Contracts
A New Mexico purchase contract specifies a $2,000 earnest money deposit that is 'non-refundable upon acceptance.' Is this enforceable?
ANo, earnest money is always refundable in New Mexico
BYes, if the parties agreed to non-refundable earnest money, it is generally enforceable✓ Correct
CNo, the NMREC requires earnest money to be refundable
DYes, but only up to $500
Explanation
Parties may negotiate terms including the refundability of earnest money. Non-refundable earnest money provisions, agreed to in writing, are generally enforceable under New Mexico contract law.
Related New Mexico Contracts Questions
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