REAL ESTATE TRANSACTIONS ARTICLES
Buyer’s Right to Cancel Purchase Contract Because of “Ghost Rumors”
Question: In a recent column you said that a buyer could cancel a purchase contract for a home within the 10-day inspection period because of “neighborhood rumors about ghosts haunting the home.” Even worse, you said that the buyer could then get his $20,000 earnest money back! We are planning on listing our Sun Lakes home for sale at the end of the summer. If a buyer signs the purchase contract and then comes up with some phony “ghost rumors” reason to cancel the purchase contract and get their $20,000 earnest money back, will we have to go to court…
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Seller Wants Two-Week Extension to Close Escrow
Question: My wife and I are first time homebuyers in our late 20s. We signed a contract to purchase a home in Chandler. The close of escrow is scheduled in two weeks. Our apartment lease ends in two weeks. The seller’s real estate agent just told us that the seller will not be able to move out in two weeks, and that the seller needs a 10-day extension of the close of escrow. Our landlord says, however, that another tenant is moving into our apartment in two weeks. Therefore, our landlord won’t extend our lease for even one day. What…
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Disclosure of Dog Park by Realtor After Close of Escrow
Question: Two years ago we purchased a home in a subdivision of single-family homes in Mesa. At the time that we purchased our home, the Arizona Department of Real Estate subdivision public report given to us by the homebuilder said that the vacant land across the street from our subdivision would be developed into a similar subdivision of single-family homes. We recently received notification, however, that the City of Mesa is condemning this vacant land for a proposed dog park. When we contacted our real estate agent, she said that she did not have any knowledge of this proposed dog…
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Disclosure Requirements for Neighbor’s Nudist Activities
Question: We live in a North Phoenix area near the Carefree Highway. We recently learned from our two boys that our neighbors next door were having “wild” parties on weekends. Apparently when our two boys are jumping on the trampoline in our back yard they can sometimes see nude people in our neighbor’s back yard. When we asked another neighbor about these “wild” parties, this neighbor said that these “wild” parties were not really “wild” at all. She said that those neighbors are members of a nudist group, and that they have gatherings in their back yard on the weekends…
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Listing Commission Owed When “Ready, Willing, and Able” Buyer Produced
Question: In a recent column you discussed whether a listing broker was entitled to a real estate commission when, the day before close of escrow, the seller agreed with the buyer to cancel the sale of the home. You then said that the listing broker was still entitled to a commission because a ready, willing, and able buyer had been produced by the listing broker. That’s ridiculous! The seller should not have to either (1) hire a lawyer to file a lawsuit to make the buyer purchase the home, or (2) pay a commission to the listing broker. Am I…
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Disclosure of Registered Sex Offenders is Not Required
Question: We purchased a nice home in a Tempe community. The seller told our real estate agent that the reason the seller was moving to another Tempe home was “to be closer to the 101 freeway.” Two weeks after we closed on our home, we learned at an HOA meeting that a registered sex offender (“RSO”) lives three homes away from our home. We have two girls ages 8 and 10 so we must now find another home. When we complained to our Realtor why we weren’t told of this RSO, our Realtor said that under Arizona law both sellers…
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Quit Claim Deeds Do Not Transfer Real Property
Question: My brother and I bought an investment home in San Tan Valley three years ago. Two months ago, my brother gave me a quit claim deed in exchange for $50,000, and my brother moved to Oregon. After reading your recent column on special warranty deeds and general warranty deeds to transfer a home, I am confused. Does my brother still own one-half of the San Tan Valley home because he only gave me a quit claim deed? Answer: Probably not. A quit claim deed is not a conveyance deed, but simply one party agreeing to “quit” any “claim” to…
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‘Contract for Deed’ is Allowed Under Arizona Law
Question: We are buying a 40-acre parcel of land in Apache County for $400,000, with a $40,000 down payment. Instead of a standard purchase contract, however, the seller wants to use what he calls a “contract for deed.” In other words, although we will initially pay the $40,000 down payment, we will not get the deed to the 40 acres until we make five years of monthly payments to pay off the remaining $360,000. The seller is from Iowa, and he says that he has always bought and sold land with a “contract for deed.” Is this “contract for deed”…
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