Just a quick note, I have had two calls since yesterday from agents wanting advice on how to counsel a seller who wants to cancel a listing agreement with another brokerage. The quick answer is we can't and our agent should not be having this conversation with anyone who has an exclusive agreement with another brokerage. The only thing an agent should say to the seller regarding that is they need to work it out with their listing agent. SOP 16-6 expands on that but agents need to be cautious about giving any type of advice to a non-client.






































 There's no requirement that you sign an addendum since all of the contractual terms were hammered out when your contract was negotiated originally.  That Additional Clause Addendum says that once they deliver you notice that their first buyer canceled, you go and open escrow, and your time frames per the contract start that day. 











We are unable to provide you with a legal opinion on this matter.





There is currently no state agency that enforces provisions in the Act, and because most landlord/tenant relations are private transactions, disputes that arise between landlord and tenants are generally considered private matters.  If you are seeking guidance concerning the Residential Landlord and Tenant Act you may wish to consult an attorney. Public members who are not represented by an attorney, may find it helpful to contact free community legal services.  See screenshot below for details.

We also recommend the following Attorneys who specialize in Landlord/Tenant Law:

Andrew Hull - LL side

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Fine tune:

<CASE STUDY, Listing Quick Checklist .pdf>    I use the attached listing "checklist" which has a link to the Maricopa County septic data base...

Text Box: I'll work on something we can make available to our agents.

The biggest issue is when it is represented to be on sewer - but it is actually septic. When we rep both buyers and sellers. 

The problem does not occur when it is on a septic and all parties acknowledge that.  The big problem is when SPDS, contract and MLS state sewer - and the buyer finds out after that it is on septic.  It has happened multiple times.

From trudy & Michael Orcutt 3/17/21

FYI - sewer/septic issues have been the #1 claim for HomeSmart - and many other brokerages as well - for many, many years now.  Not certain we can really do much - except remind agents when we are speaking with them on the phone about inspections - to recommend their buyer get a sewer scope.  Good topic for meetings too. Many home inspectors recommend this as part of their paperwork process.  Getting all home inspectors to do this would be great for the industry.   When reviewing the MLS print-outs (when we are listing agent) please keep your eye out for the word "New". That word has cost us $1000's of dollars over the years..  Much better to say, "XYZ installed March of 2021".  I will create a new quick code for us to use when we see our agent using it in the MLS remarks.  Any other suggestions to help us reduce claims are always welcome!

We have also seen agents refer to HVAC systems as “new” when they area actually 3-5 years old, because the seller informs the listing agent that they are new.  The problem is that the listing agent can’t simply rely on the seller’s representation if a consumer fraud claim is asserted by the buyer.  That claim only requires proof that the listing agent made a false representation in the sale of the property.  Relying on the seller is not a valid defense.

I think another other way to limit claims is through MLS advertising.  Terms like “new” should only be used if the item/property in question is literally brand new, with builder/manufacturer warranties, etc.  As you know, many agents take liberties with that word and describe a full remodel as “new construction” or something similar.  That term should only be used if literally ever single building components, including slab, foundation, drain lines, etc. is brand new and warranted. 

As for new claims, the most common this year relate to sewer/septic issues.  Recent examples include drain lines failing shortly after close of escrow, and failing to disclose that the property is connected to a septic system. Although I don’t think the standard of care requires it, I think that buyer’s agents *should* require that their clients hire a plumber to scope the drain lines for any property at least 25 years old (or maybe 30?), and that should be a considered an ordinary inspection item no different than a home inspection report.  The scope should verify sewer vs. septic and the condition of the drain lines, which should virtually eliminate these types of claims.  If the buyer refuses to pay for an inspection, then we should consider a waiver form.  I dislike the idea of adding additional forms, but this is such a common claim that it might be warranted.


Text Box: I was talking with Kim earlier and wanted to reach out and remind you that on Owner/Agent transactions, it is required that you provide the SPDS to the buyer along with the Insurance Claims History.

Text Box: Otherwise, you will not be covered by E&O on the transaction and the file will be incomplete. Our E&O carrier are the ones who require HomeSmart to include that in all Owner/Agent transaction files.

Text Box: Please feel free to reach out with any questions.

Text Box: Take care, Jeff.



Respa section 8  https://www.consumerfinance.gov/rules-policy/regulations/1024/14/


Can you please tell me what a Statement of Claimant is on line 26 of this document? Is it the name of the party whose name the well is registered to?  Thank you! DWWA

Text Box: It's a claim or action for water rights in AZ, here is a link with more information  from the Arizona Dept of Water Resources:  https://new.azwater.gov/adjudications/statement-claimant-new-use-summons-forms

Text Box: Technical in nature, but you or your client could reach out for more detailed information.  There are several links, but again fairly technical in nature.

Text Box: Jeff.


Text Box: Hi Don,

Text Box: Real Estate contracts in Arizona are assignable unless the contract expressly states otherwise.

Text Box: I have attached three aar hotline articles discussing that topic for your use and review.  Nothing needs to be added to the pc unless one party wants to prohibit an assignment.

Text Box: Feel free to give me a call with any further questions.

Text Box: Take care,  

Text Box: Jeff.