Contracts
An Arizona purchase contract includes a financing contingency. The buyer cannot obtain financing and fails to notify the seller by the contingency deadline. What is the result?
AThe buyer automatically receives a refund of earnest money
BThe contingency may be deemed waived, and the buyer could be in default✓ Correct
CThe contract is automatically extended by 30 days
DThe seller must accept a reduced purchase price
Explanation
If a buyer fails to notify the seller of a contingency failure by the specified deadline, the contingency may be considered waived. This means the contract remains binding, and failure to close could constitute a breach.
People Also Study
Related Arizona Questions
- 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:Contracts
- Under the doctrine of 'time is of the essence' in an Arizona contract, failing to close on the specified date means:Contracts
- An Arizona purchase contract includes a financing contingency that states the buyer must obtain loan approval within 10 days. On day 11, the buyer has not obtained approval. The MOST likely outcome is:Contracts
- Which clause in an Arizona purchase contract allows the buyer to cancel and receive a refund of earnest money if they cannot obtain financing?Contracts
- A developer in Arizona cannot sell or accept a deposit on a lot in a new subdivision before the ADRE Public Report is issued. A buyer who signs a purchase contract before receiving the Public Report may:Land Use & Zoning
- The Arizona Association of REALTORS® Residential Resale Purchase Contract requires agency disclosure:Agency
- In Arizona, a 'subject-to' purchase in real estate means:Finance
- In Arizona, a 'contract for deed' (also called 'land contract' or 'installment land contract') is a financing arrangement where:Finance
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
Study This Topic
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →