ARTICLES & NEWS

REAL ESTATE CONTRACTS ARTICLES

Garage

Confirm Not Only Permit Issued But Construction Completed

By Christopher Combs | June 21, 2020

Question: When we purchased our East Valley home, the Seller’s Property Disclosure Statement (“SPDS”), line 150, said that there was a permit from the City of Chandler for the construction of the 2,000-square-foot detached garage. The SPDS, line 155, said that the detached garage had been “completed.” We want to use this detached garage for our collector cars and for an art studio. We recently learned, however, that although a permit from the City of Chandler was granted to build the detached garage, there was never a certificate of completion for the detached garage from the City of Chandler. For…

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cabin

Short-Term Rentals Continue To Cause Confusion

By Christopher Combs | June 14, 2020

Question One: In a recent column you said that a short-term rental in Scottsdale is getting “up to $20,000 per month.” That seems irresponsible to say the least. I take exception to you promoting the success of short-term rentals because these short-term rentals are such a problem here in Sedona, and I have never, nor will I ever, manage them. Our local community is suffering because of the recent state law SB 1350 prohibiting Sedona and other local communities from regulating short-term rentals. Answer: Thank you for your comments. Other readers, however, think that I am opposed to short-term rentals.…

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Morgage transfer

Will My Children Owe Mortgage Balance In Full When I Die?

By Christopher Combs | May 31, 2020

Question: I own three rental properties in Surprise. Each one has a bank mortgage with a “due on sale” clause, i.e., the mortgage must be paid in full upon any transfer of the rental property. My revocable living trust states that my three children become the owners of these three rental properties upon my death. Will the “due on sale” clause in each of these mortgages require my children to pay the entire mortgage balances on these rental homes when I die? Answer: No. Under a 1982 federal law there are exceptions to the enforcement by mortgage lenders of standard…

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hillside view

Deed Restriction to Protect Hillside View

By Christopher Combs | May 10, 2020

Question: Our Estrella Mountain home was one of the first homes sold in our development. The lot behind us has still not sold. If a home is built on this lot, our beautiful hillside view will be spoiled.  Our thought is that we would contact the developer for an agreement to limit to one-story any home built on this lot. Can we pay the developer some amount of money to limit this lot to one-story homes? How long could the time period be? Answer: You could pay the developer for a recorded deed restriction to get a view easement over…

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Baby room

Son Entitled to Appreciation in Home’s New Value

By Christopher Combs | May 3, 2020

Question: My son and his girlfriend bought a home in North Phoenix three years ago as tenants in common. They each contributed $15,000 for the down payment, and my understanding is that they have been splitting the monthly mortgage payments and other home expenses. Last year they had a baby, and they needed another bedroom. We loaned our son $20,000 to add on a bedroom. Although my son and his girlfriend are happy now, what happens if they break up and have to sell the home? Will my son get back from the proceeds the $20,000 cost of the bedroom…

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Agent giving house key

Real Estate Brokers Have Obligation to Disclose

By Christopher Combs | April 26, 2020

Question: In a recent column you said that, under A.R.S. §32-2156 sellers and real estate brokers don’t have to disclose murders, burglaries, and other felonies that have occurred in the home. You also said that sellers and real estate brokers could have to disclose to buyers an abnormally high number of murders, burglaries, and other felonies that have occurred in the surrounding neighborhood. My question as a real estate broker is, what is the obligation of real estate brokers to determine if there is an abnormally high number of felonies that have occurred in the surrounding neighborhood? Do we as…

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clothing optional

Deed Restriction With “Clothing Optional” Neighbor Could Be Recorded

By Christopher Combs | April 19, 2020

Question: My lady friend and I live in one of the older Phoenix subdivisions. Custom homes, large yards, mature vegetation, very quiet and peaceful. My neighbors are generally elderly people. During the summer I rarely see them outside their homes, which adds to the privacy we enjoy. Bottom line, the pool parties we host are “clothing optional.” Nothing lewd, just a group of naked adults enjoying life, lounging in the pool, playing lawn volleyball or badminton covered “only by the sky.” Younger neighbors will eventually buy the nearby homes, however, and they may object if they or their children peek…

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neighborhood plans

Amendment of CC&Rs to Prohibit Short-Term Rentals

By Christopher Combs | April 12, 2020

Question: In last week’s column you said that 51% of the neighbors in a Phoenix neighborhood could not agree to prohibit short-term rentals in their neighborhood. This Phoenix neighborhood had no CC&Rs. Therefore, many readers of your column might think that their Phoenix neighborhood cannot prohibit short-term rentals. In fact, most Phoenix neighborhoods have CC&Rs which can be amended by the homeowners to prohibit short-term rentals. The voting requirement to amend the CC&Rs can be as low as 51% of the homeowners. Our Phoenix neighborhood has CC&Rs that allow amendments by 51% of the homeowners, and we recently amended our…

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