Real Estate Contracts and Contract Law
Formation
Arizona's statute of frauds (A.R.S. §44-101) requires land contracts and listings to be in writing and signed by the party to be charged. Electronic signatures satisfy it under Arizona's version of UETA. Formation requires offer, acceptance, consideration, capacity, and legality. A counteroffer terminates the original offer, and acceptance must be communicated to the offeror. An option is a separate contract requiring separate consideration; it does not become a sale until exercised.
The resale contract's clock
Arizona resale transactions typically use AAR forms, which set hard deadlines. Common structure: the seller delivers the Seller Property Disclosure Statement within five days of acceptance; the buyer's inspection period commonly runs ten days; the buyer issues a Buyer's Inspection Notice and Seller's Response (BINSR); the seller then has a cure period, commonly five days after notice, to respond or correct. Time is of the essence, and notice must be in writing.
Remedies
Liquidated damages - typically the earnest money - are the buyer's usual exposure for breach. Specific performance is available for land because each parcel is unique. Actual damages cover other breaches. Contracts should address casualty loss, risk of loss, and what happens if a contingency (loan, appraisal, sale of the buyer's home) fails.
Traps
Assuming the inspection period starts when the offer is drafted instead of at the contract's stated trigger. Treating a counteroffer as an acceptance. Forgetting that cure periods begin only after written notice. Missing that a contingency deadline runs from acceptance, not from the date the buyer "starts trying."
Rule of thumb: count every deadline from the date of acceptance, put all notices in writing, and never let a cure period start without a written notice.