Carlos and Elena are married and purchased a home in Santa Fe during their marriage. The deed lists only Carlos as the title holder. Carlos has now signed a purchase agreement to sell the property to a third-party buyer without Elena's knowledge or signature. Under New Mexico law, what is the legal status of this purchase agreement?
Correct Answer
D) The agreement is voidable at Elena's option because community property requires both spouses to consent to conveyance
New Mexico is a community property state. Property acquired during marriage is community property, owned equally by both spouses regardless of whose name appears on the deed. Both spouses must sign any deed or contract to convey community real property. Carlos cannot unilaterally sell community property, and the agreement is voidable because Elena's consent was not obtained. This is a fundamental principle of New Mexico community property law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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