Understanding the Buyer Pre-Closing

Introduction

When you’re buying a home in Arizona, the final stretch of the purchase process includes a crucial step that many buyers underestimate: the pre-closing walkthrough. This final inspection before taking ownership serves as your last opportunity to ensure the property meets the agreed-upon conditions before funds are transferred and keys are handed over. The Buyer Pre-Closing Walkthrough form, created by the Arizona Association of REALTORS®, documents this vital step in the transaction process.

As an experienced real estate professional, I’ve guided hundreds of buyers through this process and seen firsthand how a properly conducted walkthrough can prevent headaches and disappointments. In this comprehensive guide, I’ll walk you through everything you need to know about the Arizona Buyer Pre-Closing Walkthrough form, its importance, and how to use it effectively to protect your interests.

What Is a Pre-Closing Walkthrough?

The pre-closing walkthrough (sometimes called a “final walkthrough”) is your last opportunity as a buyer to inspect the property before closing the transaction. It’s not a formal home inspection—that typically happens much earlier in the process—but rather a verification that:

• The property is in substantially the same condition as when you agreed to purchase it.
• Any repairs or corrections the seller agreed to make have been completed satisfactorily.
• All included fixtures and appliances remain in the home.
• The seller has completely vacated the property (for immediate possession).
• No new issues have developed since your last viewing.

The walkthrough typically takes place within 24-48 hours before closing, giving you enough time to address any issues before finalizing the purchase.

The Importance of the Pre-Closing Walkthrough Form

The Buyer Pre-Closing Walkthrough form serves several important purposes:

• Documentation: It provides written evidence that you conducted the walkthrough and what you found.
• Communication: It formally notifies the seller of any concerns discovered during the walkthrough.
• Legal Protection: It can trigger the “cure period” outlined in your purchase contract if issues are discovered.
• Closing Confidence: It gives you peace of mind before completing your purchase.

Without this form, you might have difficulty proving what condition the property was in immediately before closing, potentially leaving you responsible for issues that should have been addressed by the seller.

Breaking Down the Form: Section by Section

1. Header and Identification

The top portion of the form includes spaces for:

• Buyer’s name.
• Seller’s name.
• Premises/Property Address.
• Date of the walkthrough.

This information ties the form to your specific transaction and establishes when the walkthrough occurred. Always ensure this information is complete and accurate.

2. Walkthrough Certification

The form states that “Buyer or Buyer’s Inspector(s) completed a pre-closing walkthrough of the Premises/Property” on the specified date. This language confirms that the walkthrough actually took place, which is important for your protection.

3. Three Options for Buyers

The form provides three distinct options, only one of which should be selected:

Option 1: Everything Is Satisfactory

The first option reads:
“Buyer finds that the Premises/Property are in substantially the same condition as of the date of Contract acceptance, any corrections or repairs agreed to by Seller have been completed.”

This is the ideal scenario—you’ve conducted your walkthrough and found the property to be in acceptable condition with all agreed-upon repairs completed satisfactorily. By selecting this option and signing the form, you’re confirming everything is ready to proceed to closing without further action from the seller.

Option 2: Issues Requiring Attention

The second option begins the same way but includes space to note exceptions:
“Buyer finds that the Premises/Property are in substantially the same condition as of the date of Contract acceptance, any corrections or repairs agreed to by Seller have been completed, with the following exceptions:”

This section allows you to document specific issues discovered during your walkthrough that need attention before closing. Below this statement is a “CURE PERIOD NOTICE” that informs the seller they have three days to resolve the identified issues before they constitute a breach of contract.

Common exceptions that might be noted here include:

• Incomplete repairs previously agreed upon.
• New damage that occurred since your last viewing.
• Missing fixtures or appliances included in the sale.
• Excessive debris or personal property left behind.
• Systems or appliances not functioning properly.

Option 3: Waiver of Walkthrough

The third option allows buyers to waive their right to conduct a walkthrough:
“Buyer waives the right to a pre-closing walkthrough of the Premises/Property.”

