Contracts
In New Mexico, which of the following is an example of a 'condition precedent' in a real estate contract?
AThe buyer will repaint the deck within 30 days of closing
BThe buyer must obtain loan approval before the contract becomes binding✓ Correct
CThe seller must provide all keys at closing
DThe seller will make a charitable donation after closing
Explanation
A condition precedent is an event that must occur before a party's obligation to perform arises. A loan approval condition must be satisfied before the buyer is obligated to complete the purchase.
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