Contracts
A buyer makes an earnest money deposit on a property. The seller then defaults on the contract. What is the buyer's most likely remedy?
AThe buyer loses the earnest money deposit
BThe buyer may sue for specific performance or recover damages✓ Correct
CThe buyer may only recover the earnest money deposit
DThe buyer must accept a substitute property
Explanation
When a seller defaults on a real estate contract, the buyer may seek specific performance (requiring the seller to complete the sale) or sue for damages, including recovery of the earnest money.
Related New Mexico Contracts Questions
- In New Mexico, a 'force majeure' clause in a real estate contract may excuse performance if:
- Under New Mexico law, which remedy allows a party to seek court-ordered performance of a real estate contract?
- Under New Mexico contract law, when does a contract become binding on both parties?
- An appraisal contingency in a New Mexico purchase contract protects the buyer because it:
- In New Mexico, a purchase contract that is 'contingent upon the sale of the buyer's current home' is an example of a:
- A New Mexico purchase contract includes a '10-day inspection contingency.' If the buyer finds a major defect, they may:
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- In New Mexico, which of the following is typically NOT included as a 'fixture' that conveys with the property in a purchase contract?
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