Contracts
A New Mexico buyer includes a 'financing contingency' in their offer. This contingency protects the buyer by:
ARequiring the seller to pay for a new appraisal
BAllowing the buyer to cancel the contract and recover their earnest money if they cannot obtain financing on specified terms within the contingency period✓ Correct
CGuaranteeing the buyer a specific interest rate
DRequiring the lender to approve the loan
Explanation
A financing contingency gives the buyer a contractual right to terminate the purchase agreement and receive their earnest money back if they are unable to obtain financing on the terms specified (rate, amount, type) within the agreed time period.
Related New Mexico Contracts Questions
- In New Mexico, which of the following is an example of a 'condition precedent' in a real estate contract?
- In New Mexico, which party to a purchase contract would most benefit from including a 'seller's right to continue marketing' (bump clause) provision?
- In New Mexico, a 'breach of contract' by a seller who refuses to close would entitle the buyer to which of the following remedies?
- In New Mexico, a 'rent-to-own' agreement is best characterized as:
- In New Mexico, a 'walk-through inspection' immediately before closing is intended to:
- In New Mexico, 'consideration' in a real estate contract must be:
- A New Mexico listing agreement states the property must sell for at least $400,000 'net to seller.' This is an example of a:
- In New Mexico, a purchase contract that expires without buyer acceptance is:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →