WHEN IN DOUBT DISCLOSE!

Transcription

1 Russ Lyon/Sothebyï ½s International Realty RESIDENTIAL SELLER ADVISORY REAL SOLUTIONS. REALTOR SUCCESS WHEN IN DOUBT DISCLOSE! Document updated: August 2012 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. "...you have a duty to disclose the information, regardless of whether or not you consider the information material." 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 Residential 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) 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, drainage/grade, 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/Waste Water 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. Residential Seller Advisory Updated: August 2012 Copyright 2012 Arizona Association of REALTORS. All rights reserved. Russ Lyon/Sothebyï ½s International Realty 1750 S. Woodlands Blvd. Ste. 125 Flagstaff, AZ Phone: Fax: Melinda T. Morfin Produced with zipform by ziplogix, Fifteen Mile Road, Fraser, Michigan 48026

2 R Russ Lyon/Sothebyï ½s International Realty RESIDENTIAL SELLER S PROPERTY DISCLOSURE STATEMENT (SPDS) (To be completed by Seller) REAL SOLUTIONS. REALTOR SUCCESS The pre-printed portion of this form has been drafted by the Arizona Association of REALTORS. Any change in the pre-printed language of this form must be made in a prominent manner. No representations are made as to the legal validity, adequacy and/or effects of any provision, including tax consequences thereof. If you desire legal, tax or other professional advice, please consult your attorney, tax advisor or professional consultant. Page 1 of 6 Document updated: August 2012 MESSAGE TO THE SELLER: Sellers are obligated by law to disclose all known material (important) facts about the Property to the Buyer. The SPDS is designed to assist you in making these disclosures. If you know something important about the Property that is not addressed on the SPDS, add that information to the form. Prospective Buyers may rely on the information you provide. INSTRUCTIONS: (1) Complete this form yourself. (2) Answer all questions truthfully and as fully as possible. (3) Attach all available supporting documentation. (4) Use explanation lines as necessary. (5) If you do not have the personal knowledge to answer a question, use the explanation lines to explain. By signing below you acknowledge that the failure to disclose known material information about the Property may result in liability. MESSAGE TO THE : Although Sellers are obligated to disclose all known material (important) facts about the Property, there are likely facts about the Property that the Sellers do not know. Therefore, it is important that you take an active role in obtaining information about the Property. INSTRUCTIONS: (1) Review this form and any attachments carefully. (2) Verify all important information. (3) Ask about any incomplete or inadequate responses. (4) Inquire about any concerns not addressed on the SPDS. (5) Review all other applicable documents, such as CC&R s, association bylaws, surveys, rules, and the title report or commitment. (6) Obtain professional inspections of the Property. (7) Investigate the surrounding area. THE FOLLOWING ARE REPRESENTATIONS OF THE SELLER(S) AND ARE NOT VERIFIED BY THE BROKER(S) OR AGENT(S). OWNERSHIP AND PROPERTY 1. As used herein, Property shall mean the real property and all fixtures and improvements thereon and appurtenances incidental thereto, 2. plus fixtures and personal property described in the Contract. 3. PROPERTY ADDRESS: (STREET ADDRESS) (CITY) (STATE) (ZIP) 4. Does the property include any leased land? Yes No 5. Is the Property located in an unincorporated area of the county? Yes No If yes, and five or fewer parcels of land other than subdivided 6. land are being transferred, the Seller must furnish the Buyer with a written Affidavit of Disclosure in the form required by law. 7. LEGAL OWNER(S) OF PROPERTY: Date Purchased: 8. Is the legal owner(s) of the Property a foreign person or a non-resident alien pursuant to the Foreign Investment in Real Property 9. Tax Act (FIRPTA)? Yes No If yes, consult a tax advisor; mandatory withholding may apply. 10. Is the property located in a community defined by the fair housing laws as housing for older persons? Yes No 11. Explain: 12. Approximate year built:. If Property was built prior to 1978, Seller must furnish the Buyer with a lead-based paint disclosure form. 13. NOTICE TO : IF THE PROPERTY IS IN A SUBDIVISION, A SUBDIVISION PUBLIC REPORT, WHICH CONTAINS A VARIETY OF INFOR- 14. MATION ABOUT THE SUBDIVISION AT THE TIME THE SUBDIVISION WAS APPROVED, MAY BE AVAILABLE BY CONTACTING THE 15. ARIZONA DEPARTMENT OF REAL ESTATE OR THE HOMEBUILDER. THE PUBLIC REPORT INFORMATION MAY BE OUTDATED. 16. The Property is currently: Owner-occupied Leased Estate Foreclosure Vacant If vacant, how long? 17. If a rental property, how long? Expiration date of current lease: (Attach a copy of the lease if available.) 18. If any refundable deposits or prepaid rents are being held, by whom and how much? Explain: 19. YES NO 20. Have you entered into any agreement to transfer your interest in the Property in any way, including rental renewals 21. or options to purchase? Explain: 22. Are you aware if there are any association(s) governing this Property? 23. If yes, provide contact(s) information: Name: Phone #: 24. If yes, are there any fees? How much? $ How often? 25. Are you aware of any transfer fees or other fees due upon transfer of the Property? Explain: 26. Residential Seller s Property Disclosure Statement (SPDS) Updated: August 2012 Copyright 2012 Arizona Association of REALTORS. All rights reserved. Page 1 of 6 Russ Lyon/Sothebyï ½s International Realty 1750 S. Woodlands Blvd. Ste. 125 Flagstaff, AZ Phone: Fax: Melinda T. Morfin Produced with zipform by ziplogix, Fifteen Mile Road, Fraser, Michigan 48026

