Which document is necessary for a valid real estate transaction in New Mexico?

The purchase agreement is a fundamental document required for a valid real estate transaction in New Mexico. This legally binding contract outlines the terms and conditions of the sale between the buyer and the seller. It specifies essential details such as the purchase price, contingencies, and closing date, providing a clear understanding of each party's obligations.

While other documents like title insurance, a real estate license, and a property disclosure statement play important roles in the transaction process, they do not replace the necessity of the purchase agreement. Title insurance protects against potential title defects, a real estate license ensures that the transaction is handled by a qualified professional, and the property disclosure statement informs the buyer of any known issues with the property. However, without a signed purchase agreement, there is no formal agreement between the buyer and seller, making it impossible to legally proceed with the transaction. Thus, the purchase agreement is essential for ensuring that the sale is recognized and enforceable under New Mexico law.