ContractsIntermediateArizona Exam

The Arizona Residential Purchase Contract's inspection period allows the buyer to:

ANegotiate a lower price if inspections reveal defects
BConduct investigations and cancel the contract for any reason within the periodCorrect
CExtend the close of escrow automatically
DBack out only for structural defects without losing earnest money

Why Conduct investigations and cancel the contract for any reason within the period Is Correct

Answer B: Conduct investigations and cancel the contract for any reason within the period

The Arizona Residential Purchase Contract's inspection (due diligence) period allows the buyer to conduct any inspections and, if unsatisfied for any reason, cancel the contract and receive a refund of earnest money before the period expires.

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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