Question: In a recent column , you talked about a buyer under the standard Arizona Association of Realtors purchase contract canceling the purchase of a Glendale home the day before close of escrow. The buyer’s reason was that the home next door had just been sold to an investor to be a short-term rental. We lived next door to a short-term rental when we were in our last home in Scottsdale, and it was a major reason for our move to our current Tempe home. I am a Realtor, and I was just curious how you cancel the purchase of a house the day before close of escrow, after financing and all other contingencies have been removed?
Answer: If a buyer learns of a short-term rental next door during the 10-day inspection period, the buyer in good faith under the standard Arizona Association of Realtors purchase contract is generally allowed to cancel the contract immediately. Similarly, if the buyer learns of the short-term rental next door being purchased the day before closing, the buyer is allowed in good faith to cancel the purchase contract immediately.