Contracts, Conveyances, and New Mexico Transaction Documents
Contract fundamentals
Know offer, acceptance, consideration, capacity, legality, and mutual assent - and that real estate contracts must satisfy the Statute of Frauds (written and signed by the party to be charged). A counteroffer is a rejection plus a new offer. Earnest money is consideration for the buyer's promises, not a penalty. Remedies include specific performance, damages, rescission, and liquidated damages where the contract says so; contingencies (financing, inspection, appraisal) must be met, waived, or released in writing.
Listing and buyer-broker agreements
Compare exclusive right to sell (broker paid regardless of who procures), exclusive agency (seller retains the right to sell without paying), and open listings. New Mexico practice uses written buyer-broker agreements defining scope, term, and compensation. Watch for "protection clause" questions - a broker may be owed a fee if a prospect introduced during the listing later closes.
Conveyances and closing
Deeds transfer title, not the property itself: general warranty (broadest), special warranty (limits the warranty period), quitclaim (no warranty), bargain and sale. Title insurance protects against covered title defects, with owner's and lender's policies. In New Mexico, title companies commonly act as escrow and closing agents. Because New Mexico is a community property state, both spouses generally must join in a conveyance of community real property, and community property with right of survivorship is a recognized form.
Worked proration example
Annual taxes are $2,920 and the closing is September 15, with the seller responsible through the day of closing. Using a 365-day year: $2,920 ÷ 365 = $8.00 per day; days January 1 through September 15 = 258; 258 × $8.00 = $2,064, debited to the seller and credited to the buyer. Always state your day-count convention before computing.
Trap
Do not mix up debit/credit direction, and do not assume the seller pays taxes for the closing date - the contract and local custom control.