Arizona Real Estate License FREE Arizona Real Estate License Contracts and Contract Law Questions and Answers 2 — Questions and Answers
Question 1: Under Arizona law, which of the following is required for a real estate purchase contract to be enforceable?
- Verbal agreement witnessed by two people
- A written document signed by the party to be charged (Correct answer)
- A notarized handshake agreement
- An email confirmation from the buyer's agent
Correct answer: A written document signed by the party to be charged
Arizona follows the Statute of Frauds, which requires real estate contracts to be in writing and signed by the party to be charged.
Question 2: What happens when a buyer fails to deposit earnest money by the deadline specified in an Arizona residential purchase contract?
- The contract is automatically void
- The seller may cancel the contract after providing written notice (Correct answer)
- The buyer forfeits all inspection rights
- The contract remains valid with no consequences
Correct answer: The seller may cancel the contract after providing written notice
In Arizona, the seller must provide written notice to the buyer of the failure before canceling the contract for non-deposit of earnest money.
Question 3: In Arizona, what is the legal effect of a counteroffer on the original purchase offer?
- It extends the original offer by 48 hours
- It serves as a rejection of the original offer and creates a new offer (Correct answer)
- It automatically binds both parties to the new terms
- It preserves the original offer while adding new terms
Correct answer: It serves as a rejection of the original offer and creates a new offer
A counteroffer legally rejects the original offer and constitutes a new offer that the other party may accept or reject.
Question 4: Which remedy allows an Arizona buyer to force a seller to complete a real estate transaction when the seller breaches the purchase contract?
- Liquidated damages
- Rescission
- Specific performance (Correct answer)
- Declaratory judgment
Correct answer: Specific performance
Specific performance is an equitable remedy that compels the breaching party to fulfill their contractual obligations, commonly used in real estate because each property is considered unique.
Question 5: Under the Arizona Association of REALTORS® residential purchase contract, what is the cure period after one party delivers a written notice of breach?
- 24 hours
- 3 calendar days (Correct answer)
- 5 calendar days
- 10 calendar days
Correct answer: 3 calendar days
The AAR residential purchase contract provides a three-day cure period after written notice of a breach before the non-breaching party may exercise remedies.
Question 6: In Arizona, which of the following situations would make a real estate contract voidable rather than void?
- A contract to sell property for an illegal purpose
- A contract signed by a minor (Correct answer)
- A contract with no consideration
- A contract missing a legal description of the property
Correct answer: A contract signed by a minor
A contract signed by a minor is voidable because the minor has the option to disaffirm the contract, but it is not automatically void.
Arizona Real Estate License FREE Arizona Real Estate License Contracts and Contract Law Questions and Answers 2
Under Arizona law, which of the following is required for a real estate purchase contract to be enforceable?