Contracts
In New Mexico, a 'hold harmless agreement' (indemnification clause) in a commercial lease typically:
APrevents the landlord from ever being sued
BShifts liability for certain damages from one party to the other, such as tenant agreeing to indemnify the landlord for claims arising from the tenant's use of the property✓ Correct
CWaives all tenant rights under UORRA
DRequires the landlord to maintain all insurance
Explanation
Hold harmless (indemnification) clauses are common in commercial leases, typically requiring the tenant to indemnify the landlord against claims arising from the tenant's operations, negligence, or activities on the property.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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