3 Residential Seller s Property Disclosure Statement (SPDS) Page 2 of 6 YES NO 27. Are you aware of any proposed or existing association assessment(s)? Explain: Are you aware of any pending or anticipated disputes or litigation regarding the Property or the association(s)? 30. Explain: 31. Are you aware of any of the following recorded against the Property? (Check all that apply): 32. Judgment liens Tax liens Other non-consensual liens 33. Explain: 34. Are you aware of any assessments affecting this Property? (Check all that apply): 35. Paving Sewer Water Electric Other 36. Explain: 37. Are you aware of any title issues affecting this Property? (Check all that apply): 38. Recorded easements Use restrictions Lot line disputes Encroachments 39. Unrecorded easements Use permits Other 40. Explain: 41. Are you aware of any public or private use paths or roadways on or across this Property? 42. Explain: 43. Are you aware of any problems with legal or physical access to the Property? Explain: 44. The road/street access to the Property is maintained by the County City Homeowners Association Privately 45. If privately maintained, is there a recorded road maintenance agreement? Explain: 46. Are you aware of any violation(s) of any of the following? (Check all that apply): 47. Zoning Building Codes Utility Service Sanitary health regulations 48. Covenants, Conditions, Restrictions (CC&R s) Other (Attach a copy of notice(s) of violation if available.) 49. Explain: Are you aware of any homeowner s insurance claims having been filed against the Property? 52. Explain: 53. NOTICE TO : YOUR CLAIMS HISTORY, YOUR CREDIT REPORT, THE PROPERTY'S CLAIMS HISTORY 54. AND OTHER FACTORS MAY AFFECT THE INSURABILITY OF THE PROPERTY AND AT WHAT COST. UNDER 55. ARIZONA LAW, YOUR INSURANCE COMPANY MAY CANCEL YOUR HOMEOWNER S INSURANCE WITHIN DAYS AFTER THE EFFECTIVE DATE. CONTACT YOUR INSURANCE COMPANY. R BUILDING AND SAFETY INFORMATION YES NO 57. STRUCTURAL: 58. Are you aware of any past or present roof leaks? Explain: Are you aware of any other past or present roof problems? Explain: Are you aware of any roof repairs? Explain: Is there a roof warranty? (Attach a copy of warranty if available.) 65. If yes, is the roof warranty transferable? Cost to transfer 66. NOTICE TO : CONTACT A PROFESSIONAL TO VERIFY THE CONDITION OF THE ROOF. 67. Are you aware of any interior wall/ceiling/door/window/floor problems? Explain: Are you aware of any cracks or settling involving the foundation, exterior walls or slab? Explain: Are you aware of any chimney or fireplace problems, if applicable? Explain: 72. Residential Seller s Property Disclosure Statement (SPDS) Updated: August 2012 Copyright 2012 Arizona Association of REALTORS. All rights reserved. Page 2 of 6 Produced with zipform by ziplogix Fifteen Mile Road, Fraser, Michigan 48026

4 Residential Seller s Property Disclosure Statement (SPDS) YES NO 73. Are you aware of any damage to any structure on the Property by any of the following? (Check all that apply): Flood Explain: Fire Wind Expansive soil(s) Water Hail Other WOOD INFESTATION: Are you aware of any of the following: 78. Past presence of termites or other wood destroying organisms on the Property? 79. Current presence of termites or other wood destroying organisms on the Property? 80. Past or present damage to the Property by termites or other wood destroying organisms? 81. Explain: Are you aware of past or present treatment of the Property for termites or other wood destroying organisms? 84. If yes, date last treatment was performed: 85. Name of treatment provider: 86. Is there a treatment warranty? (Attach a copy of warranty if available.) 87. If yes, is the treatment warranty transferable? 88. NOTICE TO : CONTACT STATE OF ARIZONA STRUCTURAL PEST CONTROL COMMISSION 89. FOR PAST TERMITE REPORTS OR TREATMENT HISTORY. 90. HEATING & COOLING: 91. Heating: Type(s) 92. Cooling: Type(s) 93. Are you aware of any past or present problems with the heating or cooling system(s)? 94. Explain: 95. PLUMBING: 96. Are you aware of the type of water pipes, such as galvanized, copper, PVC, CPVC or polybutylene? 97. If yes, identify: 98. Are you aware of any past or present plumbing problems? Explain: Are you aware of any water pressure problems? Explain: 101. Type of water heater(s): Gas Electric Solar Approx. age(s): 102. Are you aware of any past or present water heater problems? Explain: Is there a landscape watering system? If yes, type: automatic timer manual both 105. If yes, are you aware of any past or present problems with the landscape watering system? 106. Explain: 107. Are there any water treatment systems? (Check all that apply): 108. water filtration reverse osmosis water softener Other 109. Is water treatment system(s) owned leased (Attach a copy of lease if available.) 110. Are you aware of any past or present problems with the water treatment system(s)? 111. Explain: 112. SWIMMING POOL/SPA/HOT TUB/SAUNA/WATER FEATURE: 113. Does the Property contain any of the following? (Check all that apply): 114. Swimming pool Spa Hot tub Sauna Water feature 115. If yes, are either of the following heated? Swimming pool Spa If yes, type of heat: 116. Are you aware of any past or present problems relating to the swimming pool, spa, hot tub, sauna or water feature? 117. Explain: Page 3 of 6 R Residential Seller s Property Disclosure Statement (SPDS) Updated: August 2012 Copyright 2012 Arizona Association of REALTORS. All rights reserved. Page 3 of 6 Produced with zipform by ziplogix Fifteen Mile Road, Fraser, Michigan 48026

