Under Arizona law, all of the following are typically acceptable contingencies in residential purchase contracts EXCEPT:
Correct Answer
C) Buyer's subjective approval of neighborhood demographics
Buyer's subjective approval of neighborhood demographics would not be an acceptable contingency as it could violate fair housing laws and lacks objective criteria. Contingencies must be based on legitimate, measurable factors. Option A is incorrect (acceptable) because sale of buyer's home is a common, legitimate contingency. Option B is incorrect (acceptable) because property inspection contingencies are standard and protect buyers. Option D is incorrect (acceptable) because financing contingencies are common and necessary for most buyers.
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Why the Other Options Are Wrong
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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