The Subdivision Public Report
Developers are required to give new home buyers in a subdivision an Arizona Department of Real Estate ("ADRE") Public Report. The Public Report should be read before signing any contract to purchase a new home. Although some of the information becomes outdated or is no longer accurate, subsequent buyers may also benefit from reviewing the Public Report. Public Reports dating from January 1, 1997, are now or will be available on the ADRE website at http://159.87.254.2/publicdatabase\ . The purpose of the public report is to point out material information about the development. For example, the section of the Public Report entitled "Adjacent Lands and Vicinity" will disclose adjacent land uses that may be of concern. Note however, that the Public Report is prepared by the subdivider, could be inaccurate, and should be verified. The ADRE does not independently verify the information in the Public Report. Additional information about the Public Report may be found on the ADRE website at www.re.state.az.us/checklist.html

Seller's Property Disclosure Statement ("SPDS")
Most sellers provide a SPDS. This document covers a variety of questions for the seller to answer about the property and its condition. A buyer should carefully review the SPDS and verify those statements of concern. The ADRE advises: "Read the seller's property disclosure report, and check every item on it. Ask to see receipts for repairs to the home…. Look for stains on the ceilings or carpets that might indicate water damage. Read the purchase contract carefully to determine if there are any deadlines for challenging the seller's disclosure report or for having your own inspections conducted." www.re.state.az.us/checklist.html. A real estate agent is not responsible for verifying the accuracy of the items on the SPDS. If the real estate agent is aware of a misrepresentation, the agent is required to disclose it to their client, but the agent is not required to confirm all the information on the report. Remember, your review of the SPDS is not a substitute for professional inspections.

The ADRE advises: "Read the deed restrictions, also called CC&Rs (covenants, conditions and restrictions). You might find some of the CC&Rs are very strict, especially those addressing landscaping, RV parking, play equipment, satellite antennas, and other common amenities -- particularly if the subdivision is governed by a homeowner's association." www.re.state.az.us/checklist.html  A short but informative document on the purpose and effect of CC&Rs may be read at www.realtor.com/BASICS/condos/ccr.asp  Buyers should consult legal counsel if uncertain of the application of particular provisions in the CC&Rs.

Homeowner’s Association ("HOA") Governing Documents
In addition to CC&Rs, HOAs may be governed by Articles of Incorporation, Bylaws, Rules and Regulations, and often architectural control standards. The HOA is in place to enforce these rules and to preserve the value of property in the condominium or planned community. Read and understand these documents. Also be aware that some HOAs impose fees that must be paid when the property is sold, so it is important to ask if the purchase of the property will result in any fees. Condominium and planned community HOAs are also regulated by Arizona statutes; however, they are not under the jurisdiction of the Department of Real Estate. If you have questions about your rights and remedies regarding homeowner’s associations or community associations, read the information provided at www.re.state.az.us/communityassoc.html .

HOA Disclosures
If purchasing a resale home in a condominium or planned community, the seller (if fewer than 50 units in the community) or the HOA (if there are 50 or more units) must provide the buyer with a disclosure containing a variety of information, including the principal contact for the association, assessments, the money held by the association as reserves and, if the statement is being furnished by the association, a statement as to whether the records of the association reflect any alterations or improvements to the unit that violate the declaration. See www.azleg.state.az.us/ars/33/01260.htm  and www.azleg.state.az.us/ars/33/01806.htm  for laws detailing these requirements.

Title Report or Title Commitment
The title report or commitment contains important information and is provided to the buyer by the title/escrow company or agent. This report or commitment lists documents that are exceptions to the title insurance (Schedule B Exceptions). Schedule B Exceptions may include encumbrances, easements, and liens against the property, some of which may affect the use of the property, such as a future addition or swimming pool. Make sure you receive and review all of the listed documents. Questions about the title commitment and Schedule B documents may be answered by the title or escrow officer, legal counsel, or a surveyor. General information regarding title issues may be found at www.alta.org/consumer/questions.cfm  or obtained from the title/escrow company employed in the transaction.

