ContractsIntermediateArizona Exam

Arizona's 'Statute of Frauds' requires real estate contracts to be in writing to be enforceable. This requirement applies to:

AOnly purchase contracts where the price exceeds $5,000, since oral agreements are enforceable for lower-value real property transfers
BAll contracts for the sale or long-term lease (over one year) of real property, commission agreements for real estate, and listing agreementsCorrect
COnly commercial real estate contracts; oral agreements to purchase or lease residential property are enforceable if witnessed by a neutral party
DOnly construction contracts where the builder is also the seller, not resale transactions or ground lease agreements

Why All contracts for the sale or long-term lease (over one year) of real property, commission agreements for real estate, and listing agreements Is Correct

Answer B: All contracts for the sale or long-term lease (over one year) of real property, commission agreements for real estate, and listing agreements

Arizona's Statute of Frauds requires real estate sales contracts, listing agreements, buyer's broker agreements, leases exceeding one year, and commission agreements to be in writing and signed to be enforceable. Oral real estate contracts are generally unenforceable, protecting parties from fraudulent claims.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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