How can a buyer legally terminate a real estate contract in Arizona?

A buyer can legally terminate a real estate contract in Arizona primarily by exercising a contingency clause or through mutual agreement with the seller. Contingency clauses are stipulations in the contract that allow the buyer to withdraw if certain conditions are not met. Common contingencies include financing, inspection, or appraisal contingencies. If any of these conditions are not satisfied, the buyer has the legal right to terminate the contract without facing penalties.

Additionally, if both parties mutually agree to terminate the contract, they can do so legally. Such mutual termination would typically involve a written agreement that outlines the intent of both parties to dissolve the contract, ensuring that neither party suffers legal consequences from the termination.

Other methods, such as notifying the seller via email or waiting for the contract to expire, may not provide a clear or legally binding way to terminate the contract. Defaulting on the earnest money is also not a legitimate method for termination; instead, it constitutes a breach of contract, which could result in legal consequences rather than a formal termination of the agreement. Therefore, exercising a contingency clause or achieving mutual agreement is the most appropriate and legally sound way for a buyer to terminate a real estate contract in Arizona.