Key Takeaways

  • The AAR (Arizona Association of REALTORS) Residential Resale Purchase Contract is the standard form used in Arizona
  • Arizona contracts typically include an inspection period during which buyers can investigate the property
  • The contract becomes binding when acceptance is communicated to the offeror
  • Time is of the essence is standard in Arizona contracts, making all deadlines strictly enforceable
  • Escrow companies typically handle closings in Arizona rather than attorneys
Last updated: January 2026

Arizona Purchase Contracts

Important: This content covers Arizona-specific contract requirements. You should complete the National Real Estate Exam Prep first, as general contract concepts are tested on the national portion.

Real estate contracts in Arizona must meet all standard contract requirements plus Arizona-specific provisions.

Standard Contract Requirements

For a valid Arizona real estate contract:

RequirementDescription
Competent PartiesLegal age (18+) and mental capacity
Offer and AcceptanceMeeting of the minds
Legal PurposeTransaction must be lawful
ConsiderationSomething of value exchanged
Written FormStatute of Frauds requires writing
Legal DescriptionProperty must be identifiable

The AAR Residential Resale Purchase Contract

The Arizona Association of REALTORS (AAR) provides standard forms used in most residential transactions.

Key Contract Sections

SectionPurpose
Property DescriptionIdentifies the property
Purchase PricePrice and payment terms
Earnest MoneyDeposit amount and holder
Close of EscrowClosing date
PossessionWhen buyer gets possession
FinancingLoan terms and contingency
Inspection PeriodDue diligence timeframe
SPDSSeller Property Disclosure
WarrantiesWhat seller warrants

Earnest Money

In Arizona:

  • Amount is negotiable
  • Typically held by escrow company or broker
  • Becomes part of purchase price at closing
  • Disposition governed by contract terms

Key Contract Provisions

Time is of the Essence

Arizona contracts include "time is of the essence" meaning:

  • All deadlines are strictly enforceable
  • Missing a deadline can constitute breach
  • Extensions require written agreement

Inspection Period

The inspection period allows the buyer to:

  • Conduct property inspections
  • Review HOA documents
  • Investigate title
  • Evaluate property condition

Buyer's options during inspection period:

  1. Accept property as-is
  2. Request repairs/credits (BINSR form)
  3. Cancel contract (within the period)

BINSR - Buyer's Inspection Notice and Seller's Response

The BINSR form is used when buyer requests:

  • Repairs to be made by seller
  • Credits at closing
  • Price reduction

Seller can accept, reject, or counter the requests.

Close of Escrow (COE)

The COE date is the scheduled closing date:

  • Title transfers on this date
  • Funds are disbursed
  • Documents are recorded

Cure Period

If a party fails to perform, the Cure Period Addendum may provide:

  • 3 days to cure the breach
  • Written notice required
  • Opportunity to fix the issue before cancellation

When Contract Becomes Binding

A contract becomes binding when:

  1. Offer is made
  2. Acceptance occurs
  3. Acceptance is communicated to the offeror

Arizona Rule: Acceptance is not effective until communicated. Unlike some states, the "mailbox rule" does not automatically apply.

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Arizona Purchase Contract Timeline
Test Your Knowledge

When does an Arizona real estate contract become binding?

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Test Your Knowledge

What form do Arizona buyers use to request repairs after an inspection?

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