In Arizona, a real estate licensee can prepare escrow instructions, purchase agreements, and lease agreements—but a bill of sale isn't within their scope.

Arizona has its own set of rules when real estate pros draft documents. In the land of saguaro sunsets and busy brokerages, understanding what you can prepare helps every deal move smoothly and stays on the right side of the law. If you’ve glanced at the Arizona 6-Hour Real Estate Contract material, you’ve probably come across questions about which papers a licensee may draft. Let me break it down in plain language, with a touch of real-world feel.

Which document is NOT allowed for an Arizona licensee to prepare?

If you’re skimming for a quick answer, here it is: a bill of sale. In Arizona, real estate licensees generally handle a lot of paperwork tied to real estate transactions, but there’s a clear line around personal property documents. A bill of sale is designed to transfer personal property, not the real estate itself. Because it’s not a real estate transaction document, drafting a bill of sale falls outside what a licensee does.

Now, what about the documents that are in-bounds? Here are the workhorse papers you’ll often prepare or help prepare in Arizona real estate transactions:

Escrow instructions

Think of escrow instructions as the play-by-play for closing. They spell out who pays what, when funds move, and how conditions get satisfied before the property changes hands. A licensee can draft or assemble escrow instructions because these are tightly linked to the actual transfer of real estate and the closing process. Clear instructions here prevent missteps and keep the escrow agent, buyer, and seller in sync.

Purchase agreement

This is the backbone of the deal. It lays out price, terms, contingencies, who pays which costs, and the timeline for the contract to move forward. Licensees routinely draft and tailor purchase agreements, especially when the client needs specific terms or negotiations. Of course, you’ll rely on standard forms from your broker or association as a baseline, then adjust within those boundaries. The goal is to capture the deal’s intent accurately and pave the way for a smooth closing.

Lease agreement

Real estate isn’t only about buying and selling assets; it’s also about renting. A well-drafted lease agreement spells out rent, term, security deposits, maintenance responsibilities, and enforcement remedies. Licensees often prepare or customize leases for both residential and commercial properties, ensuring the terms reflect current laws and the specifics of the rental arrangement.

Why the distinction matters, in plain terms

Here’s the thing: staying inside established boundaries isn’t about being rigid. It’s about protecting clients and the licensee. Drafting a bill of sale, which deals with personal property, can blur the line between real estate work and unrelated legal drafting. That’s where risk creeps in—both for the licensee and the brokerage. The rules aren’t there to trip people up; they’re there to keep transactions tidy and compliant. When you draft documents tied to the transfer of real estate, you’re operating within the recognized scope, with safeguards like specific license qualifications and brokerage oversight.

A quick stroll through real-world examples

• You’re listing a home and negotiating a sale with appliances that you and the seller agree to leave behind. The purchase agreement covers the real estate, and if appliances are included, you’ll specify them within the contract or an attached addendum. A bill of sale isn’t needed here for the real estate portion; the transfer of the home itself is the central act.

• A buyer wants to close with a particular set of fixtures included. You prepare the purchase agreement and, if necessary, an addendum listing included items. The escrow instructions then outline the sequence and responsibilities for closing. The document set remains squarely in the real estate domain.

• A landlord needs a lease that clearly states who pays utilities, who handles maintenance, and what happens at the end of the lease term. A lease agreement drafted by a licensee helps protect both landlord and tenant and keeps the rental aligned with Arizona laws.

A few practical tips to stay on the right track

• Use reputable, broker-approved forms as your foundation. Standard templates are designed to reflect current laws and common practices. You can customize within those boundaries, but starting from an approved baseline minimizes surprises.

• When in doubt, lean on your designated broker or a legal advisor within your firm. If a situation feels unusual or highly specialized, it’s smart to pause and confirm. The goal isn’t to delay; it’s to protect everyone involved.

• Keep your notes tidy. Attachments, addenda, and amendments should clearly reference the base document (purchase agreement, lease, or escrow instructions). Clear labeling helps everyone stay oriented.

• Remember the line between real estate documents and personal property. If something seems more about personal belongings than the property itself, you’re likely looking at a paper that isn’t your territory.

• Stay up to date with Arizona requirements. Real estate law isn’t static. Periodic check-ins with your brokerage’s compliance materials or the Arizona Association of Realtors can help keep you current.

A few real-world analogies to keep the idea clear

• Think of real estate paperwork as the blueprint for a map. Escrow instructions, a solid purchase agreement, and a well-drafted lease are like the turn-by-turn directions you rely on to reach the destination—closing, transfer, or tenancy—without getting lost. A bill of sale, by contrast, is more like a separate to-do list for personal items you might pack in a moving truck. It’s related to the bigger move, but it isn’t part of the map you’re navigating as a real estate professional.

• Imagine a kitchen renovation on a home you’re selling. The contract and escrow steps cover the house, the timeline, and the financial flows. A bill of sale would be irrelevant to the house itself and would feel out of place in the closing room, even though someone might want to hand over a toaster or a fancy fridge. The house is real property; the toaster—well, that’s personal property.

What that means for you right now

If you’re working through the Arizona 6-Hour Real Estate Contract material, this distinction is a practical one to remember. It ties directly to everyday duties: drafting the documents that formalize a real estate transaction, guiding clients through the process, and coordinating with escrow officers to keep things moving. It’s not about memorizing a rulebook so much as recognizing what belongs in the real estate workflow and what belongs elsewhere.

A short note on professional boundaries

Real estate pros wear many hats: negotiator, counselor, project manager, and sometimes the person who helps structure deal documents. But there’s wisdom in knowing where your license and brokerage authority begin and end. If a request drifts into a realm that feels more like legal drafting, it’s perfectly reasonable (and recommended) to steer the client toward the right support—whether that’s standard forms within your office, an attorney for tailored language, or another trusted professional. That approach keeps the transaction smooth and reduces risk.

Bringing it all together

So, the bill of sale is the odd one out in the Arizona licensee’s toolkit. It’s a personal-property transfer document, not a real estate transaction document. Escrow instructions, purchase agreements, and lease agreements—these are the workhorses that keep a real estate deal grounded and properly documented.

If you frequent the Arizona 6-Hour Real Estate Contract material to refresh concepts, you’re already on the right path. The practical takeaway is simple: stay grounded in the real estate documents that matter for the property and the deal, and use the correct tools for personal property. Your clients will thank you for the clarity, and you’ll keep everything running smoothly from listing to closing.

Curious about how to apply this in a specific scenario? If you have a situation in mind—appliances included in a sale, or a rental arrangement with unusual terms—feel free to share. We can walk through how to structure the suitable documents and keep everything aligned with Arizona rules.

A quick recap

• Bill of sale is not allowed for a licensee to prepare in most Arizona real estate contexts.

• Escrow instructions, purchase agreements, and lease agreements are commonly prepared by licensees.

• The key is to stay within real estate boundaries, use approved forms, and know when to seek additional help for personal-property questions.

• Clear communication and proper documentation reduce confusion and protect everyone involved.

If your goal is to build confidence in handling Arizona real estate documents, keep this distinction in mind, stay curious about the details, and lean on your brokerage’s resources when you’re unsure. After all, a well-drafted paper trail is the quiet backbone of every smooth transaction.