5. Resale Purchase Contract
The Resale Purchase Contract’s official name is
Residential Resale Real Estate Purchase Contract.
01. P R oP eR T y
02. f I n An C I n g
03.
It contains
T I T l e An d es C R ow
04. d I s C l os u R e s
the following 05. wAR R An T I es
06. due dIlIgenCe
sections: 07. Reme d I es
08. Ad d I T I on Al T eRms An d C on d I T I on s
09. s e l l e R AC C eP TAn C e
It is the written agreement between the buyer and seller that states the terms of their
agreement including which party is responsible for individual charges.
The buyers and the sellers will know from this document which party is responsible for
the costs associated with completing the sale of the home and closing their escrow.
Addenda
Bu y e R ’ s I n s P e C T I on n oT I C e
An d s e l l e R ’ s R e s P on s e ( BI n s R )
C ou n T eR of f e R
It contains C u R e P e R I od n oT I C e
l oAn s TAT u s u P d AT e
the following mu lT I P l e C ou n T e R of f eR
documents:
mu lT I P l e of f e R / C ou n T e R of f eR
P R e - Qu Al I f I C AT I on f oRm
s h oR T s Al e Ad d en d u m
C RI T I C Al d AT e l I s T
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6. Buyer Attachment
This form is to be given to the buyer. It is not part of the contract. It is to act as a reminder to the buyer
as to their responsibilities and duties under the terms of the contract. It also stresses the importance of
items to be read or investigated by the buyer.
2. Added Residential.
5. now references (see section 2f).
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8. sECtion 1 – Property
Buyer’s name and seller’s name are at the beginning of the contract. In case the seller’s name is not known at the
time the contract is written, the agent needs to mark the box “as identified in section 9c.”
1a. Lines 1 – 2 This is the first contract to provide a space to put the seller’s name. This is very important to escrow because if it is
not filled in they have to rely on interpreting the seller’s signature on the contract or the last vesting document of
record to determine the identity of the seller.
1c. Lines 8 – 14 Added two additional blank lines.
Close of escrow is still defined as recordation. If escrow Company or recorder’s office is closed on Coe date; Coe
shall occur on the next day that both are open for business.
1d. Lines 15 – 22
no contract extension is then required if Coe falls on a date escrow or recorder is closed. Coe is automatically
extended to the next date both are open for business.
1e. Lines 23 – 26 Added “existing” keys to clarify that the seller is not obligated to have keys made for locks, etc.
1f. Lines 27 – 29 expands the list of Addenda. Added “As-Is” and “short sale” Addenda. deleted “hud forms”.
fixtures and Personal Property list. Added “central vacuum, hose and attachments” to the list of fixtures and
1g. Lines 30 – 52 personal property that are included in the sale. omitted “TV” from “attached media antennas/satellite dishes” to
clarify that attached TV’s, such as flat screens, are not included in the sale.
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10. sECtion 2 – financing
2a. Line 54 Pre-Qualification. Added a place to mark if the completed new, AAR Pre-Qualification form is or is not attached.
loan Contingency. If the loan contingency is not fulfilled, the buyer has no obligation to close escrow. Therefore,
the Contract can be considered cancelled or terminated because it is unenforceable against the Buyer. further, if
seller agrees to allow the buyer additional time to obtain the loan, the parties should execute an amendment to the
2b. Line 55 – 58 Contract extending the close of escrow date.
If the buyer does not deliver a notice of an unfulfilled loan contingency to the seller or the escrow company within
three days prior to Coe or within three days of being served a cure notice the buyer is in breach of failure to deliver
the notice, and the seller is entitled to the earnest money.
unfulfilled loan Contingency. The contract shall be cancelled and the Buyer entitled to a refund of earnest money,
2c. Lines 59 – 61 if after a diligent and good faith effort, the Buyer is unable to obtain loan approval without PTd conditions no later
than 3 days prior to Coe.
Interest Rate/necessary funds. new paragraph wherein buyer agrees that if he cannot obtain loan approval due to
2d. Lines 62 – 65
failure to lock the interest rate and “points” with the lender during the inspection period or failure to have the down
payment or other funds due to obtain loan approval without conditions and close the transaction is not an unful-
filled loan contingency.
2e. Lines 66 – 68
loan status update (lsu). The Buyer musT deliver an lsu to the seller within five (5) days after contract accep-
tance.
loan Application. The buyer must, unless previously completed during the inspection period complete, sign and
2f. Lines 69 – 71 deliver to the lender a loan application and grant lender permission to access Trimerged Residential Credit Report
and provide lender with all requested signed disclosures and initial request documentation contained in lsu.