Loan Documents
Unless a buyer is paying cash, the buyer must qualify for a loan in order to complete the purchase. A buyer should complete a loan application with a mortgage broker or a mortgage banker before making an offer on a property if at all possible and, if not, immediately after making an offer. It will be the buyer’s responsibility to deposit any down payment and insure that the buyer’s lender deposits the remainder of the purchase price into escrow prior to the close of escrow date. Therefore, make sure you get all requested documentation to your lender as soon as possible. For information on loans and the lending process, visit the following websites:
Ginnie Mae: www.ginniemae.gov/2_prequal/intro_questions.asp?Section=YPTH
HUD: www.hud.gov/
Mortgage Bankers Association: www.mbaa.org/
National Association of Mortgage Brokers: www.namb.org/

Home Warranty Policy
A home warranty may be part of the sale of the home. Buyers should read the home warranty document for coverage and limitation information. Be aware that pre-existing property conditions are generally not covered under these policies.

Affidavit of Disclosure
If the buyer is purchasing five or fewer parcels of land (whether improved or vacant), other than subdivided land, in an unincorporated area of a county, the seller must furnish the buyer with an Affidavit of Disclosure. This is required by statute. A sample form is located at www.aaronline.com/documents/affidavit.aspx

Lead-Based Paint Disclosure Form
If the home was built prior to 1978, the seller must provide the buyer with a lead-based paint disclosure form.Information about lead-based paint may be obtained at www.re.state.az.us/leadfacts.html  or www.epa.gov/lead/ .

County Assessor’s/Tax Records
The county assessor's records contain a variety of valuable information, including the assessed value of the property for tax purposes and some of the physical aspects of the property, such as the reported square footage. The date built information in the Assessor’s Records can be either the actual or effective/ weighted age if the residence has been remodeled. All information on the site should be verified for accuracy.

Information is available on county websites:

• Coconino: http://coconino.az.gov/Assessor.aspx

• Maricopa: www.maricopa.gov/assessor and http://treasurer.maricopa.gov/parcels/

• Pima: http://www.co.pima.az.us

• Yavapai: www.co.yavapai.az.us/departments/DepartmentIndex.asp

• For other counties: www.az.gov/webapp/portal/

Professional Home Inspection Report
For the buyer's protection, the importance of having a home inspected by a professional home inspector cannot be over-emphasized, regardless of whether the home is new or a resale. A home inspection is a visual physical examination, performed for a fee, designed to identify material defects in the home. The home inspector will generally provide the buyer with a report detailing information about the home's condition. The inspector and the report will point out existing problems and possible potential problems. The buyer should carefully review this report with the inspector and ask the inspector about any item of concern. Pay attention to the scope of the inspection and any portions of the property excluded from the inspection.

Home inspectors must be licensed by the State of Arizona. A list of certified home inspectors may be found at the Arizona Board of Technical Registration website, www.btr.state.az.us . Additional information on inspections may be found at the American Society of Home Inspectors website, www.ashi.com  and guidance on hiring a home inspector may be found at http://www.realtor.com/basics/buy/inspnegot/hire.asp?gate=realtor&poe=propertystore

Termites and Other Wood Destroying Insects and Organisms
Termites are commonly found in some parts of Arizona. Investigating evidence of termites or other wood infestation is the job of the pest inspector. The Structural Pest Control Commission ("SPCC") regulates these inspectors and can provide the buyer with information regarding past termite treatments on a property. The SPCC publication, What You Should Know About Wood Infestation Reports, can be found at www.sb.state.az.us/wir.htm . Additional information may be obtained at the SPCC website at www.sb.state.az.us   or by calling 800-223-0618.

Common Physical Conditions In The Property A Buyer Should Investigate
Every buyer and every property is different, so the physical property conditions requiring investigation will vary.

Repairs and New Construction
The seller may have made repairs or added a room to the property. For example, the property may have an obvious improvement, covered patio, or garage, or may have been remodeled. The buyer should feel comfortable that the work was properly done or have an expert evaluate the work. Request copies of permits, invoices or other documentation regarding the work performed. The Registrar of Contractors' ("ROC") publication, Hiring a Licensed Contractor, is available on the ROC website at www.rc.state.az.us/Consumer_menu.html . The Arizona Chapter of the National Association of the Remodeling Industry may be contacted at http://aznari.com/ . For information regarding permits, contact the city or county building department.

Roof
The inspector might recommend that you have the roof further inspected by a licensed roofer. If the roof is 10 years old or older, a roof inspection by a licensed roofer is highly recommended. See the ROC information on hiring a licensed contractor online at www.rc.state.az.us/Consumer_menu.html  or the Arizona Roofing Contractors Association at www.azroofing.org .

Swimming Pools and Spas
If the property has a pool or a spa, the home inspector might determine the cleaning system is not working properly or may exclude the pool or spa from the general inspection. It would then be necessary to have a pool or spa company inspect the pool or spa and/or evaluate any problem. See the Arizona Chapter of the National Spa & Pool Institute at www.azpoolspas.org .

