Arizona Contracts
Practice Questions & Answers (2026)
Contract law questions on the Arizona real estate exam test both general contract principles and Arizona-specific transaction requirements. The Arizona Department of Real Estate (ADRE) tests how Arizona contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under Arizona law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong AZ-specific timeframe or rule.
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Arizona Contracts — Practice Questions & Answers
166 questions on Contracts from the Arizona real estate question bank. First 10 are free — sign up to unlock all 166.
Q1. Arizona has a state-mandated 'cooling-off period' for real estate purchase contracts:
Explanation
Arizona does NOT have a state-mandated cooling-off period for real estate purchase contracts. Once a contract is signed by both parties and all contingencies are met, it is binding unless the contract itself provides for cancellation rights.
Q2. For a real estate contract in Arizona to be legally enforceable, it must:
Explanation
A valid, enforceable contract requires offer, acceptance, consideration, legal capacity of the parties, and a lawful purpose. Real estate contracts must also be in writing (Statute of Frauds) and signed by the parties.
Q3. Under the Arizona Statute of Frauds, a real estate purchase contract must be:
Explanation
The Statute of Frauds requires real estate contracts to be in writing and signed by the party against whom enforcement is sought. Oral contracts for the sale of real estate are not enforceable.
Q4. An Arizona buyer submits an offer with a contingency that financing must be secured within 10 days. The seller accepts. If the buyer cannot secure financing within 10 days, the result is:
Explanation
If a valid financing contingency is included and the buyer cannot satisfy it within the specified timeframe, the buyer may cancel the contract without penalty and receive the earnest money refund as stated in the contingency.
Q5. In Arizona, a counteroffer legally:
Explanation
A counteroffer in Arizona — as in all states — constitutes a rejection of the original offer and creates a new offer. The original offer is extinguished and cannot be accepted after a counteroffer is made.
Q6. The Arizona Residential Resale Purchase Contract requires sellers to provide the Seller's Property Disclosure Statement (SPDS) within:
Explanation
The AAR Residential Resale Purchase Contract requires the seller to deliver the SPDS within the timeframe specified in the contract, which is typically 3 to 5 days from contract acceptance.
Q7. Under the doctrine of 'time is of the essence' in an Arizona contract, failing to close on the specified date means:
Explanation
When a contract states 'time is of the essence,' deadlines are strictly enforceable. Failure to perform by the deadline can constitute a breach of contract, potentially allowing the other party to cancel and pursue remedies.
Q8. An Arizona listing agreement gives a broker the right to sell a property, but the seller retains the right to sell it themselves without owing a commission. This is called a(n):
Explanation
An exclusive agency listing gives one broker the exclusive right to market the property, but the seller may sell it themselves without paying a commission. In contrast, an exclusive right-to-sell listing requires commission payment regardless of who finds the buyer.
Q9. Arizona law requires that contracts for the sale of real property include an adequate legal description. Which of the following is NOT an acceptable legal description?
Explanation
A street address alone is not sufficient as a legal description for a real estate contract. Acceptable legal descriptions include lot and block (subdivision plat), metes and bounds, or township/range/section (government survey).
Q10. In an Arizona residential resale transaction, the buyer's inspection period is typically used to:
Explanation
The inspection period (due diligence period) in an Arizona residential contract allows the buyer to conduct physical inspections, review disclosures, and either request repairs/concessions or cancel the contract and receive the earnest money back.
Q11. A buyer who defaults on an Arizona purchase contract without a valid contingency may lose:
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