Real Estate Cure Period

Real Estate Cure Period NoticeIf one party is in breach of the real estate purchase contract, the other party must issue a cure notice and allow the breaching party 3 days to correct the breach. The day after the cure notice is delivered is counted as day 1. Days are calendar days, with weekends and holidays also counting as days. If the purchase contract breach has not been corrected during the 3-day cure period, then the non-breaching party may cancel the contract and/or proceed against the breaching party in any claim or remedy that the non-breaching party may have in law. Any purchase contract breach requires a cure period be issued before any cancellation by non-breaching party or compensation to non-breaching party (such as forfeiture of earnest deposit by breaching party).

The Cure Period Notice is a document used to issue a cure notice regarding non-compliance of the purchase contract. The non-breaching party should complete the form, clearly describing the breach, sign the form and deliver to breaching party. This meets the terms of the purchase contract, which requires a written notice of breach and allows for a 3-day cure period. Written notice must be provided for the 3-day cure period to begin. If no written notice is given by non-breaching party then there is no consequence to the breach.

Is email considered a form of issuing a cure period notice? No. For proper constructive notice, compliant party must deliver to non-compliant party the completed and signed Cure Period Notice form, plus it is a very good idea to also copy the title/escrow company at the same time (to serve as proof of issuance).

AZ Purchase Contract Timeline

Arizona Home Purchase Contract Timeline Here is how a typical 35-day purchase contract closing timeline may look for buying a home in Phoenix, AZ:

Day 0 – offer accepted so all contract timelines begin next day
Day 1 – start of buyer inspection period (usually 10 calendar days) to perform verification of all things important
Day 3 – receive SPDS (Seller Property Disclosure Statement) and CLUE (Comperhensive Loss Underwriting Exchange – insurance loss history experience) from seller (on or before this day)
Day 10 – deliver BINSR (Buyer Inspection Notice Seller Response) to seller (on or before this day) plus receive LSU (Loan Status Update) from lender (on or before this day)
Day 15 – receive BINSR seller response (on or before this day)
Day 20 – buyer decisions BINSR (on or before this day)
Day 21 – lender orders appraisal after BINSR is decisioned
Day 28 – receive appraisal (usually within a week from ordering)
Day 29 – buyer loan file submitted to lender underwriting
Day 31 – lender underwriting issues loan approval and loan documents ordered
Day 31 – evidence of any seller repairs must be provided (on or before this day)
Day 32 – title/escrow company receives buyer loan documents and finalizes closing statement
Day 33 – buyer and seller sign separately at title/escrow company
Day 34 – buyer performs final walkthrough at property and checks on any seller repairs
Day 35 – lender wires loan funds to title who sends file for recording at county
Day 35 – buyer obtains keys after confirmation of recording has been received

Of course, this is for a smooth closing without issues (say an appraisal shortfall which requires price/term renegotiations) or delays (such as buyer loan conditions that must be cleared prior to loan documents being issued). If either party is in breach of contract, the party not in breach may issue a cure notice to give notice to party in breach that they must correct the situation.

Andrew Robb - RE/MAX Fine Properties, 21020 N Pima Rd, Scottsdale AZ 85255