Swimming Pool Barriers
Each city and county has its own swimming pool barrier ordinance. Pool barrier contact information for Arizona cities and counties may be found at www.aaronline.com/documents/pool_contacts.aspx . The Arizona Department of Health Services Private Pool Safety notice may be found at www.hs.state.az.us/diro/admin_rules/pool_rules.htm . The state law on swimming pools is located at www.azleg.state.az.us/ars/36/01681.htm .

Square Footage
Square footage on the MLS printout or as listed by the county assessor's records is often only an estimate and generally should not be relied upon for the exact square footage in a property. An appraiser or architect can measure the property's size to verify the square footage. If the square footage is important, you should have it confirmed by one of these experts during the inspection period in a resale transaction and prior to executing a contract in a new home transaction. A list of appraisers may be found at the Arizona Board of Appraisal, www.appraisal.state.az.us/Directory/directory.html . A list of architects may be found at the Board of Technical Registration, www.btr.state.az.us .

Septic Systems and Other On-Site Wastewater Treatment Facilities
If the home is not connected to a public or private sewer, it is probably served by an on-site wastewater disposal system (a conventional septic tank or alternative system). Starting July 1, 2006, the Arizona Department of Environmental Quality (ADEQ) requires a transfer of ownership inspection for any on-site system, regardless of when it was constructed. After a property is transferred, the new owner is responsible to submit a completed Notice of Transfer form and a transfer fee. Contractual terms relating to the inspection and transfer process are contained in AAR’s On-Site Wastewater Treatment Facility Addendum. This Addendum should accompany your contract offer for any property served by an on-site system. For information on current inspection and transfer of ownership requirements, contact Yavapai County Environmental Unit at 500 S. Marina Street, Prescott. Tel 928-771-3214 or the Arizona Department of Environmental Quality. www.adeq.state.az.us/environ/water/permits/wastewater.html .

ADEQ rules governing transfer of ownership inspections can be accessed at:
http://www.azsos.gov/public_services/Title_18/18-09.htm  (scroll down to Arizona Administrative code R18-9-A316). The Report of Inspection form that must be completed by a qualified inspector can be found at http://www.azdeq.gov/environ/water/permits/download/inspection.doc . See the Notice of Transfer form at http://www.azdeq.gov/environ/water/permits/download/presale.doc .

A local source of Department of Water Resources information is the office of the Prescott Active Management area (AMA), located at 2200 E Hillsdale Road (off Hwy 89), Prescott. Tel 928-778-7202. This office has staff persons to talk to. They also have the forms and instructions relevant to wells and water uses when a property is sold as well as information about watersheds affected by the Adjudication proceedings. Additionally, the Verde Valley Water Users assists members in matter pertaining to the Gila River System Adjudication.
http://www.verdevalleywaterusers.org/ .

For information on wells and assured/adequate water, go to:
http://www.azwater.gov/dwr/content/Find_by_Program/Wells/default.htm
http://www.azwater.gov/WaterManagement_2005/Content/OAAWS/default.asp
http://www.azwater.gov/dwr/Content/Find_by_Program/Adjudications/default.htm

Soil Problems
The soil in some areas of Arizona has "clay-like" tendencies, sometimes referred to as "expansive soil." Other areas are subject to fissures, subsidence and other soil conditions. For additional information on earth fissures, visit: http://www.azwater.gov/dwr/Content/Hot_Topics/Earth_Fissures_in_Arizona/Earth_Fissures_in_Arizona.pdf . Properties built on such soils may experience significant movement causing a major problem. If it has been disclosed that the property is subject to any such soil conditions or if the buyer has any concerns about the soil condition or observes evidence of cracking, the buyer should secure an independent assessment of the property and its structural integrity by a licensed, bonded, and insured professional engineer. To investigate areas in Arizona where expansive soils exist, go to www.az.nrcs.usda.gov (search "shrink/swell") or www.azgs.az.gov ("Geologic Hazards"). A list of state certified professional engineers and firms can be found at www.btr.state.az.us .

