Arizona Real Estate Contract: Purchase & Sale Agreement In AZ

As with every other state, real estate transactions in Arizona are subject to contracts. These contracts safeguard everyone's interests and lay out the responsibilities of each party. However, they’re not all identical—the terms vary based on each deal’s specifics. Thankfully, you don’t have to go through the daunting task of reading endless documents to understand how real estate contracts in The Grand Canyon State work. In this guide, we’ll explain an Arizona real estate contract and its contents and address the frequently asked questions about these crucial Arizona real estate documents.

• What Is An Arizona Real Estate Contract?
• Types Of Arizona Real Estate Contracts
• The 4 Essential Parts Of Arizona Real Estate Contracts
• Download Arizona Real Estate Contract PDFs
• What Is Required In An Arizona Real Estate Contract?
• Arizona Real Estate Contracts: FAQs
• Arizona Real Estate Contract: Final Thoughts

What Is An Arizona Real Estate Contract?

Given the various contracts that apply to real estate transactions in this state, the exact definition of an Arizona real estate contract may not be immediately clear. However, the term “Arizona real estate contract” is typically used to denote Arizona's purchase and sale agreement.

This particular contract dictates the purchase and sale of real estate in Phoenix and throughout the state. It outlines the rights, responsibilities, and obligations of the buyer, seller, and other parties involved.

Specific terms tend to vary based on the nature of the transaction, but an Arizona purchase contract generally encompasses the following key elements:

• Party Identification: A real estate purchase contract in Arizona defines the parties involved in the transaction. It features their legal names, contact information, addresses, and even entity representation where applicable.
• Description Of Property: An Arizona real estate purchase contract must also describe the property sold in the transaction. Depending on the nature of the transaction, this description may encompass various specifics, including physical property details like square footage.
• Purchase Price: It also clearly indicates the total amount to be paid by the buyer to the property seller.
• Payment terms: An Arizona real estate contract specifies how and when the buyer will pay the seller. This contract section includes payment details typical of a real estate transaction, such as the down payment amount.
• Closing Date: The contract sets a definitive date for the official transfer of the property or contract subject from the seller to the buyer.
• Conditions Of Sale: Arizona’s contract of sale real estate also outlines any special conditions that must be met for the sale to proceed as planned. These conditions vary from one contract to another but may include inspection conditions, approvals, and other factors agreed upon by the parties involved.
• Representations & Warranties: In an Arizona real estate contract, both the buyer and the seller may include assurances about the condition, legality, and other aspects of the properties being sold.
• Closing Costs: The contract specifies how the various closing costs, from taxes to realtor fees (where applicable), will be divided between the seller and the buyer; this clarifies where financial responsibilities are involved.
• Contingencies: Arizona real estate contracts also feature various contingencies, such as the inspection contingency clause. These clauses allow for the contract’s legal cancellation should either party or the goods being sold fail to meet certain conditions, such as seller financing and unsatisfactory inspection results.
• Signatures: An Arizona purchase and sale contract must feature a signature section for both the buyer and seller. The signatures indicate mutual agreement.

Types Of Arizona Real Estate Contracts

Check out some of the most common Arizona real estate contracts:

