Contracts
The 'merger doctrine' in New Mexico real estate means that:
AAll prior negotiations merge into the purchase contract
BUpon closing, the purchase contract merges into the deed, and the deed governs the parties' rights✓ Correct
CMultiple offers merge into one binding offer
DThe listing contract and buyer's representation agreement merge at closing
Explanation
The merger doctrine holds that at closing, the purchase contract is merged into the deed. Post-closing, the deed—not the purchase contract—governs the conveyance unless the contract specifically survives closing.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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.
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