WE NOTICE OUR SELLERS And Affiliated Business Arrangement Disclosure Statement

Transcription

1 WE NOTICE OUR SELLERS And Affiliated Business Arrangement Disclosure Statement RECOMMENDATION FOR DISCLOSURES A modern real estate transaction requires the disclosure of important material facts relating to the sale of your property. Attached is Long Realty s disclosure booklet entitled, We Notice Our Sellers, as a special service to you. Long Realty urges you to read all the information contained in this booklet. We also urge you to conduct all property inspections that you believe are necessary to make an informed decision on what to disclose about your property. When making disclosures on your property, Long Realty urges you to check out the following: In the Seller Property Disclosure Statement (SPDS), answer each question to the best of your knowledge and do not leave any blank answer boxes. Carefully read all contract documents, addenda, counter offers, repair requests and written disclosures. Polybutylene plumbing for homes built between 1978 and Mold or conditions that may lead to mold. Insurance loss history of the property (obtain a CLUE Report or its equivalent). Environmental factors like radon, asbestos, lead based paint, pet odors and carpet stains. History of cracking, settlement, soil problems or related repairs. Property lines, encroachments, building permits for home additions and easements over property. Square footage measurement of the home and garage. Condition of a pool or spa and applicable pool barrier regulations. Roof condition and history of water penetration into the property. Transfer requirements, assessments and related costs if located in an Homeowners Association. Please investigate these items before you complete your SPDS. Failure to thoroughly disclose items such as roof leaks, mold, polybutylene plumbing, cracking or settlement prior to the close of escrow may result in a buyer s claim or litigation. Long Realty Company and its sales associates do not have expertise as environmental or home inspectors and cannot give you advice on these items. However, we always stand ready to assist you in obtaining the necessary facts you need to make accurate disclosures about your property. WHAT TO LOOK FOR INSIDE: PUT 80 YEARS OF EXPERIENCE TO WORK FOR YOU LongRealty.com Affiliated Business Arrangement Disclosure Statement Please return signed receipt to your agent. Information to Look For Regarding Property Disclosures FEMA Flood Zone Map Modernization and Designations Fair Housing Disclosure Pool Safety Notice Military & Public Airport Area Maps Superfund Map Metro-Tucson Program Sites Good Funds Law in Arizona Helpful Telephone Numbers SELLER S RECEIPT FOR WE NOTICE OUR SELLERS / / SELLER(S) DATE Long Realty Company 2008 LONG REALTY COPY

2 AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE NOTICE: This is to give you notice that Roy H. Long Realty Company, Inc., an Arizona Corporation, doing business under the name Long Companies/Long Realty Company is wholly owned by HomeServices of America, Inc. Long Realty Company has a business relationship with: Long Title Agency, Long Mortgage, Long Insurance, American Home Shield and 2-10 Home Warranty. Long Title Agency is an Arizona Limited Liability Company which is jointly owned by Long Realty Company (55%) and Title Data, L.L.C. (45%), Long Mortgage is the dba for HomeServices Lending, LLC., a Minnesota Limited Liability Company which is jointly owned by HMSV Financial Services, Inc. (49.9%) and Wells Fargo Ventures, LLC (50.1%) and Long Insurance is a dba for HomeServices Insurance, Inc., a Nebraska corporation. Long Realty has contractual relationships with American Home Shield Corporation and 2-10 Home Buyers Resale Warranty Corporation. Because of these relationships, this referral may provide Long Realty Company with a financial or other benefit. Set forth below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed service provider(s) as a condition for the sale of the subject property. THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICE AND THE BEST RATE FOR THESE SERVICES. Title Insurance (Lender s Coverage) Title Insurance (Owner) Title Settlement or Closing Fee Mortgage Processing and Closing Fee Mortgage Loan Origination Fee Mortgage Loan Discount Fee Endorsement Fee... Wire Transfer Fee.. Appraisal Fee.. Courier/Express Delivery Fees. Homeowners Insurance Premium (1st Year) Home Warranty. Premiums may range from $720 $3600 and are based on the purchase price. Premiums may range from $660 - $3300 and are based on the amount of the loan and the lender s requirements. $250 to $1,000 Contact your Escrow Company $764 Contact your Loan Officer. $0 up to 1.0% of the loan amount Contact Your Lender $0 up to 7.0% of the loan amount Contact Your Lender $50 to $200 $20 to $50 $300 to $550 $50 to $100 Policy premiums range from $300-$1500 depending on product and associated risk assessments (e.g. age of home, credit score and past claims of the insured, etc.) $350 to $1,230 Contact your Home Protection Company for options and pricing. While we recommend obtaining these services from Long Title Agency, Long Mortgage, Long Insurance, American Home Shield and/or 2-10 Home Warranty, you are NOT required to use these companies as a condition for the financing or purchase of the subject property. Long Realty Company Sales Associates do not receive any compensation for referring these affiliated services companies. ACKNOWLEDGMENT: I/we have read this disclosure form, and understand that Long Realty Company is referring me/us to purchase the above-described settlement service(s) and may receive a financial or other benefit as the result of this referral. I give my permission to have representatives from the above companies contact me. Name (Date) Name (Date) LONG REALTY COMPANY NOVEMBER 2011

3 PUT 80 YEARS OF EXPERIENCE TO WORK FOR YOU LongRealty.com WE NOTICE OUR SELLERS And Affiliated Business Arrangement Disclosure Statement RECOMMENDATION FOR DISCLOSURES A modern real estate transaction requires the disclosure of important material facts relating to the sale of your property. Attached is Long Realty s disclosure booklet entitled, We Notice Our Sellers, as a special service to you. Long Realty urges you to read all the information contained in this booklet. We also urge you to conduct all property inspections that you believe are necessary to make an informed decision on what to disclose about your property. When making disclosures on your property, Long Realty urges you to check out the following: In the Seller Property Disclosure Statement (SPDS), answer each question to the best of your knowledge and do not leave any blank answer boxes. Carefully read all contract documents, addenda, counter offers, repair requests and written disclosures. Polybutylene plumbing for homes built between 1978 and Mold or conditions that may lead to mold. Insurance loss history of the property (obtain a CLUE Report or its equivalent). Environmental factors like radon, asbestos, lead based paint, pet odors and carpet stains. History of cracking, settlement, soil problems or related repairs. Property lines, encroachments, building permits for home additions and easements over property. Square footage measurement of the home and garage. Condition of a pool or spa and applicable pool barrier regulations. Roof condition and history of water penetration into the property. Transfer requirements, assessments and related costs if located in an Homeowners Association. Please investigate these items before you complete your SPDS. Failure to thoroughly disclose items such as roof leaks, mold, polybutylene plumbing, cracking or settlement prior to the close of escrow may result in a buyer s claim or litigation. Long Realty Company and its sales associates do not have expertise as environmental or home inspectors and cannot give you advice on these items. However, we always stand ready to assist you in obtaining the necessary facts you need to make accurate disclosures about your property. WHAT TO LOOK FOR INSIDE: Affiliated Business Arrangement Disclosure Statement Please return signed receipt to your agent. Information to Look For Regarding Property Disclosures FEMA Flood Zone Map Modernization and Designations Fair Housing Disclosure Pool Safety Notice Military & Public Airport Area Maps Superfund Map Metro-Tucson Program Sites Good Funds Law in Arizona Helpful Telephone Numbers Long Realty Company 2008

4 AFFILIATED BUSINESS ARRANGEMENT DISCLOSURE NOTICE: This is to give you notice that Roy H. Long Realty Company, Inc., an Arizona Corporation, doing business under the name Long Companies/Long Realty Company is wholly owned by HomeServices of America, Inc. Long Realty Company has a business relationship with: Long Title Agency, Long Mortgage, Long Insurance, American Home Shield and 2-10 Home Warranty. Long Title Agency is an Arizona Limited Liability Company which is jointly owned by Long Realty Company (55%) and Title Data, L.L.C. (45%), Long Mortgage is the dba for HomeServices Lending, LLC., a Minnesota Limited Liability Company which is jointly owned by HMSV Financial Services, Inc. (49.9%) and Wells Fargo Ventures, LLC (50.1%) and Long Insurance is a dba for HomeServices Insurance, Inc., a Nebraska corporation. Long Realty has contractual relationships with American Home Shield Corporation and 2-10 Home Buyers Resale Warranty Corporation. Because of these relationships, this referral may provide Long Realty Company with a financial or other benefit. Set forth below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed service provider(s) as a condition for the sale of the subject property. THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICE AND THE BEST RATE FOR THESE SERVICES. Title Insurance (Lender s Coverage) Title Insurance (Owner) Title Settlement or Closing Fee Mortgage Processing and Closing Fee Mortgage Loan Origination Fee Mortgage Loan Discount Fee Endorsement Fee... Wire Transfer Fee.. Appraisal Fee.. Courier/Express Delivery Fees. Homeowners Insurance Premium (1st Year) Home Warranty. Premiums may range from $720 $3600 and are based on the purchase price. Premiums may range from $660 - $3300 and are based on the amount of the loan and the lender s requirements. $250 to $1,000 Contact your Escrow Company $764 Contact your Loan Officer. $0 up to 1.0% of the loan amount Contact Your Lender $0 up to 7.0% of the loan amount Contact Your Lender $50 to $200 $20 to $50 $300 to $550 $50 to $100 Policy premiums range from $300-$1500 depending on product and associated risk assessments (e.g. age of home, credit score and past claims of the insured, etc.) $350 to $1,230 Contact your Home Protection Company for options and pricing. While we recommend obtaining these services from Long Title Agency, Long Mortgage, Long Insurance, American Home Shield and/or 2-10 Home Warranty, you are NOT required to use these companies as a condition for the financing or purchase of the subject property. Long Realty Company Sales Associates do not receive any compensation for referring these affiliated services companies. ACKNOWLEDGMENT: I/we have read this disclosure form, and understand that Long Realty Company is referring me/us to purchase the above-described settlement service(s) and may receive a financial or other benefit as the result of this referral. I give my permission to have representatives from the above companies contact me. Name (Date) Name (Date) LONG REALTY COMPANY NOVEMBER 2011

