Contracts

In New Mexico, when both buyer and seller sign a 'mutual release' form, it means:

ABoth parties agree to complete the transaction
BBoth parties agree to cancel the contract and typically release earnest money as specified✓ Correct
CThe broker releases the client from representation
DThe lender releases the borrower from the loan

Explanation

A mutual release is an agreement by both parties to cancel the purchase contract. It specifies how the earnest money will be distributed and releases both parties from further obligations under the contract.

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