Which of the following statements is true regarding purchase agreements in Arizona?

A purchase contract is indeed a binding agreement that outlines the terms of a transaction. It specifies essential elements, including the price, which indicates what the buyer agrees to pay and what the seller agrees to accept, alongside other terms such as contingencies, deadlines, and the rights and obligations of both parties. This clarity helps ensure that both the buyer and seller understand their roles and what is expected of them, contributing to the enforceability of the contract in legal terms.

Understanding that disclosures are generally required in Arizona real estate transactions reinforces why other statements are inaccurate. Disclosures are not optional; they play a critical role in protecting consumers and ensuring that buyers are fully informed about the property they are purchasing. Additionally, both parties, the buyer and the seller, are bound by the terms of the purchase agreement, which enforces mutual obligations. Thus, the assertion that only the seller is bound is incorrect and misrepresents the contract's nature. The purchase agreement establishes a reciprocal commitment where both parties have responsibilities and liabilities.