Carlos and Elena are married and selling their home in Albuquerque, New Mexico. The property was purchased during their marriage and is held solely in Carlos's name. Carlos completes and signs the Residential Real Estate Disclosure Statement without informing Elena. He also signs the listing agreement and the purchase contract alone. Which of the following statements best describes the legal situation at closing?
Correct Answer
D) The transaction cannot close without Elena's signature on the deed, because the property is community property requiring both spouses' consent to convey
New Mexico is a community property state. Property acquired during marriage is community property regardless of whose name appears on the title. Under New Mexico community property law, both spouses must sign the deed to convey community real property. Even though the deed is solely in Carlos's name, Elena retains a community property interest and her signature is required. A deed signed only by Carlos would be defective and could not convey clear title.
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