In Arizona, a 'contingency' in a purchase contract is a condition that must be satisfied for:
Why The contract to remain binding—failure to satisfy the contingency allows the contingent party to cancel Is Correct
Answer B: The contract to remain binding—failure to satisfy the contingency allows the contingent party to cancel
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
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.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
People Also Study
Related Arizona Questions
- The Arizona Association of REALTORS® Residential Purchase Contract provides that earnest money deposited in escrow is:Contracts
- A buyer includes an inspection contingency in their purchase contract. If the inspection reveals a major defect and the seller refuses to repair it, the buyer may: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
- 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?Contracts
- Under Arizona law, a real estate licensee acting as a buyer's agent who receives an earnest money deposit must give it to their:Arizona License Law
- Under A.R.S. §32-2151, when must an Arizona real estate broker deposit earnest money received from a buyer into the trust account?Arizona License Law
- The Arizona Association of REALTORS® Residential Resale Purchase Contract requires agency disclosure:Agency
- A property owner in Arizona has tenancy in common with another person. The owner dies. Their interest in the property:Property Ownership
Key Terms to Know
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.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Math Concepts
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →