Arizona Real Estate License Contract Law and Practice 2

Question 1

In Arizona, for a real estate purchase contract to be enforceable, it must comply with the Statute of Frauds, meaning it must be:

Accepted Answer

In writing and signed by the parties to be charged

Answer

Notarized by a licensed notary

Answer

Recorded with the county recorder

Answer

Approved by the Arizona Department of Real Estate

Question 2

A buyer signs a purchase offer and the seller crosses out the price and writes a higher one before signing. This action legally constitutes a:

Accepted Answer

Counteroffer that rejects the original offer

Answer

Valid acceptance

Answer

Binding amendment

Answer

Ratification

Question 3

Which element is NOT required for a valid real estate contract in Arizona?

Accepted Answer

A licensed attorney's review

Answer

Legally competent parties

Answer

Consideration

Answer

Lawful objective

Question 4

The Arizona Residential Purchase Contract typically provides the buyer an inspection period, during which the buyer may cancel and receive the earnest money back if disapproving of the property's condition. This period is commonly:

Accepted Answer

10 days

Answer

3 days

Answer

30 days

Answer

60 days

Question 5

If a minor enters into a real estate contract in Arizona, the contract is generally:

Accepted Answer

Voidable at the option of the minor

Answer

Void from the start

Answer

Fully enforceable

Answer

Automatically valid once recorded

Question 6

Earnest money in an Arizona transaction is best described as:

Accepted Answer

A good-faith deposit showing the buyer's serious intent

Answer

A fee paid to the listing broker

Answer

A down payment required by the lender

Answer

A penalty for late closing

Question 7

When a seller accepts an offer exactly as written and communicates acceptance to the buyer, the result is:

Accepted Answer

A binding bilateral contract

Answer

A unilateral contract

Answer

An option agreement

Answer

A revocable letter of intent