Sequence-specific DNA-binding transcription factor that binds palindromic sequences within promoters and may activate or repress the transcription of a subset of genes (PubMed:12929931). Most probably regulates the expression of genes involved in the development of mesenchyme-derived craniofacial structures (By similarity). Early on in development, it plays a role in forebrain mesenchyme survival (By similarity). May also induce epithelial to mesenchymal transition (EMT) through the expression of SNAI1 (By similarity). Binds DNA as a homodimer; required for transcriptional activation (PubMed:12390248). Interacts (via homeobox domain) with EP300; acetylates ALX1 and stimulates its transcriptional activity (PubMed:12929931). Expressed in chondrocytes. Expressed in condensed prechondrocytic mesenchymal cells and in early chondrocytes of cartilage primordia. Expression is lower in mature chondrocytes. The OAR motif may negatively regulate DNA-binding and therefore transcriptional activity. It is found in the C-terminal transactivation domain that stimulates transcription. Acetylated at Lys-131 by EP300; increases interaction with EP300 and stimulates ALX1 transcriptional activity. Unable to bind DNA and activate transcription. Acts as a dominant negative through dimerization with isoform 1. Unable to bind DNA and activate transcription. Acts as a dominant negative through dimerization with isoform 1. Belongs to the paired homeobox family.