What is a CLUE report and why should you care?
Whether you're buying or selling a home. You need to know!
[inaudible]
Hey everyone! Welcome back to our channel,
I'm Lindsay with the Wise Move AZ Team at Realty ONE Group.
If you want to stay up to date on all things Anthem and real estate,
then you need to hit that subscribe button. Pro Tip:
You're also going to want to hit the little bell icon,
so that you're the first to know when our new videos are posted every single
Thursday. As your Anthem,
Arizona REALTOR® I love working with home buyers and sellers to navigate this
exciting time. And guess what!
One important part of the transaction is the CLUE report. Oh,
and before I forget, at the end of this video,
I'll also give you access to a sample purchase contract so that you're an expert
when it comes to buying or selling your Arizona home. So stick around! So,
first things first, what the heck does CLUE stand for?
CLUE stands for Comprehensive Loss and Underwriting Exchange. Oh,
well that clears things up... NOT! What does that mean? Long story short,
the CLUE Report is an insurance claims history.
According to the Residential Resale Real Estate Purchase Contract in Arizona,
this is what needs to happen:
The seller shall deliver to the buyer a written five-year insurance claims
history regarding the premises or a claims history for the length of time the
seller has owned the premises, if less than five years,
from the seller's insurance company or an insurance support organization,
or consumer reporting, or if unavailable from these sources,
from the seller, within five days after contract acceptance. Well,
that's pretty boring, but it's important. What does this mean for sellers?
Sellers, as soon as you go 'under contract',
you need to reach out to your insurance provider and request a five year claims
history.
They're used to these kinds of requests and can usually get it over to you
within a day or two. Once you receive it,
send it over to your REALTOR® and they will take care of delivering it to the
buyer's agent. If you know the CLUE report is going to show a loss or a claim,
I encourage you to bring this up with your REALTOR® as early as possible.
Your REALTOR® can bring it up with any serious buyers and can let you know if
they think it will impact your sale.
Just keep in mind that you only have five days after contract acceptance to get
this report into the hands of the buyer. What does this mean for buyers buyers?
Your job is pretty easy here. Once you receive the CLUE report,
you need to read it. I know there is a ton of paperwork flying around,
but take a moment to read this document. It isn't long and it's worth your time.
I promise. Most of the time you won't see any claims. If that's the case,
you can just move on. If the report does happen to show a claim,
you may need to do a little more digging. If anything is unclear,
ask your REALTOR®.
They'll be able to request additional information from the listing agent.
Keep in mind that if you're not able to get answers to your questions or if the
claims make you too uncomfortable,
you're not required to proceed with the purchase. You can cancel,
but you must do this within five days of receipt of the report. So,
keep an eye on your time. Additionally, if there is a claim,
you're going to want to get quotes on insurance during this five day period.
It's possible that a previous claim could result in a higher insurance premium.
If you do your research, you'll be in great shape to make an informed decision.
Why is the CLUE report so important? Well,
it's important because it's required by the contract, but more importantly,
it helps to fulfill the seller's obligation to disclose all known material facts
about the home.
Previous insurance claim could impact a buyer's desire to close on a home,
so it's definitely important. That being said, I don't want you to panic.
We've seen our fair share of who reports that show a loss,
including one that had significant flooding to a kitchen, and guess what?
It still didn't crater the deal.
People are reasonable and they understand that homes aren't perfect,
but they deserve to know.
Did you know that the CLUE report is just one small piece of the purchase
contract? There are so many moving parts.
It's a good idea to do as much research as possible before going under contract.
Part of your research should include reading a sample purchase contract.
This way you know what the buyers and sellers obligations and rights are under
the contract. If you're ready to get a jumpstart on this research,
you'll want to pop down to the description box below and download your sample
purchase contract now.
If you have questions as you're reading through the sample contract,
you can always reach out to me.
My contact information is also in the description box below,
but closer to the bottom. So there you have it!
Do you feel a little more prepared to tackle the home buying and selling
process? If you enjoyed this video, let me know by hitting that like button,
subscribing to our channel, and sharing this video with your friends.
See you next Thursday!