This section includes additional language acknowledging that you were advised to conduct a walkthrough but declined, accepting responsibility for any defects that could have been discovered. This waiver releases both the seller and brokers from liability for issues that might have been identified during a walkthrough.

Important note: Waiving your walkthrough rights is generally not recommended. The walkthrough is a critical protection for buyers, and skipping it means you’re accepting the property “as is” at closing without verification.

When and How to Conduct an Effective Walkthrough

Timing Is Everything

The pre-closing walkthrough should typically be scheduled:

• After the seller has moved out (or is nearly finished moving).
• Within 24-48 hours of your scheduled closing.
• During daylight hours for better visibility.
• With enough time to address any issues before closing.

Who Should Attend

While the form allows for either “Buyer or Buyer’s Inspector(s)” to conduct the walkthrough, I strongly recommend that you as the buyer be present, along with:

• Your real estate agent.
• Your partner or co-buyer (if applicable).
• A home inspector (optional, but can be helpful for technical issues).

What to Check During Your Walkthrough

Property Condition

• Walls, floors, and ceilings for new damage.
• Windows and doors for proper operation.
• Signs of new water damage or leaks.
• Exterior condition, including landscaping.

Agreed-Upon Repairs

• Documentation of completed repairs (receipts, warranties).
• Visual verification that repairs were made properly.
• Testing of repaired systems or appliances.

Systems and Fixtures

• All electrical outlets and light switches.
• Plumbing fixtures for proper operation and leaks.
• HVAC system functionality.
• Appliances that are included in the sale.
• Garage door openers and remotes.
• Pool equipment (if applicable).
• Security systems (if applicable).

Other Considerations

• All seller’s personal belongings removed.
• Property is clean as agreed in contract.
• All included items remain in the home.
• Keys, garage door openers, and access codes available.

Documenting Your Findings

Beyond completing the form, consider:

• Taking dated photos or videos during the walkthrough.
• Making detailed notes of any concerns.
• Getting contact information for contractors who performed repairs.

The Cure Period: What Happens After Noting Exceptions

When you select Option 2 and note exceptions, you’re invoking what’s known as the “Cure Period” under the Arizona Residential Resale Real Estate Purchase Contract. This gives the seller three days to address and correct the issues you’ve identified.

During this time:

• The seller must attempt to resolve the issues.
• You may need to arrange a follow-up walkthrough to verify corrections.
• Your closing may be delayed if issues cannot be quickly resolved.

Best Practices for Using the Pre-Closing Walkthrough Form

Do:

• Schedule your walkthrough with enough time before closing to address potential issues.
• Be thorough and methodical in your inspection.
• Take photos to document conditions.
• Be specific when noting exceptions.
• Keep a copy of the signed form for your records.

Don’t:

• Rush through the walkthrough process.
• Waive your right to a walkthrough without compelling reasons.
• Be unreasonably picky about minor issues.
• Forget to check all systems and agreed-upon repairs.
• Wait until the last minute to submit the form if issues are found.

Conclusion: Making the Most of Your Pre-Closing Walkthrough

The pre-closing walkthrough is much more than a formality—it’s a critical final check before completing what is likely one of the largest financial transactions of your life. The Arizona Buyer Pre-Closing Walkthrough form provides the documentation and structure needed to ensure this process protects your interests as a buyer.

By understanding the form, knowing what to look for during your walkthrough, and being prepared to address any issues that arise, you put yourself in the best possible position to complete your home purchase with confidence and peace of mind.

Key Takeaways:

1. Never skip your walkthrough unless absolutely necessary.
2. Be thorough and document everything.
3. Understand your options if issues are discovered.
4. Act promptly if corrections are needed.
5. Keep copies of all documentation.

With proper attention to the pre-closing walkthrough process, you’ll be that much closer to confidently receiving the keys to your new Arizona home.