6-Hour Contract Writing Course

Lines 1-6: Line 1:  Always your Broker Firm name. Line 2: Agent’s Name Agency is the FIRST document that should be presented to the client. Why? BECAUSE A CLIENT HAS…

Lines 1-4 Line 1:  Names of ALL Buyers or Tenants Line 2: Names of ALL Sellers or Landlords Line 3: Full address of the property Line 4: Brokerage  Lines 5-8…

    TO BE ENFORCEABLE, LISTING AGREEMENTS MUST IDENTIFY THE SUBJECT PROPERTY FACTS:                     The agent was given a listing on “all of the properties owned by the developer in Maricopa…

  TO BE ENFORCEABLE, LISTING AGREEMENTS MUST IDENTIFY THE SUBJECT PROPERTY FACTS:                     The agent was given a listing on “all of the properties owned by the developer in Maricopa County.” …

    LISTING AGENT MUST DISCLOSE CO-BROKE OFFERING TO SELLER The listing agent, when filling out the listing agreement, does not disclose the amount of the co‑broke offering he will…

Click Here https://youtu.be/qBFjlNghEms           THE DEATH OF THE OWNER GENERALLY TERMINATES THE LISTING AGREEMENT FACTS: Property is listed with brokerage A. The owner of the property…

  Seller’s Property Disclosure Statement (SPDS) (Revised): The last major revision was in 2023.  The more significant revisions include: (i) a section for the seller to list the names and…

      Property and Ownership This section has a significant number of changes beginning with identifying the Legal Owner(s) of the Property instead of identifying the property address first. …

    Update: Line 84 asks the seller if they are aware of any “past or present” cracks or settling. On line 100, if the Property has not been treated…

  Updates: A couple of new questions have been added to the swimming pool section.  Lines 135-136 ask if the seller is aware if a swimming pool was removed, capped/decked…

  Updates: Environmental Information This section has been moved and is now located after the Sewer/Wastewater Treatment section. Finally, a box has been added to the end of the SPDS…

  LISTING AGENT MUST DISCLOSE THAT SOLAR PANELS ARE LEASED, NOT OWNED FACTS:                     The listing agent, based on direction from the seller, advertised the solar panels in the MLS as…

What is a CLUE report? A CLUE report shows the claims filed for any house for the past seven years. It lists claims on your home, even if you weren’t…

  Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards (Sales) – used to meet requirements for lead-based paint disclosure for residential sales. (Rev. 02/09) FACTS: Listing agents 1…

Marketing Plan Commutation Update of Market Update Seller Net Sheet Click Here: https://youtu.be/idSBnwHXUcQ SELLER NOT OBLIGATED TO SELL EVEN IF FULL PRICE OFFER RECEIVED FACTS: The seller has subdivided three…

Market Conditions Advisory – this form was developed to advise that the price a buyer is willing to pay and the price a Seller is willing to accept for a…

_______________________________________________________________________ H.O.A. Condominium/Planned Community Addendum – disclosure to the Buyer about what HOA information the Buyer should receive, by Arizona law, and the time frames in which the Buyer has…

A short sale occurs when the net proceeds from the sale of their home are insufficient to pay off the seller’s loan obligation and closing cost.   Closing costs can consist and…

Click Here: https://youtu.be/EGiX1LkTOsw   BUYER’S BROKER DOES NOT HAVE TO REDUCE COMMISSION IN SHORT SALE ISSUE: In the MLS the listing broker offers a three percent co-broker commission. The listing…

Click these Hyperlinks below to see information on websites listed in the  Advisory. 1. Mortgage Fraud Prevention                             …

The Purchase contract in a short sale should be contingent upon a short sale agreement acceptable to both the lender and the seller.  AAR has drafted a Short Sale Addendum…

Broker Exclusive Employment Agreement – an agreement for the Buyer and the broker/agent to sign that spells out the type of property the buyer is looking for and the form…

Click Here: https://youtu.be/PgHjtbz9C6E ALL TERMS MUST BE NEGOTIATED FACTS:                   A seller received an offer with the following terms: Section 2j, Seller Concessions- “Seller agrees to pay up to 1.5% of…

Click Here: https://youtu.be/XMr8BoMnIik   Cybercriminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing and sophisticated. Always independently confirm wiring instructions in person or…

  Live Buyer Advisory Link LISTING BROKER NOT REQUIRED TO DISCLOSE EVIDENCE OF DRUG USE IN THE HOME ISSUE: The seller lives in New York and is selling an investment…

  Buyer Attachment Buyer is reminded to: Read the entire contract before signing Review Section 4a (SPDS) Review the Inspection Paragraph (see Section 6a) Confirm the ability to obtain insurance…

Section 1.a Lines 1-4 All parties to the contract must be named.  If you are not 100% confident of the Seller’s legal names, it is permissible to check the “as…

Additional Clause Addendum – a compilation of the most commonly used contract clauses. Agents can print out this form, check the box next to the clause that applies and attach…

Buyer Contingency Addendum – to be used when the underlying purchase contract is to be contingent upon one of the following two scenarios: (1) the Buyer accepting an offer to…

Warning Please Read:   It is required for the timer to run out before submitting the quiz for grading.

