Key Takeaways
- New Mexico requires sellers to complete a Seller's Property Disclosure form for residential transactions
- The Real Estate Disclosure Act (NMSA 47-13) governs property disclosures in New Mexico
- Property tax disclosure is uniquely required - sellers must request estimated taxes from the county assessor
- Lead-based paint disclosure is required by federal law for pre-1978 homes
- Sellers must amend the disclosure if they learn new information before closing
New Mexico Property Disclosure Requirements
New Mexico has specific property disclosure requirements under the Real Estate Disclosure Act (NMSA 47-13 et seq.).
Seller's Property Disclosure
Requirement
New Mexico requires sellers to disclose detailed information about the property's status and condition.
| Requirement | Details |
|---|---|
| Form | Seller's Property Disclosure - Residential |
| When required | Before accepting offer |
| What's covered | Material defects and property condition |
| Updates | Must amend if new information learned |
What Must Be Disclosed
Sellers must disclose all material defects about which they have actual knowledge that would affect the property's:
- Value
- Desirability
Disclosure Form Contents
The Property Disclosure Statement covers:
| Category | Examples |
|---|---|
| Title issues | Liens, easements, encumbrances |
| Legal matters | Zoning violations, boundary disputes |
| Structural integrity | Foundation, roof, walls |
| Systems | Plumbing, electrical, HVAC |
| Environmental | Water quality, soil stability, flooding |
| Pest issues | Termites, other infestations |
New Mexico's Unique Tax Disclosure
New Mexico has a unique statutory requirement for property tax disclosure:
Process
| Step | Requirement |
|---|---|
| 1 | Seller (or seller's broker) requests estimated property tax from county assessor |
| 2 | Use listed price as the value for estimate |
| 3 | Provide assessor's written response to buyer (or buyer's broker) |
| 4 | Must occur before accepting buyer's offer |
Important: This property tax disclosure requirement is unique to New Mexico and is frequently tested on the state exam.
Federal Lead-Based Paint Disclosure
For homes built before 1978, federal law requires:
| Requirement | Details |
|---|---|
| Disclosure | Known lead-based paint hazards |
| Pamphlet | EPA's "Protect Your Family From Lead in Your Home" |
| Inspection period | Buyer has 10 days to inspect (waivable) |
| Lead Warning Statement | Must be in sales contract |
| Records | Provide any known lead reports |
Note: This is federal law and applies regardless of state requirements.
What Does NOT Require Disclosure
New Mexico law specifically exempts certain information from disclosure:
| Exempt from Disclosure | Legal Basis |
|---|---|
| Natural death on property | NMSA 47-13-2 |
| Homicide on property | NMSA 47-13-2 |
| Suicide on property | NMSA 47-13-2 |
| Felony crimes on property | NMSA 47-13-2 |
| HIV/AIDS status of occupant | NMSA 47-13-2 |
Stigmatized Property
Sellers have no duty to disclose that the property:
- Was the site of a natural death, homicide, or suicide
- Was the site of assault, sexual assault, or felony
- Was owned/occupied by someone exposed to or infected with HIV
Ongoing Disclosure Obligation
Sellers must amend the disclosure form if they learn anything that must be disclosed between:
- Initial signing of disclosure
- Close of sale
Consequences of Non-Disclosure
If a seller fails to disclose or actively conceals problems:
| Consequence | Basis |
|---|---|
| Fraud and deceit | Civil lawsuit |
| Misrepresentation | Civil lawsuit |
| Breach of contract | Civil lawsuit |
| Damages | Recovery of actual damages |
What unique disclosure does New Mexico require before a seller accepts a buyer's offer?
Under New Mexico law, which of the following does NOT require disclosure?
If a seller learns of a material defect after signing the property disclosure but before closing, what must they do?