Contracts
A New Mexico purchase agreement includes a time-is-of-the-essence clause. This means:
AClosing can be extended at any party's request
BAll deadlines in the contract are strictly enforced✓ Correct
CThe closing date is only a suggestion
DThe buyer must close within 30 days by state law
Explanation
A time-is-of-the-essence clause means all deadlines in the contract are strictly enforced and failure to meet them could constitute a breach of contract.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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