If you`re looking to buy or sell property in Arizona, an “agreement for sale” may be a term you come across. This type of agreement is a legally binding contract between a seller and buyer that outlines the terms of a sale. In this article, we`ll explore what an agreement for sale in Arizona entails and what you should know before signing one.

An agreement for sale is typically used when the buyer is unable to obtain financing from traditional sources, such as a bank. Instead, the seller agrees to finance the sale by accepting payments from the buyer over time. This type of agreement is commonly used in cases where the property is unique or when the buyer has a poor credit history.

In Arizona, an agreement for sale is also known as a “land contract.” It`s important to note that in Arizona, the seller retains legal title to the property until the purchase price has been paid in full. This means that the buyer has equitable title, or the right to use and occupy the property, but does not have legal ownership until the terms of the agreement are met.

The terms of an agreement for sale can vary, but usually include the purchase price, the payment schedule, and the consequences of default. It`s important for both the buyer and seller to understand the terms of the agreement before signing, as it is a legally binding contract.

One important aspect of an agreement for sale in Arizona is the “due-on-sale” clause. This clause allows the seller to demand full payment if the buyer sells the property before the purchase price has been paid in full. This clause is included to protect the seller`s interest in the property.

Another important consideration when entering into an agreement for sale is the potential for disputes. It`s important to have a clear understanding of the terms of the agreement, as well as a plan for resolving any disagreements that may arise.

In conclusion, an agreement for sale can be a useful tool for buying or selling property in Arizona. However, it`s important to understand the terms of the agreement and to have a plan for resolving any disputes that may arise. If you`re considering an agreement for sale, it`s always a good idea to consult with a real estate attorney to ensure that your interests are protected.