Contracts

In Arizona, a 'contingency' in a purchase contract is a condition that must be satisfied for:

AThe commission to be paid to agents
BThe contract to remain binding—failure to satisfy the contingency allows the contingent party to cancel✓ Correct
CThe deed to be recorded at closing
DThe title insurance policy to be issued

Explanation

A contingency is a condition precedent that must be fulfilled for the contract to remain binding. Common contingencies include financing, inspection, and appraisal.

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