5 WE NOTICE OUR SELLERS INFORMATION TO LOOK FOR when selling a residence, a parcel of vacant land or commercial property and recommendations regarding property disclosures follows below and may require your investigation: 1. SELLER PROPERTY DISCLOSURE STATEMENT (SPDS): Unless otherwise agreed, the seller will provide the buyer with a signed copy of a questionnaire in which the seller discloses all known material facts about the property, including its history of repairs or remediaton and current condition. Your disclosures will be contained on the standard form prepared by the Arizona Association of Realtors for residential, commercial or vacant land/lot properties. 2. LEAD-BASED PAINT HAZARD DISCLOSURE: By law, a seller must provide a written disclosure relating to any knowledge about lead-based paint in a property constructed before JANUARY 1, The buyer must be provided with a 10 day period after receipt of the disclosure to conduct a risk assessment or inspection of the property. A seller should complete the written disclosure at the time the listing employment agreement is signed. 3. HOMEOWNERS ASSOCIATION RESALE NOTICE: By law, the seller must provide the buyer with a resale statement when the property is located within a townhouse, condo or other subdivision governed by a homeowners association. The resale statement provides for the disclosure of a wide range of facts about the association, the subdivision and the residential unit itself. The HOA may charge the seller a fee for this service. 4. FLOOD PLAIN INFORMATION: In many cases, the Flood Plain status of a property must be determined prior to the close of escrow. For a small fee, the seller may order a Flood Plain Status Report from a national flood hazard insurer. It may also be possible to contact Pima County Floodplain Management to obtain available information. Flood hazard status is subject to change over time. See enclosed FEMADisclosure. 5. INFORMATION REQUESTS: Sellers should authorize their Long Realty sales associate to send written requests, when applicable, to a lender or a homeowners association to help obtain updated information on the residential loan balance or payment status, or to verify HOA dues and other related information. 6. RESALE DISCLOSURE AFFIDAVIT: By law, a seller of five or fewer parcels of unsubdivided land in an unincorporated area of a county must furnish a notarized Affidavit of Disclosure to the buyer, at least seven days before the transfer of the property. This requirement applies to parcels even if there is a residence or other improvements built upon them. The Arizona Legislature has approved a standard form for this written disclosure. If you have concerns about the Affidavit, please consult with a legal advisor prior to completing it. 7. CLUE REPORT: If the seller has made an insurance claim(s) against their homeowner s insurance policy in the last five years, this must be disclosed to a buyer in writing, as it may affect the insurability of the property for the buyer. Sellers should obtain a Comprehensive Loss Underwriting Exchange (CLUE) report or its equivalent from their insurance company, or by ordering a report online at or from another qualified vendor, during the listing period. A small fee may be required for a CLUE report. Be prepared to provide social security number, home address and other information that the vendor may require. 8. GOOD FUNDS LAW: By Arizona law, an escrow agent may not disburse money from an escrow account until funds related to the transaction have been deposited and are made good in the escrow depository bank account. The escrow agent cannot provide proceeds to a seller or record a transfer of title until money is available. Application of this law may affect the time needed for recordation, possession or disbursement of sale funds. A copy of Good Funds criteria is included in this pamphlet. 9. OWNER/BUILDER: If you are the owner/builder of a newly constructed home, and not a licensed general contractor, the law requires that you own the home for at least one year from its completion date before you sell the property (ARS ). Please consult with your legal advisor if you are an unlicensed owner/builder who falls into this category to determine how to sell your home and the necessary disclosures to a buyer. 10. SWIMMING POOL BARRIER LAW: Review pool/spa barrier regulations for your area, if applicable. Long Realty Company 2008

6 FEMA DISCLOSURE TO BUYERS AND SELLERS: FLOOD ZONE MAP MODERNIZATION AND DESIGNATIONS The Federal Emergency Management Association (FEMA) has embarked on a nationwide program to modernize and update its current flood hazard maps. The program will also focus on areas within southern Arizona, especially parts of Cochise County, Santa Cruz County and Pima County, particularly areas affecting the Town of Marana. Although FEMA has not made new flood hazard maps for the Town of Marana effective yet, in October 2007 it announced that areas of Marana would be added into floodplain designations, which are associated with a higher risk of flooding and require those residents to purchase flood insurance for their homes and businesses. Areas within Marana under consideration by FEMA include land between the Union Pacific Railroad and the Santa Cruz River and from the county line to Ina Road. Land that also may be included in the FEMA mapping is everything between the Central Arizona Project Canal and the railroad north of Tangerine Road. This area reportedly totals about 10 square miles. To obtain answers to specific questions or to view mapping of these areas, interested parties may contact the Town of Marana at Area maps also may be viewed online at The Town of Marana reports that it is working with others to produce a large-scale drainage study to demonstrate to FEMA that much of the newly designated areas are not actually in the floodplain, a process that began in late FEMA has reportedly granted Marana sufficient time to finish the report for its restudy, before it issues preliminary flood maps for public review. In the interim, concerned Sellers or Buyers in Marana and elsewhere are urged to contact their insurance providers to learn more about insurance obligations in the event FEMA makes its new flood hazard maps effective in the areas referenced above. The information contained in this Disclosure is deemed to be accurate, but should be verified. FAIR HOUSING DISCLOSURE Long Realty Company, its employees and sales associates support the right to Fair Housing for all. We shall not discriminate on the basis of race, color, sex, religion, handicap, familial status, national origin or sexual preference in the selling of residential, lot, land or commercial properties. To report housing discrimination, please contact the Designated Broker for Long Realty Company at or the Arizona Attorney General s Office. LONG REALTY COMPANY DECEMBER 2007

7 AN IMPORTANT NOTICE ABOUT POOL SAFETY* Drowning is a serious threat to young children in Arizona. Young children also suffer from a high number of near drownings that may lead to permanent, severe disability. Most of these incidents occur in the child's own backyard swimming pool. These tragedies must be stopped. To that end, the Arizona Legislature has passed a law requiring that new occupants of dwellings with pools, and persons having a pool installed, receive this safety message about steps to prevent drownings and the legal responsibilities of pool ownership. State of Arizona law requires a barrier between the house and pool.** This law applies to homes with both a child under 6 years of age and a pool built after June 1, This law aims to impede children's access to their own pools. Likewise, all pools must have a barrier to keep out uninvited neighborhood children. Unless a local code provides otherwise***, the barrier must: * Entirely enclose the pool area. * Be at least 5 feet high, measured on the outside of the barrier. * Not have openings, handholds or footholds that can be used to climb the barrier. Wire mesh or chain link fences shall have a maximum mesh size of 1 3/4 inches measured horizontally. * Have no openings through which a sphere 4 inches in diameter can pass. Horizontal components of any barrier shall be spaced not less than 45 inches apart measured vertically, or shall be placed on the pool side of the barrier which shall have no opening greater than one and three-quarter inches measured horizontally. * Be at least 20 inches from the water's edge. * Prevent direct access from the house to the pool. Gates must be self-closing and self-latching with the latch located at least 54 inches above the ground or on the pool side with a release mechanism at least 5 inches below the top of the gate and no opening greater than 1/2 inch within 24 inches of the release mechanism, or be secured by a padlock or similar device which requires a key, electronic opener or integral combination which can have the latch at any height. Gates must open outward from the pool. If a wall of the home forms part of the barrier, one of the following must be used: * A barrier at least 4 feet high between the home and the pool which otherwise meets all of the requirements for a barrier set forth above. * A motorized, safety pool cover which does not require manual operation other than the use of a key switch which meets the American Society of Testing and Materials (ASTM) emergency standard (now ASTM #F ). * Self-latching devices on all doors with direct access to the pool. Such latches shall meet the requirements for latches on self-closing gates set forth above. * Emergency escape or rescue windows from sleeping rooms with access to the pool shall be equipped with a latching device not less than 54 inches above the floor. All other openable dwelling unit or guest room windows with similar access shall be equipped with a screwed in place wire mesh screen, or a keyed lock that prevents opening the window more than 4 inches, or a latching device located not less than 54 inches above the floor. An above-ground swimming pool shall have non-climbable exterior sides which are a minimum height of 4 feet. Any access ladder or steps shall be removable without tools and secured in an inaccessible position with a latching device not less than 54 inches above the ground when the pool is not in use. * Approved pursuant to Arizona Revised Statutes and A.A.C. R ** "Pool" means an in-ground or above-ground swimming pool or other contained body of water 18 or more inches in depth, wider than 8 feet and intended for swimming. *** Phoenix, Peoria, Tucson, and some other cities, and unincorporated areas of Maricopa, Pima, and Pinal counties have different pool barrier requirements. Check with your city and county governments to see if they have adopted different pool barrier requirements. 11

