Contracts
A New Mexico seller who has accepted an offer but then changes their mind and refuses to close is in breach of contract. The buyer's available remedies include:
ASpecific performance, monetary damages, or rescission with return of earnest money✓ Correct
BOnly return of the earnest money
CCriminal charges against the seller
DFiling a complaint with the NMREC only
Explanation
If a seller breaches by refusing to close, the buyer may: (1) sue for specific performance (force the sale), (2) sue for money damages (including lost profits), or (3) rescind the contract and recover their earnest money.
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Key Terms to Know
Earnest Money
A 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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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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