5 Residential Seller s Property Disclosure Statement (SPDS) YES NO 118. ELECTRICAL AND OTHER RELATED SYSTEMS: 119. Are you aware of any past or present problems with the electrical system? Explain: Is there a security system? If yes, is it (Check all that apply): 122. Leased (Attach copy of lease if available) Owned Monitored Other 123. Are you aware of any past or present problems with the security system? Explain: Does the Property contain any of the following systems or detectors?(check all that apply): 126. Smoke/fire detection Fire suppression (sprinklers) Carbon monoxide detector 127. If yes, are you aware of any past or present problems with the above systems? Explain: 128. Page 4 of 6 R 129. MISCELLANEOUS: 130. Are you aware of or have you observed any of the following on the Property? (Check all that apply): 131. Scorpions Rabid animals Bee swarms Rodents Reptiles Other: 132. Explain: 133. How often is the Property serviced or treated for pests, reptiles, insects or animals? 134. Name of service provider: Date of last service: 135. Are you aware of any work done on the Property, such as building, plumbing, electrical or other improvements? 136. (If no, skip to line 145.) 137. Explain: 138. Are you aware of any rooms added to the Property or converted to bedrooms? 139. Were permits for the work required? Explain: 140. If yes, were permits for the work obtained? Explain: 141. Was the work performed by a person licensed to perform the work? Explain: 142. Was approval for the work required by any association governing the property? Explain: 143. If yes, was approval granted by the association? Explain: 144. Was the work completed? Explain: 145. Are there any security bars or other obstructions to door or window openings? Explain: 146. Are you aware of any past or present problems with any built-in appliances? Explain: Are there any leased propane tanks, equipment or other systems on the Property? Explain: 149. UTILITIES 150. DOES THE PROPERTY CURRENTLY RECEIVE THE FOLLOWING SERVICES? YES NO 151. Electricity: Fuel: Natural gas Propane Oil Cable: Telephone: Garbage Collection: Fire: Irrigation: Water Source: Public Private water co. Private well Shared well Hauled water 159. If water source is a private or shared well, complete and attach DOMESTIC WATER WELL/WATER USE ADDENDUM If source is public, a private water company, or hauled water, Provider is: 161. NOTICE TO : IF THE PROPERTY IS SERVED BY A WELL, PRIVATE WATER COMPANY OR A 162. MUNICIPAL WATER PROVIDER, THE ARIZONA DEPARTMENT OF WATER RESOURCES MAY NOT 163. HAVE MADE A WATER SUPPLY DETERMINATION. FOR MORE INFORMATION ABOUT WATER SUPPLY, 164. CONTACT THE WATER PROVIDER. Residential Seller s Property Disclosure Statement (SPDS) Updated: August 2012 Copyright 2012 Arizona Association of REALTORS. All rights reserved. Page 4 of 6 Produced with zipform by ziplogix Fifteen Mile Road, Fraser, Michigan PROVIDER

6 Residential Seller s Property Disclosure Statement (SPDS) YES NO 165. Are you aware of any past or present drinking water problems? Explain: Are there any alternate power systems serving the Property? If yes, indicate type (Check all that apply): 168. Solar Wind Generator Other 169. If yes, are you aware of any past or present problems with the alternate power system(s)? Explain: 170. ENVIRONMENTAL INFORMATION Residential Seller s Property Disclosure Statement (SPDS) Updated: August 2012 Copyright 2012 Arizona Association of REALTORS. All rights reserved. Page 5 of 6 Produced with zipform by ziplogix Fifteen Mile Road, Fraser, Michigan Page 5 of 6 YES NO 171. Are you aware of any past or present issues or problems with any of the following on the Property? (Check all that apply): 172. Soil settlement/expansion Drainage/grade Erosion Fissures Dampness/moisture Other 173. Explain: 174. Are you aware of any past or present issues or problems in close proximity to the Property related to any of 175. the following? (Check all that apply): 176. Soil settlement/expansion Drainage/grade Erosion Fissures Other 177. Explain: 178. NOTICE TO : THE ARIZONA DEPARTMENT OF REAL ESTATE PROVIDES EARTH FISSURE MAPS TO 179. ANY MEMBER OF THE PUBLIC IN PRINTED OR ELECTRONIC FORMAT UPON REQUEST AND ON ITS WEBSITE 180. AT Are you aware if the Property is subject to any present or proposed effects of any of the following? (Check all that apply): 182. Airport noise Traffic noise Rail line noise Neighborhood noise Landfill Toxic waste disposal 183. Odors Nuisances Sand/gravel operations Other 184. Explain: 185. Are you aware if any portion of the Property has ever been used as a "Clandestine drug laboratory" (manufacture of, 186. or storage of, chemicals or equipment used in manufacturing methamphetamine, ecstasy or LSD)? 187. NOTICE TO : THE ARIZONA BOARD OF TECHNICAL REGISTRATION (BTR) MAINTAINS A LIST OF 188. UNREMEDIATED SITES AT TO DETERMINE IF THE PROPERTY WAS ONCE ON THE LIST 189. BUT HAS BEEN REMEDIATED, CONTACT THE BTR AT Are you aware if the Property is located in the vicinity of an airport (military, public, or private)? 191. Explain: 192. NOTICE TO SELLER AND : PURSUANT TO ARIZONA LAW A SELLER SHALL PROVIDE A WRITTEN 193. DISCLOSURE TO THE IF THE PROPERTY IS LOCATED IN TERRITORY IN THE VICINITY OF A MILITARY 194. AIRPORT OR ANCILLARY MILITARY FACILITY AS DELINEATED ON A MAP PREPARED BY THE STATE LAND 195. DEPARTMENT. THE DEPARTMENT OF REAL ESTATE ALSO IS OBLIGATED TO RECORD A DOCUMENT AT THE 196. COUNTY RECORDER S OFFICE DISCLOSING IF THE PROPERTY IS UNDER RESTRICTED AIR SPACE AND TO 197. MAINTAIN THE STATE LAND DEPARTMENT MILITARY AIRPORT MAP ON ITS WEBSITE AT Are you aware of the presence of any of the following on the Property, past or present? (Check all that apply): 199. Asbestos Radon gas Lead-based paint Pesticides Underground storage tanks Fuel/chemical storage 200. Explain: 201. Are you aware if the Property is located within any of the following? (Check all that apply): 202. Superfund/ WQARF/ CERCLA Wetlands area 203. Are you aware of any open mine shafts/tunnels or abandoned wells on the Property? 204. If yes, describe location: 205. Are you aware if any portion of the Property is in a flood plain/way? Explain: Are you aware of any portion of the Property ever having been flooded? Explain: Are you aware of any water damage or water leaks of any kind on the Property? Explain: Are you aware of any past or present mold growth on the Property? If yes, explain: 212. R

