Jesse Lapham
ABR, RENE, AHWD
Realty Executives Arizona Territory
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Decoding the Arizona Purchase Contract — Clear, Engaging, and Exact
A clear, plain-English walkthrough of the Residential Resale Real Estate Purchase Contract so you know what you’re signing and why it matters.
Buying or selling a home in Arizona is exciting, and the contract is the roadmap that gets everyone from accepted offer to closing. Below is a concise translation of the key sections in the Arizona Association of REALTORS® Residential Resale Real Estate Purchase Contract.
It names the buyer(s) and seller(s), identifies the property, and sets the full purchase price and earnest money. Fixtures convey unless excluded; agreed personal property can be added.
Closing occurs when the deed records. Funds must be at escrow in time for the agreed date. Possession typically transfers at closing unless both parties agree otherwise.
Pro tip: All-cash buyers attach proof of funds. Failing to deliver closing funds after a cure notice can be a material breach that risks your earnest money.
Your obligation to close depends on getting loan approval without prior-to-document conditions at least three days before closing. You must keep the seller updated with the Loan Status Update when requested.
The property must appraise at or above the purchase price, unless you agree to proceed or cover any shortfall. If it appraises low, you have a short window to cancel and recover earnest money.
Pro tip: Not locking your rate or not having your down payment ready is not an excuse under the loan contingency.
Escrow delivers a title report and referenced documents. You generally have five days to review and object to issues that affect ownership or use.
Taxes, HOA dues, rents, irrigation, and certain fees are prorated as of the closing date. Escrow fees are typically split unless negotiated otherwise.
The seller provides the Seller’s Property Disclosure Statement and a five-year insurance claims history (or for the time owned). You can disapprove within your inspection timeline.
Homes built before 1978 require lead-based paint disclosure. Rural, non-subdivided transfers may require an Affidavit of Disclosure. FIRPTA rules apply if the seller is a foreign person.
The home is sold in its present physical condition as of contract acceptance. The seller must keep it substantially the same through closing and remove non-included personal property and debris.
Pro tip: Material, latent defects known to the seller must be disclosed. Buyers warrant they can perform and that they are not relying on verbal statements outside the contract.
Buyers typically have a 10-day inspection period to investigate condition, permits, insurance availability, square footage, flood status, and more. Pool barrier rules and wastewater/sewer status are buyer responsibilities to verify.
Final walkthroughs confirm agreed repairs and same condition. Either party can purchase a home warranty if negotiated.
Pro tip: Verbal discussions do not extend deadlines. Use the proper written forms and stay within timelines.
If someone does not perform, the other side may issue a three-day cure notice. If the issue is not cured, it becomes a breach—then the non-breaching party may cancel and/or pursue remedies. For certain buyer breaches, the seller may keep the earnest money as liquidated damages.
Disputes are mediated first; unresolved issues can go to binding arbitration unless a party opts out after mediation.
Every transaction is unique. If you’re buying or selling in Tucson or Southern Arizona, I can walk you through this contract line by line, coordinate inspections, and keep the deal on track.