8 Supervision is the key to prevent drownings. Never leave children unsupervised in the pool or inside the pool area - not even for a second! Inform guests to your home of the importance of closely watching children around water. At parties, make sure someone is always watching the children around the pool. Don't count on barriers to keep children from reaching the pool. No barrier is foolproof, Barriers only slow a child's access to the pool. In case of an emergency: act immediately Shout for help. 2 - Pull the child out of the water. 3 - Take the child to the phone and dial 911 (or the local emergency number) for help. 4 - Check airway and breathing. If needed, start CPR immediately. CPR can save lives and prevent serious injury. DON'T: DO: Other smart tips to protect children around water: Don't keep toys, tricycles or other playthings in the pool area. Also, remove items that a child could use to climb over the barrier. Don't be distracted by phone calls, doorbells, or chores while children are in the pool. Your full attention should be on the children. Don't rely on swimming lessons or 'floaties" to protect your children. Don't prop gates open. Attend a CPR class. All family members and baby-sitters should know CPP, For the nearest class, contact your local fire department. Post 911 (or the local emergency number) on all phones. Learn water rescue. Keep lifesaving equipment mounted near the pool, especially if you can't swim. Lock passageways (such as pet doors) leading to the pool. Inspect latches and gates regularly; keep them in working order. Set a good example. Insist on safety around the pool. BUYER: SELLER: DATE: DATE: 12

9 ENCLOSURE AND BARRIER REQUIREMENTS FOR TUCSON AND PIMA COUNTY The city of Tucson and Pima County adopted new barrier and enclosure requirements for residential swimming pools and spas in This outlines some of the changes within the code concerning barriers and enclosures. All pools and spas are to be protected by a BARRIER and an ENCLOSURE. An enclosure, per the code definition, is an object or a structure that surrounds the pool or spa. A barrier separates the pool or spa from a building. Your pool and spa must be protected from surrounding property with an enclosure - in addition to the enclosure, the code requires a "barrier' between the house and pool or spa. The barrier must be installed as described below. In some cases an enclosure can serve also as the barrier. If a fence or wall is used, it must be at least four feet (48") in height and not provide an opportunity for climbing. If wrought iron is selected, it shall not have hand holds or foot holds (such as scrolls), the pickets shall be no farther apart than four inches (4") and must be four feet (48") high (48" from top of top rail to top of bottom rail). The gates in the barrier must swing away from the pool or spa, and be self-latching and self-closing. In addition, the latch release mechanism, if placed on the outside, must be at least fifty-four inches (54") above grade and fifty inches (50") above a foot hold. (See on the reverse side.) An electric automatic pool cover is another barrier option legal in both the City of Tucson and Pima County. Only Pima County will allow a third barrier option, the wall of the house may be used as a barrier if the windows are equipped with latches forty-two inches above grade, and the doors leading to the pool are self-latching, and self-closing, with the latch release mechanisms forty-two inches (42") above grade. Hardware is available to self-close and latch all types of hinged doors. Sliding glass doors require a special device, made by Glidstar. The City of Tucson does not allow for this provision in their code for new pools and spas, only for retrofits in annex situations. On spas, or small pools with a water surface area of less than 150 sq. ft., a hard cover can be used for the enclosure and barrier if it can support a static load of one hundred pounds, and has keyed hardware limiting its removal. If you have any questions concerning the enclosure or barrier provisions, please contact City/County Development Services Center at City Effective Date: Projects permitted 4/l/90 and later County Effective Date: Projects permitted 7/2/90 and later

10

11

12

13

14 EFFECTIVE SEPTEMBER 18, 2003 In compliance with A.R.S. Section 6-843, Good Funds Law The law requires that an escrow agent not disburse money from an escrow account until funds related to the transaction have been deposited and are made available through the escrow depository account. This means that the escrow agent is restricted from disbursing on certain types of deposits until such time as the statutory waiting period has expired or escrow receives notice from its depository bank that the item has cleared and the funds are available in the escrow account. Please be advised that in order to prevent delays in the recordation and disbursement of all real estate transactions, the following criteria applies for each respective deposit item: Type or deposit Electronic bank wire or transfer; Cashier s, Certified and Teller s Checks Postal Money Orders U.S. Treasury Checks State and Local Government Checks Local Checks** first two digits of routing numbers: 12 or 32 Non Local Checks On-us Checks*** When funds become available to fund/disburse Available same day as the bank deposit Funds will become available on the first business day after we deposit your check into our bank account Funds will become available no later than the second business day after the day we deposit your check into our bank account Funds will become available after they have been sent for collection through our bank Funds will become available on the first business day after we deposit your check into our bank account Timeline for recording and disbursing funds. (Example: Deposits made on Monday) Monday (Same Business Day)* Tuesday (First Business Day)* Wednesday (Second Business Day)* Following Monday (Fifth Business Day from deposit) Tuesday (First Business Day)* *Business Day: Funds are potentially available on the *Business Day indicated above. A business day is defined as a calendar day other than Saturday or Sunday, and is excluding major holidays. If January 1, July 4, November 11 or December 25 fall on a Sunday, the next Monday is excluded from the definition of a business day. Note that individual banks may require additional hold periods longer than shown above. **Local Checks: A check is considered local when it is drawn against a bank located in the same processing region as our depository bank. In Arizona, any ABA number beginning with 12 (i.e. 1210, 1211, etc.) or 32 (i.e., 3221, 3222, etc.) is in our processing region. ***On-us Checks (Title Security Agency): Next day availability is dependent on the check being drawn against the same bank or branch as our depository bank and in the same check-processing region, meaning the ABA numbers must begin with 12 or 32. Same Day Disbursement availability will be dependent upon county and escrow administration or legal department discretion. Cash: For security reasons Title Security Agency does not accept cash at any location. Foreign Checks: Title Security Agency does not accept foreign checks. Thank you for doing business with Title Security Agency. Please feel free to call a Title Security Agency escrow officer or sales representative if you have any questions. Main office telephone no

15 PUT 80 YEARS OF EXPERIENCE TO WORK FOR YOU LongRealty.com Quick Guide to Helpful Telephone Numbers (the Area Code for Southern Arizona is 520) CABLE TV/INTERNET Cox Communication Comcast Digital Cable CITY/TOWN OF... MAIN # Marana Oro Valley Sahuarita South Tucson Tucson DRIVER S LICENSES/REGISTRATION Tucson Area Green Valley ELECTRIC Tucson Electric Power TRICO Cooperative FIRE DEPARTMENTS (NON-URGENT) Avra Valley City of Tucson Corona De Tucson Drexel Heights Golder Ranch Green Valley Northwest Oracle Volunteer Picture Rocks Rural Metro S. Tucson Merlin Mail Del Sol (GV) GAS Southwest Gas NEWSPAPERS Arizona Daily Star Green Valley News Tucson Citizen PIMA COUNTY All Departments Sheriff POLICE DEPARTMENTS (NON-URGENT) Green Valley Marana Oro Valley Sahuarita South Tucson Tucson Highway Patrol POST OFFICE Main Number PUBLIC TRANSPORT Sun Tran Buses Van Tran SANITATION/GARBAGE City Solid Waste Pima County Sewer Saguaro Environmental Waste Mgmt. Tucson SCHOOL DISTRICTS Amphitheater Catalina Foothills Continental (GV) Flowing Wells Marana Sahuarita Sunnyside Tanque Verde TUSD Vail TELEPHONE Qwest Cox Communications TAX ASSESSOR Pima County WATER-TUCSON AREA Avra Water Co-op City of Tucson Flowing Wells Irrig Largo Del Oro WATER-TUCSON AREA (continued...) Las Quintas Serenas Lazy C Water Service Marana, Town of Marana Water Service Metropolitan Mt. Lemmon Co-op Oro Valley Water Co Ray Water Company Rincon Ranch Est Sandario Water Co Vail Water Winterhaven WATER-GREEN VALLEY N of Continental N of Duval Mine S of Continental E of I-19, S of Cont ZONING City County Marana Oro Valley OTHER FREQUENTLY CALLED # S Better Business Bureau Chambers of Commerce: Green Valley Marana Tucson Metro Convention & Visitors Bureau or Parks & Recreation: Tucson Pima County YMCA - Central YMCA - East YMCA - North Pima Comm. College Tucson Library Tucson Convention Ctr University of Arizona