2h. Lines 74 – 75 Type of financing. Added usdA (united states department of Agriculture) as a type of financing.
2i. Line 76 loan Cost. now states buyer to pay for all costs for obtaining the loan unless otherwise provided for in the contract.
seller Concessions. seller concessions are a prevalent loan condition. The concession, if any, is specifically defined
2j. Lines 77 – 78
as the maximum amount that the seller agrees to pay for buyer’s loan costs, including pre-paids, impounds and
Buyer’s title/escrow closing costs. (PmI Insurance is considered a loan cost. home warranty, Inspection fees and
hoA fees are examples of items not considered loan fees or title/escrow closing costs.)
VA loan Costs. seller agrees to pay escrow fee if the buyer is obtaining a VA loan and up to percentage or dollar
2k. Lines 79 – 80 amount of loan costs not permitted to be paid by buyer in addition to any other costs they have agreed to pay in
the contract including seller’s concessions.
2l. Lines 81 – 84
Changes. Buyers must notify the seller of any changes in the loan described in the Pre-Qualification form attached
to the contract or the lsu provided within five (5) days after contract acceptance.
Appraisal Contingency. The premises must appraise for at least the PuRChAse price and if it fails to appraise
2m. Lines 85 – 88 for the purchase price in Any APPRAIsAl ReQuIRed By The lendeR, the Buyer has five (5) days to cancel and
receive a refund of their earnest money.
2n. Lines 89 – 90
Appraisal fee. Appraisal fee to be paid by and appraisal fees may or may not be included in the seller concessions
as indicated on line 90.
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12. sECtion 3 – Title and escrow
3a. Lines 91 – 95 escrow. Added lines for the escrow/Title Company’s address and email information.
3b. Lines 96 – 97
Agents will need to remember that escrow will need to know the marital status of the Buyer(s) in order
to properly prepare vesting and loan documents.
Title Commitment and Title Insurance. omitted “general warranty deed” and replaced the term with
“warranty deed, subject to existing taxes, assessments, covenants, conditions, restrictions, rights of way,
3c. Lines 98 – 107 easements and all other matters of record.” Also added to this section: “If applicable, Buyer shall pay the
cost of obtaining the AlTA lender Title Insurance Policy.” To clarify that the expense of a lender’s policy is
the buyer’s obligation.
3d. Lines 108 – 117
Additional Instructions: escrow Company shall furnish notice of pending sale to the hoA. If an Affidavit of
disclosure is provided, escrow Company shall record the Affidavit at Coe.
3f. Lines 119 – 123 Release of earnest money – holds escrow agent harmless for release of earnest money.
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14. sECtion 4 – disclosures
4a. Lines
134 – 136
seller Property disclosure statement. Added: “Residential.”
Insurance Claims history – seller shall deliver to Buyer a written five-year insurance claims history regarding Prem-
ises (or a claims history for the length of time seller has owned the Premises if less than five years) from seller’s In-
surance Company or an insurance support organization or consumer reporting agency, or if unavailable from these
sources, from seller, within 5 days after contract acceptance. seller may obscure any reference to date of birth or
4b. Lines
137 – 141 social security number from the document. Buyer shall provide notice of any items disapproved within the Inspec-
tion Period or 5 days after receipt of the claims history whichever is later.
RememBeR: If this is not provided to the buyer in a timely manner, an additional 5 days may be given to the buyer
for disapproval.
lead Based Paint disclosure. Added: “Buyer is further advised to use certified contractors to perform renovation,
4c. Lines
142 – 155
repair or painting projects that disturb lead-based paint in residential properties built before 1978 and to follow
specific work practices to prevent lead contamination.”
Affidavit of disclosure – escrow Agent’s sole responsibility is to record the affidavit if the seller provides it to escrow.
Buyer shall provide notice of any items disapproved within the inspection period or five (5) days after receipt of the
4d. Lines
158 – 161
Affidavit, whichever is later.
RememBeR: If this is not provided to the buyer in a timely manner if required; an additional 5 days may be given
to the buyer for disapproval.
sECtion 5 – warranties
5a. Lines
166 – 171
seller warranties – All other agreed upon repairs and corrections will be completed pursuant to section 6j And all
personal property not included in the sale and all debris will be removed from the premises.
