Can you hold a buyer to a verbal offer they have made on your home? Probably not, since in Arizona, real estate contracts are only enforceable only when they are in alignment with the Statute of Frauds.
What does the Statute of Frauds have to do with your real estate transaction? To have a legally binding and enforceable contract, everything!
There are only two elements that are necessary to create a real estate contract:
1) Evidence in writing (yes it can be on a cocktail napkin, but that is not recommended!);
2) Signatures of the parties.
While a formal written real estate contract is not required in Arizona, it is advisable. If you are working with a REALTOR®, most likely the AAR Residential Purchase Contract is the standardized form that will be used for your real estate purchase, and if followed, you will have protection under the Statute.
Your Realtor is obligated to present all offers, so when they tell you they have received an offer, don’t get excited until you see on paper. It is easy to have someone agree to a price and particulars over the phone; it’s another to get the terms in writing.
If you are presented with an verbal offer due to extenuating circumstances or have been presented with an unfamiliar contract, it’s recommended to have an attorney review the agreement to assure the contract is governed by Arizona law.
Did you know: A listing agreement only requires one party’s signature; a real estate purchase contract requires all parties to sign.
We are Scottsdale real estate agents who specialize in the DC Ranch area. We make it our job to know the AAR Residential Purchase Contract inside and out. Make DCRanchHomes your source for community and real estate information.
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255