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Information you can research on-line about the area and the property. I will assist you, but if a certain item is IMPORTANT to YOU, then my suggestion is to research it BEFORE the end of the contractual Inspection Period (re sale contracts). If you are purchasing a new home, condo, or townhome - the builder/developer will have a "Public Report" for you to read and you will be asked to sign for receipt of this report. It will tell you certain things required by law. If you are purchasing a property that was built recently, then
we will be able to download a copy of the original Public Report for you. The best overall document that I have seen is the Buyers Advisory, that details the information below plus gives you additional resourses to make an informed decision.
Helpful links:
Buyers Advisory | 100 Questions and Answers about buying a home | Home Owners Associations (HOA's) Information
By K. Michelle Lind
as seen in the Arizona Republic
Posted: November 2002
The neighborhood and area surrounding your home can have a big impact on your lifestyle. This is where you and your family live, work and play. While most home buyers understand the importance of a home inspection to evaluate the physical condition of a home, many do not thing about investigating the neighborhood and surrounding area. Here are some of the things you may want to investigate about a neighborhood before buying a home.
Crime statistics while an imperfect measurement at best, nevertheless provide some indication of the level of criminal activity in an area. To check the crime statistics for the cities of Phoenix, Tempe, Glendale, Mesa, Scottsdale, Chandler, Gilbert and Peoria, go to www.faxnet1.org. In other cities, you may be able to find information about the crime rate on the city's website by searching "crime statistics." For a list of all Arizona city links, go to the League of Arizona Cities and Towns link below. A visit or phone call to law enforcement agencies may also be advisable.
Helpful link: League of Arizona Cities and Towns
Since June 1996, Arizona has had a registry and community notification program for convicted sex offenders. To find out if a registered sex offender resides in the neighborhood, go to www.azsexoffender.org. Be aware that prior to June 1996 registration was not required, and only sex offenders determined to be a higher risk are on the website.
Helpful link: AZ Department of Public Safety Sex Offender InfoCenter
Although the existence of a freeway near your home may provide highly desirable access, sometimes it contributes to undesirable noise. New freeways are built on a regular basis and existing roadways may be expanded. To find out about planned freeway/roadway construction and planning, go to the Arizona Department of Transportation website at the following link.
Helpful link: Arizona Department of Transportation
Arizona law requires the identification of areas in the immediate vicinity of military and public airports that are susceptible to a certain level of noise from aircraft. The boundaries of these areas have been plotted on maps that can help you determine if a home falls within one of these areas. The map for military airports, such as Luke Air Force Base, may be found at the following link.
Helpful links: Territory in the Vicinity of a Military Airport (AZDRE Public Information)
Maps for many of the public airports, including Phoenix Sky Harbor International Airport and Williams Gateway Airport may be viewed at the link below. Be aware that although these maps show areas subject to the preponderance of airport-related noise, periodic over-flights that may contribute to noise cannot usually be determined from these maps.
Helpful link: Territory in the Vicinity of a Public Airport (AZDRE Public Information)
Before buying a home, home buyers may want to obtain information about the potential impact of any environmental hazards, such as soil and groundwater contamination or air pollution. Local, county, or state health or environmental departments are sources of such information. For example, the Arizona Department of Environmental Quality (ADEQ) website, www.adeq.state.az.us contains a great deal of environmental information. Also, there are areas in Arizona where the soil and groundwater have been contaminated by improper disposal of contaminants, such as Superfund or WQARF sites. To check if a home or condo/townhome is in an area designated by the ADEQ as requiring cleanup, go to the following link.
Helpful link: Arizona Department of Environmental Quality
The Arizona Department of Real Estate advises new home buyers to contact the school district to determine whether nearby schools are accepting new students. "Some school districts, especially in the northwest part of the greater Phoenix area, have placed a cap on enrollment. You may find that your children cannot attend the school nearest you and may even be transported to another community." Home buyers should visit the local school to talk with the teachers and students as well. In addition, public and charter school information may be accessed at the Arizona Department of Education website. This site contains a lot of information, including School Report Cards that list school accomplishments and student achievement.
Helpful link: Arizona Department of Education
A neighborhood may have completely different characteristics at different times of the day. Noise and odors may be barely noticeable at some times and quite noticeable at other times. Buyers should drive around the neighborhood, preferably on different days at several different times of the day and evening, to investigate the noise and odor levels, as well as any other significant characteristics. If you are purchasing a condo or townhome, you need to be aware of your neighbors, what kind of walls and ceilings are in the building, what will you hear at night, and if they smoke, will you smell it? Not all buildings are built the same....some have very thin walls and some have cement (or similiar) walls.
