forth in Lines 166-168 of Section 5a of the Contract that all listeditems shall be in working condition at the earlier of possession or COE. However, Seller warrants and shall maintain and repair thePremises so that, pursuant to lines 169-170 of the Contract, at the earlier of possession or COE, the Premises, including all heating,cooling, mechanical, plumbing, and electrical systems (including swimming pool and/or spa, motors, filter systems, cleaning systems,and heaters, if any), free-standing range/oven, built-in appliances and additional existing personal property included in the sale, willbe in substantially the same condition as on the date of Contract acceptance and all personal property not included in the sale andall debris will be removed from the Premises.

Close of Escrow: Close of Escrow shall occur thirty (30) days or days after delivery of Agreement Notice.

Creditor Requirements: Buyer and Seller agree to cooperate with Creditor(s) and sign additional Creditor disclosure(s) or executeadditional addendum(a) required by Creditor(s) as a condition of approval of the short sale, provided that Buyer and Seller incur noadditional cost or liability.

Buyer may unilaterally cancel this Contract by notice to Seller at any time before receipt of a short sale Agreement Notice from Seller.

5.6.7.

8.

9.10.11.12.

13.14.15.

16.

17.18.19.20.

21.

22.23.

24.25.

26.27.

28.29.30.31.32.33.34.

35.

36.37.38.

39.

40.

Page 1 of 2

Short Sale Addendum to the Residential Resale Real EstatePurchase Contract • Updated: February 2011

Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

Page 1 of 2

>>

PAGE 1 of 2

Document updated:February 2011

Seller:

Buyer:

Premises Address:

Date:

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The following additional terms and conditions are hereby included as part of the Contract betweennnn SSSSSSSSSSSSSeeeeeeeeeelllllllleeerrrrrrrr aaaaaaaaand Buyer for the abreferenced Premises. Delivery of all notices and documentation shall be deemed delivered annnnddddddddddd rrrrrrrrrrreeeeeeeeeecccccceived wwwwwwwwhhhhhhhhhhheeeeeeeen sent as requiredSection 8m of the Contract.

Buyer and Seller acknowledge that there is more debt owing against the PPPPPPPPPrrrrrrrrreeeeeeeeeeeeemmmmmmmmmmmiiiiises than the purchassssseeeeeeeeeee pppppppprice. Thereffffoooooooooorrrrrrrrreeee, this Contis contingent upon an agreement between the Seller and Seller’s creeeeeeeeedddddddddddiiiiiiiitttttttttoooooooooorr((s), acceptable to botttttttthhhhhhhhhhh,, ttoo ssssssssssseeeeeeeeeell the Premiseeeeeeeeesssssssssss for less tthe loan amount(s) (“short sale”). Buyer and Seller acknowledggeeeeee tttttttthhhhhhhhhhhhaaaaaaaaaaaattttttt it may take weeks or mmmmmmmmmooonntthhhhssssssss tttttttttoooooooooo oooooooobbbbbbbtain creditor(((((ssssssssss)))))))))) approvaa short sale.

Nothing shall limit a Seller from accepting subsseeeeeeeeeeeqqqqqqqqqqqquuuuuuuuuuuuueeeeeeeeennnnnnnnnnnttttttttttt offffffffers from subsequennttttttt bbbbbbbbbbuuuuuuuuyyyyyyyyyyyer(s) and subbbbbbbbbmmiitttiinnggggggggg ttttttttthhhhhe back-up contttttttttrrrrrrraaaaaaaaaaaact(sSeller’s creditor(s) for consideration. All parties unnnnnnnnnndddddeeeeeeeerrrrrrrssssssssssttttttttttaaaaaaaannnnnnnnnnnd and agree that Sellerrrrrrrrrr’sss ccrrreeeeeeeeeeeditor(s)))) may eeeeeeeeellllleeeeeeeeecccct to allow the Seller tooooo ssssssssssseeellPremises only to the holder of the Contract wwwwwwwwwwiiiiiiiiiitttttttttttthhhhhhhhhh tterrrrrmmmmmmmmmmmmmsssss and conditions mmmmmmmmmmooooooooossssst accepptttttttttaaaaabbleeeee tooooooooo cccccccccccrreeeedddddddddditor(s).

Seller shall submit to creditooooooooorrrrrrr(((((((((((sssssssssssss))))))))) a copy of this Contractttttt,,,,,,,, iiiiiinnnnnnccccclllllllluuuding thiiiiiiisssssssss aanndddddddd ooother Addenda, and any other ddddddddooooooooocccccccccccccuuuuuuuuuuummmentation required bycreditor(s) for approval ooooooooooffffffffff tttttttthhhhhhhhhhis sale within five (5)) dayaa ssssssssss aafteerrr CCContractttttttt aaccceeeeeeeeeeeptance. Seller agrees to ddddddddiiiiiillllllliiiiiiiggggggggggggeeeeeeently work to obtain shortapproval and will ppppppppprrrrrrrrrooooooooooommmmmmmmmmmmpppttly provide the creditorrr(((((((((((sssssssss))))))) wwiitttttttthhhhh alllllllllllll aaaadddddddddddddiittiiooooooooooonal docuuuummmmmmmmmentation required, incluudddddddddiiiiiinnnnnnnnnngggggggggggg an appraisal, at Seller’s expensrequired. Selleeeeeeeeerrrrrrrr iiiiiiiinnnnnnnnnnssssssstttttructs creditor(s) to provide aaaapppppppppppprroooovvvvvvvaal sssssssstttttttttaattttuuuuuuuuuuuusssssssss uupppddddddddddates to Broker(s) and Buyeeeeerrrrrrrr uuuuuuuuuuuuupppppppppppoooon request.