7 Residential Seller s Property Disclosure Statement (SPDS) SEWER/WASTEWATER TREATMENT YES NO 213. Is the entire Property connected to a sewer? Explain: 214. If yes, has a professional verified the sewer connection? If yes, how and when: Page 6 of NOTICE TO : CONTACT A PROFESSIONAL TO CONDUCT A SEWER VERIFICATION TEST Type of sewer: Public Private Planned and approved sewer system, but not connected 217. Name of Provider 218. Are you aware of any past or present problems with the sewer? Explain: 219. Is the Property served by an On-Site Wastewater Treatment Facility? (If no, skip to line 232.) 220. If yes, the Facility is: Conventional septic system Alternative system; type: 221. If the Facility is an alternative system, is it currently being serviced under a maintenance contract? 222. If yes, name of contractor: Phone #: 223. Approximate year Facility installed: (Attach copy of permit if available.) 224. Are you aware of any repairs or alterations made to this Facility since original installation? 225. Explain: Approximate date of last Facility inspection and/or pumping of septic tank: 228. Are you aware of any past or present problems with the Facility? Explain: NOTICE TO SELLER AND : THE ARIZONA DEPARTMENT OF ENVIRONMENTAL QUALITY REQUIRES A 231. PRE-TRANSFER INSPECTION OF ON-SITE WASTEWATER TREATMENT FACILITIES ON RE-SALE PROPERTIES. OTHER CONDITIONS AND FACTORS 232. What other material (important) information are you aware of concerning the Property that might affect the buyer s decision-making 233. process, the value of the Property, or its use? Explain: 234. R ADDITIONAL EXPLANATIONS 237. SELLER CERTIFICATION: Seller certifies that the information contained herein is true and complete to the best of Seller s 238. knowledge as of the date signed. Seller agrees that any changes in the information contained herein will be disclosed in writing by Seller 239. to Buyer prior to Close of Escrow, including any information that may be revealed by subsequent inspections SELLER S SIGNATURE MO/DA/YR SELLER S SIGNATURE MO/DA/YR 241. Reviewed and updated: Initials: SELLER / SELLER MO/DA/YR 242. S ACKNOWLEDGMENT: Buyer acknowledges that the information contained herein is based only on the Seller s actual 243. knowledge and is not a warranty of any kind. Buyer acknowledges Buyer s obligation to investigate any material (important) facts in 244. regard to the Property. Buyer is encouraged to obtain Property inspections by professional independent third parties and to 245. consider obtaining a home warranty protection plan NOTICE: Buyer acknowledges that by law, Sellers, Lessors and Brokers are not obligated to disclose that the Property is or has been: (1) the site 247. of a natural death, suicide, homicide, or any other crime classified as a felony; (2) owned or occupied by a person exposed to HIV, diagnosed as 248. 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 By signing below, Buyer acknowledges receipt only of this SPDS. If Buyer disapproves of any items provided herein, Buyer 250. shall deliver to Seller written notice of the items disapproved as provided in the Contract S SIGNATURE MO/DA/YR S SIGNATURE MO/DA/YR Residential Seller s Property Disclosure Statement (SPDS) Updated: August 2012 Copyright 2012 Arizona Association of REALTORS. All rights reserved. Page 6 of 6 Produced with zipform by ziplogix Fifteen Mile Road, Fraser, Michigan 48026

8 NORTHERN ARIZONA ASSOCIATION OF REALTORS, INC. EXCLUSIVE AUTHORIZATION AND RIGHT TO SELL LISTING CONTRACT RESIDENTIAL PROPERTY This is intended to be a legally binding contract. No representation is made as to the legal validity or adequacy of any provision or the tax consequences thereof. If you desire legal, tax or other professional advice, consult your attorney, tax advisor, or professional consultant PRICE $ PROPERTY SUBTYPE AREA REGION ASSESSOR'S # THE PREMISES: For purposes of this Listing Contract ("Contract"), the "Premises" means the real property in County, Arizona described below, plus all fixtures and improvements thereon, all appurtenances incident thereto and all personal property described in lines 22 through 39. Check One: See legal description attached hereto: Legal description as follows: PROPERTY ADDRESS CITY ZIP CODE EXCLUSIVE RIGHT TO SELL: In considerationof the acceptance by the undersigned, licensed Arizona real estate broker ("Broker") of the terms of this Listing, and Broker's promise to endeavor to effect a sale, lease, exchange, or option of the property described above, ("Premises"), I/we, as the Seller(s) ("Seller"), employ and grant the Broker the exclusive and irrevocable right to sell, lease, exchange, or option the Premises described in lines 2 through 9 commencing on, and expiring at 11:59 p.m. MST on AGENCY RELATIONSHIPS: Seller understands that Broker is Seller's agent with respect to this Listing. Seller understands that a Buyer may also wish to be represented by Broker in connection with the purchase, lease, exchange or option of the Premises. In that event, Broker would be serving as the agent of both the Seller and the Buyer. Since Seller does not wish to limit the range of Buyers at this time, Seller agrees to work with Broker to resolve any potential agency conflicts