• Purchase & Sale Agreement: This type of contract is so prevalent that it’s often used interchangeably with the Arizona real estate contract. It sets out the terms and formalizes property transfers between buyers and sellers. It is particularly valuable for investors who have learned how to buy foreclosed homes in Arizona.
• Real Estate Assignment Contract: Is wholesaling real estate legal in Arizona? Yes, wholesaling is legal in Arizona, so it may literally pay to learn what a real estate assignment contract is. An Arizona assignment contract often comes into play during wholesale real estate investments. It allows the buyer (wholesaler) to transfer their equitable rights in the distressed property to a second (final) buyer.
• Lease Agreement: Typically involving a landlord and tenant, a lease agreement establishes the terms and conditions of renting or leasing a real property. It covers aspects like lease duration, rent amount, and the landlord and tenant's responsibilities.
• Power Of Attorney: Although not exclusive to real estate, a power of attorney contract offers another party the authority to sign an agreement on behalf of the principal signee. It’s often used when the principal signee (originally supposed to sign the contract) is unavailable due to traveling, an illness, or mental incapacitation. For instance, in real estate, the power of attorney document permits the relatives of an elderly or mentally ill patient to sign other contracts on their behalf.
• Joint Venture Agreement: This type of contract is utilized in collaboration arrangements between two or more parties who pool their resources and expertise for a real estate deal. It defines each participant’s terms, responsibilities, contributions, and profit-sharing arrangements, allowing for a cohesive and mutually beneficial approach to the deal.
• Listing Agreement: This type of contract is usually between a property seller and a realtor/real estate agent. It grants the real estate professional the right to represent the seller and outlines the terms of their engagement. For instance, it specifies the duration of the agreement, compensation structure, and other important terms related to the agent’s efforts in securing a property buyer.

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The 4 Essential Parts Of Arizona Real Estate Contracts

As previously noted, an Arizona real estate contract features various elements, from party identification to signatures. However, four elements must be included in every contract regardless of the nature of the real estate transaction. These are:

• Legal Capacity Of Parties: In Arizona real estate transactions, all parties engaged in a contract must possess the legal capacity to participate; this entails having a sound mind and being at least 18 years old. Failure to meet these prerequisites renders any contract the individual signs void or voidable.
• Mutual Consent: Also referred to as a “meeting of the minds,” mutual consent is a must-have in Arizona real estate contracts. It signifies that all parties participating in the agreement have willingly agreed to the contract’s terms and conditions. For example, in a typical purchase and seller agreement, mutual consent indicates that the buyer has agreed to the quoted price, while the seller accepts their responsibilities. In the absence of mutual consent, not only will the contract be deemed invalid, but it may also lead to disputes regarding the intentions of the signees.
• Lawful Objective: For a real estate contract in The Grand Canyon state to be considered valid, its purpose must be legal and not violate public policies. Its objectives should conform to the laws and regulations governing real estate deals. The contract may be rendered void and unenforceable if it includes unlawful objectives or terms, such as fraudulent property activities.
• Consideration (Exchange Of Value): For a contract to hold legal weight in Arizona, it must involve an exchange of something valuable between the parties, including monetary amounts or promises made following a property sale or service. Without the terms of exchange, the contract lacks the essential elements to enforce the parties' promises.

Download Arizona Real Estate Contract PDFs

Whether learning how to find off-market properties in Arizona, wholesaling real estate, flipping investment properties, or working as a Realtor and learning how to become a real estate agent in Arizona, being a real estate professional demands a solid grasp of contracts. You must understand the ins and outs of the most common one: the purchase and sale agreement.

Fortunately, if you want to enhance your knowledge of the various contracts used in Arizona real estate deals, you’re already in good company. Our specialized education programs cover real estate contracts, arming you with the skills and knowledge to navigate this state's complex real estate landscape.

Whether you’re a seasoned investor or just dipping your toes in The Copper State’s real estate, our courses offer invaluable insights into crafting and leveraging real estate contracts to your advantage. As a token of our commitment to your career growth, here are two complimentary, downloadable real estate contract PDFs.

• Purchase & sale agreement template
• Wholesale real estate assignment contract

Don’t miss this chance to elevate your real estate expertise and services. Contact Real Estate Skills today to kick-start your journey to becoming a professional real estate investor in Arizona.

What Is Required In An Arizona Real Estate Contract?

