Contracts
Under Arizona contract law, consideration in a real estate purchase contract is MOST commonly provided by the:
ASeller's promise to convey title and the buyer's promise to pay the purchase price✓ Correct
BEarnest money deposit alone
CAgent's promise to find a buyer
DMortgage lender's commitment letter
Explanation
Consideration is the exchange of value between parties. In a purchase contract, the seller's promise to convey title and the buyer's promise to pay the purchase price are mutual consideration.
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Key Terms to Know
Earnest Money
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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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