BINSR, HOA Docs & Earnest Money: An Arizona TC Compliance Guide

Arizona real estate operates differently than California -- and agents who've worked in both markets know that the differences aren't just procedural. They're substantive. Miss the BINSR deadline and your buyer accepts the property as-is. Mishandle the HOA document delivery and you've extended the buyer's review period without meaning to.

This guide covers the three areas where Arizona transactions most commonly go sideways: the BINSR process, HOA document management, and earnest money handling.

The Buyer's Inspection Notice and Seller's Response (BINSR) is one of the most important -- and most misunderstood -- documents in an Arizona real estate transaction.

1. Inspection period: The buyer has a specified number of days (typically 10 days in a standard AAR contract) to conduct inspections.

2. BINSR delivery: Before the inspection period expires, the buyer must deliver the BINSR to the seller. The BINSR has three options:

   • Accept the property as-is (Buyer accepts, no repairs requested)
   • Request repairs/remedies (Buyer lists specific items they want addressed)
   • Cancel the contract (Buyer elects to terminate)

3. Seller's response: Once the BINSR is received, the seller has 5 days to respond. The seller can:

   • Agree to all requested repairs
   • Agree to some repairs and reject others
   • Reject all repairs
   • Offer a credit in lieu of repairs

4. Buyer's election: If the seller doesn't agree to everything, the buyer has 5 days to either accept the seller's response or cancel the contract.

If the buyer fails to deliver the BINSR before the inspection period expires, they are deemed to have accepted the property as-is. This is not a soft deadline. There's no grace period. A TC tracks this date from day one and ensures the BINSR is prepared and delivered with time to spare.

• Waiting until the last day -- Inspectors are busy. Reports take time. Don't schedule the inspection on day 9 of a 10-day period.
• Vague repair requests -- "Fix everything on the inspection report" is not a valid BINSR. Requests should be specific and reasonable.
• Missing the seller response deadline -- The seller's 5-day response window is also tracked. A TC monitors both sides of this exchange.

For properties in HOA communities -- which covers a significant portion of Maricopa County -- the HOA document process has its own timeline and compliance requirements.

Under Arizona law (A.R.S. 33-1806 for planned communities, 33-1260 for condominiums), the seller must provide the buyer with:

• CC&Rs (Covenants, Conditions & Restrictions)
• Bylaws
• Rules and regulations
• Current financials (budget, reserve study, balance sheet)
• Meeting minutes (typically last 12 months)
• Pending litigation disclosure
• Current assessment amounts
• Any pending special assessments

The buyer has 5 days after receipt of the HOA documents to review them and cancel the contract if they find something objectionable. This is a separate contingency from the inspection period.

Key point: The 5-day clock starts when the buyer receives the documents -- not when they're ordered or sent. A TC confirms actual receipt and tracks the review period from that date.

HOA document requests should be submitted immediately after contract acceptance. Some HOAs in the Phoenix metro area take 7-10 business days to fulfill requests. If you wait until week two of escrow to order documents, you may not receive them in time to give the buyer their full 5-day review period before closing.

A TC orders HOA documents on day one and follows up proactively.

Arizona handles earnest money differently than many other states, and the rules matter.

Under the standard AAR Residential Resale Real Estate Purchase Contract, earnest money is due within the timeframe specified in the contract -- typically 1-3 business days after contract acceptance. This is a hard deadline.

In Arizona, earnest money is typically held by the escrow/title company -- not the broker. This is different from some states where the listing broker holds the deposit.

Arizona has specific rules about when earnest money can be released:

• Mutual cancellation: Both parties must agree in writing to release the funds.
• Disputed funds: If the parties can't agree, the escrow company may interplead the funds with the court.
• Breach of contract: The non-breaching party may be entitled to the earnest money, but this typically requires legal action or mutual agreement.

A TC ensures the earnest money is deposited on time, tracks confirmation of receipt, and maintains documentation of the deposit throughout the transaction.

Arizona transactions move fast -- especially in the Phoenix metro. The BINSR deadline, HOA document timeline, and earnest money deposit can all overlap in the first 10 days of escrow.

A transaction coordinator who knows Arizona's specific requirements doesn't just track these deadlines -- they anticipate them. Documents are ordered before they're needed. Reminders go out before deadlines arrive. Nothing falls through the cracks.

Aligned TC has deep experience with Maricopa County transactions across all 27 cities we serve -- from Phoenix and Scottsdale to Gilbert, Chandler, and beyond.

See all Arizona cities we serve or contact us to discuss your next transaction.