The Arizona home buying glossary.
Plain English,
term by term.
Arizona home purchases have their own vocabulary: BINSR, SPDS, cure period notice, close of escrow. These are 68 terms in plain English, grouped by stage, with links to the guides that go deeper.
Agents and advisories.
Who represents you, and the documents you sign before the search starts. See buyer agent compensation.
- Buyer agreement.The written agreement between you and your agent's brokerage that makes the agent your representative and sets the term, the area and the compensation. Since August 2024, an agent who belongs to an MLS must have one signed before touring a home with you.
- Real Estate Agency Disclosure and Election.An Arizona REALTORS form that explains the kinds of agency, seller, buyer or limited dual, and records which one applies.
- Limited representation.One brokerage representing both the buyer and the seller in the same sale. It requires the written consent of both on the Consent to Limited Representation form.
- Arizona Buyer Advisory.A consumer guide from the Arizona Department of Real Estate and Arizona REALTORS listing what to investigate on any home, from documents to physical condition to the surrounding area. The current version is dated February 2026.
The search and the price.
Terms from the search and from pricing an offer. See your first Arizona home and making an offer.
- MLS.The multiple listing service, the shared database brokers use to list homes for sale.
- Buy box.Your written search criteria: areas, size, must-haves, deal-breakers and your all-in monthly payment.
- Comparable sale, or comp.A nearby home that sold recently, adjusted to match the one being priced.
- Months of supply.How long the current inventory would take to sell at today's pace. The rule of thumb I use: under 5 months favors sellers, 5 to 6 is balanced, over 6 favors buyers.
- Proof of funds.A statement showing a cash buyer has the money to close.
The contract and its clock.
Terms from the offer and the Arizona REALTORS purchase contract. See the purchase contract and making an offer.
- AAR contract.The Arizona REALTORS Residential Resale Real Estate Purchase Contract, the standard form for most Arizona home resales. It also serves as the escrow instructions.
- Acceptance.The moment the signed contract or counteroffer is delivered to the right broker. The contract clock starts the next day.
- Calendar days.How the contract counts time. Weekends and holidays count, each day ends at 11:59 p.m., and the day of acceptance is not counted.
- Contingency.A condition that must be met for the sale to go forward, such as the inspection period, loan approval or the appraisal.
- Addendum.A signed page that adds terms to the contract. Once both sides sign it, it is part of the contract.
- Counteroffer.A response that changes the terms of an offer. It rejects the earlier offer and proposes a new one.
- Multiple Counter Offer.The Arizona REALTORS form a seller uses to counter more than one buyer at once. It binds only after the seller signs a final acceptance and it is delivered.
- Highest and best.A request from the listing agent that every buyer submit their strongest offer by a set deadline.
- Escalation clause.Terms in an addendum that raise a buyer's price by a set amount above a competing offer, up to a cap.
- Rent-back.An agreement that lets the seller stay in the home and rent from the buyer for a short time after closing.
- Backup offer.An offer that stands in line behind an accepted contract and moves up if that contract falls apart.
- Buyer Contingency Addendum.An Arizona REALTORS form that makes a purchase depend on the buyer selling or closing on another property.
- Cure Period Notice.A written notice that the other side has not done something the contract requires. They have three days to fix it before a breach can be declared.
- Liquidated damages.The contract term under which a seller may keep the earnest money as the seller's only damages if the buyer breaches.
Inspections and disclosures.
What you learn about the house, and when. See the inspection period and BINSR.
- Inspection period.Ten days after acceptance by default. The buyer inspects and investigates, then cancels or asks for repairs before it ends.
- BINSR.The Buyer's Inspection Notice and Seller's Response, the Arizona REALTORS form for listing the items you disapprove and either cancelling or asking the seller to correct them. The seller has five days to respond, then the buyer has five days to reply.
- Home inspector.In Arizona, home inspectors are certified by the State Board of Technical Registration. When a general inspector flags a concern, a specialist such as a roofer or HVAC technician often follows up.
- Wood-destroying insect inspection.A termite inspection. Under the contract, the buyer arranges and pays for it.