16 An AHS Home Warranty helps make your home more marketable! Seller Benefits When trying to sell your home, you want to make it stand out from the rest. An AHS Home Warranty is the perfect marketing tool! It can help your home sell faster and for a higher price. Potential buyers will put your home at the top of their list knowing that they ll be protected from unexpected, covered home repairs. 2 Did you know that 76% of REALTORS recommend a home warranty 2 Homes with warranties sell up to 15% faster 3 Homes with warranties sell for a price 2.2% higher 3 Listing coverage from AHS can help you avoid putting money into repairing or replacing items that you have decided to sell. Ask your Real Estate Professional to include an AHS Home Warranty on your listing. Homeowner Lyn Nelson experienced first-hand how AHS can help in selling your home. When my real estate agent included a home warranty on the listing, I had never heard of home warranties. It wasn t long after when I had my repair problem. Since this occured while my house was on the market, it was wonderful to have the AHS warranty take all the frustration and stress away, leaving me to concentrate on selling the home. Can you afford not to have an AHS Home Warranty? + Air Conditioning $2,461 - $4,400 Plumbing ++ $726 - $990 Water Heater $456 - $520 Electrical ++ $811 - $1,255 Pool/Spa ++ $1,361 - $1,900 Heating $1,751 - $4,075 Range $531 - $915 Refrigerator $691 - $975 Dishwasher $471 - $689 Contact AHS for a complete list of covered items. + This chart shows retail replacement costs for equipment considered average quality, as determined by Marshall and Swift, L.P., 2005, and was reprinted with their written permission. Figures presented may be higher or lower in your area. Further reproduction is expressly prohibited. Please read your contract for specific coverages, exclusions and limitations. ++ Numbers refer to estimated costs of the following: Plumbing - toilet; Electrical amp service panel; Pool/Spa (optional coverage) - pool heater 2 Not all home systems and appliances are covered. Please read the enclosed contract that details specific coverages, exclusions, and limitations. A trade service call fee applies to the initial visit by a technician for each covered trade. This initial fee covers any additional technician visits required for the same breakdown within 30 days of original service date. Additional charges may apply to some repairs and replacements. AHS may provide cash back in lieu of repair or replacements in the amount of AHS s actual cost to repair or replace such item, which at times may be less than retail pricing. System and appliances: a) will be replaced with units having comparable features, not necessarily the same dimension, color, and/or brand; b) must be in good working condition on the effective date of contract; c) designated by the manufacturer as commercial are not covered. Improper maintenance of any covered system or appliance may result in denial of coverages for lack of maintenance. Refer to contract for state specific cancellation provisions. 3 Marshall & Swift L.P., American Home Shield Corporation and its licensed subsidiaries. All rights reserved. The right choice in home warranties.

17 Page 1 of 9 BUYER ATTACHMENT Document updated: February 2011 This attachment should be given to the Buyer prior to the submission of any offer and is not part of the Residential Resale Real Estate Purchase Contract s terms. ATTENTION BUYER! You are entering into a legally binding agreement. 1. Read the entire contract before you sign it. 2. Review the Residential Seller s Property Disclosure sure Statement (See Section 4a). This information comes directly from the Seller. Investigate any blank spaces, unclear answers or any other information that is important to you. 3. Review the Inspection Paragraph (see e Section 6a). If important to you, hire a qualified: Mold inspector Roof inspector Pest inspector Pool inspector Heating/cooling inspector Verify square footage (see Section 6b) Verify the property is on sewer or septic (see Section 6f) 4. Confirm your ability to obtain insurance and insurability of the property during the inspection period with your insurance agent (see Sections 6a and 6e). 5. Apply for your home loan now, if you have not done so already, and provide your lender with all requested information (see Section 2f). It is your responsibility to make sure that you and your lender deliver the necessary funds to escrow in sufficient time to allow escrow to close on the agreed upon date. Otherwise, the Seller may cancel the contract. SAMPLE 6. Read the title commitment within five days of receipt (see Section 3c). 7. Read the CC&R s and all other governing documents within five days of receipt (see e Section 3c), especially if the home is in a homeowner s association. 8. Conduct tath thorough final walkthrough (see Section 6m). If the property is unacceptable, ab speak up. After the closing may be too late. You can obtain information through the Buyer s Advisory at Remember, you are urged to consult with an attorney, inspectors, and experts of your choice in any area of interest or concern in the transaction. Be cautious about verbal representations, advertising claims, and information contained in a listing. Verify anything important to you. 4 Buyer s Check List Buyer Attachment Updated: February 2011 Copyright 2011 Arizona Association of REALTORS. All rights reserved.

18 RESIDENTIAL RESALE REAL ESTATE PURCHASE CONTRACT Page 1 of 9 Document updated: February a. 1b. 1c. 1d. 1e. 1f. 1g PROPERTY BUYER: SELLER S NAME(S) BUYER S NAME(S) 2. SELLER: or n as identified in section 9c. 3. Buyer agrees to buy and Seller agrees to sell the real property with all improvements, ments, fixtures, and appurtenances thereon 4. or incidental thereto, plus the personal property described herein (collectively the Premises ). 5. Premises Address: Assessor s #: 6. City: County: #ELEAZ, Zip Code: 7. Legal Description: 8. $ Full Purchase Price, paid as outlined below 9. $ Earnest money 10. $ 11. $ Close of Escrow: Close of Escrow ( COE ) shall occur when the deed is recorded at the appropriate county recorder s office. Buyer and Seller shall comply with all terms and conditions of this Contract, execute and deliver to Escrow Company all closing documents, and perform all other acts necessary sary in sufficient time to allow COE to occur on, 20 Date ). If Escrow Company or recorder s office is closed on COE Date, M( COE MONTH DAY YEAR 19. COE shall occur on the next day that both are open for business. 20. Buyer shall deliver to Escrow Company a cashier s check, wired funds or other immediately available funds to pay any down 21. payment, additional deposits or Buyer s closing costs, and instruct the lender, if applicable, to deliver immediately available funds to 22. Escrow Company, in a sufficient ficient amount and in sufficient time to allow COE to occur on COE Date. 23. Possession: on: Seller shall deliver possession, occupancy, existing keys and/or means to operate all locks, mailbox, security 24. system/alarms, and all common area facilities to Buyer at COE or n. 25. Broker(s) recommend that the parties seek appropriate counsel from insurance, legal, tax, and accounting professionals regarding 26. the risks of pre-possession or post-possession of the Premises belowpl SAMPLE MPMP Addenda denda Incorporated: n AS IS n Additional Clause n Assumption and Carryback n Buyer Contingency n Domestic Water Well n H.O.A. nslead-based ed Paint Disclosure n On-site Wastewater Treatment Facility n Short Sale n Other: Fixtures and Property: Seller agrees that all existing fixtures on the Premises, and any existing personal property specified herein, shall be included in this sale, including the following: SPersonal free-standing range/oven light fixtures draperies and other window coverings ceiling fans towel, curtain and drapery rods shutters and awnings attached floor coverings flush-mounted speakers water-misting systems window and door screens, sun screens storm windows and doors solar systems garage door openers and controls attached media antennas/ mailbox outdoor landscaping, fountains, and lighting satellite dishes central vacuum, hose, and attachments pellet, wood-burning or gas-log stoves attached fireplace equipment built-in appliances storage sheds timers >> Residential Resale Real Estate Purchase Contract Updated: February 2011 Copyright 2011 Arizona Association of REALTORS. All rights reserved. Page 1 of 9 PAGE 1 of 2

19 Page 2 of 9 2a. 2b. 2c. 2d. 2e. 2f. 2g. 2h. 2i. 2j. 2k. 2l. 2m. 2n. Residential Resale Real Estate Purchase Contract >> If owned by the Seller, the following items also are included in this sale: pool and spa equipment (including any mechanical or other cleaning systems) security and/or fire systems and/or alarms water softeners water purification systems Additional existing personal property included in this sale (if checked): n refrigerator n washer n dryer as described: n Other: 50. Additional existing personal property included shall not be considered part of the Premises and shall be transferred with no monetary 51. value, and free and clear of all liens or encumbrances. 52. Fixtures and leased items NOT included: 53. IF THIS IS AN ALL CASH SALE, GO TO SECTION FINANCING Pre-Qualification: A completed AAR Pre-Qualification Form n is n is not attached hereto and incorporated herein by reference Loan Contingency: Buyer s obligation to complete this sale is contingent upon Buyer obtaining loan approval for the loan described 56. in the AAR Loan Status Update ( LSU ) form without Prior to Document ( PTD ) conditions no later than three (3) days prior to the 57. COE Date. If Buyer is unable to obtain loan approval without t PTD conditions, Buyer shall deliver a notice of the inability to obtain 58. loan approval without PTD conditions to Seller or Escrow Company no later than three (3) days prior to the COE Date. 59. Unfulfilled Loan Contingency: This Contract shall be cancelled and Buyer shall be entitled to a return of the Earnest Money if after 60. diligent and good faith effort, Buyer is unable to obtain loan approval without PTD conditions no later than three (3) days prior to the 61. COE Date. Buyer acknowledges that prepaid items paid separately from earnest money are not refundable. 62. Interest Rate / Necessary Funds: Buyer agrees es that (i) the inability to obtain loan approval due to the failure to lock the interest 63. rate and points by separate written agreement ement with the lender during the Inspection Period or (ii) the failure to have the down 64. payment or other funds due from Buyer necessary to obtain the loan approval without conditions and close this transaction is not 65. an unfulfilled loan contingency. 66. Loan Status Update: Buyer shall l deliver to Seller the LSU with at a minimum lines 1-40 completed describing the current status 67. of the Buyer s proposed loan na within five (5) days after Contract acceptance and instruct lender to provide an updated LSU to 68. Broker(s) and Seller upon request. 69. Loan Application: Unless previously completed, during the Inspection Period, Buyer shall (i) complete, sign and deliver to the 70. lender a loan application and grant lender permission to access Buyer s Trimerged Residential Credit Report; and (ii) provide 71. to lender all initial requested ested signed disclosures and Initial Requested Documentation listed in the LSU on lines Loan Processing During Escrow: : Buyer agrees to diligently work to obtain the loan and will promptly provide the lender with all 73. additional documentation required. Buyer shall sign all loan documents no later than three (3) days prior to the COE Date. 74. Type of Financing: n Conventional n n VA n USDA n Assumption n Seller Carryback n 75. (If financing ncing is to be other than new financing, see attached addendum.) 76. Loan Costs: : All costs of obtaining the loan shall be paid by the Buyer, unless otherwise provided for herein. 77. Seller er Concessions (If Any): : In addition AFHA to the other costs Seller has agreed to pay herein, Seller agrees to pay up to % 78. of the Purchase Price or $ for Buyer s loan costs including pre-paids, impounds and Buyer s title / escrow closing costs. 79. VA Loan Costs: In the event of a VA loan, Seller agrees to pay the escrow fee and up to $ of loan costs not 80. permitted to be paid by the Buyer, in addition to the other costs Seller has agreed to pay herein, including Seller s Concessions. 81. Changes: Buyer shall immediately notify Seller of any changes in the loan program, financing terms, or lender described in the 82. Pre-Qualification Form if attached hereto or LSU provided within five (5) days after Contract acceptance and shall only make any 83. such changes without the prior written consent of Seller if such changes do not adversely affect Buyer s ability to obtain loan 84. approval without PTD conditions, increase Seller s closing costs, or delay COE SAMPLE LEE Appraisal Contingency: Buyer s obligation to complete this sale is contingent upon an appraisal of the Premises acceptable to lender for at least the purchase price. If the Premises fail to appraise for the purchase price in any appraisal required by lender, Buyer has five (5) days after notice of the appraised value to cancel this Contract and receive a refund of the Earnest Money or the appraisal contingency shall be waived. Appraisal Fee(s): Appraisal Fee(s), when required by lender, shall be paid by n Buyer n Seller n Other Appraisal Fee(s) n are n are not included in Seller Concessions, if applicable. >> Residential Resale Real Estate Purchase Contract Updated: February 2011 Copyright 2011 Arizona Association of REALTORS. All rights reserved. Page 2 of 9