SOLAR LEASE / SOLAR LOAN ASSUMPTION ADDENDUM FAQS Click Here: https://youtu.be/ANFojub1Ui0 Q1: In which transactions should the new Solar Assumption Addendum be used? A1: The form is designed to apply to…

Domestic Water Well Addendum – used to provide notice to the Buyer that the Buyer can expect to receive a Domestic Water Well/Use Addendum SPDS. Essentially, this language replaces language…

Onsite Wastewater Treatment Facility Addendum – disclosure to the Buyer that an Onsite Wastewater Treatment Facility exists on the property and outlines what information and in what time frames the…

The financing section of the contract is one of the most difficult sections of the contract for agents to understand and clearly explain to their clients. In brief, the financing…

The Pre-Qualification form plays a very important role in the purchase contract.  It is the Pre-Qualification form that provides the Seller with critical information about the viability of the Buyer’s…

Unfulfilled Loan Contingency Notice – a generic form used by a Buyer to notify the proper parties of a residential resale real estate contract of an unfulfilled loan contingency. (Rev.…

Appraisal Contingency Notice – if used with the Residential Resale Real Estate Purchase contract, this form allows the Buyer the opportunity to continue or not continue with the purchase of…

The title and escrow section of the contract is important because it sets forth the instructions for the title company, which bears the responsibility for correctly accounting for all of…

The Disclosure section addresses the disclosures that the seller is obligated to deliver to the buyer according to the terms of the contract. Section 4.a Lines 154-156 The seller is…

The risks associated with the warranties section of the contract include: Disputes arising from the seller’s failure to understand/comply with their obligations Disputes due to the buyer failing to understand…

Introduction Due diligence is one of the areas where the professionalism of an agent has a chance to shine.  It’s also where the inexperience or unprofessionalism of the agent can…

Residential Buyer’s Inspection Notice and Seller’s Response (BINSR) – directly addresses the inspection period in the Residential Purchase Contract and provides for the Buyer to respond to a home inspection…

Section 6.g Lines 247-251 Buyer is tasked with investigating all state, county, and municipal pool barrier regulations. Buyer acknowledges receipt of Arizona Department of Health Services approved private pool safety…

Section 6.h Lines 252-259 Buyer acknowledges that Brokers are not qualified or licensed to conduct due diligence with respect to the premises or the surrounding area Buyer is advised to…

Section 7.a Lines 310-314 The basic intention of Section 7a. is to provide a party with an opportunity to cure a potential breach of the contract. If a party fails…

Cure Period Notice – used when a cure notice is required pursuant to the Residential Resale Real Estate Purchase or Vacant Land Purchase contract. (Rev. 2/09) When a party to…

What are the risks associated with the Additional Terms and Conditions Section of the agreement? Improper calculation of time periods Improper notice Ineffective cancellation notice  Section 8.a Lines 344-389  …

Counter Offer – used to make counter offers to initial purchase offers. (Rev. 02/11)

Multiple Counter Offer – used when making counteroffers to multiple parties. (Rev. 02/12) FACTS: A Seller receives an offer from Buyers A, B, and C. Seller sends a Multiple Counter-Offer…

Addendum – used to add additional terms to an existing contract or when there is not sufficient room on a purchase contract to include all the terms being offered. (Rev.…

Buyer Pre-closing Walkthrough – The form is intended to encourage buyers to conduct a pre-closing walkthrough of the premises to be purchased and document their findings in a manner easily conveyed…

AAR  Standard Forms! Below is a list of AAR’s forms accompanied by a short description. A sample of each form can be found by clicking on the name of the…

Residential Lease Agreement – used by tenants and landlords to rent a residential dwelling. (Rev. 02/14) A BUYER MUST HONOR AN EXISTING LEASE AFTER CLOSE OF ESCROW FACTS:                     A listing…

  A RESIDENTIAL TENANT MUST ALLOW THE HOME TO BE SHOWN ON A REASONABLE BASIS WITH AT LEAST 48 HOURS NOTICE FACTS: The single-family residence, which is rented to a…

  WHERE A TENANT COMMITS A FELONY IN THE LEASED PREMISES, THE LANDLORD MAY IMMEDIATELY TERMINATE LEASE FACTS: A murder has taken place at the rental property. The tenant has…

  LANDLORD MUST REPAIR PLUMBING PROBLEMS ISSUE: The dishwasher is leaking, and the refrigerator ice machine is not working. The landlord is refusing to repair these problems. Does the landlord…