Curing Contractual Issues in Phoenix Real Estate
Yesterday one of my sellers conducted the “final” walkthrough on the home they are purchasing in Ventana Lakes. Or at least, that was the plan. Once we got to the home we discovered both the water and gas had been turned off, making it rather difficult to determine if the leak from the hose bib out front had been corrected.
In addition, the termite treatment that was to have been completed had not yet been done. In fact, it was delayed two days and is taking place Thursday morning - the day we’re scheduled to close.
Until 2005, such issues would be immediate cause for a buyer to void the contract and walk away from the home if they so chose. But that was before the advent of the “Cure Period Notice.”
Under the terms of AAR’s Residential Resale Purchase Contract, when one party does not do what they’re supposed to do within the specific timeframe, the other party can’t cancel the contract. They need to issue a Cure Period Notice. This notice gives the receiving party three days to correct the issue and, if not corrected within the three days, then the contract can be canceled.
Back to our scenario … repairs are supposed to be completed three days before the close of escrow per the contract. That wasn’t done. So my buyer and I sent a cure period notice to the seller, letting them know everything needs to be completed or else my buyer has the option to cancel at the end of the three days.
Why the cure? To hold both buyers and sellers to the contract. A purchase contract is a legally binding document and shouldn’t be treated capriciously, as had been the case in the days before the Cure Period Notice. It also forces both sides to work in good faith to see the transaction to which they both agreed get completed.
Next up on the agenda … why you shouldn’t paint a screened security door with a brush. That’s one cure that’s a little harder to come by.
Technorati Tags: Phoenix real estate, AAR purchase contract
Popularity: 4% [?]
