Real estate—also known as real property or realty—is land and anything growing on it, built on it, or attached to it—whether naturally occurring (trees, grass) or man-made (buildings, roads, fences).

A contract for the sale and purchase of real estate (real estate contract) such as a home will include the legal description of the property, the purchase price, and any financing terms if the parties agree to seller financing.

A real estate contract will also often include clauses or provisions that identify conditions that must be met or things that must occur by a specific date in order for the parties to complete the transaction. These conditions, events, or occurrences are known as contingencies, as the completion of the transaction is contingent upon them.

Some common contingencies in real estate contracts include:

• the buyer securing financing at a specified interest rate

• the results of home inspections and resolution of any defects discovered

• the buyer being able to sell their current home (sale and settlement contingency)

• the buyer closing on an existing sale contract for their current home (settlement contingency)

• the closing occurring by a certain date—often 30, 45, or 60 days following the signing of the contract

Contingencies create some risk for sellers, as potential buyers may not continue to be interested in a home that is under contract—even if the contract has contingencies in it.

Another important issue to include in a contract for the sale of real estate is who will pay for which closing costs—including escrow fees, title search fees, title insurance, notary fees, recording fees, and transfer taxes.

And if a buyer wants the refrigerator, stove, oven, dishwasher, barstools, window treatments, washing machine, outdoor grill, or any other fixtures or appliances, the buyer should not rely on a spoken (verbal) agreement or understanding with the seller. Instead, the buyer should make sure the contract specifies any such items that will be included in the transaction.

In Arizona, a real estate contract for the sale and purchase of property is a legally binding document that outlines the terms of the transaction. It must include a legal description of the property, the purchase price, and details of any seller financing. Contingencies are common in these contracts and may include conditions such as the buyer obtaining financing, satisfactory home inspection results, the sale of the buyer's current home, and a specific closing date. These contingencies must be met for the transaction to proceed, and they can introduce risks for sellers if buyers back out. The contract should also detail who is responsible for various closing costs, which can include escrow fees, title search and insurance, notary fees, recording fees, and transfer taxes. To avoid misunderstandings, any fixtures or appliances that are to be included in the sale should be explicitly listed in the contract rather than agreed upon verbally. Arizona law requires that real estate contracts be in writing to be enforceable, and it is advisable for parties to consult with an attorney to ensure that the contract accurately reflects their agreement and protects their interests.