Buyer warranties: Buyer warrants that Buyer is not relying on any verbal representations concerning the Premises
except disclosed as follows…
5c. Lines
179 – 184 This is basically protection for the Agent from future lawsuits. If Buyer is purchasing based on a verbal representa-
tion from the agent they are to disclose it here.
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16. sECtion 6 – due diligence
Inspection Period: states that the inspection period begins “the day after acceptance of the Contract.” some
language has changed in the list of all the inspections but the general concept of inspections is still the same but
6a. Lines 185 – 196 added Buyer to verify mls information. Also, Buyer is advised to consult the Arizona department of Real estate,
Buyer Advisory to assist in Buyer’s due diligence inspections and investigations. Buyer shall provide seller and
Broker(s) upon receipt at no cost copies of all inspection reports concerning the Premises obtained by buyer.
wood-destroying organism or Insect Inspection. Buyer shall order And PAy for the termite inspection.
6c.
Buyer’s agent needs to recognize that no longer does the contract state that the seller will pay for any treatment
Line 200 – 204 up to 1% of the sales price or as otherwise stated. It is imperative that the inspection is done during the inspection
period so that if treatment is required buyer can put on their items requested to be repaired, or their items
disapproved for cancellation purposes.
Insurance: If homeowner’s Insurance is a material matter to the Buyer, Buyer shall apply for and obtain written con-
6e. Lines 209 – 212 firmation of the availability and cost of homeowner’s insurance for the premises from Buyer’s Insurance Company
during the inspection period.
6f. Lines 213 – 217 If seweR connection is a material matter to the Buyer; it must be investigated during the inspection period.
swimming Pool Barrier Regulations – during the Inspection Period, Buyer agrees to investigate all applicable state,
county and municipal swimming Pool barrier regulations and agrees to comply with and pay all costs of compliance
6g. Lines 219 – 222 prior to occupying the Premises, unless otherwise agreed to in writing. Agent should be aware that the burden both
financially and responsibility wise to comply with any swimming pool regulations unless otherwise agreed to in the
contract are on the buyer.
6h. Lines 224 – 230
Buyer acknowledgement –Includes Buyer acknowledgement that Broker is not qualified nor licensed to conduct
due diligence.
6i. Lines 232 – 235
Inspection Period notice – Buyer shall conduct all desired inspections and investigations prior to delivering such
notice to seller and all items disapproved shall be provided in a single notice.
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18. sECtion 6 – cont.
Buyer disapproval: If Buyer, in Buyer’s sole discretion disapproves of items as provided herein, Buyer shall deliver
to seller notice of the items disapproved and state in that notice their election. Buyer’s failure to give notice shall be
deemed Buyer’s election to proceed.
Buyer has three options on their items disapproved: proceed, ask for repairs or cancel.
If seller agrees in writing to correct items disapproved, seller shall correct the items, complete any repairs in a
6j. Lines
236 – 254
workmanlike manner and deliver any paid receipts evidencing the corrections and repairs to Buyer 3 days or __ prior
to Coe.
RememBeR: If the seller does not complete the repairs and deliver the paid receipts to the Buyer 3 days or ____
prior to Coe, the buyer could deliver a cure notice to the seller which could extend the Coe date
Verbal discussions will not extend these time periods. only a written agreement signed by both parties will extend
response times or cancellation rights.
6k. Line
255 – 257
notice of non-working warranted Items: Buyer shall provide seller with notice of any non-working warranted items
of which Buyer becomes aware during the inspection period or the seller warranty for that item(s) shall be waived.
seller’s Responsibility Regarding Inspections and walkthroughs: seller shall make the Premises available and have
all utilities on, including propane, until Coe to enable Buyer to conduct these inspections and walkthrough(s).
6n. Lines
269 – 271 utilities required to be on during the full contract period. Also Buyer has the right to multiple walkthroughs to
complete their inspections.
sECtion 7 – Remedies
Cure Period: If a party fails to comply with the provisions of the 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 3 days after delivery
7a. Lines
272 – 275 of the notice “Cure Period” the failure to comply shall become a breach of contract.
RememBeR: The cure period may extend the Coe.
Breach. Changed sub-section references due to changes in the financing section’s sub-sections. Added: “The
7b. Lines
276 – 285
parties expressly agree that the failure of any party to comply with the terms and conditions of section 1d to allow
Coe to occur on the Coe date, if not cured after a cure notice is delivered pursuant to section 7a, will constitute a
material breach of this Contract, rendering the Contract subject to cancellation.”
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20. sECtion 7 – cont.
