A. A
developer or the developer's agent shall ensure that any agreement or contract
for the sale or lease of a property interest in a development that requires a
public report contains substantially the following language in bold print or
print larger than the other print used in the document above the signature
portion of the document:
THE DEVELOPER SHALL GIVE A PROSPECTIVE PURCHASER A COPY OF
THE PUBLIC REPORT AND AN OPPORTUNITY TO READ AND REVIEW IT BEFORE THE
PROSPECTIVE PURCHASER SIGNS THIS DOCUMENT.
B. A developer or the developer's agent shall
ensure that any agreement or contract for the sale or lease of a property
interest in a development conspicuously discloses the nature of the document at
or near the top of the document.
C.
The contract shall indicate where the earnest money or down payment, if any,
will be deposited and shall include the name of the title company, the name of
the broker's trust account, or other depository.
D. Any agreement or contract for the sale or
lease of a property interest in a development where a down payment, earnest
money deposit, or other advanced money, if any, is paid directly to the seller
and not placed in a neutral escrow depository, shall conspicuously disclose
this fact within the document, and the purchaser shall sign or initial this
provision indicating approval in the space adjacent to or directly below the
disclosure in the purchase contract or agreement of sale. The following
disclosure shall be written in large or bold print and shall be included in the
public report, purchase contract, and agreement of sale.
Prospective purchasers are advised that earnest money
deposits, down payments, and other advanced money will not be placed in a
neutral escrow. This money will be paid directly to the seller and may be used
by the seller. This means the purchaser assumes a risk of losing the money if
the seller is unable or unwilling to perform under the terms of the purchase
contract.
Notes
Ariz. Admin. Code §
R4-28-803
Adopted effective May 1,
1980 (Supp. 80-3). Amended Exhibit effective March 13, 1981 (Supp. 81-2).
Former Section R4-28-21 renumbered without change as Section R4-28-803 (Supp.
87-1). Section R4-28-803 amended by final rulemaking at 5 A.A.R. 650, effective
February 3, 1999 (Supp. 99-1). Amended by final rulemaking at 6 A.A.R. 1886,
effective May 2, 2000 (Supp. 00-2). Amended by final rulemaking at 11 A.A.R.
506, effective March 5, 2005 (Supp. 05-1).