Pests
Cockroaches, rattlesnakes, black widow spiders, scorpions, termites and other pests are common in parts of Arizona. Fortunately, most pests can be controlled with pesticides. Scorpions, on the other hand, may be difficult to eliminate. If the buyer has any concerns or if the SPDS indicates the seller has seen scorpions or other pests on the property, you should seek the advice of a pest control company. A source of information on scorpions may be found at www.desertusa.com/oct96/du_scorpion.html . For information on roof rats, which have been reported in some areas, go to www.maricopa.gov/envsvc/WATER/VECTOR/roofrats.asp . For information on termites or bark beetles, which have been reported some forested areas, see www.sb.state.az.us .

Endangered and Threatened Species
Certain areas in the state may have issues related to federally listed endangered or threatened species that may affect land uses. Further information may be obtained by going to the following US Fish and Wildlife website www.fws.gov  or contact the appropriate Planning/Development Service department.

Deaths and Felonies on the Property
An Arizona law states that sellers and real estate licensees have no liability for failure to disclose to a buyer that the property was ever the site of a natural death, suicide, murder or felony; see www.azleg.state.az.us/ars/32/02156.htm . This information is often difficult to uncover; however, the local law enforcement agency may be able to identify calls made to the property address.

Mold
Mold has always been with us, and it is a rare property that does not have some mold. However, over the past few years a certain kind of mold has been identified as a possible contributor to illnesses. Allergic individuals may experience symptoms related to mold. Mold growth is found underneath materials where water has damaged surfaces, or behind walls. A pamphlet, Mold in my Home: What Do I Do?, prepared by the Arizona Department of Health Services, Office of Environmental Health states: "If you can see mold, or if there is an earthy or musty odor, you can assume you have a mold problem." www.hs.state.az.us/phs/oeh/invsurv/air_qual/mold_contents.htm . The Environmental Protection Agency (EPA) and Centers for Disease Control and Prevention websites also contain valuable information:

• www.epa.gov/iaq/molds/moldresources.html

• www.cdc.gov/mold/default.htm

Other Indoor Air Quality Concerns
Radon gas and carbon monoxide poisoning are two of the more common and potentially serious indoor air quality ("IAQ") concerns. Both of these concerns can be addressed by the home inspector, usually for an additional fee. As for the many other IAQ concerns, the EPA has a host of resource materials and pamphlets available at www.epa.gov/iaq/iaqinfo.html  and www.epa.gov/iaq/pubs/index.html .

Property Boundaries
If the property boundaries are of concern, a survey may be warranted. For example, a survey may be advisable if there is an obvious use of property by others (i.e., a well-worn path across a property and/or parked cars on the property) or fences or structures of adjacent property owners that appear to be built on the property. For more information, visit the Arizona Professional Land Surveyors website at www.azpls.org . A list of surveyors may be obtained from the Board of Technical Registration at www.btr.state.az.us .

• Maricopa County : www.fcd.maricopa.gov/Maps

• Pima County: www.rfcd.pima.gov

• Other parts of the state: www.azgs.state.az.us/flood_links.htm

• FEMA's Flood Map Service Center: www.fema.gov/hazard/flood/index.shtm

For more detailed information on homeowner’s insurance, please read "The New Reality of Property Insurance – What You Should Know" at www.aaronline.com/documents/insurance.pdf . For additional insurance information or to file a complaint against an insurance company, visit the Arizona Department of Insurance website at www.id.state.az.us . Property owners may request a five year claims history from their insurance agent or purchase a C.L.U.E. report online at www.choicetrust.com  or by calling 866-527-2600.

Plumbing: Check functionality. Also, a national class action suit has been settled, providing relief for qualifying leaks in polybutylene pipe (PB). For more information, see www.pbpipe.com  or www.aaronline.com/documents/polyb.aspx  .

Cooling/Heating: Make sure the cooling and heating systems are adequate. Arizona State Chapter affiliate of the Air Conditioning Contractors of America: www.acca-az.org . As of 1/23/06, manufacturers that produce residential air conditioners and heat pumps must meet the new government minimum standard of 13 seasonal energy efficiency rating or "SEER" standard for residential central air conditioners. Check with licensed contractors and your home warranty company about the implications of this requirement.

Conditions affecting the area surrounding the property the buyer should investigate
Every property is unique; therefore, important conditions vary.

Environmental Concerns
It is often very difficult to identify environmental hazards. For environmental information, search the ADEQ website at www.adeq.state.az.us . The ADEQ website contains information regarding the locations of open and closed landfills (Solid Waste Facilities) at www.adeq.state.az.us/environ/waste/solid/other.html  and wildfire information at www.adeq.state.az.us/function/about/wildfire.html  as well as air quality information, water quality information and more.