Talk to the surrounding neighbors about the neighborhood and the history of the home being considered for purchase. Neighbors can provide a wealth of information.
By K. Michelle Lind
as seen in the Arizona Republic
Posted: August 2002 ~ Reviewed December 2004
Most homebuyers understand the importance of reading the purchase contract and the inspection report when buying a home. However, the importance of some of the other documents involved in a home purchase can be less clear. Although it may seem overwhelming, buyers must review all of these documents. Understanding the purpose of the documents can help make the task much easier.
Some documents should be reviewed right away. In fact, you need to read certain documents before you even sign a purchase contract. And, if you have already signed a purchase contract, your right to disapprove of the information provided in these documents will differ depending on whether you have signed a new home contract or an Arizona Association of REALTORS ("AAR") resale contract.
You might be handed a copy of the Multiple Listing Service ("MLS") printout when looking at a home. The MLS printout is similar to an advertisement and contains a limited description of the home, such as its size and amenities. The information was probably secured from the seller, builder or a governmental agency and could be inaccurate - so you should verify anything important to you. The MLS printout is not a part of the purchase contract. Therefore, even if the printout says that the refrigerator or some other item will be sold with the home, you must ask your REALTOR to include it in the purchase contract.
Sellers are required to give new homebuyers in a subdivision an Arizona Department of Real Estate Public Report. The purpose of the Public Report is to point out important information about the home and the subdivision that may affect a buyer's decision to purchase. For example, the Public Report may tell you that the home was built on expansive soils or that neighboring properties may cause a noise or dust problem. Be aware that you must read the Public Report before signing any contract to buy a new home; afterwards is too late.
Most sellers in a resale transaction provide a SPDS; most new home sellers do not. The SPDS covers a variety of questions for the seller to answer about the property and its condition. Remember, the SPDS is a disclosure of what the seller actually knows; it is not a representation of every possible defect. You should carefully review the SPDS and verify any important information. Under the AAR resale contract you may give the seller notice of any items of which you reasonably disapprove during the inspection period and ask the seller to repair the items or elect to cancel the contract.
CC&Rs are recorded at the county recorders office and generally control certain aspects of the homes within a subdivision. For example, the CC&Rs may control any changes to the home, how many pets can live there, and where you can park your car. By purchasing a home in such a subdivision, the buyer agrees to comply with the CC&Rs. Therefore, it is essential to read and agree to these restrictions before signing a contract to purchase a new home; most new home contracts do not allow a buyer to cancel simply because the buyer did not like the CC&Rs. In a resale transaction using the AAR contract, the buyer generally has five days after receipt of the CC&Rs to cancel the transaction.
In addition to CC&Rs, HOAs may be governed by articles of incorporation, bylaws, rules and regulations, and often, architectural control standards. If purchasing a resale home in a condominium or planned community, the seller (if fewer than 50 homes in the community) or the HOA (if there are 50 or more homes) must provide the buyer with a disclosure containing a variety of information; the contact person for the association, assessments, the association's financial condition and, if the statement is furnished by the association, whether the association records reflect any alterations or improvements to the home that violate the CC&Rs. Under the AAR contract, a buyer has five days after receiving this disclosure to provide notice of reasonable disapproval.
This document contains important information. The title or escrow company providing title insurance will give the buyer a title report or title commitment listing restrictions, easements and liens recorded against the property ("Schedule B Exceptions"). Make sure you receive and review all of the listed documents. Some of these Schedule B Exceptions may affect the use of the property, such as the ability to build an addition or add a swimming pool. In the AAR resale contract, a buyer has five days to disapprove of the title report or commitment. In a new home sale, the buyer will not likely have such a right.
Buying a home involves a huge financial and emotional commitment. Take the time to get all the information available about a home by reading these and other important home buying documents. And, if you are unsure about a document you receive when buying a home, ask your REALTOR for guidance.
Spanish version
K. Michelle Lind, Esq.
Michelle is general counsel to the Arizona Association of REALTORS (?AAR?) and a State Bar of Arizona board certified real estate specialist. She serves as the primary legal advisor to the association, provides legal direction in the development of standard forms, is involved in legislative advocacy, and assists in the association?s educational efforts.
Please note that this article is of a general nature and may not be updated or revised for accuracy as statutory or case law changes following the date of first publication. Further, this article reflects only the opinion of the author, is not intended as definitive legal advice and you should not act upon it without seeking independent legal counsel.
