Contracts
In New Mexico, what is the effect of a 'bump clause' when combined with a home sale contingency?
AThe seller is locked in and cannot accept other offers
BThe seller can continue marketing; if they get another offer, they can give the first buyer a set time to waive their contingency or be 'bumped'✓ Correct
CThe buyer's earnest money automatically doubles
DThe contract becomes non-contingent immediately
Explanation
A bump clause (kick-out clause) lets a seller accept a contingent offer while continuing to market. If a second offer comes in, the seller notifies the contingent buyer, who has a specified time (e.
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