- SPDS.The Seller's Property Disclosure Statement, the Arizona REALTORS form where the seller discloses what they know about the home. It is due within three days after acceptance.
- Insurance claims history.A written history of insurance claims on the home for five years, or the seller's ownership if shorter. The seller delivers it within five days after acceptance.
- CLUE report.A Comprehensive Loss Underwriting Exchange report, compiled by LexisNexis from insurer claims data. An owner can get their own report free once every 12 months. A buyer cannot order one for a home they do not own.
- Lead-based paint disclosure.Required for homes built before 1978. The seller discloses known lead paint and hazards, and the buyer gets 10 days to test unless waived or changed in writing.
- Affidavit of Disclosure.Under A.R.S. 33-422, required from a seller of five or fewer parcels in an unincorporated area, other than subdivided land. It covers access, flood zone, utilities, water and wastewater.
- Septic transfer inspection.For a home on a septic or other onsite system, Arizona rules require the seller to have it inspected by a qualified inspector within six months before the transfer, and the buyer files a Notice of Transfer after closing.
- Pre-closing walkthrough.The buyer's visit before closing to confirm the home's condition and that agreed repairs are done, recorded on the Arizona REALTORS Buyer Pre-Closing Walkthrough form.
Money and loans.
The deposit, the loan and its paperwork. See getting pre-approved and earnest money.
- Earnest money.The good faith deposit you make when your offer is accepted. Escrow or a broker's trust account holds it, and it is credited toward your costs at closing.
- Cash to close.What you bring to closing: your down payment plus closing costs, less your earnest money, which is credited back.
- Pre-qualification and pre-approval.Letters saying how much a lender is generally willing to lend. Lenders use the terms differently, and neither is a guaranteed loan offer.
- Pre-Qualification Form.The Arizona REALTORS form your lender completes to show you can qualify. The contract requires it with your offer.
- Loan Status Update.The Arizona REALTORS form your lender uses to report your loan's progress to everyone in the sale, due within 10 days after acceptance.
- Loan Estimate.The federal form showing your loan's terms and estimated costs. The lender must give it to you within three business days after receiving your application.
- Closing Disclosure.The federal form with your final loan terms, payments and costs. You must receive it at least three business days before you close.
- Appraisal.An appraiser's opinion of the home's value, ordered by the lender.
- Appraisal contingency.On a financed purchase, the buyer's right to cancel within five days after notice that the appraisal came in below the price.
- Loan contingency.The buyer's right to cancel and recover earnest money if, in good faith, the loan cannot be approved. Notice is due no later than three days before closing.
- Seller concession.Money the seller pays toward the buyer's closing costs, a rate buydown or, since November 2025, agent compensation, within the lender's limits.
- Rate lock.A lender's commitment that your interest rate will not change between the offer and closing, if you close within the lock period.
- Discount points.Fees paid at closing for a lower interest rate. One point equals one percent of the loan amount.
- Private mortgage insurance.Insurance a conventional loan may require when the down payment is smaller. It protects the lender, not you.
- Debt-to-income ratio.All your monthly debt payments divided by your gross monthly income. Loan products and lenders set different limits.
- Down payment assistance.Public programs that help with a down payment or closing costs, often as a second loan. In Arizona these include HOME Plus, Arizona Is Home and, in Maricopa County, Home in Five Advantage.
- Silent second mortgage.A second loan, often used for down payment assistance, with no monthly payment. It is repaid when the home is sold or as the program sets.
Title, escrow and recording.
How ownership changes hands. See title and escrow and property taxes.
- Escrow.A neutral third party that holds the money and documents and releases them when the contract conditions are met. In Arizona it is usually the title company.
- Title commitment.The title company's promise to insure the title, subject to listed requirements and exceptions. The buyer has five days after receiving it to object in writing.
- Schedule B exceptions.The part of the title commitment listing what the title policy will not cover, such as recorded easements and CC&Rs.
- Owner's title policy.Insurance protecting the buyer's ownership against covered claims that arose before the purchase. Under the contract, the seller pays for it.
- Lender's title policy.Insurance protecting the lender's loan, not the buyer's equity. The buyer pays for it under the contract.
