Real Estate Purchases & Sales

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A Team You Can Trust!

Favour & Wilhelmsen, PLLC has been an integral part of the Prescott area legal community for over 45 years. You can expect exceptional legal representation from the initial consultation through the resolution of every matter.

Legal Experience You Can Trust for Every Real Estate Transaction

Buying or selling real estate in Arizona is one of the most important financial decisions you’ll make and every detail matters. From purchase agreements and title reviews to closing disclosures, each step requires careful legal attention to protect your investment.

At Favour & Wilhelmsen, PLLC, attorney David K. Wilhelmsen has over 40 years of experience guiding clients through residential and commercial purchases and sales across Prescott, Yavapai County, and Northern Arizona. He reviews, negotiates, and documents each transaction to ensure that your rights are clear and your interests protected long after closing.

Law Insight — Why Legal Review Matters in Arizona Escrow Closings

Arizona is a “buyer beware” state — meaning sellers must disclose known defects but buyers are expected to conduct due diligence. A legal review of the Seller’s Property Disclosure Statement (SPDS), title reports, and documents contained within those reports helps you spot issues before they become expensive surprises.

Buyer & Seller Protections Under Arizona Law

Arizona law requires sellers to disclose all known material defects, but buyers also have responsibilities under the state’s due diligence doctrine. Buyers are expected to inspect the property, review title documents, and verify zoning or permitted uses. Common protections include:

Inspection Contingencies (AAR §8a): Buyers may withdraw if significant defects are discovered.
Financing Contingencies: Protect buyers if loans are denied in good faith.
Disclosure Obligations: Sellers must disclose known issues such as water damage, roof leaks, or boundary disputes.
Remedies for Breach: Both buyers and sellers may seek specific performance or damages if the other party fails to close.

Understanding your legal rights early can prevent costly litigation later.

The Arizona Closing Process — Step by Step

Understanding each stage of the transaction ensures a smoother experience and helps prevent surprises:

Step 1: Contract Execution

Once the purchase agreement is signed, deadlines for inspection, financing, and title review begin.

Step 2: Due Diligence

Buyers review disclosures, conduct inspections, and examine title reports and surveys.

Step 3: Financing & Appraisal

Lenders verify property value and underwriting requirements.

Step 4: Title Clearance

Any liens, encumbrances, or easement issues must be resolved before closing.

Step 5: Final Settlement

The buyer signs loan and title documents, funds are transferred, and the deed is recorded with the county.

Each stage offers opportunities — and risks — but experienced legal review can make all the difference.

Did You Know?

In Arizona, any agreement for the sale of real estate must be in writing under the Statute of Frauds (A.R.S. § 44-101). Emails or texts alone won’t always satisfy this requirement — a properly executed contract protects both parties.

Potential Issues During Real Estate Transactions

Even routine transactions can be derailed by hidden legal problems. Common issues include:

Having an attorney involved from the start reduces risk and often prevents delays at closing.

How We Help Buyers and Sellers in Arizona

For Buyers:

Review purchase agreements and contract terms before you sign.
Verify clear title and assist with resolving encumbrances or liens.
Coordinate with realtors and title company representatives to prevent delays.
Ensure closing documents accurately reflect contract terms.

For Sellers:

Every transaction is unique. David K. Wilhelmsen tailors his approach to the property, parties, and purpose of your purchase or sale.

Preventive Checklist for Arizona Buyers & Sellers

Confirm property boundaries and access rights with a licensed surveyor.
Review CC&Rs and HOA fees before signing.
Ensure title insurance coverage matches the final purchase price.
Disclose all known defects in writing to avoid future claims.
Keep records of all communications and addenda.
Have an attorney review all documents before funding.

Common Mistakes to Avoid

Signing standard forms without legal review.
Assuming title companies catch every error or defect.
Ignoring zoning restrictions or HOA rules before purchase.
Letting real estate agents draft legal addenda without attorney input.
Failing to verify recording of deed and release documents after closing.

Common Contract Pitfalls

Even experienced buyers and sellers make errors that can delay or derail a transaction:

Missing contingency deadlines or failing to request extensions.
Overlooking ambiguous inspection language that limits remedies.
Misinterpreting who pays for title insurance or closing costs.
Relying solely on form contracts without attorney review.

A single missed detail in a real estate contract can cost thousands — legal review ensures you understand every clause.

Myth-Busting: Real Estate Purchases & Sales

“Title insurance covers everything.”

It protects against past defects — not future mistakes or boundary issues.

“The standard Arizona RE contract is safe to sign as-is.”

Boilerplate forms don’t reflect unique terms or complex financing.

“I don’t need a lawyer — the realtor handles that.”

Realtors facilitate transactions; attorneys protect legal rights.

“Once we close, it’s final.”

Post-closing claims can arise from undisclosed defects or recording errors.

“Commercial sales follow the same rules as residential.”

They involve different contracts, liabilities, and due-diligence requirements.

Local Considerations for Prescott & Yavapai County

Every Arizona county has its own nuances in recording, zoning, and development. In Yavapai County, transactions often involve:

Private roads & easements

That affect access and maintenance.

Septic system inspections

Required by the county before sale.

Water rights verification

For rural and undeveloped parcels.

Topography & floodplain considerations

Unique to the Prescott area.

HOA & CC&R enforcement

In planned communities.

Having an attorney familiar with Prescott’s real estate environment ensures your contract anticipates — and avoids — local complications.

FAQ: Real Estate Transactions in Arizona

Do I need an attorney to buy a home in Arizona?

While not required by law, having legal review protects you from hidden liabilities and contract pitfalls.

What is the difference between a title company and a real estate attorney?

Title companies handle escrow and recording; attorneys interpret and negotiate contracts and assist with resolving disputes.

Can I cancel a real estate contract in Arizona?

Yes, under specific contingencies for inspection, financing, or disclosure issues — legal guidance ensures you follow the proper procedure.

What should I do if a sale falls through?

Consult your attorney immediately. There may be grounds to recover earnest money or damages for breach of contract.

How long should I keep closing documents?

At least seven years — longer if commercial or investment property is involved.

Advanced Certification

David K. Wilhelmsen received his certification as a Real Estate Law Specialist from the Arizona Board of Legal Specialization of the Arizona State Bar in 1991 for demonstrating advanced knowledge, skill and understanding in the practice of real estate law.

Experience

We have over 45 years of practice experience in most areas of Real Estate, Estate Planning and Probate, and Small Business law.

Local Practice

Established in 1947, David K. Wilhelmsen joined the firm in 1981 and has practiced continuously since then in the Prescott and surrounding communities.

High Martindale-Hubbell Rating

We hold AV Preeminent® rating by Martindale-Hubbell, which is given to attorneys who are ranked at the highest level of professional excellence for their legal expertise, communication skills, and ethical standards by their peers.

Responsible Solutions

We provide trusted and straight forward legal solutions to most matters you may encounter.

Benefits

Why Choose Us?

Employing Favour & Wilhelmsen, PLLC will ensure that your rights are protected, your obligations are clearly understood, and your interests are strategically represented. Whether navigating a complex transaction, resolving a dispute, or mitigating legal risk, we provide the knowledge and advocacy needed to avoid costly mistakes and strive to achieve favorable outcomes.

Close Your Next Deal with Confidence

A successful real estate transaction requires more than signatures — it requires clarity, compliance, and experience. Whether you’re buying your first home or negotiating a commercial sale, David K. Wilhelmsen provides thorough, personalized legal guidance to protect your interests at every step. Contact Favour & Wilhelmsen, PLLC in Prescott today to ensure your transaction is as secure as your investment.