Arizona Real Estate License Practice Exam 2025 – All-in-One Resource to Pass with Confidence!

A sales contract is a legal agreement between a buyer and a seller wherein the seller agrees to sell a property at a defined price and under specific terms. This contract serves as a mechanism to outline the rights and obligations of both parties regarding the transaction. It goes into effect once both the buyer and seller have signed it, indicating their acceptance of the terms.

In the context of real estate, a sales contract typically includes important details such as the purchase price, closing date, contingencies like financing or inspections, and the specific property being sold. Since this contract commits the seller to sell the property for the outlined price, it is integral for formalizing the agreement between the parties involved.

While a purchase agreement might seem similar, it often refers specifically to the buyer's point of view and may not encompass all elements of the transaction. A listing agreement, on the other hand, is a contract that a seller signs with a real estate agent, granting the agent the authority to market and sell the property, but it does not bind the seller to a specific buyer. An offer to purchase is a proposal made by a buyer to purchase property, which may or may not be accepted by the seller. Therefore, the sales contract is the correct terminology that accurately describes the binding