20 Page 3 of 9 Residential Resale Real Estate Purchase Contract >> 3a TITLE AND ESCROW Escrow: This Contract shall be used as escrow instructions. The Escrow Company employed by the parties to carry out the terms of this Contract shall be: 93. ESCROW/TITLE COMPANY 3b. 3c. 3d. 3e. 3f. 3g. 3h. 3i ADDRESS CITY STATE ZIP PHONE FAX 96. Title and Vesting: Buyer will take title as determined before COE. Taking title may have significant legal, estate planning and tax 97. consequences. Buyer should obtain legal and tax advice. 98. Title Commitment and Title Insurance: Escrow Company is hereby instructed to obtain and deliver to Buyer and Seller directly, 99. addressed pursuant to 8t and 9c or as otherwise provided, a Commitment for Title Insurance together with complete and legible copies 100. of all documents that will remain as exceptions to Buyer s policy of Title Insurance ( Title Commitment ), including but not limited to 101. Conditions, Covenants and Restrictions ( CC&Rs ); deed restrictions; and easements. Buyer shall have five (5) days after receipt of the 102. Title Commitment and after receipt of notice of any subsequent exceptions to provide notice to Seller of any items disapproved. Seller 103. shall convey title by warranty deed, subject to existing taxes, assessments, sments, covenants, conditions, restrictions, rights of way, easements 104. and all other matters of record. Buyer shall be provided at Seller s expense an American Land Title Association ( ALTA ) Homeowner s 105. Title Insurance Policy, or if not available, an ALTA Residential Title Insurance Policy ( Plain Language / 1-4 units ) or, if not available, a 106. Standard Owner s Title Insurance Policy, showing title vested in Buyer. Buyer may acquire extended coverage at Buyer s own additional 107. expense. If applicable, Buyer shall pay the cost of obtaining ng the ALTA Lender Title Insurance Policy Additional Instructions: (i) Escrow Company shall l promptly furnish notice of pending sale that contains the name and address of the Buyer to any homeowner s association in which the Premises is located. (ii) If the Escrow Company is also acting as the title agency but is not the title insurer issuing the title insurance nce policy, Escrow Company shall deliver to the Buyer and Seller, upon deposit of funds, a closing protection letter from the title insurer indemnifying the Buyer and Seller for any losses due to fraudulent acts or breach of escrow instructions by the Escrow Company. (iii) All documents necessary to close this transaction shall be executed promptly by Seller and Buyer in the standard form used by Escrow Company. Escrow Company shall modify such documents to the extent necessary to be consistent with this Contract. (iv) Escrow Company fees, unless otherwise stated herein, shall be allocated equally between Seller and Buyer. (v) Escrow Company shall send to all parties and Broker(s) copies of all notices and communications directed to Seller, Buyer and Broker(s). (vi) Escrow Company shall provide Broker(s) access to escrowed materials and information regarding the escrow. (vii) If an Affidavit of Disclosure is provided, Escrow Company shall record the Affidavit at COE Tax Prorations: Real property taxes payable by the Seller shall be prorated to COE based upon the latest tax information available Release of Earnest Money: : In the event of a dispute between Buyer and Seller regarding any Earnest Money deposited with Escrow Company, Buyer and Seller authorize Escrow Company to release Earnest Money pursuant to the terms and conditions of this Contract in its sole and absolute discretion. Buyer and Seller agree to hold harmless and indemnify Escrow Company against any claim, action or lawsuit of any kind, and from any loss, judgment, or expense, including costs and attorney fees, arising from or relating in any way to the release of Earnest Money. Prorations rations of Assessments sm and Fees: : All assessments and fees that are not a lien as of the COE, including homeowner s association fees, rents, irrigation fees, and, if assumed, insurance premiums, interest on assessments, interest on encumbrances, and service contracts, shall be prorated as of COE or n Other: SAMPLE Assessment sment Liens: : The amount of any assessment, other than homeowner s association assessments, that is a lien as of the COE, shall be nspaid in full by Seller n prorated and assumed by Buyer. Any assessment that becomes a lien after COE is the Buyer s responsibility. IRS and FIRPTA Reporting: Seller agrees to comply with IRS reporting requirements. If applicable, Seller agrees to complete, sign, and deliver to Escrow Company a certificate indicating whether Seller is a foreign person or a non-resident alien pursuant to the Foreign Investment in Real Property Tax Act ( FIRPTA ). Buyer and Seller acknowledge that if the Seller is a foreign person, the Buyer must withhold a tax equal to 10% of the purchase price, unless an exemption applies. >> Residential Resale Real Estate Purchase Contract Updated: February 2011 Copyright 2011 Arizona Association of REALTORS. All rights reserved. Page 3 of 9

21 Page 4 of 9 Residential Resale Real Estate Purchase Contract >> 4a. 4b. 4c. 4d. 4e. 5a. 5b. 5c DISCLOSURE Seller Property Disclosure Statement ( SPDS ): Seller shall deliver a completed AAR Residential SPDS form to the Buyer within five (5) days after Contract acceptance. Buyer shall provide notice of any SPDS items disapproved within the Inspection Period or five (5) days after receipt of the SPDS, whichever is later. Insurance Claims History: Seller shall deliver to Buyer a written five-year insurance claims history regarding Premises (or a claims history for the length of time Seller has owned the Premises if less than five years) from Seller s insurance company or an insurance support organization or consumer reporting agency, or if unavailable from these sources, from Seller, within five (5) days after Contract acceptance. (Seller may obscure any reference to date of birth or social security number from the document). Buyer shall provide notice of any items disapproved within the Inspection Period or five (5) days after receipt of the claims history, whichever is later. Lead-Based Paint Disclosure: If the Premises were built prior to 1978, the Seller shall: (i) notify the Buyer of any known lead-based paint ( LBP ) or LBP hazards in the Premises; (ii) provide the Buyer with any LBP risk assessments sments or inspections of the Premises in the Seller s possession; (iii) provide the Buyer with the Disclosure of Information on Lead-based Paint and Lead-based Paint Hazards, and any report, records, pamphlets, and/or other materials referenced therein, including the pamphlet Protect Your Family from Lead in Your Home (collectively LBP Information ). Buyer shall return a signed copy of the Disclosure of Information on Lead- Based Paint and Lead-Based Paint Hazards to Seller prior to COE. n LBP Information was provided prior to Contract acceptance and Buyer acknowledges the opportunity to conduct LBP risk assessments or inspections during Inspection Period. n Seller shall provide LBP Information within five (5) days after Contract acceptance. Buyer may within ten (10) days or days after receipt of the LBP Information conduct or obtain a risk assessment or inspection of the Premises for the presence of LBP or LBP hazards ( Assessment Period ). Buyer may within five (5) days after receipt of the LBP Information or five (5) days after expiration of the Assessment Period cancel this Contract Buyer is further advised to use certified contractors to perform renovation, repair or painting projects that disturb lead-based paint in 155. residential properties built before 1978 and to follow specific work practices to prevent lead contamination If Premises were constructed ted prior to 1978, (BUYER S INITIALS REQUIRED) If Premises were constructed 1978 or later, (BUYER S INITIALS REQUIRED) BUYER BUYER BUYER BUYER Affidavit of Disclosure: If the Premises es is located in an unincorporated area of the county, and five or fewer parcels of property other than subdivided property are being transferred, the Seller shall deliver a completed Affidavit of Disclosure in the form required by law to the Buyer within five (5) days after Contract acceptance. Buyer shall provide notice of any Affidavit of Disclosure items disapproved within the Inspection Period or five (5) days after receipt of the Affidavit of Disclosure, whichever is later. Changes During Escrow: : Seller shall immediately notify Buyer of any changes in the Premises or disclosures made herein, in the SPDS, or otherwise. Such notice shall be considered an update of the SPDS. Unless Seller is already obligated by Section 5a or otherwise by this Contract or any amendments hereto, to correct or repair the changed item disclosed, Buyer shall be allowed five (5) days after delivery ery of such notice to provide notice of disapproval to Seller. 5. WARRANTIES RANTIES Seller Warranties: : Seller ler warrants and shall maintain and repair the Premises so that at the earlier of possession or COE: (i) all heating, cooling, mechanical, plumbing, and electrical systems (including swimming pool and/or spa, motors, filter systems, cleaning systems, and heaters, if any), free-standing range/oven, and built-in appliances will be in working condition; (ii) all other agreed upon repairs rs and corrections will be completed pursuant to Section 6j; (iii) the Premises, including all additional existing personal property included in the sale, will be in substantially the same condition as on the date of Contract acceptance; and (iv) all personal property not included in the sale and all debris will be removed from the Premises. SAMPLE Warranties that Survive ve Closing: Seller warrants that Seller has disclosed to Buyer and Broker(s) all material latent defects and any information on concerning the Premises known to Seller, excluding opinions of value, which materially and adversely affect the consideration n to be paid by Buyer. Prior to the COE, Seller warrants that payment in full will have been made for all labor, professional services, materials, machinery, fixtures, or tools furnished within the 150 days immediately preceding the COE in connection with the construction, alteration, or repair of any structure on or improvement to the Premises. Seller warrants that the information regarding connection to a sewer system or on-site wastewater treatment facility (conventional septic or alternative) is correct to the best of Seller s knowledge. Buyer Warranties: Buyer warrants that Buyer has disclosed to Seller any information that may materially and adversely affect the Buyer s ability to close escrow or complete the obligations of this Contract. At the earlier of possession of the Premises or COE, Buyer warrants to Seller that Buyer has conducted all desired independent inspections and investigations and accepts the Premises. Buyer warrants that Buyer is not relying on any verbal representations concerning the Premises except disclosed as follows: >> Residential Resale Real Estate Purchase Contract Updated: February 2011 Copyright 2011 Arizona Association of REALTORS. All rights reserved. Page 4 of 9