that may arise and to review the Consent to Limited Representation form. Seller authorizes Broker to offer cooperation and compensation to: Subagents Buyer's Brokers Limited Dual Agents ADDENDA INCORPORATED: Addendum Affidavit of Disclosure As Is Domestic Water Well HOA HOA Disclosure Lead Based Paint Other On Site Waste Water Property Data Form R.E. Agency Relationships SPDS Short Sale FIXTURES AND PERSONAL PROPERTY: Seller agrees that all existing fixtures on the Premises, and any existing personal property specified herein, shall be included in the sale of the Premises, including the following: free-standing range/oven built-in appliances light fixtures ceiling fans towel, curtain and drapery rods draperies and other window coverings attached floor coverings flush-mounted speakers attached fireplace equipment window and door screens, sun screens storm windows and doors shutters and awnings garage door openers and controls attached TV/media antennas/satellite dishes If owned by the Seller, the following items also are included in the sale: pool and spa equipment (including any security and/or fire systems mechanical or other cleaning systems) and/or alarms outdoor landscaping, fountains, & lighting water-misting systems solar systems pellet, wood-burning or gas-log stoves timers mailbox storage sheds water softeners water purification systems Additional Existing Personal Property Included in this sale (if checked): refrigerator washer dryer As described: Other: propane tank Additional existing personal property shall not be considered part of the Premises and shall be transferred with no monetary value, and free and clear of all liens or encumbrances. Fixtures and leased items NOT included: ROLE OF THE BROKER: Seller acknowledges that Broker is not responsible for the custody or condition of the Premises or for its management, maintenance, upkeep or repair. COMPENSATION TO BROKER: Seller agrees to compensate Broker as follows: a. RETAINER: Broker acknowledges receipt of a non-refundable retainer fee of: payable to Broker for initial counseling, consultation, research and/or marketing. b. BROKER COMMISSION: If Broker produces a ready, willing and able Buyer in accordance with this Listing, or if a sale, lease, exchange, or option of the premises is made by Seller or through any other real estate agent, during the term of this exclusive Listing, for services rendered, Seller agrees to pay Broker a commission of The same amount of commission shall be payable to Broker if, without the consent of Broker, the Premises is withdrawn from this Listing or otherwise withdrawn from sale or transferred or conveyed by Seller. c. SELLER'S OBLIGATIONS: Seller agrees not to rent the Premises during the term of this Listing without Broker's prior knowledge and consent. If the Premises is rented, through the services of Broker or Seller, or any other real estate agent, Seller agrees to pay Broker a commission upon execution of a lease by all parties, including renewals and holdover, of Exclusive Authorization 10/09 Page 1 of 4 Seller's Initials / Russ Lyon/Sothebyï ½s International Realty 1750 S. Woodlands Blvd. Ste. 125 Flagstaff, AZ Phone: Fax: Melinda T. Morfin Produced with ZipForm by RE FormsNet, LLC Fifteen Mile Road, Fraser, Michigan

9 d. PURCHASE BY TENANT: If during the terms of such rental, including any renewals and holdovers, or within days after its termination, the tenant, or any of such tenant's heirs, executors, or assigns shall buy the Premises from Seller, the commission described in lines 48 through 52 shall be deemed earned by and payable to Broker. e. AFTER EXPIRATION: After expiration of this Listing, the same commission, as appropriate, shall be payable, if a sale, lease, exchange, or option is made by Seller to any person to whom the Premises has been shown or with whom Seller or any Broker has negotiated concerning the Premises during the term of this Listing, (1) within days after expiration of this Listing, unless the Premises has been listed on an exclusive basis with another Broker, or (2) during the pending period, including the closing, of any purchase contract or escrow relating to the Premises that was executed or opened during the terms of this Listing, or (3) with respect to any sale covered by lines 48 through 52. f. FAILURE TO CLOSE: If completion of the sale is prevented by default of Seller, or with consent of Seller, the entire commission shall be paid directly by Seller. If the earnest deposit is forfeited for any other reason, Seller shall pay a brokerage fee equal to the lesser of onehalf of the earnest deposit or the full amount of the commission. g. PAYMENT FROM ESCROW: Seller will instruct the escrow company to pay all commissions to Broker in cash as a condition at closing and irrevocably assigns Seller's proceeds to Broker at close of escrow to the extent necessary therefore. h. OTHER BROKERS: Seller authorizes Broker to cooperate with other brokers as instructed herein and to divide all such compensation with other brokers in any manner acceptable to Broker. i. NO LIMITATION: Nothing in this Listing shall be construed as limiting applicable provisions of law relating to when commissions are earned or payable OWNER'S AUTHORIZATION: The Seller authorizes and permits the Broker to: a. Represent the Premises as set forth in the attached Northern Arizona Association of Realtors, Inc. (NAAR) Property Data Form, dated ; b. c. d. e. h. i. j. Place the Broker's "For Sale" sign and, in the event of a sale, a "Sold" or "Pending" sign (at Broker's discretion) on the Premises; Procure and present "offers to purchase" and to accept earnest monies and to issue receipts for such earnest monies to be deposited in the Broker's or Escrow Company's trust account upon