Using the AAR Residential Real Estate Contract
Using the Arizona Association of REALTORS® Residential Real Estate Contract
Question: My father is selling our family home in Arcadia to an investment group that is buying several homes in that area. My father does not have a Realtor. I have bought and sold several homes in Arizona, and I have always used the Arizona Association of REALTORS® residential resale purchase contract (“AAR Contract”) recommended by my Realtor. The purchase contract that the investment group wants my father to sign, however, is a very different purchase contract. My father says that all he wants is the money at the closing of the sale, and that he really doesn’t care what the purchase contract says. Should I be insistent with my father not to sign the investment group’s purchase contract?
Answer: Yes. The AAR Contract is used in at least 95% of resale home sales in Arizona. The Arizona Association of REALTORS® is a trade association of Realtors who represent both buyers and sellers in the purchase of homes. Therefore, this AAR Contract is relatively neutral and is updated every few years as the law and regulations change. Sophisticated investors who buy homes will often try to use a one-sided purchase contract. For example, a contract from an investor may give the investor the right to inspect the property, and cancel the contract, until close of escrow. The AAR Contract, however, only gives the buyer 10 days to inspect the property and cancel the contract. A “mom and pop” seller or buyer should not use an investor’s purchase contract without a review by their attorney.
Leave a Comment
You must be logged in to post a comment.