AAAAAAAAAAAAAAgreement Notice: If Seller annnnnnnnddd SSSSSSSSSSSSeeeeeellllllllllleerr’’ss cccccccccreditors enter into a short ssaaaaaaaaaaalllllleeeeeeeeee aaaaaaagreement, the Seller shall immediately deliver notttooooooooo BBuyer (“Agreemmmmmmmmmmmeeeeeeeeennnnntttttt NNNNNNNNNNNotice”).

Timmmmmmmmmmeeeeeeeeeee Periods::::::::: TThhhhhhheeeee ddddddddddddaaaaaaaaaattttttteeeee oooooooooof Selleeeerrrrrr’ssssssss ddddddddddelivery of the Short Saaaaaaaaallllllleeeeeeeeeee AAAAAAAAAAAAgreement Notice to Buyer shall be deemed the date of Contacceeppppppppppppptttttttttttaaaaance forr pppppppppuurrpppppppooossssssssssseeeeesssss ooffffff all applicable Contract time pppppppppppeeeeeeeeeeerrrrrrrriiiiiiioooods.

Escrowwwwwwwwww aaaaaaaaaaaand Earnnnnneeeeeeeeeesstt MMooooooooonnnnnnnnnnnney: Buyer shall promptlyyyyyyyyyyyyy oooooooooooopppppppppppeeeeen Escrow and deposit Earnest Money as described in the Contract upon recof Agreemmmmmmmmmmmmmmmeeeeeeeeeent Notice.

Seller Warrrrrrraaaaaaaaaaaaannnnnnnnnnties: Buyer hereby waivvvvvvvvvvveeeeeeeeeesssssssssss SSSSSSSSSSSeller’s warranties as set forth in Lines 166-168 of Section 5a of the Contract that all lisitems shall bbeeeeeeeeee iiiiiiin working conditiooooooonnnnnnnnnnn aaaaaaaattttttt the earlier of possession or COE. However, Seller warrants and shall maintain and repairPremises so thhhhhhhhhaaaaaaaaaaatttttttttt,,, pursuant tttooooooooooo lllllllliiiiiiiinnnnnnnnnnneeees 169-170 of the Contract, at the earlier of possession or COE, the Premises, including all heatcooling, mechaniiiiiiicccccccccccaaaaaaaal, pluuuuummmmmmmmmmmmmbbbbbbbbbbbbbiiiiiiinnnng, and electrical systems (including swimming pool and/or spa, motors, filter systems, cleaning systeand heaters, if anyyyyyyyyyy))))))))))),, ffffffffffrrrrrrrrreeeeeeeeeee-standing range/oven, built-in appliances and additional existing personal property included in the sale,be in substantially thhhe same condition as on the date of Contract acceptance and all personal property not included in the sale

Seller acknowledges that Broker is not qualified to provide financial, legal, or tax advice regarding a short sale transaction.Therefore, the Seller is advised to obtain professional tax advice and consult independent legal counsel immediatelyregarding the tax implications and advisability of entering into a short sale agreement.

(SELLER’S INITIALS REQUIRED) SELLER SELLER

In the event that Seller and Seller’s creditor(s) are unable to reach a short sale agreement acceptable to both, at the sales price containedherein, Seller shall promptly notify Buyer of same, and the Contract shall be deemed cancelled due to the unfulfilled short sale contin-gency. If applicable, Buyer shall be entitled to a return of any Earnest Money.

In the event that any provision contained in this Addendum conflicts in whole or in part with any terms contained in the Contract,the provisions of this Addendum shall prevail and the conflicting terms are hereby considered deleted and expressly waived byboth Buyer and Seller.

41.

42.43.44.

4 5.

46.

47.48.49.

50.

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56.

57.

58.

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60.

61.

62.

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75.76.77.

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Short Sale Addendum to the Residential Resale Real Estate Purchase Contract >>

Page 2 of 2

Short Sale Addendum to the Residential Resale Real EstatePurchase Contract • Updated: February 2011

Copyright © 2011 Arizona Association of REALTORS®. All rights reserved.

Page 2 of 2

LLER SELLE

n the event that Seller and Seller’s creditor(s) are unable to reach a short sale agreement acceptable tttttttooooooooo bbbbbbbbbooooooth, at thee ssssssssssaaaaaales price containedherein, Seller shall promptly notify Buyer of same, and the Contract shall be deemed cancelleddddd ddddddddddduuuuuuuuuuuueeeee to the unfulfilleeeeedddddddddd short sale contingency.yy If applicable, Buyer shall be entitled to a return of any Earnest Money.yy