Seller's acceptance of an "offer to purchase", unless otherwise agreed. Allow Broker to disseminate data to websites for the purposes of procuring a Buyer. Seller's Initials / Multiple Listing Service: Broker is a member of the NAAR and its Multiple Listing Service (MLS) and possibly of other MLS's as a secondary member. The listing information contained herein and from the Property Data Form will be provided to the MLS (s) to be published and disseminated to its users. Broker is authorized to report the pending sale, lease, exchange, or option of the Premises, and its price, terms and financing to the MLS for dissemination and use by authorized members and MLS users and to the public. f. Other Potential Sellers: Seller understands that other potential sellers may authorize Broker to endeavor to effect a sale, lease, exchange, or option property similar to the Premises. Seller consents to any agency representation by Broker of such other potential sellers before, during and after expiration of this Listing and understands that the Premises may not be presented or shown to every Buyer the Broker represents. SELLER'S OBLIGATIONS: The Seller agrees to the following: a. Seller agrees to make available to Broker and prospective Buyers all data, records and documents pertaining to the Premises in Seller's possession. Seller authorizes Broker, and any other broker authorized by Listing Broker, to preview and show the Premises at reasonable times and upon reasonable notice and agrees to commit no act which might tend to obstruct Broker's performance hereunder. If the Premises is occupied by someone other than the Seller, the Seller will provide to Broker the occupant's written consent to the showing of the Premises. Seller shall not deal directly with any prospective Buyer of the Premises during the term of this Listing and shall refer all prospective Buyers to Broker during the term hereof; b. Consult with the Broker prior to the execution of an acceptance of an "offer to purchase"; c. Have only Brokers "For Sale" sign(s) on the property; d. Furnish, prior to the close of a sale and at Seller's expense, a good and sufficient conveyance and marketable title evidenced by a title insurance policy insured by a title insurance company in the full amount of the purchase price by a company licensed in Arizona to issue title insurance; e. IRS Reporting: Seller agrees to comply with IRS reporting requirements. If applicable, Seller agrees to complete, sign, and deliver to the 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). f. Homeowner's Association Information: If the Premises is located within a Homeowner's Association/Condominium/Planned Community Development, the Seller agrees to complete a Homeowner's Association Disclosure form; and further Seller shall disclose in writing any current homeowner's association or upcoming assessments, claims or litigation, a copy of the bylaws and the rules of the association, a copy of the declaration of Covenants, Conditions and Restrictions ("CC&R's"), other governing documents, and any other information required by law in Seller's possession. g. Lead Based Paint: If Premises was constructed prior to 1978, Seller shall provide a Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards as required by the U.S. Department of Housing and Urban Development. Insurance: Seller is responsible for maintaining appropriate insurance to cover possible liability and losses from access, including liability for bodily injury and losses due to theft and vandalism. Seller shall deliver to Broker 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 the Seller's insurance company or an insurance support organization or consumer reporting agency, or if unavailable from these sources, from Seller. Affidavit of Disclosure: A Seller of five or fewer parcels of land, other than subdivided land, in an unincorporated area of the county shall deliver a written affidavit of disclosure to the Buyer. Disclosure must be notarized when signed by Buyer and recorded with the deed. Wood-Destroying Organism or Insect Inspection: If Seller has knowledge of current or past wood-destroying organisms or insects, (such as termites), this information must be disclosed. If this is a material matter to a Buyer, the Buyer shall order and pay for all wooddestroying organism or insect inspections to be performed during the inspection Period. If the lender requires an updated Wood-Destroying Organism or Insect inspection Report prior to Close of escrow, it will be performed at Buyer's expense. Exclusive Authorization 10/09 Page 2 of 4 Seller's Initials / Produced with ZipForm by ziplogix Fifteen Mile Road, Fraser, Michigan 48026

10 k. Waste Disposal Systems: Before Close of Escrow any septic/alternative system on the Premises shall be inspected at Seller's expense by an inspector recognized by the applicable governmental authority. Any necessary repairs shall be paid by the Seller, but not to exceed one percent (1%) of the full purchase price or whatever is negotiated in the Purchase Contract. If such costs exceed this amount that the Seller agrees to pay, (1) the Buyer may immediately elect to cancel the Purchase Contract, or (2) Seller may elect to cancel the Purchase Contract unless Buyer agrees, in writing, to pay such costs in excess of those Seller agrees to pay. Seller shall deliver to Escrow Company, at Seller's expense, any certification and/or documentation required. l. Wells: If any well is located on the Premises, Seller shall deliver to Escrow Company, before Close of Escrow, a copy of the Arizona Department of Water Resources, (ADWR), "Registration of Existing Wells". Escrow Company is hereby instructed to send to the ADWR a "Change of Well Information". (ARS ). Seller does not warrant