Informal contracts aren't contracts of record in Arizona real estate.

What makes a contract a contract of record? And why does one category matter more in Arizona real estate than another? If you’ve been sorting through Arizona contract topics, you’ve likely run into four familiar terms: informal, executed, executory, and formal contracts. Here’s a clear, down-to-earth look at which one isn’t a contract of record and why that distinction matters in real estate.

Let’s start with the basics—what do these terms actually mean?

• Informal contract: Often a simple, verbal agreement or a written deal that doesn’t come with the big paperwork trail. In everyday life, you might shake on a sale or jot a quick note. In real estate, though, informal contracts are the odd one out when we talk about public records.

• Executory contract: A deal where some promises are still waiting to be fulfilled. For example, a buyer may have to pay the rest of the price or the seller might still transfer title. It’s a contract in progress.

• Executed contract: All parties have done what they promised. The deal is complete, at least on the surface, though certain recording or title steps might still occur.

• Formal contract: A contract that follows specific formalities—often written, carefully organized, and signed with all required elements. This is the type that’s most comfortable with the system, especially for recording.

Why informal contracts aren’t contracts of record

Informal contracts—verbal agreements or casually written ones without the required documentation—don’t create a public record. A contract of record is something filed in public offices, typically the county recorder’s office, so anyone can see it. In real estate, that public notice can affect who has priority in a sale or a lien, and it helps protect ownership rights.

Think of it like this: if you’re buying a home, you want others to know exactly what you’ve agreed to and when. Recording a contract puts a stamp on that agreement in the public realm. It helps prevent later arguments about who agreed to what, when, and for how much. Informal contracts don’t provide that same level of public visibility. They might be perfectly valid between the parties, but they aren’t the kind of document that becomes part of the public record.

The “record-ability” of the other contracts

Now, what about the other three types? Each has a different relationship to recording, which can be crucial in real estate transactions:

• Executory contracts: These are still in play, with obligations yet to be performed. Because they show ongoing intent and expectations, they’re commonly structured with the goal of becoming formal and, when appropriate, recorded. If a real estate deal has phase-by-phase steps (like a sales agreement with a future deed transfer), you’ll often see it move from an executory stage toward a recorded, completed arrangement.

• Executed contracts: After all promises are fulfilled, the core agreement has done its job. Yet in real estate, execution alone isn’t always the end of the story. The deed, mortgage, or other instruments may still need to be recorded to confirm title transfer and to provide notice to third parties. So execution is a milestone, not always the final act if recording is still in play.

• Formal contracts: These come with the right structure and the right paperwork to be recorded. They’re written with clear terms, signatures, and the elements needed by law. In Arizona, as in many states, formal contracts are designed to stand up to scrutiny and to be recorded when public notice is required—think deeds, purchase agreements, and other land-related instruments.

In other words, the only one among these four that is inherently not a contract of record is the informal contract. The other three categories either are structured in a way that supports recording or are commonly paired with recording as part of the real estate process.

Why recording matters in Arizona real estate

Let me explain why this distinction isn’t just academic. In Arizona, recording a contract or related instrument matters for several practical reasons:

• Public notice: Recording puts the world on notice about ownership, liens, and interests in property. It helps protect buyers from later claims by others who might have appeared with a stronger, earlier claim.

• Title clarity: A recorded document becomes part of the chain of title. If you’re doing a title search, you’re looking for those recorded items to confirm who owns what and who has encumbrances.

• Priority: If more than one party claims an interest in the same property, recording often helps decide who has priority. The timing of filing can affect who wins in a dispute.

• Legal enforceability: Some real estate contracts must be recorded to preserve their enforceability against third parties. Arizona law, like many jurisdictions, places a premium on written, properly recorded instruments when real property is involved.

• Lien and security interests: Instruments such as mortgage deeds or secured purchase agreements commonly require recording so a lender’s security interest is legally recognized and protected.

A quick, everyday example

Imagine you’re helping a client buy a small first home. The buyer signs a formal purchase agreement and agrees to a future deed transfer. The seller wants to reserve a small right—say, a temporary occupancy right—until closing. If this arrangement is recorded, anyone who later looks at the property records will understand that occupancy is reserved and by whom. If, instead, the agreement stays informal and unrecorded, confusion and disputes become more likely because there’s no public, official notice.

Arizona-specific angles to keep in mind

• Statute of Frauds basics: Real property contracts generally must be in writing to be enforceable. In real estate, that often means the contract is subject to the writing rule, which ties into why formal contracts with careful documentation are favored for recording.

• Public records reality: County recorder offices in Arizona are the gatekeepers of public notice for real property. If a contract or instrument isn’t filed there, it’s not part of the public record in the way a deed, mortgage, or memorandum can be.

• Practical workflow: In practice, many Arizona real estate deals start with a formal, written contract, and then go through recording steps as part of the closing process. It’s common for buyers, sellers, and lenders to coordinate to ensure all required documents get properly recorded.

Tips and takeaways for readers

• When you’re evaluating a contract in Arizona real estate, ask: Is this document designed to be public-facing? If the answer is yes, it’s likely intended to be recorded.

• Look for language about performance milestones and recording plans. If a contract hints at recording or memoranda of sale, that’s a signal of a record-able instrument.

• Always consider the regulatory landscape: consult the county recorder’s office for specifics on what needs to be filed for your particular instrument, and check with a real estate attorney or licensed broker when in doubt.

• Keep an eye on the title pathway. If title transfer is involved, the chances are high that recording is part of the essential sequence.

A few practical examples you’ll encounter

• A formal purchase agreement with a future deed transfer: This is a classic setup that can be recorded once the deed is prepared and signed.

• An executory contract for deed (a seller-financed sale): This often begins as an agreement that may later be recorded to secure the buyer’s equitable interest and to provide public notice of the arrangement.

• An executed agreement with all terms fulfilled but no recording: This can still be part of the real estate story, but you’d typically move toward recording any deed or mortgage to finalize the public record and secure ownership.

Bringing it all home

Here’s the through-line: Informal contracts are not records of public notice. Executory, executed, and formal contracts each have paths that align with recording, public notice, and title security in Arizona real estate. The public record isn’t just a bureaucratic checkbox—it’s a backbone for clarity, trust, and enforceability in property transactions.

If you’re navigating Arizona real estate topics, remember this simple rule of thumb: whenever a deal touches property and public notice, recording is likely part of the journey. And when a contract stays informal or lacks the formalities, it’s less about being unenforceable and more about not becoming part of the public record—where disputes over ownership and priority often get settled.

Resources to explore

• Arizona county recorder offices: for the specifics on what instruments you can and should record in your county.

• Arizona Department of Real Estate (ADRE): for overview of real estate laws and commonly used contract forms in Arizona.

• Local title companies and real estate attorneys: to tailor recording steps to a given transaction and ensure compliance with local rules.

In real estate, the difference between a contract that becomes public and one that stays private isn’t just about paperwork. It’s about visibility, protection, and peace of mind for everyone involved. So next time you see a contract that could affect property rights, ask yourself: is this something that should live in the public record? If the answer is yes, you’re likely dealing with a record-worthy instrument—and that distinction matters more than you might think.