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REAL ESTATE CONTRACTS ARTICLES

Multiple Tenant Lease Agreements

By Christopher Combs | September 6, 2016

Multiple Tenant Lease Agreements   Question: My boyfriend and I are both getting our master’s degrees at ASU. At the start of the fall semester we signed a 1-year lease for a home in Tempe. We are now breaking up, and I am going home to California to live with my parents for the summer rather than go to ASU summer school. My boyfriend said that he would be able to make the rent payments until the end of the lease in September. Even if he is able to make the monthly rent payments until then (which I doubt!), my boyfriend…

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Using the AAR Residential Real Estate Contract

By Christopher Combs | August 22, 2016

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…

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Regardless of Language Barrier, Representations Must be True

By Christopher Combs | August 22, 2016

Regardless of Language Barrier, Representations Must be True   Question: Although my mother speaks some English, her native language is Spanish. My father spoke English and handled the financial transactions for our family, but he passed away almost a year ago. Unknown to me, my mother wanted $50,000 cash for her grandchildren’s education, and decided to take out a $50,000 mortgage on our North Phoenix family home. Because of her poor English, however, she signed a purchase contract with a $50,000 purchase price, rather than loan documents for a $50,000 mortgage. The home is worth $300,000 and is free and…

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Spouse is not Required to Sign Purchase Contract

By Christopher Combs | May 9, 2016

Is there ever a time when a spouse is not required to sign purchase contract?   Question: The seller signed my written purchase offer for an apartment complex in Mesa. The seller said that, however, because his spouse was also on the title to this apartment complex, his wife would have to sign my written purchase offer which she told him she would when she returned from a Colorado ski trip. I then applied for financing and ordered a home inspection and a termite inspection. The seller’s spouse has now returned, but refuses to sign my written purchase offer. (Her decision not…

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Due on Sale Clause Does not Apply to Transfer to a Spouse

By Christopher Combs | March 15, 2016

 Due on Sale Clause Exemptions   Question: After I was divorced three years ago, I purchased a home in Surprise. The title to the home was in my name only. Last year I married again and added my new wife to the title to the home. The mortgage loan, however, is still in my name. The mortgage payments are current. If the bank discovers that my new wife is on the title to the home, will the bank require immediate full payment of the mortgage loan?   Answer: Most mortgage loans have a “due on sale” clause allowing the mortgage…

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A Verbal Contract to Build a Home Should be Enforceable

By Christopher Combs | November 29, 2015

 A Verbal Contract to Build a Home Should be Enforceable   Question:  We want to build a home on a lot we own in north Scottsdale.  After interviewing several homebuilders, we found a homebuilder that we liked.  The reason that we liked this homebuilder was that we had looked at a specific home a mile away that the homebuilder had built which was the same type of home that we want to have built.  The homebuilder showed us the plans and specifications for this home.  We had several more meetings with this homebuilder, and our handwritten notes show that we…

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Failure to Return Earnest Money Shouldn't Stop Home Sale

By Christopher Combs | November 15, 2015

Failure to Return Earnest Money Shouldn’t Stop Home Sale   Question: On the day before the closing of the sale of our Gilbert home, the buyer refused without any reason to sign the closing documents at the title company. We need to close this sale of our Gilbert home to close on the purchase of another home that we are buying in Mesa. Our real estate broker said “no problem if there is no closing” because she already has two prospective buyers for our Gilbert home, and our Gilbert home should sell to a new buyer in the next 60 days. When…

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Purchase Contract Determines who gets Appliances

By Christopher Combs | October 25, 2015

  Question: We are scheduled to close escrow next week on a house in Peoria which was listed in the MLS as “including the refrigerator and the microwave.”  Our purchase contract, however, did not specifically mention these two appliances.  The sellers have now informed us that they will be taking these two appliances with them to their new home.  Are the sellers entitled to take these two appliances?   Answer:  Probably.  The purchase contract generally controls over any contrary information in the MLS.  For example, the seller’s sales price in the MLS is usually higher than the sales price negotiated…

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