Contracts
In New Mexico, which party to a purchase contract would most benefit from including a 'seller's right to continue marketing' (bump clause) provision?
AThe buyer
BThe seller✓ Correct
CThe title company
DThe lending bank
Explanation
The bump/kick-out clause benefits the seller by allowing them to accept a contingent offer while continuing to market. If a better non-contingent offer arrives, they can require the contingent buyer to waive contingencies or lose the deal.
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Key Terms to Know
Right of First Refusal
A contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
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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