Earnest money is a deposit of money up front to indicate a sincere intention to complete a transaction. A deposit of earnest money may be required in certain offers, such as an offer to purchase real estate.
If the offer is accepted, the seller may keep the earnest money and apply it toward the purchase price, or the money may be kept in escrow until closing, and then applied to the buyer's closing costs. If the offer is rejected, the earnest money is usually returned, however, it may be forfeited if the buyer retracts the offer.
The New Mexico Deposit Receipt and Offer to Sell Real Property by Seller Acting Without Broker with Acceptance is a legally binding document that outlines the terms and conditions for the sale of real property in New Mexico. This document is specifically designed for situations where the seller is acting without the representation of a broker. The deposit receipt and offer to sell is an essential document in the real estate transaction process as it helps establish a clear understanding between the buyer and seller regarding the terms of the sale. It protects both parties and serves as evidence of their agreement. Key provisions typically included in the New Mexico Deposit Receipt and Offer to Sell Real Property by Seller Acting Without Broker with Acceptance are: 1. Identification of the parties: The document begins by identifying the buyer and seller. It includes details such as their legal names, addresses, and contact information. 2. Description of the property: The document contains a detailed description of the property being sold. This includes the address, legal description, and any other relevant information to clearly identify the property. 3. Purchase price and terms: The purchase price is stated explicitly in the document. Here, the buyer and seller agree on the total amount to be paid, the currency, and any specific terms related to the payment schedule or financing. 4. Earnest money deposit: The document outlines the amount of earnest money the buyer must deposit as a sign of good faith. It specifies the deadline for the deposit, how the funds will be held, and the conditions for refund or forfeiture. 5. Contingencies and inspections: Any contingencies or conditions related to inspections, appraisals, or financing are detailed in this section. It ensures that the buyer has the opportunity to conduct due diligence before finalizing the purchase. 6. Closing and possession details: The anticipated closing date is established, along with provisions for the transfer of possession. Details about prorated taxes, utilities, and other expenses are also included. 7. Additional terms and conditions: This section allows for the inclusion of any additional terms or agreements that the buyer and seller wish to include in the offer. Different types or variations of the New Mexico Deposit Receipt and Offer to Sell Real Property by Seller Acting Without Broker with Acceptance may exist, but the main purpose remains the same: outlining the terms and conditions of a real estate sale where the seller doesn't have a broker. These variations may differ based on specific clauses, adjustments, or legal requirements that parties may include based on their unique circumstances. When utilizing this document, it is crucial to consult with an attorney or a real estate professional to ensure compliance with New Mexico real estate laws and to customize the agreement to meet the specific needs of the transaction.
