FREE Arizona Real Estate License Contracts and Contract Law Questions and Answers

Question 1

According to the Arizona Statute of Frauds, which of the following agreements is required to be in writing to be enforceable in court?

Accepted Answer

A residential lease agreement for a term of 18 months.

Answer

A real estate listing agreement for a term of six months.

Answer

A contract for the sale of goods valued at $450.

Answer

A mutual promise to marry.

Question 2

A buyer and seller enter into a purchase contract for a home in Scottsdale. The contract does not specify whether the custom-built bookshelves in the den are included in the sale. The seller removes them before closing. The buyer objects, claiming they were part of the property. Which of the following is most critical in determining if the bookshelves were a fixture?

Accepted Answer

The method of attachment and the adaptability of the bookshelves to the realty.

Answer

The cost of the bookshelves when they were built.

Answer

The seller's verbal statement to their agent that they intended to take the bookshelves.

Answer

A photograph of the den from the online property listing showing the bookshelves.

Question 3

A seller accepts a buyer's offer but then receives a higher offer before closing and refuses to complete the sale. The buyer still wants to purchase the property as agreed. Which legal remedy would the buyer most likely seek to compel the seller to complete the transaction?

Accepted Answer

Specific Performance

Answer

Rescission

Answer

Liquidated Damages

Answer

Reformation

Question 4

For a real estate purchase contract to be valid and enforceable in Arizona, all of the following elements are essential EXCEPT:

Accepted Answer

An acknowledgment by a notary public

Answer

Consideration

Answer

Legally competent parties

Answer

Offer and acceptance

Question 5

A real estate investor enters into a contract to purchase a residential property in Phoenix with the intention of assigning the contract to another buyer for a fee. Under Arizona law, what must this investor, acting as a 'wholesale buyer,' do?

Accepted Answer

Disclose their status as a wholesale buyer in writing to the seller.

Answer

Deposit a minimum of 10% for the earnest money.

Answer

Hold a valid Arizona real estate license.

Answer

Close on the property themselves before selling it to the end buyer.

Question 6

A buyer makes an offer on a property and the seller responds with a counteroffer. The buyer rejects the counteroffer. The seller then decides to accept the buyer's original offer. What is the status of the contract?

Accepted Answer

There is no valid contract because the seller's counteroffer terminated the original offer.

Answer

There is a valid contract because the seller ultimately accepted the buyer's original terms.

Answer

The buyer is obligated to purchase the property because their original offer was accepted.

Answer

The contract is unenforceable until the buyer provides a written rejection of the counteroffer.