The exact details of an Arizona real estate contract often vary based on the deal's specifics or transaction. Nevertheless, certain disclosures are legally mandated across all real estate contracts. These components highlight essential details about the property's conditions that may impact its value. They include:

• Property DisclosureStatement: Sellers often use this disclosure form to share everything they know regarding the property’s condition and issues.
• Buyer Inquiry: This disclosure demands that sellers divulge any details or information the buyer may inquire about.
• Comprehensive Loss Underwriting Exchange (CLUE): This disclosure requires property sellers to provide a report highlighting every insurance claim filed on the property for the past five years.
• Condo Disclosure Information: Under Arizona law, this disclosure is mandatory for properties in a planned community, for instance, homes managed by a homeowner’s association or condominium community.
• Notice Of Soil Remediation: Arizona real estate contracts must include a written notice of any soil remediation.
• Affidavit For Land In Unincorporated Areas: Buyers in Arizona must provide a written affidavit when purchasing an unincorporated land contract.
• Military Airport Disclosure: A must-have disclosure in a real estate contract when the property is near a military airport.
• Lead-Based Paint Disclosure: This is only necessary when the property was built before 1978.
• Swimming Pool Disclosure: Sellers of properties featuring a swimming pool in Arizona must provide the buyer with a notice from the Department of Health Services.

While sellers in Arizona are generally required to disclose a lot of details regarding their property, it’s not mandatory to disclose if the property was a crime scene, homicide, or death scene or if it’s in the vicinity of a sex offender.

Arizona Real Estate Contracts: FAQs

The diverse nature of Arizona real estate contracts prompts various questions and concerns in the general seller and buyer market. Having the answers to these concerns allows you to offer your clients the information they need, thus establishing yourself as a trustworthy and reliable authority in your niche. Of course, you can always attend the best Arizona real estate courses online to answer the many questions you may have. However, to save you some time, here are some frequently asked questions regarding Arizona real estate contracts, along with their answers:

What Is The Arizona Residential Purchase Agreement?

The residential purchase agreement in Arizona is like the rulebook for buying and selling a house on contract. It’s specifically used to purchase and sell residential properties such as single-family homes, townhouses, etc. It establishes the terms and conditions of the transaction, such as the purchase price, closing date, and any special contingencies that need to be met for the sale to be complete. This agreement offers the buyer and the seller a clear plan to follow during the real estate transaction.

How Many Different Types Of Real Estate Purchase Contracts Are Available In Arizona?

It’s impossible to quantify real estate contracts in Arizona as the state offers contracts to meet unique transaction needs. However, some of the most notable include the standard purchase and sale agreements, wholesale assignment contracts, and lease agreements.

Arizona’s diverse contracts provide flexibility for different transaction strategies with the state’s real estate market. It enables parties involved in a real estate deal to select the most suitable contract for their transaction.

Can A Seller Back Out Of A Contract In Arizona?

Yes, a seller can back out of a real estate contract in Arizona. However, their exit must be tied to agreed-upon conditions such as property inspections, financing, and appraisal. In other words, their exit option must be specified as a contingency in the contract so they can withdraw without facing any negative consequences.

A common contingency used by sellers in Arizona to back out of contracts is the inspection clause. It allows them to back out of the contract should the inspection results not meet certain requirements. In wholesale real estate, this clause allows wholesalers to walk away from a deal without losing their earnest money if they fail to find a buyer within the agreed-upon timeframe.

Are Arizona Real Estate Contracts Assignable?

Yes, buyer and seller rights can be reassigned to another party in Arizona. However, there are certain instances where it's not allowed. For example, assigning contracts is usually prohibited if the agreement expressly forbids it or if doing so would materially alter or add to the duties, burden, and risks of the other party in the contract.

Assigning contracts is also forbidden if it would hinder the party’s chances of receiving fair returns. However, contract rights can generally be assigned to someone else in Arizona. Sign up for our free wholesaling training to learn more about real estate contracts and how to wholesale and flip houses from the MLS like a pro in Arizona.

Arizona Real Estate Contract: Final Thoughts

Arizona real estate contracts are like a guiding light for transaction parties. Beyond providing a pathway to follow, these contracts protect the rights of all parties involved. Whether you’re a seasoned investor or just starting out, understanding these contracts allows you to easily navigate real estate transactions and avoid potential liability.

While the article above is a good starting point, we offer free specialized courses covering everything from the basics to more advanced real estate topics.

Sign up for our free training to enhance your understanding of all the nitty-gritty of real estate investing and take the first step towards becoming a pro investor in The Grand Canyon state.

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.