the gallons per minute as reflected on the ADWR certificate of registration. Buyer may verify gallons per minute during the Inspection Period. m. Permit Broker to supplement listing information periodically to clarify, correct or update information in this Contract. SELLER'S WARRANTIES: The Seller warrants the following: a. Seller has the legal capacity, full power and authority to enter into this Listing and consummate the transactions contemplated hereby on his/her/their own behalf or on behalf of the party he represents, as appropriate; b. All information concerning the Premises in this Listing, including the NAAR Property Data Form, other MLS Data Forms and the Seller's Property Disclosure Statement (SPDS), relating to the Premises, or otherwise provided by Seller to Broker or to any prospective Buyer of the Premises is, or will be at the time made, and shall be at closing, true, correct and complete. Seller agrees to notify Broker promptly if there is any material change in such information during the term of this Listing; c. Seller has disclosed to Broker in writing at the time of this Listing, all material, latent defects, (problems with the Premises not plainly visible), concerning the Premises which are known to Seller and Seller will continually advise Broker in writing of any material change in information on the condition of the premises. ALSO SEE ATTACHED ADDENDUM - The SPDS, if applicable to updates. d. Seller warrants that there is no bankruptcy, foreclosure or any other legal action pending that would affect the title to the Premises or which could cause a delay in obtaining marketable title to sell/transfer except as is disclosed by the Seller to the Broker in writing at or during the time of this Listing; e. Except as otherwise provided in this Listing, Seller shall maintain and repair the Premises so that at the earlier of possession by a Buyer or the Close of Escrow: (1) 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; (2) all other agreed upon repairs and corrections will be completed as agreed to; (3) the Premises, including all additional existing personal property agreed to in a Purchase Offer, will be in substantially the same condition as on the date of Purchase Offer acceptance; and (4) all personal property not included in the sale and all debris will be removed from the Premises. f. Seller warrants that, prior to the close of escrow, payment in full will have been made for all labor, professional services, materials, machinery, fixtures or tools furnished within the 120 days immediately preceding the close of escrow in connection with the construction, alteration or repair of any structure on or improvement to the Premises. g. Seller warrants that the information in the Listing and attached NAAR Property Data Form, regarding connection to a public sewer system, septic system or other sanitation system is correct to the best of Seller's knowledge. h. Seller warrants that he has disclosed to Broker any information, excluding opinions of value, that he possesses which materially and adversely affects the consideration to be paid by a Buyer. INDEMNIFICATION: Seller agrees to indemnify and hold Broker, NAAR, all other Boards or Associations of REALTORS, and all other brokers harmless against any and all claims, liability, damage or loss arising from any misrepresentation or breach of warranty by Seller in this Listing, any incorrect information supplied by Seller and any facts concerning the Premises not disclosed or withheld by Seller, including without limitation, any facts known to Seller relating to adverse conditions or latent defects. KEYSAFE INFORMATION AND DISCLOSURES: Seller acknowledges that a keysafe will permit access to the Premises by Broker, and any member of NAAR, their MLS or their specific affiliates as authorized by the Listing Broker, with or without potential Buyers, even when Seller is absent. It is not a requirement of NAAR or the Broker herein that Seller allows use of a keysafe. Seller acknowledges that neither NAAR or any broker is insuring Seller against theft, loss or vandalism resulting from such access. Broker advises and requests that Seller safeguards or removes valuables now located within said Premises. Seller is responsible for obtaining appropriate insurance. Where a tenant occupies the property, Seller will obtain and provide the Broker with written permission from tenant for the placement of a keysafe Seller does does not authorize Broker to install the NAAR endorsed lockbox containing a key to the Premises HOME WARRANTY: Seller acknowledges that home warranty plans are available and that such plans may provide additional protection and 171. benefits to Seller and any Buyer of the Premises. Seller acknowledges that the coverage under any home warranty plan generally excludes 172. pre-existing conditions Seller, at Seller's expense, does does not agree to provide a home warranty plan for the Buyer at the close of escrow DISPUTE RESOLUTION: 175. Mediation: If such system is reasonably available to the parties, Seller agrees to request from the Buyer or tenant of the Premises written 176. confirmation that any dispute or claim arising from or relating to the purchase or services provided in relation to the purchase contract shall be 177. submitted to mediation in accordance with the Rules and Procedures of the REALTORS Dispute Resolution System. Subject to certain 178. exclusions, disputes subject to mediation shall include representations made by Seller, Buyer, tenant or any broker or other person or entity in 179. connection with the sale, rental, purchase, financing or condition or any other aspect of the Premises, including any allegation of concealment, 180. misrepresentation, negligence or fraud. If the Buyer or