OPEN ESCROW, INSPECTIONS AND APPRAISAL 5.1 Opening Escrow. When a buyer and seller have a signed purchase contract, a copy of the executed contract along with the buyer's earnest money check are deposited into an escrow account at the Title Company. An earnest money receipt is faxed to both the listing and selling agents. 5.2 Inspection Period. The buyer's inspection period is usually 10 days after contract acceptance. During the inspections period, the buyer should conduct all desired physical, environmental and other types of inspections and investigations to determine the value and condition of the property. The buyer is advised to consult the Arizona Department of Real Estate Buyer Advisory provided by the Arizona Association of REALTORS® to assist in due diligence inspections and investigations. If wood destroying organisms or termites are a material matter to the buyer, these issues must be investigated during the Inspection Period. Most sellers will provide the Seller's Property Disclosure Statement (SPDS). This document poses a variety of questions for the seller to answer about the property and its condition. A buyer should carefully review the SPDS and verify those statements of concern. 5.3 The Home Inspection. The home inspection is an objective visual examination of the physical structure and systems of a home from the roof to the foundation. The standard home inspector's report will include an evaluation of the condition of the home's heating system, central air conditioning, interior plumbing and electrical systems; roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; and foundation and visible structure. If problems or symptoms are found, the inspector will identify them in the report and recommend repair or evaluation by the appropriate specialist. Prior to the expiration of the inspection period, the buyer should deliver to the seller a signed notice of any items to be repaired or replaced. The Buyer's Inspection Notice and Seller's Response form is available for this purpose. 5.4 Covenants, Conditions and Restrictions. The Covenants, Conditions and Restrictions (CC&Rs) are recorded against the property and generally allow the Homeowner's Association to maintain certain aspects of property use within the development. By purchasing a home in such a development, the buyer agrees to the terms of the CC&Rs. It is essential that the buyer review and agree to these restrictions. 5.5 Homeowner's Insurance. Homeowner's Insurance is required to close any home purchase where a new mortgage is involved. A mortgage lender will not provide you with a loan unless you have home insurance on the property. The seller is obligated to deliver within five days after contract acceptance a written insurance claims history from the seller's insurance company or an insurance support organization such as the Comprehensive Loss Underwriting Exchange (C.L.U.E.®), a consumer reporting agency. 5.6 Appraisal. The appraisal is an estimate of the current market value of the property. Appraisals take into account the local market conditions and the characteristics of a property and are required by most lenders. The appraisal is the lender's way of determining a realistic market value of your future home. The lender uses the appraisal to ensure that the home is actually worth the price you have agreed to pay. For more information or if you have any questions, please contact Garry and Mary at any time.