What must be included in a purchase agreement for Arizona real estate.

Think of a purchase agreement as the backbone of a real estate deal in Arizona. It’s the document that anchors what’s being bought, for how much, and who’s responsible for what. If a contract is missing key pieces, the whole thing can wobble or even fall apart. So, what must you see in a solid purchase agreement? The short answer: property description, purchase price, financing terms, and both parties’ signatures. Let’s unpack why these four items are non-negotiable and how they work together to create a clear, enforceable agreement.

The four non-negotiables, explained

• Property description

This isn’t just the street address. A good purchase agreement nails down exactly what’s being sold—the legal property description. That could include the lot and block numbers, parcel numbers, or a metes-and-bounds description. Why so precise? Because you don’t want any confusion about what’s in or out of the deal. A vague or incomplete description can open doors to disputes later, like “Is the garage included?” or “Does the shed belong to the seller or the buyer?” In Arizona transactions, the description is tied to the title and the parcel’s legal record, so accuracy matters big time.

• Purchase price

Money talks, and in real estate, a precise price statement keeps everyone on the same page from day one. The contract should spell out the total purchase price, the method of payment, and any adjustments or credits. If there’s earnest money, it’s often referenced here too, but the core is the price itself and how it’s allocated at closing. A clear price helps avoid sniffing out late surprises and gives both sides a tangible target to aim for.

• Financing terms

This clause lays out how the buyer plans to pay for the property. Is it cash, a conventional loan, a VA loan, or something else? The financing terms can include contingencies (like loan approval by a certain date), the loan type, interest rate assumptions, and the timing of when funds are needed at closing. In Arizona, many buyers rely on lender-backed financing, so the financing section protects both sides by setting expectations about timelines and potential contingencies. It’s not just about money; it governs what happens if the lender can’t fund, and it helps the seller gauge how solid the buyer’s commitment is.

• Both parties’ signatures

A contract isn’t binding without the ink of agreement. Signatures from the buyer and the seller show that both sides have consented to the terms laid out. In practice, signatures confirm that everyone has read, understood, and agrees to the core terms. In today’s world, you’ll often see electronic signatures, but the effect is the same: a clear, documented consent. Without signatures, the document sits there as a draft, not a binding commitment.

Why these pieces matter

• Clarity reduces disputes

Ambiguity is a breeding ground for conflict. When the property description, price, financing terms, and signatures are crystal clear, there’s less room for misinterpretation. If a dispute ever surfaces, this clean framework gives the courts or a mediator a straightforward map to follow.

• Enforceability follows the basics

Real estate contracts hinge on specific, identifiable terms. A complete package signals that both parties intend to enter into a legal arrangement. In practical terms, that means a buyer can pursue remedies if the seller misrepresents the property, or a seller can hold a buyer to a stated commitment if a buyer backs out without a valid contingency.

• Smooths the closing process

Title, escrow, and disclosures are essential, too. But they rely on the core four to anchor the process. When the basics are solid, the title company can clear liens, the escrow agent can manage funds, and everyone can move toward a clean closing with fewer last‑mile snags.

A closer look at how it plays out in real life

Let me explain with a simple, human example. Imagine a couple is buying a home in Phoenix. They want a clear description—the legal parcel details that show precisely what’s transferring. They state the purchase price as $420,000 and outline that they’ll finance part of it with a conventional loan. They also include a contingency that if the loan isn’t approved by a chosen date, they can walk away without penalty. Finally, the document ends with both names and signatures, acknowledging their agreement.

That snapshot covers the core four. It also sets up the next steps: the title company pulls the official records to confirm the property description, the lender processes the loan, and the escrow agent handles the money and documents at closing. If any of these elements were missing or vague, the process would stall, and anxiety would creep in as both sides wonder, “Are we really covered?”

Where title details and escrow fit in

You might have seen options that mention title details and escrow information. They’re important, but they’re not the four core items you must see first. Title details confirm what liens, easements, or encumbrances sit on the property, and escrow information coordinates how money changes hands and how documents are delivered. In practice, these elements support the agreement once the core four are in place, but they aren’t substitutes for them.

Common pitfalls to avoid

• A vague property description

If the description says “the property” without a precise legal description, you’re inviting ambiguity. Always map the exact parcel so there’s no question about what’s included.

• A missing or fuzzy price

A contract that states “the price will be fair” or “the parties will agree on price later” is asking for trouble. Locking in a defined price and payment structure keeps everyone accountable.

• Financing terms that aren’t realistic

If the plan is “buyer will secure financing,” but there’s no timeline or contingency, the seller can feel left in limbo. A clear financing path with a realistic deadline helps both sides plan.

• No signatures

It sounds obvious, but it happens more than you’d think. A document without both parties’ signatures isn’t enforceable as a contract.

What to keep in mind as you review or draft

• Use plain language, but be precise

Legal phrases are fine, but clarity wins. The goal is for both buyer and seller (and any brokers) to understand the deal immediately.

• Include a date

A contract without a closing date or a deadline for contingencies can become a moving target. A clear date framework keeps the timeline intact.

• Think about contingencies

While not one of the four core items, contingencies (inspections, financing, title issues) show up often in the same document. They’re essential for risk management and should be referenced clearly.

• Don’t skip the essential disclosures

Arizona has specific disclosures that may apply to a transaction. While they aren’t one of the four core items, including them where required helps prevent later surprises.

A practical checklist you can use

• Property description: Is the legal description included? Does it match the public records?

• Purchase price: Is the amount stated? Are payment terms clear (cash, loan type, deposits, credits)?

• Financing terms: Is there a loan contingency? Are timelines for approval specified?

• Signatures: Are both parties’ signatures present? Are dates attached?

• Title and escrow (as supporting details): Are there any known title issues? Who will hold escrow and handle funds?

Bringing it all together

Real estate transactions in Arizona move along quickly when the fundamentals are solid. The four must-haves—property description, purchase price, financing terms, and both parties’ signatures—act like the spine of the contract. Everything else that follows (title details, escrow arrangements, disclosures, contingencies) grows from that spine, supporting the deal and protecting everyone involved.

If you’re ever unsure about a clause, ask yourself: does this term make the core agreement clearer and more enforceable? If the answer is yes, it’s probably a good addition. If not, it might be worth revisiting or revising with a professional.

A few parting thoughts

• Real estate is as much about trust as it is about numbers. A well-crafted purchase agreement sends a clear message: we’re serious, we’re thorough, and we’re committed to a fair, transparent process.

• The landscape changes with time and locale. In Arizona, the standard forms from the local association help standardize expectations, but the specific terms you choose should reflect the actual deal you’re pursuing.

• Practice builds confidence, not just memorization. The moment you can spot the core four in a draft, you’ll feel more secure—because you understand how the pieces fit.

In the end, the four core components aren’t just a checklist; they’re the foundation. They protect the buyer, protect the seller, and keep the transaction moving forward in a way that makes sense to everyone involved. So next time you review a draft, circle those four elements in your mind, and you’ll see the contract click into place with much more clarity.

If you’re navigating Arizona real estate contracts, keep these ideas in mind as you study and observe transactions in the field. The property description, the price, the financing terms, and the signatures—their presence and clarity are signals that the contract is solid, capable of guiding a smooth closing, and fair to both sides. And that’s what real estate, at its best, is all about.