Contracts
A New Mexico seller accepts an offer but later receives a higher offer before closing. The seller must:
AAccept the higher offer since they can get more money
BHonor the original contract, as it is a binding agreement✓ Correct
CNotify the NMREC of the competing offer
DAllow the original buyer to match the higher offer
Explanation
Once a purchase contract is fully executed (signed by all parties), the seller is legally bound to the agreement. Accepting a subsequent offer would constitute a breach of the original contract.
Related New Mexico Contracts Questions
- Which of the following is an example of mutual assent in a real estate contract?
- In New Mexico, an amendment to a purchase contract must be:
- In New Mexico, a 'release clause' in a blanket mortgage allows:
- In New Mexico, a listing agreement is a contract between the seller and:
- A New Mexico lease that contains an option to purchase is best described as a:
- In New Mexico, what is the difference between rescission and cancellation of a purchase contract?
- An addendum to a New Mexico purchase contract is used to:
- A novation in a New Mexico real estate context occurs when:
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 →