- Warranty deed.The deed the seller signs to convey title under the Arizona REALTORS contract, subject to taxes, assessments and other listed matters of record.
- Deed of trust.The document that secures your mortgage. Under Arizona law, it conveys the property to a trustee as security for the loan.
- Prorations.Property taxes, HOA dues and similar charges split between buyer and seller as of the closing date.
- Affidavit of Property Value.The form recorded with each Arizona deed under A.R.S. 11-1133, listing the sale price and financing type, unless an exemption applies.
- Close of escrow.In the Arizona REALTORS contract, the moment the deed is recorded. That is when the sale is closed.
- Maricopa County Recorder.The county office that records deeds and other documents and keeps them as public records. Its free Maricopa Title Alert emails you when a document is recorded under a name you monitor.
Homeowners associations.
Terms for homes in an HOA. See HOA disclosures.
- HOA.A homeowners association, the organization that runs a community's shared areas and enforces its recorded rules. Owners are members and pay assessments.
- Planned community and condominium.The two kinds of association in Arizona law. Planned communities fall under A.R.S. Title 33, Chapter 16, and condominiums under Chapter 9.
- CC&Rs.Covenants, conditions and restrictions, recorded against the property, that let the association control certain uses. Review them before you commit.
- HOA disclosure packet.The documents a selling owner or the association must deliver under A.R.S. 33-1260 or 33-1806, generally within 10 days: governing documents, assessments, finances, pending lawsuits and more.
- Disclosure fee.What the association may charge the selling owner to prepare the disclosures, capped at $400 in total by statute, plus capped rush and update fees.
- Transfer and capital improvement fees.Charges some associations collect when a home sells. Who pays them is negotiated in the contract.
Common questions
What does BINSR stand for?
Buyer's Inspection Notice and Seller's Response. It is the Arizona REALTORS form a buyer uses during the inspection period to list disapproved items and either cancel or ask for corrections.
What is an SPDS?
The Seller's Property Disclosure Statement, the Arizona REALTORS form where the seller discloses what they know about the home. Under the contract it is due within three days after acceptance.
What does close of escrow mean in Arizona?
Under the Arizona REALTORS contract, the sale closes when the deed is recorded with the county recorder, not when the papers are signed.
What is a cure period notice?
A written notice that the other side has not done something the contract requires. They have three days to fix it before a breach can be declared.
Can a buyer get a CLUE report on a house?
No. Only the owner can get the property's CLUE report. Under the contract, the seller delivers a five-year insurance claims history instead.
What are CC&Rs?
Covenants, conditions and restrictions recorded against a property that let an association control certain uses. Review them during the inspection period.
Questions about a term?
Ran into a word that is not here? Send it to me and I will explain it in plain English. Call or text 480-485-4261. If you already have an agent under contract, ask them first.
This page is general information, not legal or tax advice. Sources: the Arizona REALTORS Residential Resale Real Estate Purchase Contract (revised November 2025) from Arizona REALTORS: the revision notice and the published form; Arizona REALTORS standard forms list and Business Member Quarterly, Q3 2023; Arizona REALTORS contract series by K. Michelle Lind, Esq.: Part 3(a), The Financing Section, Part 5, Disclosure, Title and Escrow Section, Part 7b, Inspection Period and Buyer Disapproval and Part 8, Remedies; the Arizona Buyer Advisory (February 2026); National Association of REALTORS, Written Buyer Agreements 101 and CLUE Report; A.R.S. 6-801, A.R.S. 11-1133, A.R.S. 33-801, A.R.S. 33-422, A.R.S. 33-1260 and A.R.S. 33-1806; HUD, The Lead Disclosure Rule; the Arizona State Board of Technical Registration; Maricopa County, Onsite Wastewater Ownership Transfer, under A.A.C. R18-9-A316; CFPB, What is a Loan Estimate?, What is a Closing Disclosure?, What is a rate lock?, Private mortgage insurance and Debt-to-income ratio and Discount points and lender credits; Arizona Department of Housing, Programs for Homebuyers; Maricopa County Recorder, Maricopa Title Alert. The buy box and the months of supply bands are Doug Palmer's own process, from his Buyer Consultation Guide. All checked 28 October 2026.