22 Page 5 of 9 Residential Resale Real Estate Purchase Contract >> 6a. 6b. 6c. 6d. 6e. 6f. 6g. 6h. 6i DUE DILIGENCE Inspection Period: Buyer s Inspection Period shall be ten (10) days or days after Contract acceptance. During the Inspection Period Buyer, at Buyer s expense, shall: (i) conduct all desired physical, environmental, and other types of inspections and investigations to determine the value and condition of the Premises; (ii) make inquiries and consult government agencies, lenders, insurance agents, architects, and other appropriate persons and entities concerning the suitability of the Premises and the surrounding area; (iii) investigate applicable building, zoning, fire, health, and safety codes to determine any potential hazards, violations or defects in the Premises; and (iv) verify any material multiple listing service ( MLS ) information. If the presence of sex offenders in the vicinity or the occurrence of a disease, natural death, suicide, homicide or other crime on or in the vicinity is a material matter to the Buyer, it must be investigated by the Buyer during the Inspection Period. Buyer shall keep the Premises free and clear of liens, shall indemnify and hold Seller harmless from all liability, claims, demands, damages, and costs, and shall repair all damages arising from the inspections. Buyer shall provide Seller and Broker(s) upon receipt, at no cost, copies of all inspection reports concerning the Premises obtained by Buyer. Buyer is advised to consult the Arizona Department of Real Estate Buyer Advisory provided by AAR to assist in Buyer s due diligence inspections and investigations. Square Footage: BUYER IS AWARE THAT ANY REFERENCE TO THE SQUARE FOOTAGE OF THE PREMISES, BOTH THE REAL PROPERTY (LAND) AND IMPROVEMENTS THEREON, IS APPROXIMATE. ATE. IF SQUARE FOOTAGE IS A MATERIAL MATTER TO THE BUYER, IT MUST BE INVESTIGATED DURING THE INSPECTION PERIOD. Wood-Destroying Organism or Insect Inspection: IF CURRENT OR PAST WOOD-DESTROYING ORGANISMS OR INSECTS (SUCH AS TERMITES) ARE A MATERIAL MATTER TO THE BUYER, THESE ISSUES MUST BE INVESTIGATED DURING THE INSPECTION PERIOD. The Buyer shall order and pay for all wood-destroying organism or insect inspections performed during the Inspection Period. If the lender requires an updated Wood-Destroying Organism or Insect Inspection Report prior to COE, it will be performed at Buyer s expense. Flood Hazard: Flood hazard designations or the cost of flood hazard insurance shall be determined by Buyer during the Inspection Period. If the Premises are situated in an area a identified as having any special flood hazards by any governmental entity, the lender may require the purchase of flood hazard insurance. Special flood hazards may also affect the ability to encumber or improve the Premises. Insurance: IF HOMEOWNER S INSURANCE IS A MATERIAL MATTER TO THE BUYER, BUYER SHALL APPLY FOR AND OBTAIN WRITTEN CONFIRMATION OF THE AVAILABILITY AND COST OF HOMEOWNER S INSURANCE FOR THE PREMISES FROM BUYER S INSURANCE COMPANY DURING THE INSPECTION PERIOD. Buyer understands that any homeowner s, fire, casualty, or other insurance desired by Buyer or required by lender should be in place at COE Sewer or On-site Wastewater Treatment System: : The Premises are connected to a: 214. n sewer system n septic system n alternative system 215. IF A SEWER CONNECTION IS A MATERIAL MATTER TO THE BUYER, IT MUST BE INVESTIGATED DURING THE 216. INSPECTION PERIOD. If the Premises s are served by a septic or alternative system, the AAR On-site Wastewater Treatment 217. Facility Addendum is incorporated herein by reference (BUYER S INITIALS REQUIRED) 219. Swimming Pool Barrier Regulations: : During the Inspection Period, Buyer agrees to investigate all applicable state, county, and 220. municipal Swimming Pool barrier regulations and agrees to comply with and pay all costs of compliance with said regulations prior to 221. occupying the Premises, unless otherwise agreed in writing. If the Premises contains a Swimming Pool, Buyer acknowledges receipt 222. of the Arizona Department of Health Services approved private pool safety notice (BUYER S INITIALS REQUIRED) 224. BUYER ACKNOWLEDGMENT: BUYER RECOGNIZES, ACKNOWLEDGES, AND AGREES THAT BROKER(S) ARE NOT 225. QUALIFIED, NOR LICENSED, TO CONDUCT DUE DILIGENCE WITH RESPECT TO THE PREMISES OR THE SURROUNDING 226. AREA. BUYER IS INSTRUCTED TO CONSULT WITH QUALIFIED LICENSED PROFESSIONALS TO ASSIST IN BUYER S DUE 227. DILIGENCE EFFORTS. BECAUSE CONDUCTING DUE DILIGENCE WITH RESPECT TO THE PREMISES AND THE 228. SURROUNDING AREA IS BEYOND THE SCOPE OF THE BROKER S EXPERTISE AND LICENSING, BUYER EXPRESSLY 229. RELEASES AND HOLDS HARMLESS BROKER(S) FROM LIABILITY FOR ANY DEFECTS OR CONDITIONS THAT COULD 230. HAVE BEEN DISCOVERED BY INSPECTION OR INVESTIGATION (BUYER S INITIALS REQUIRED) BUYER SAMPLE BUYER BUYER BUYER BUYER BUYER Inspection Period Notice: Prior to expiration of the Inspection Period, Buyer shall deliver to Seller a signed notice of any items disapproved. AAR s Buyer s Inspection Notice and Seller s Response form is available for this purpose. Buyer shall conduct all desired inspections and investigations prior to delivering such notice to Seller and all Inspection Period items disapproved shall be provided in a single notice. >> Residential Resale Real Estate Purchase Contract Updated: February 2011 Copyright 2011 Arizona Association of REALTORS. All rights reserved. Page 5 of 9

