Contracts

In Arizona, a purchase contract that is contingent on the buyer obtaining financing must specify:

AOnly the loan amount
BThe loan amount, interest rate, term, and type of loan so that both parties understand what financing the buyer must obtain✓ Correct
CThe name of the lender the buyer intends to use
DOnly the down payment amount

Explanation

Arizona purchase contracts with financing contingencies should specify the material loan terms—amount, rate, term, and type—so the contingency is objectively defined. A vague financing contingency can create disputes about whether the buyer made a good-faith effort to obtain the specified financing.

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