FACTS: In the “Additional Terms” section on the Arizona REALTORS® Residential Resale Real Estate Purchase Contract (“Contract”), it states “earnest money to be deposited within 48 hours.”  The buyer has not submitted the earnest money within the 48-hour timeframe.

ISSUE: Is the Contract cancelled?

ANSWER: No.  See Discussion.

DISCUSSION:

Pursuant to Section 7a of the Contract, “If a party fails to comply with any provision of this Contract, the other party shall deliver a notice to the non-complying party specifying the non-compliance.  If the non-compliance is not cured within three (3) days after delivery of such notice (“Cure Period”), the failure to comply shall become a breach of Contract.”  Accordingly, a cure notice is required and if the earnest money is not deposited by the three (3) day cure period expiration, the buyer is in breach.

Note: Section 1c of the Contract provides that earnest money will be deposited upon acceptance of the offer.