Alternative dispute Resolution – AdR – If mediation does not resolve the disputes, the parties agree to binding
7c. Lines
286 – 294
arbitration and the decision of the arbitrator shall be final and nonappealable. Parties can opt out of arbitration and
go to court.
7d. Line
295 – 301
exclusions from AdR – basically the same as the exclusions from mediation in the prior contract.
7e. Lines
302 – 304
Attorney fees and Costs – The prevailing party in any dispute or claim arising out of or relating to this Contract shall
be awarded their reasonable attorney fees and costs.
sECtion 8 – Additional Terms
and Conditions
8a. Lines
305 – 334
Added 18 additional blank lines.
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22. sECtion 8 – cont.
Compensation – The contract shall constitute an irrevocable assignment of seller’s proceeds at Coe if seller is
obligated to pay the commission. If Buyer is obligated to pay Broker(s), payment shall be collected from Buyer as a
8f. Lines
342 – 347 condition of Coe.
RememBeR: To provide escrow with any commission agreements for payment at Coe.
8g. Lines
348 – 352
Copies and counterparts – includes lead based paint disclosure CAnnoT be signed in counterpart.
8h. Lines
353 – 354
days – all references to days in this Contract shall be construed as calendar days and a day shall begin
at 12:00 A.m. and end at 11:59 P.m.
8i. Lines
355 – 359
Calculating time periods – in computing any time period prescribed or allowed by this Contract, the day of the act
or event from which the time period begins to run is noT included and the last day of the time period is included.
notice – delivery of all notices and documentation required or permitted hereunder shall be in writing and deemed
8m. Lines
368 – 371
delivered and received when (1) hand delivered (2) sent via facsimile (3) sent via email or (4) send by overnight
courier service – addressed to Buyer as indicated in section 8r to seller as indicated in section 9a and to the escrow
company indicated in section 3a. noTe: Those areas are the BRoKeRs, not the buyer and seller.
earnest money. Added: “Buyer acknowledges that failure to pay the required closing funds by the scheduled Close
8n. Lines
372 – 376
of escrow, if not cured after a cure notice is delivered pursuant to section 7a, shall be construed as a material
breach of this contract and all earnest money shall be subject to forfeiture.”
Release of Broker(s). Added: “price and terms of sale, return on investment.” Added: “The parties understand
8o. Lines
377 – 382
and agree that the Broker(s) do not provide advice on property as an investment and are not qualified to provide
financial, legal, or tax advice regarding this real estate transaction.” The seller’s initials arenow required along with
the buyer’s because price, terms and investment decisions affect both buyer and seller.
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24. sECtion 8 – cont.
Broker on behalf of Buyer
8r. Lines
391 – 394 Added: “Preferred” to telephone number.
8s. Lines
395 – 396
Agency confirmation – separated from the receipt section.
sECtion 9 – seller Acceptance
Broker on behalf of seller – more information provided for seller’s agent.
9a. Lines
402 – 405 Added: “Preferred” to telephone number.
This is where you mark if a counter offer is attached.
9c. Lines
408 – 416 offer rejected by seller – month, date, year and seller’s initials.
Removed Buyer and seller initials.
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26. Addenda
Buyer’s Inspection notice and
seller’s Response ( BInsR )
lists 6 separate items that the buyer has inspected. Buyer has verified all important mls information and other
information obtained regarding the Premises. The form was expanded to three (3) pages by adding additional
blank lines on Pages 1-3. The premises address was added on Page 2-3. The additional lines were added to give
the Buyer space to request repairs and to give the seller more space to reply to the Buyers request for repairs.
— Premises accepted – no corrections requested. Buyer accepts — the Premises in its present
condition and no corrections or repairs are requested.
Page 1 — Premises rejected – Buyer disapproves of items listed below and — elects to immediately
cancel this Contract.
buyer then — Buyer elects to provide seller an opportunity to correct the — disapproved items listed below.
checks a box Then the buyer must list the items disapproved
noTICe of non-working warranted items – has a new section for the Buyer to notice non-working
warranted items. This should be listed separately from the other items because the seller is obli-
gated to repair these items.
Page 3 seller agrees to correct the items disapproved by Buyer pursuant
seller’s
to terms set forth herein and section 6j of the Contract.
seller is unwilling to correct any of the items disapproved by Buyer.
response seller’s response to Buyer’s notice is as follows:
Page 3
Buyer elects to cancel this contract
buyer’s Buyer accepts the seller’s response to Buyer’s notice and agrees to close escrow without
correction of those items seller has not agreed in writing to correct.
election
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