tenant of the Premises consents to mediation, Seller agrees to submit all disputes to 181. mediation as described in such Rules and Procedures Arbitration: If the parties do not agree to mediation, or if the mediation does not result in the resolution of the dispute, Seller and Broker 183. agree that all disputes shall be resolved by binding arbitration. Unless Seller objects in writing, all disputes shall be resolved by arbitration 184. under the rules and procedures followed by a Board or Association of REALTORS in conjunction with the Code of Ethics and Arbitration 185. Manual of the National Association of REALTORS, as it may be amended from time to time. If Seller objects to REALTOR arbitration, all 186. disputes shall be resolved by arbitration under the Rules of the American Arbitration Association. Initially all applicable deposits, arbitrators' 187. fees, filing fees, administrative costs and expenses will be borne equally by the parties. However, if permitted by the applicable rules, the 188. arbitrator(s) shall be authorized to award or refund all costs, deposits and attorneys fees to the prevailing party. The decision of such 189. arbitrator(s) shall be binding and conclusive upon all parties and may be enforced in any court of competent jurisdiction which is located in 190. same County as the Premises. Exclusive Authorization 10/09 Page 3 of 4 Seller's Initials / Produced with ZipForm by ziplogix Fifteen Mile Road, Fraser, Michigan 48026

11 Attorney's Fees: In any action or proceeding to enforce any provision of this Listing, or for damages sustained by reason of its breach, the prevailing party shall be entitled to receive from the other party reasonable attorney's fees and all other related expenses, such as expert witness fees, fees paid to investigators and court costs as set by the court or arbitrator and not by a jury. Additionally, if any Broker reasonably hires an attorney to enforce the collection of any commission payable pursuant to this Listing, and is successful in collecting some or all of such commission without commencing any action or proceeding, Seller agrees to pay such Broker's reasonable attorney's fees and costs and Seller also agrees to pay interest at the legal rate on all compensation and other amounts owed or due to Broker from the time due until paid in full. SUBSEQUENT OFFER: Seller shall have the right to receive subsequent offer(s) to purchase the Premises unless otherwise agreed in an accepted offer to purchase. DOCUMENTS: In connection with any sale of the Premises, Seller consents to the use of the standard form of purchase contract used by the Arizona Association of Realtors and all other standard documents used by the escrow and title companies. COPIES, COUNTERPARTS AND FACSIMILE: 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 by facsimile or other electronic means and in any number of counterparts, which shall become effective upon delivery as provided for herein. All counterparts shall be deemed to constitute one instrument, and each counterpart shall be deemed an original. TIME IS OF THE ESSENCE: The parties acknowledge that time is of the essence in the performance of the obligations described herein. ENTIRE AGREEMENT: This Contract, any attached property data forms, exhibits and any addenda or supplements signed by the parties shall constitute the entire Contract between Seller and Broker and supersedes any other written or oral agreements between Seller and Broker. This Contract can be modified only by a writing signed by Seller and Broker. CONSTRUCTION OF LANGUAGE AND GOVERNING LAW: The language of this Contract shall be construed according to its fair meaning and not strictly for or against either party. Words used in the masculine, feminine or neuter shall apply to either gender of the neuter, as appropriate. All singular and plural words shall be interpreted to refer to the number consistent with circumstances and context. The headings or captions of paragraphs in this Contract are for convenience and reference only and do not define, limit or describe the scope or intent of this Contract or the provisions of such paragraphs. Whenever the words "include", "includes", or "including" are used in this Contract, they shall be deemed to be followed by the words "without limitation". If this Contract is used for a lease, exchange or option instead of a sale of the Premises, all language in this Contract relating to the sale of the Premises shall be construed to apply to any lease, exchange or option. This Contract shall be governed by the laws of the State of Arizona. EQUAL HOUSING OPPORTUNITY: Premises will be presented in compliance with federal, state and local fair housing laws and regulations. COMMISSIONS PAYABLE FOR THE SALE, LEASE, EXCHANGE, OR OPTION OF PROPERTY ARE NOT SET BY ANY BOARD OR ASSOCIATION OF REALTORS OR MULTIPLE LISTING SERVICE OR IN ANY MANNER OTHER THAN BY NEGOTIATION BETWEEN THE BROKER AND THE SELLER. AGREED: By signing below, Seller acknowledges that he has read, understands and accepts all terms and conditions contained herein and that he has received a copy of this Listing Seller's Name (Print) Signature Date 225. Seller's Name (Print) Signature Date 226. Seller's Address Home# Work# Cell# ACCEPTED: In consideration of Seller's representations and promises in this Contract, Broker agrees to endeavor to affect a sale, lease exchange, or option in accordance with this Contract Firm Name/Listing Office Office# 231. Designated Broker (Print) Signature Date 232. Firm Address Listing Agent (Print) Signature Date 234. Office# Cell# Broker File/Log # Manager's Initials Date Exclusive Authorization 10/09 Page 4 of 4 Seller's Initials / Produced with ZipForm by ziplogix Fifteen Mile Road, Fraser, Michigan 48026