Contracts
In New Mexico, a 'sight unseen' purchase (buyer makes an offer without physically viewing the property) is:
AIllegal under NMREC rules
BLegally possible but the buyer assumes additional risk and should understand what they are buying✓ Correct
CAutomatic cause for rescission
DOnly allowed for commercial properties
Explanation
While legally permissible, sight-unseen purchases carry significant risk. The buyer should understand that signing the contract constitutes acceptance, and inspections should be conducted promptly after acceptance.
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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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