Simulation: a fictional property for practice.

4 acres outside town in Arizona, for $28,000

Arizona requires the seller of unsubdivided land outside cities to give you an affidavit of disclosure. What do you look for in it?

A fictional parcel in an unincorporated part of an Arizona county. The disclosure and cancellation rules are A.R.S. 33-422.

• Price: $28,000
• Parcel: 4 acres, unincorporated county, not part of a subdivision
• Listing says: “Off-grid, great views, build your dream home”
• Your plan: Build a small home in a few years

Mission 1: The affidavit of disclosure

What does Arizona law give you?

• The seller must give you the affidavit at least 7 days before the transfer, and you can cancel within 5 days after you receive it
• Nothing: land sales have no special disclosures

Read the affidavit as soon as you get it, so you can cancel in time.

Mission 2: Reading the affidavit

Which answers would make you stop and investigate? Pick all that apply.

• No legal access to the parcel
• Water must be hauled; no well or water provider
• The parcel is in a FEMA flood zone, or has fissures or expansive soils
• No percolation test has been done
• The seller signed it, so you don’t need your own checks

The affidavit also covers roads, utilities, zoning and military airspace. Use it as your checklist.

The affidavit shows legal access, hauled water and no perc test. What do you do?

Buy, investigate or pass? Work through the drill to see what an experienced investor would weigh.