A buyer submits an offer using the AAR Residential Resale Real Estate Purchase Contract. The seller counters by changing the closing date and initial deposit amount. The buyer then accepts the counteroffer verbally over the phone. What is the status of this transaction?
Correct Answer
B) No contract exists until the buyer signs the counteroffer
No contract exists until the buyer signs the counteroffer. Arizona law requires real estate contracts to be in writing and signed by all parties. Verbal acceptance of a counteroffer does not create a binding contract. Why not A: Verbal acceptance alone cannot create a binding real estate contract in Arizona. Why not C: The original offer was terminated when the seller made a counteroffer. Why not D: The contract is not voidable but rather non-existent without proper written acceptance.
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Related Topics & Key Terms
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Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
More Az Contracts Questions
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- → In a Goodyear transaction review, a salesperson wonders whether all issues belong inside the core purchase contract body even when a specialized addendum exists. What is the best answer under current Arizona law or current Arizona form practice?
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