Arizona’s February 2026 Purchase Contract: How Seller Concessions and Broker Compensation Disclosures Changed

The February 2026 Arizona REALTORS Residential Resale Real Estate Purchase Contract changed how broker compensation is disclosed and how seller concessions can be applied, with new language in Section 8f and Section 9a confirming that each broker receives compensation from the transaction and that buyers may apply seller concessions to broker compensation when the buyer’s lender allows it. Real estate agents in the Greater Phoenix Area should expect more concession-driven offers in a buyer-leaning market, and Inspire Title Team is asking agents to write concessions and compensation clearly so escrow can fund the file the way the parties intended.

This guide explains what changed, what stayed the same, and the exact line items title and escrow teams need on the contract to close on time.

What changed in the February 2026 Arizona Purchase Contract?

The February 2026 update revises Section 8f (buyer’s broker compensation) and Section 9a (seller’s broker compensation) to state that each broker represents Buyer or Seller and will receive compensation from the transaction, replacing the prior Broker on behalf of language. The Arizona Department of Real Estate (ADRE) asked for the change so the contract more clearly discloses each employing broker and the fact that the broker will be paid.

The Arizona REALTORS made the change to remain in compliance with A.A.C. R4-28-701 as interpreted by ADRE. Other practical revisions include cleaner disclosure that the parties consent to a broker receiving compensation from more than one party to the transaction, documented by both parties’ initials.

Can buyers still use seller concessions to pay their broker?

Yes. Under the February 2026 contract, buyers can use seller concessions toward broker compensation to the extent allowed by the Buyer’s lender. Broker compensation has been expressly added as a permissible use of seller concessions in the 2026 form.

There is a rule that protects compliance with NAR’s settlement policy: a seller concession cannot be tied to or contingent on a specific outcome. In plain terms, the seller cannot say I will give a $5,000 concession only if it pays the buyer’s broker. The concession has to be a general credit that the buyer can allocate at their discretion within lender guidelines.

What is the difference between a seller concession and a Seller Compensation Addendum?

A seller concession is a general credit toward buyer costs that the buyer can apply to any approved item, including broker compensation if the lender permits. The Seller Compensation Addendum (SCA) is a separate Arizona REALTORS form where the buyer asks the seller to pay a specific amount directly to the buyer’s broker.

Use the SCA when the buyer’s intent is specifically to have the seller fund the buyer broker’s compensation as a defined dollar amount. Use a general concession when the buyer wants flexibility to allocate funds across closing costs, prepaids, rate buydowns, and (within lender limits) broker pay.

How should agents write concessions on the Arizona contract in 2026?

Write the dollar amount as a flat figure (for example, $7,500) or as a percentage of the purchase price, and confirm the buyer’s lender will allow the chosen allocation before the concession is finalized. Conventional and FHA financing both require commissions to be written as separate line items from closing-cost concessions on the settlement statement.

Three line items title and escrow want clearly on every Greater Phoenix file: the total concession amount and whether it is a dollar figure or a percentage; any compensation owed to the buyer’s broker, either via the SCA or as a permissible application of the concession; and both parties’ initials on the dual-compensation consent language in Section 8f. When these three items are clear at contract acceptance, escrow can fund the closing without last-minute amendments.

Why are seller concessions back in style in the Phoenix Area?

Greater Phoenix has shifted toward a buyer-friendly market in 2026. The Cromford Market Index recently sat near 80 (with 100 representing a balanced market), the first sustained buyer-leaning reading in years, and active listings were essentially flat month-over-month at 25,265 in March 2026, up roughly 13 percent year-over-year.

With months of supply hovering around 3.34, sellers are competing for offers more than they have in recent cycles. That competition is showing up at the contract table as price reductions, rate buydowns, and concessions that buyers can apply to closing costs and (when lenders allow) broker compensation. Phoenix Area agents who help their clients structure concessions correctly stand out as advisors, not just dealmakers.

Does ADRE require disclosure when a broker is paid by both sides?

Yes. Arizona law and ethics require written consent from both buyer and seller when a broker is being paid by both sides, directly or indirectly. The February 2026 contract documents that consent through initialed language in Section 8f, which references a Broker receiving compensation from more than one party to the transaction.

If a buyer’s broker is being paid through a seller concession in addition to any other compensation, that arrangement should be transparent on the face of the contract.

What is the maximum charge for title and escrow services in Arizona?

Under Arizona Revised Statutes Section 6-805(D), the maximum charge for a title examination and search is $250, and the maximum charge for escrow services is $1 for every $1,000 of the purchase price, with a minimum escrow fee of $500 and a maximum of $5,000. These caps apply on top of the broker compensation and concession structure the parties negotiate.

The Arizona Escrow Rate Manual was also revised effective January 1, 2026, so agents working with multiple title companies should confirm current fee schedules with each provider.

How Inspire Title Team helps agents close concession-heavy files

Inspire Title Team supports Greater Phoenix real estate agents with clean settlement statements for concession-driven deals, training on the February 2026 contract changes, and co-branded client handouts that explain concessions in plain language. Agents who want a quick concession-language cheat sheet or a sample buyer email can request one from their Inspire Title Team representative.

FAQ: 2026 Arizona Contract, Concessions, and Broker Compensation

Did the February 2026 contract change the commission amount?

No. The contract did not raise or lower commissions. It changed disclosure language and confirmed that brokers receive compensation from the transaction.

Can a buyer use a seller concession for a rate buydown and broker pay at the same time?

Yes, if the buyer’s lender allows the allocation and the concession is written as a general credit, not as a payment conditioned on funding the broker.

Is the Seller Compensation Addendum still preferred over a general concession?

For situations where the buyer specifically wants the seller to pay the buyer’s broker a defined amount, the SCA is the cleaner form because it states the intent and amount directly.

Does the new contract apply to vacant land?

The compensation language updates in Section 8f also apply to the Vacant Land or Lot Purchase Contract.

Where can agents read the official February 2026 form release?

The Arizona REALTORS published the February 2026 revised forms summary at aaronline.com, and ADRE publishes interpretive guidance at azre.gov.

Sources: Arizona REALTORS Revised Forms for February 2026 Release; ADRE 2026 Arizona Real Estate Law Book; A.A.C. R4-28-701; Arizona Revised Statutes Section 6-805(D); Cromford Report market data, March 2026.

Inspire Title Team | WFG Title supports real estate agents and brokerages across the Greater Phoenix Area with title, escrow, and digital marketing services. This article is for informational purposes only and is not legal advice. Consult licensed counsel for specific situations.