Arizona Distressed Property Documents

With the downturn of the real estate market and the volume of Short Sale and Foreclosure transactions, the Arizona Department of Real Estate has drafted residential real estate documents to standardize and guide the real estate community through the distessed property transactions.

The Arizona Department of Real Estate produced a groundbreaking document. The Short Sale Seller Advisory was drafted in an effort fo provide information to homeowners about the issues and risks involved in a short sale situation. Before Proceeding with a Short Sale, The homeowner is provided with some basic information and resources of which the homeowner should be aware before proceeding with a short sale.

These are some of the additional real estate documents requried for a distressed property sale in Arizona :

Whether the disstressed sale is a foreclosure or short sale, the “AS IS” Addendum is required with the purchase contract. It is a document that used to describe what the buyer and seller agree to when the property is sold “As Is”. In these distressed property transactions, the parties involved include not only the buyer and the seller but also the lender. And, the lender has the final say regarding the eventual sale. The lender will not fix issues at the property and will provide no warranties. The property is purchased on a ‘what you see is what you get’ or ‘as is’ basis.

The Short Sale transaction requires more disclosure.

For the seller, there is the Short Sale Addendum to Listing Contract – addendum to the listing agreement which addresses the information a seller should consider before entering into a short sale agreement.

When a buyer makes and offer, the Short Sale Addendum to the Residential Resale Real Estate Purchase Contract – addendum to the residential contract for use in a short sale transaction. The Short Sale Addendum provides that the Contract is contingent upon an agreement between the seller and the lender, acceptable to both, to sell the home to the buyer for less than the loan amount

Arizona Distressed Property Documents provide information and clarification of the short sale or foreclosure transaction.

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