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Arizona Rent-to-Own Lease Agreement

An Arizona rent-to-own lease agreement is a rental contract that includes an option to purchase the property under pre-negotiated terms. During the lease, the tenant will have all rights under State law. If the tenant exercises their option to buy, the lease is converted to a purchase agreement.
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Arizona Laws

Requirement to Record: There is no statutory requirement to record an option-to-purchase. However, it can[1] and is recommended[2] to be recorded (See County Recorders’ Offices).

No Duration: If an option-to-purchase has no expiration date, it can be determined to be unenforceable due to vagueness.[3]

Maximum Term: A nonvested property interest is valid if the interest either vests or terminates within 500 years.[4]

Signing Requirements: An option-to-purchase that is to be recorded must be signed and acknowledged before an officer authorized to take acknowledgments.[5]

Leasing Disclosures (9)

1. Bed Bugs Disclosure (conditional): Except for single-family properties, the tenant must be given educational materials on how to deal with bed bugs.[6]

2. Copy of Landlord-Tenant Act: Tenants must be given a copy of the Arizona Landlord-Tenant Act to inform them of their full rights.[7]

3. Lead-Based Paint Disclosure & EPA Pamphlet: Federal law requiring all landlords of property built before January 1, 1978, to inform tenants of the hazards of lead-based paint.[8]

4. Move-in / Move-out Checklist: A required inspection to be conducted before move-in and after move-out to ensure the tenant is not wrongfully billed for damages or repairs.[9]

5. Non-Refundable Fees: If any fee mentioned in the lease is non-refundable, it must expressly state that it is non-refundable, or else the amount is refundable.[10]

6. Owner/Manager Disclosure: The lease must include the landlord’s contact information for legal notices.[11]

7. Pool Safety Notice (conditional): If the rental property has a pool, a pool disclosure maintained by the Dept. of Health Services must be provided.[12]

8. Shared Utility Charges (conditional): If the property’s utilities are shared, the computation of how the tenant is billed must be included in the lease.[13]

9. Undergoing Foreclosure (conditional): If the property is in the foreclosure process, the tenant must be given notice.[14]

Selling Disclosures (7)

1. Agency Disclosure Form (conditional): If either party is being represented by a real estate agent, the other must sign to acknowledge the agency relationship.[15]

2. Comprehensive Loss Underwriting Exchange (C.L.U.E): A report containing any claims against the property in the last 5 years. It can be generated from the LexisNexis Consumer Portal (view instructions). If both parties agree, they can choose to waive this requirement (use the Waiver Form).[16]

3. Condominium Disclosure (conditional): Only required for properties classified as a condominium.[17]

4. Military Airport Disclosure (conditional): If the property is located within a military airport or ancillary military facility as defined on a map provided by the State land department (view on the Arizona Dept. of Real Estate).[18]

5. Property Disclosure Statement: A seller must disclose what they know about the property’s current condition and any known material defects.[19]

6. Swimming Pool Disclosure (conditional): If the property includes access to a swimming pool, the seller must provide this notice from the Dept. of Health Services.[20]

7. Unincorporated Area Disclosure: If the seller is selling five or fewer parcels of land, other than subdivided land, in an unincorporated area, this must be attached.[21]

Sample

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