Contracts
A New Mexico purchase contract that has been signed by the buyer but not yet by the seller is best described as:
AA bilateral contract in effect
BAn offer that may be accepted, rejected, or countered by the seller✓ Correct
CA legally binding contract from the buyer's perspective
DAn option contract
Explanation
Until the seller signs, the contract is merely an offer by the buyer. The seller is free to accept (creating a binding contract), reject, or counter.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Purchase AgreementA 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.
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