According to the AAR purchase contract, what is the threshold for repair costs that sellers must agree to cover prior to closing?

In the context of the AAR (Arizona Association of REALTORS®) purchase contract, the correct threshold for repair costs that sellers must agree to cover prior to closing is indeed 10% of the purchase price. This percentage is significant as it establishes a clear limit on the seller's financial responsibility for repairs that may arise from inspection findings before the transaction is finalized.

This 10% threshold is designed to balance the interests of both buyers and sellers. It provides buyers with a degree of protection, ensuring that they can expect the property to be in a reasonably acceptable condition upon closing, while simultaneously giving sellers a defined limit on the repairs they are obligated to undertake. Repair requests exceeding this limit can lead to further negotiations or potentially jeopardize the sale, facilitating the need for transparency and shared responsibility throughout the transaction process.

Sellers should be aware that agreeing to this threshold can impact negotiations and must be factored into their overall decision-making about the sale of the property.