Arizona Real Estate License Arizona Real Estate License Contract Law and Practice Questions and Answers 2

Question 1

Under Arizona law, which of the following is required for a real estate purchase contract to be enforceable?

Accepted Answer

Written form signed by the party to be charged

Answer

Verbal agreement witnessed by two parties

Answer

Notarization by a licensed notary public

Answer

Recording with the county recorder

Question 2

In an Arizona residential purchase contract, what happens if the buyer fails to deposit earnest money by the agreed-upon deadline?

Accepted Answer

The seller may cancel the contract after providing written notice

Answer

The contract is automatically void

Answer

The buyer forfeits all inspection rights

Answer

The contract remains valid but the price is reduced

Question 3

Which of the following best describes the doctrine of 'time is of the essence' in Arizona real estate contracts?

Accepted Answer

Parties must perform obligations by the exact dates specified or risk default

Answer

All deadlines are suggestions and can be extended freely

Answer

Only the closing date is a strict deadline

Answer

Time constraints apply only to the seller's obligations

Question 4

An Arizona buyer discovers undisclosed foundation damage after closing. Under the Seller Property Disclosure Statement (SPDS) requirements, what is the buyer's most likely legal recourse?

Accepted Answer

Sue the seller for fraudulent concealment or misrepresentation

Answer

File a complaint with the Arizona Department of Real Estate only

Answer

Automatically rescind the transaction within 90 days

Answer

Request the title company reverse the sale

Question 5

In Arizona, which clause in a purchase contract allows the buyer to terminate if the property does not appraise at or above the purchase price?

Accepted Answer

Appraisal contingency

Answer

Financing contingency

Answer

Inspection contingency

Answer

Title contingency

Question 6

Under an Arizona land contract (contract for deed), when does legal title transfer to the buyer?

Accepted Answer

When all payments under the contract are completed

Answer

At the time the contract is signed

Answer

After the first payment is made

Answer

Upon recording the contract with the county