23 Page 6 of 9 6j. 6k. 6l. 6m. 6n. 7a. 7b. Residential Resale Real Estate Purchase Contract >> Buyer Disapproval: If Buyer, in Buyer s sole discretion, disapproves of items as allowed herein, Buyer shall deliver to Seller notice of the items disapproved and state in the notice that Buyer elects to either: (1) immediately cancel this Contract and all Earnest Money shall be released to Buyer, or (2) provide the Seller an opportunity to correct the items disapproved, in which case: (a) Seller shall respond in writing within five (5) days or days after delivery to Seller of Buyer s notice of items disapproved. Seller s failure to respond to Buyer in writing within the specified time period shall conclusively be deemed Seller s refusal to correct any of the items disapproved. (b) If Seller agrees in writing to correct items disapproved, Seller shall correct the items, complete any repairs in a workmanlike manner and deliver any paid receipts evidencing the corrections and repairs to Buyer three (3) days or days prior to COE Date. (c) If Seller is unwilling or unable to correct any of the items disapproved, Buyer may cancel this Contract within five (5) days after delivery of Seller s response or after expiration of the time for Seller s response, whichever occurs first, and all Earnest Money shall be released to Buyer. If Buyer does not cancel this Contract within the five (5) days as provided, Buyer shall close escrow without correction of those items that Seller has not agreed in writing to correct. VERBAL DISCUSSIONS WILL NOT EXTEND THESE TIME PERIODS. Only a written agreement signed by both parties will extend response times or cancellation rights BUYER S FAILURE TO GIVE NOTICE OF DISAPPROVAL OF ITEMS OR CANCELLATION OF THIS CONTRACT WITHIN THE 253. SPECIFIED TIME PERIOD SHALL CONCLUSIVELY BE DEEMED ED BUYER S ELECTION TO PROCEED WITH THE 254. TRANSACTION WITHOUT CORRECTION OF ANY DISAPPROVED P D ITEMS Notice of Non-Working Warranted Items: Buyer shall provide Seller with notice of any non-working warranted item(s) of which 256. Buyer becomes aware during the Inspection Period or the Seller ler warranty for that item(s) shall be waived. Delivery of such notice 257. shall not affect Seller s obligation to maintain or repair the warranted item(s) Home Warranty Plan: Buyer and Seller are advised to investigate the various home warranty plans available for purchase. The 259. parties acknowledge that different home warranty plans have different coverage options, exclusions, limitations, service fees and 260. most plans exclude pre-existing conditions n A Home Warranty Plan will be ordered by n Buyer or nmpseller with the following optional coverage 262., to be issued by at a cost not 263. to exceed $, to be paid for by n Buyer n Seller 264. n Buyer declines the purchase of a Home Warranty Plan Walkthrough(s): Seller grants Buyer and Buyer s inspector(s) reasonable access to conduct walkthrough(s) of the Premises for the purpose of satisfying Buyer that any corrections or repairs agreed to by the Seller have been completed, warranted items are in working condition and that the Premises is in substantially the same condition as of the date of Contract acceptance. If Buyer does not conduct such walkthrough(s), Buyer releases Seller and Broker(s) from liability for any defects that could have been discovered. Seller s Responsibility sibility Regarding Inspections and Walkthrough(s): Seller shall make the Premises available for all inspections and walkthrough(s) upon reasonable notice by Buyer. Seller shall, at Seller s expense, have all utilities on, including any propane, until COE to enable Buyer to conduct these inspections and walkthrough(s). 7. REMEDIES w MSeller MPSeller SAMPLE Cure Period: : A party shall have an opportunity to cure a potential breach of this Contract. If a party fails to comply with any provision of this Contract, the other party shall deliver a notice to the non-complying party specifying the non-compliance. If the noncompliance is not cured within three (3) days after delivery of such notice ( Cure Period ), the failure to comply shall become a breach of Contract Breach: In the event of a breach of Contract, the non-breaching party may cancel this Contract and/or proceed against the breaching 277. party in any claim or remedy that the non-breaching party may have in law or equity, subject to the Alternative Dispute Resolution 278. obligations set forth herein. In the case of the Seller, because it would be difficult to fix actual damages in the event of Buyer s 279. breach, the Earnest Money may be deemed a reasonable estimate of damages and Seller may, at Seller s option, accept the 280. Earnest Money as Seller s sole right to damages; and in the event of Buyer s breach arising from Buyer s failure to deliver the notice 281. required by Section 2b, or Buyer s inability to obtain loan approval due to the waiver of the appraisal contingency pursuant to Section m, Seller shall exercise this option and accept the Earnest Money as Seller s sole right to damages. An unfulfilled contingency is not 283. a breach of Contract. The parties expressly agree that the failure of any party to comply with the terms and conditions of Section 1d 284. to allow COE to occur on the COE Date, if not cured after a cure notice is delivered pursuant to Section 7a, will constitute a material 285. breach of this Contract, rendering the Contract subject to cancellation. >> Residential Resale Real Estate Purchase Contract Updated: February 2011 Copyright 2011 Arizona Association of REALTORS. All rights reserved. Page 6 of 9

24 Page 7 of 9 7c. 7d. 7e. 8a. Residential Resale Real Estate Purchase Contract >> Alternative Dispute Resolution ( ADR ): Buyer and Seller agree to mediate any dispute or claim arising out of or relating to this Contract in accordance with the REALTORS Dispute Resolution System, or as otherwise agreed. All mediation costs shall be paid equally by the parties. In the event that mediation does not resolve all disputes or claims, the unresolved disputes or claims shall be submitted for binding arbitration. In such event, the parties shall agree upon an arbitrator and cooperate in the scheduling of an arbitration hearing. If the parties are unable to agree on an arbitrator, the dispute shall be submitted to the American Arbitration Association ( AAA ) in accordance with the AAA Arbitration Rules for the Real Estate Industry. The decision of the arbitrator shall be final and nonappealable. Judgment on the award rendered by the arbitrator may be entered in any court of competent jurisdiction. Notwithstanding the foregoing, either party may opt out of binding arbitration within thirty (30) days after the conclusion of the mediation conference by notice to the other and in such event either party shall have the right to resort to court action. Exclusions from ADR: The following matters are excluded from the requirement for ADR hereunder: (i) any action brought in the Small Claims Division of an Arizona Justice Court (up to $2,500) so long as the matter is not thereafter transferred or removed from the small claims division; (ii) judicial or nonjudicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or agreement for sale; (iii) an unlawful entry or detainer action; (iv) the filing or enforcement of a mechanic s lien; or (v) any matter that is within the jurisdiction of a probate court. Further, the filing of a judicial action to enable the recording of a notice of pending action ( lis pendens ), or order of attachment, receivership, injunction, or other provisional remedies shall not constitute a waiver of the obligation to submit the claim to ADR, nor shall such action constitute a breach of the duty to mediate or arbitrate. Attorney Fees and Costs: The prevailing party in any dispute or claim between een Buyer and Seller arising out of or relating to this Contract shall be awarded their reasonable attorney fees and costs. Costs s shall include, without limitation, attorney fees, expert witness fees, fees paid to investigators, and arbitration costs. 8. ADDITIONAL TERMS AND CONDITIONS ONSPLPL SA AM MP PL >> Residential Resale Real Estate Purchase Contract Updated: February 2011 Copyright 2011 Arizona Association of REALTORS. All rights reserved. Page 7 of 9

25 Page 8 of 9 8b. Residential Resale Real Estate Purchase Contract >> Risk of Loss: If there is any loss or damage to the Premises between the date of Contract acceptance and COE or possession, whichever is earlier, by reason of fire, vandalism, flood, earthquake, or act of God, the risk of loss shall be on the Seller, provided, however, that if the cost of repairing such loss or damage would exceed ten percent (10%) of the purchase price, either Seller or Buyer may elect to cancel the Contract. 8c. 8d Permission: Buyer and Seller grant Broker(s) permission to advise the public of this Contract. Arizona Law: This Contract shall be governed by Arizona law and jurisdiction is exclusively conferred on the State of Arizona. 8e. 8f. 8g. 8h. 8i. 8j. 8k. 8l. 8m. 8n. 8o. 8p Time is of the Essence: The parties acknowledge that time is of the essence in the performance of the obligations described herein. Compensation: Seller and Buyer acknowledge that Broker(s) shall be compensated for services rendered as previously agreed by separate written agreement(s), which shall be delivered by Broker(s) to Escrow Company for payment at COE, if not previously paid. If Seller is obligated to pay Broker(s), this Contract shall constitute an irrevocable assignment of Seller s proceeds at COE. If Buyer is obligated to pay Broker(s), payment shall be collected from Buyer as a condition of COE. COMMISSIONS PAYABLE FOR THE SALE, LEASING, OR MANAGEMENT OF PROPERTY ARE NOT SET BY ANY BOARD OR ASSOCIATION OF REALTORS, OR MULTIPLE LISTING SERVICE, OR IN ANY MANNER OTHER THAN BETWEEN THE BROKER AND CLIENT. Copies and Counterparts: A fully executed facsimile or electronic copy of the Contract shall be treated as an original Contract. This Contract and any other documents required by this Contract may be executed ed by facsimile or other electronic means and in any number of counterparts, which shall become effective upon delivery as provided for herein, except that the Lead-Based Paint Disclosure Statement may not be signed in counterpart. All counterparts shall be deemed to constitute one instrument, and each counterpart shall be deemed an original. Days: All references to days in this Contract shall be construed as calendar days and a day shall begin at 12:00 a.m. and end at 11:59 p.m. Calculating Time Periods: In computing any time period prescribed or allowed by this Contract, the day of the act or event from which the time period begins to run is not included and the last day of the time period is included. Contract acceptance occurs on the date that the signed Contract (and any incorporated counter offer) is delivered to and received by the appropriate Broker. Acts that must be performed three days prior to the COE Date must be performed three full days prior (i.e., if COE Date is Friday the act must be performed by 11:59 p.m. on Monday). Entire Agreement: This Contract, and any addenda and attachments, shall constitute the entire agreement between Seller and Buyer, shall supersede any other written or oral agreements between Seller and Buyer and can be modified only by a writing signed by Seller and Buyer. The failure to initial any page of this Contract shall not affect the validity or terms of this Contract. Subsequent Offers: Buyer acknowledges that Seller has the right to accept subsequent offers until COE. Seller understands that any subsequent offer accepted by the Seller must be a backup offer contingent on the cancellation of this Contract. Cancellation: A party who wishes to exercise the right of cancellation as allowed herein may cancel this Contract by delivering notice stating the reason for cancellation to the other party or to the Escrow Company. Cancellation shall become effective immediately upon delivery ery of the cancellation notice. Notice: Unless otherwise e provided, delivery of all notices and documentation required or permitted hereunder shall be in writing and deemed delivered ered and received when: (i) hand-delivered; (ii) sent via facsimile transmission; (iii) sent via electronic mail, if addresses are provided herein; or (iv) sent by recognized overnight courier service, and addressed to Buyer as indicated in Section 8r, to Seller er as indicated in Section 9a and to the Escrow Company indicated in Section 3a. Earnest Money: : Earnest Money is in the form of: n Personal Check n Other SAMPLE If applicable, plica Earnest Money has been received by Broker named in Section 8r and upon acceptance of this offer will be deposited with: n Escrow Company n Broker s Trust Account. Buyer acknowledges that failure to pay the required closing funds by the scheduled COE, if not cured after a cure notice is delivered pursuant to Section 7a, shall be construed as a material breach of this contract ct and all earnest money shall be subject to forfeiture Release of Broker(s): Seller and Buyer hereby expressly release, hold harmless and indemnify Broker(s) in this transaction 378. from any and all liability and responsibility regarding financing, the condition, square footage, lot lines, boundaries, value, 379. rent rolls, environmental problems, sanitation systems, roof, wood infestation, building codes, governmental regulations, 380. insurance, price and terms of sale, return on investment or any other matter relating to the value or condition of the 381. Premises. The parties understand and agree that the Broker(s) do not provide advice on property as an investment and are 382. not qualified to provide financial, legal, or tax advice regarding this real estate transaction (SELLER S INITIALS REQUIRED) (BUYER S INITIALS REQUIRED) SELLER SELLER BUYER BUYER 384. Terms of Acceptance: This offer will become a binding Contract when acceptance is signed by Seller and a signed copy delivered 385. in person, by mail, facsimile or electronically, and received by Broker named in Section 8r 386. by, at a.m./p.m., Mountain Standard Time Buyer may withdraw this offer at any time prior to receipt of Seller s signed acceptance. If no signed acceptance is received by this 388. date and time, this offer shall be deemed withdrawn and the Buyer s Earnest Money shall be returned. SABrok >> Residential Resale Real Estate Purchase Contract Updated: February 2011 Copyright 2011 Arizona Association of REALTORS. All rights reserved. Page 8 of 9

