ARTICLES & NEWS

REAL ESTATE TRANSACTIONS ARTICLES

seller-carryback-financing

Will Seller Carryback Financing Be Jeopardized If Buyer Is A Drug Dealer?

By Christopher Combs | April 4, 2021

Question: We are selling our Carefree home. A young man has made us an offer to purchase our Carefree home for $600,000. There will be a down payment of $250,000 cash, and financing by a $350,000 seller carryback loan from us. This $250,000 cash is apparently from the young man’s successful real estate investments, but the young man cannot qualify for a $350,000 mortgage loan. We think that this young man could be a drug dealer. If we sell our Carefree home to this young man and the FBI seizes the home for drug dealing, will we lose our $350,000…

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Title Insurance

Divorce By Publication May Be Necessary for Title Insurance

By Christopher Combs | March 21, 2021

Question: My three children and I have been living in an apartment in central Phoenix since my husband left us three years ago. My mother died last year and I recently received a cash inheritance of $225,000.00. I have now signed a $225,000 purchase contract for a Chandler home. The escrow company says that my husband has to sign the paperwork to disclaim any interest in this Chandler home. What can I do when I have no idea where my husband has been living the past three years? Answer: If only one spouse is buying a home, the title company…

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HOA debt not disclosed

Who is responsible for undisclosed HOA debt?

By Christopher Combs | March 14, 2021

Question: After we bought our home in Chandler, we attended the homeowners’ association (“HOA”) annual meeting. At this HOA annual meeting we learned that our HOA was in debt for $62,000.00 for attorney’s fees incurred because of a prior lawsuit with our landscaping company. The result is that a portion of our monthly HOA dues goes to pay back this $62,000.00 debt which is of no benefit to us. There is nothing in the HOA Addendum or in our purchase contract regarding this $62,000.00 debt. The seller has denied knowing anything about this $62,000.00 debt. Why should we have to…

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Listing Agreement

Brokerage Firm “Owns” the Listing – Not the Agent

By Christopher Combs | March 7, 2021

Question: One of our best friends is a real estate agent who lives in our Queen Creek neighborhood. We signed a six-month listing agreement with this real estate agent. After only two months our real estate agent left her brokerage firm and went to a new brokerage firm. The designated broker of her old brokerage firm has refused to transfer our listing agreement to our real estate agent’s new brokerage firm. In fact, two real estate agents of the old brokerage firm even called us to discuss a marketing strategy for the sale of our Queen Creek home. Our real…

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cattle ranch

Purchasing a Home with a Ground Lease

By Christopher Combs | February 21, 2021

Question: We are buying a retirement home in an east Scottsdale community. After we received the title report, we were shocked to learn that the “owner” of our retirement home was actually a tenant under a 99-year ground lease for all of the homes in the community. Our real estate agent said that we are getting a reduced price for our retirement home because of the ground lease, and that there are only 60 years remaining on the ground lease. We know that a reduced price is an advantage of the ground lease. Is only 60 years remaining on the…

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propertly lease

Breach of Lease Requires Landlord to Mitigate Damages

By Christopher Combs | January 24, 2021

Question: We signed a one-year lease for a Scottsdale condominium for $2,800 a month. The lease was from April 1, 2020, to April 1, 2021. Last week we signed a purchase contract to buy a Chandler home. The close of escrow on the Chandler home will be January 31, 2021. We have notified our landlord that we will be moving out of our Scottsdale condominium on January 31, 2021. The landlord was not happy, however, and said that we are still liable for the $2,800 a month rent for the last two months of our lease. Our understanding is that,…

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Real estate purchase contract

Specific Legal Description Not Required in Purchase Contract

By Christopher Combs | December 27, 2020

Question: We have a small commercial brokerage firm in Phoenix. Common brokerage practice in most commercial brokerage firms is not to state a legal description in the purchase contract. Instead, the address and the parcel number are specified, and an exhibit to the purchase contract says “legal description to be inserted by title company.” The reason is that no commercial broker wants to take the risk of inserting in the purchase contract an erroneous legal description, which can be complex and more than two pages. Is a specific legal description required in the purchase contract under Arizona law? Answer: No.…

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Access Road

Five-Acre Lot Cannot be Landlocked

By Christopher Combs | December 20, 2020

Question: We own a home on a five-acre lot in Coconino County. A California buyer has just purchased the five-acre lot to the east of us, and plans to build a large home. The California buyer is landlocked, however, and needs access over our property to get to the main road. Do we have to give the California buyer access to the main road? If so, can we get compensation from the California buyer for this access? Answer: The California buyer cannot be landlocked. This principle of law goes back to medieval England when the King wanted to be able…

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