Superfund Sites
There are numerous sites in Arizona where the soil and groundwater have been contaminated by improper disposal of contaminants. To check if a property is in an area designated by the ADEQ as requiring cleanup, see www.adeq.state.az.us/environ/waste/sps/phx.html  for available maps to view. The EPA also has information on Federal sites at http://www.epa.gov/superfund/spanish/index.htm  (Spanish).

Freeway Construction and Traffic Conditions
Although the existence of a freeway near the property may provide highly desirable access, sometimes it contributes to undesirable noise. To search for roadway construction and planning, go to the Arizona Department of Transportation ("ADOT") website at www.azdot.gov/Highways . Check ADOT maps to find the nearest future freeway routes and roads in the area slated for widening. For traffic conditions, visit www.az511.com .

Crime Statistics
Crime statistics, while an imperfect measurement at best, nevertheless provide some indication of the level of criminal activity in an area. To check the crime statistics for the cities of Phoenix, Tempe, Glendale, Mesa, Scottsdale, Chandler, Gilbert and Peoria, go to www.faxnet1.org . A visit or phone call to other law enforcement agencies may be required. For a list of all Arizona city links, go to www.azleague.org . To find crime statistics on their websites, you may need to search for "crime statistics."

Sex Offenders
Since June 1996 Arizona has had a registry and community notification program for convicted sex offenders. This information may be accessed at www.azsexoffender.org . Prior to June 1996, registration was not required, and only the higher risk sex offenders are on the website. The presence of a sex offender in the vicinity of the property is not a fact that the seller or real estate agent is required to disclose.

Military and Public Airports
The legislature has mandated the identification of areas in the immediate vicinity of military and public airports that are susceptible to a certain level of noise from aircraft. The boundaries of these areas have been plotted on maps that are useful in determining if a property falls within one of these areas. The map for military airports may be accessed at www.re.state.az.us/airport.html ; view maps for many of the public airports at www.re.state.az.us/bulletin/airports/airportintro.html . These maps are intended to show the areas subject to the preponderance of airport-related noise from a given airport. Periodic over-flights that may contribute to noise cannot usually be determined from these maps.

Forested Areas
Life in a forested area has unique benefits and concerns. For information on protecting your property from wildfire, go to: http://www.firewise.org/  or http://www.land.state.az.us/divisions/fire.htm . See also: Arizona Firewise Communities: http://cals.arizona.edu/firewise/  Contact county/city fire authority for information on issues particular to your community.

• Phoenix: www.phoenix.gov/PLANNING/index.html

• Scottsdale: www.scottsdaleaz.gov/Topic.asp?catID=1

• Tucson: www.ci.tucson.az.us/planning.html

• Yavapai County: http://www.co.yavapai.az.us/

• Prescott: http://www.cityofprescott.net/

• Other cities and towns: www.azleague.org

Schools
Although there is no substitute for an on-site visit to the school to talk with principals and teachers, there is a significant amount of information about Arizona's schools on the Internet. Public and charter school information may be accessed at www.ade.state.az.us . The ADRE advises: "Call the school district serving the subdivision to determine whether nearby schools are accepting new students. Some school districts, especially in the northwest part of the greater Phoenix area, have placed a cap on enrollment. You may find that your children cannot attend the school nearest you and may even be transported to another community."

Talk to the Neighbors
Neighbors can provide a wealth of information. Buyers should always talk to the surrounding residents about the neighborhood and the history of the property the buyer is considering for purchase.

For Information About Arizona Government
Links to state agency, city and county websites: www.az.gov . Maps and information based on address (Geographic Information System): www.az.gov/webapp/govinfo/main.do

For Information About Fair Housing And Disability Laws
The Fair Housing Act prohibits discrimination in the sale, rental and financing of dwellings based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). For more information, visit HUD’s Fair Housing/Equal Opportunity Website at www.hud.gov/groups/fairhousing.cfm . For information on the Americans with Disabilities Act visit www.usdoj.gov/crt/ada/adahom1.htm . For the Arizona Office for Americans with Disabilities, visit www.azada.gov .

• Arizona Association of REALTORS® ("AAR"): www.aaronline.com  (Consumer Assistance)

• Arizona Department of Real Estate ("ADRE"): www.re.state.az.us  (Consumer Information)

• The National Association of REALTORS® ("NAR"): www.realtor.com
   

• NAR’s Ten Steps to Homeownership 

• NAR’s Preparing for Homeownership