26 Page 9 of 9 8q. Residential Resale Real Estate Purchase Contract >> THIS CONTRACT CONTAINS NINE PAGES EXCLUSIVE OF ANY ADDENDA AND ATTACHMENTS. PLEASE ENSURE THAT YOU HAVE RECEIVED AND READ ALL NINE PAGES OF THIS OFFER AS WELL AS ANY ADDENDA AND ATTACHMENTS. 8r Broker on behalf of Buyer: PRINT SALESPERSON S NAME AGENT CODE PRINT FIRM NAME FIRM CODE 8s. 8t. 9a. 9b. 9c FIRM ADDRESS STATE ZIP CODE PREFERRED TELEPHONE FAX Agency Confirmation: The Broker named in Section 8r above is the agent of (check one): n the Buyer; n the Seller; or n both the Buyer and Seller The undersigned agree to purchase the Premises on the terms and conditions ns herein stated and acknowledge receipt of a copy hereof including the Buyer Attachment. ^ BUYER S SIGNATURE MO/DA/YR ^ BUYER S SIGNATURE MO/DA/YR ADDRESS CITY, STATE, ZIP CODE 9. SELLER ACCEPTANCE Broker on behalf of Seller: ADDRESS CITY, STATE, ZIP CODE PRINT SALESPERSON S NAME AGENT CODE PRINT FIRM NAME FIRM CODE M FIRM ADDRESS STATE ZIP CODE PREFERRED TELEPHONE FAX Agency Confirmation: The Broker named in Section 9a above is the agent of (check one): oth the Buyer and Seller n the Seller; or n both the Buyer and Seller The undersigned d agree to sell the Premises on the terms and conditions herein stated, acknowledge receipt of a copy hereof and grant permission to Broker named on Section 9a to deliver a copy to Buyer. Counter Offer is attached, and is incorporated herein by reference. Seller should sign both this offer and the Counter Offer. If there is a conflict between this offer and the Counter Offer, the provisions of the Counter Offer shall be controlling. ^ SELLER S SIGNATURE MO/DA/YR ^ SELLER S SIGNATURE MO/DA/YR SELLER S ER S NAME PRINTED ADDRESS CITY, STATE, ZIP PRINTEDSP CODE FAX SAMPLE LE SELLER S NAME PRINTED ADDRESS CITY, STATE, ZIP CODE 416. n OFFER REJECTED BY SELLER:, 20 MONTH DAY YEAR (SELLER S INITIALS) Residential Resale Real Estate Purchase Contract Updated: February 2011 Copyright 2011 Arizona Association of REALTORS. All rights reserved. Page 9 of 9

27 Long Realty Company Residential Seller Advisory When in doubt disclose! Sellers are obligated by law to disclose all known material (important) facts about the property to the buyer. Arizona law requires that you disclose material facts about the property whether or not you are asked by the buyer or a real estate agent, or when asked to complete a disclosure form. There are also some very specific seller disclosures that you are required by statute to make. For example, sellers are required to disclose information on lead based paint in homes built prior to 1978, and if the property is in the vicinity of a military or public airport. You may also be required to complete and record an affidavit of disclosure if you are selling property in an unincorporated area of a county. If the buyer asks you about an aspect of the property, you have a duty to disclose the information, regardless of whether or not you consider the information material. You also have a legal duty to disclose facts when disclosure is necessary to prevent a previous statement from being misleading or misrepresented: for example, if something changes. However, a seller does not generally have a legal obligation to correct defects in the property, as long as the defects are disclosed. Any correction of the defects is a matter of contract negotiation between you and the buyer. If you do not make the legally required disclosures, you may be subject to civil liability. Under certain circumstances, nondisclosure of a fact is the same as saying that the fact does not exist. Therefore, nondisclosure may be given the same legal effect as fraud. The Arizona Association of REALTORS Seller's Property Disclosure Statement ("SPDS") is designed to assist you in making these legally required disclosures and to avoid inadvertent nondisclosures of material facts. You should complete the SPDS by answering all questions as truthfully and as thoroughly as possible. Attach copies of any available invoices, warranties, inspection reports, and leases, to insure that you are disclosing accurate information. Also, use the blank lines to explain your answers. If you do not have the personal knowledge to answer a question, it is important not to guess use the blank lines to explain the situation. The SPDS is divided into six general sections: 1) SAMPLE Ownership and Property: This section asks for general information about the property, such as location, ownership and occupancy. Any seller, whether or not that seller has actually lived in the property, should be able to answer most, if not all, of the questions in this section. 2) Building and Safety Information: This section asks for information regarding the physical aspects of the property. You should disclose any past or present problems with the property and any work or improvements made to the property. You are also asked specifically to disclose any knowledge of past or current presence of termites or other wood destroying organisms on the property, and whether scorpions or other possible "pests" have ever been present on the property. Although many sellers will answer affirmatively to these questions, they were necessitated by lawsuits involving the alleged non-disclosure of these natural inhabitants. 3) Utilities: You are asked whether the property currently receives the listed utilities, and if so, to identify the provider. The water source and any known information about drinking water problems should also be disclosed. 4) Environmental Information: A variety of environmental information is requested. In addition to questions regarding environmental hazards, you are asked to disclose any issues relating to soil settlement/expansion, drainagegrade, or erosion; noise from the surrounding area including airport and traffic noise; and any odors or other nuisances. As a result of recent lawsuits and potential health concerns, you are asked specifically if you are aware of any past or present mold growth on the property. Mold spores are everywhere and when mold spores drop in places where there is water damage or excessive moisture, or where there has been flooding, mold will grow. Thus, you are asked to disclose any conditions conducive to mold growth, such as past or present dampness/moisture, flooding, and water damage or water leaks of any kind. 5) Sewer/Wastewater Treatment: There are many questions dealing with the topic of sewer or wastewater treatment as a result of claims involving alleged misrepresentations that the property was connected to a sewer, when in fact it was not. You are asked if the entire property is connected to a sewer and if so, whether the sewer connection has been professionally verified. If the property is served by an on-site wastewater treatment facility, i.e., a septic or alternative wastewater system, a variety of additional information is required. 6) Other Conditions and Factors Additional Explanations: These blank lines provide space for you to disclose any other important information concerning the property that might affect the buyer's decision-making process, the value of the property, or its use, and to make any other necessary explanations. Please note: By law, sellers are not obligated to disclose that the property is or has been: (1) the site of a natural death, suicide, homicide, or any other crime classified as a felony; (2) owned or occupied by a person exposed to HIV, or diagnosed as having AIDS or any other disease not known to be transmitted through common occupancy of real estate; or (3) located in the vicinity of a sex offender. However, the law does not protect a seller who makes an intentional misrepresentation. For example, if you are asked whether there has been a death on the property and you know that there was such a death, you should not answer "no" or "I don't know"; instead you should either answer truthfully or respond that you are not legally required to answer the question. SA 02/08 Long Realty Company 900 E River Rd Tucson, AZ Fax: (520) John Crist Produced with ZipForm by RE FormsNet, LLC Fifteen Mile Road, Fraser, Michigan SPDS

28

29