Contracts
A contingency in a real estate contract serves to:
AMake the contract binding immediately regardless of future events
BSuspend the parties' obligations until a specified condition is met or waived✓ Correct
CRequire the buyer to forfeit earnest money if they cancel
DCreate a sublease of the property during escrow
Explanation
A contingency is a condition that must be satisfied for the contract to become fully binding. Until the condition is met or waived, neither party is obligated to close escrow.
Related Arizona Contracts Questions
- Which of the following BEST describes a land contract (contract for deed) in Arizona?
- A buyer who defaults on an Arizona purchase contract without a valid contingency may lose:
- The Arizona Residential Purchase Contract's inspection period allows the buyer to:
- Arizona has a state-mandated 'cooling-off period' for real estate purchase contracts:
- An exclusive agency listing in Arizona differs from an exclusive right-to-sell listing because:
- An Arizona seller accepts a buyer's offer. Before escrow closes, the property is destroyed by fire. Under the doctrine of equitable conversion, who bears the risk of loss?
- For a real estate contract in Arizona to be legally enforceable, it must:
- An Arizona real estate purchase contract that is 'executory' means:
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →