A New Mexico residential purchase agreement is a legally binding contract between a homebuyer and a seller to complete a real estate transaction. This document includes the property’s description, proposed purchase price, buyer and seller details, conditions, contingencies, and state-mandated disclosures.
It serves as an offer on the property, which the seller can accept, refuse, or negotiate. Once both parties agree to the terms and sign, the agreement confirms the sale and outlines all rights and responsibilities involved.
State Laws
- Public Improvement District: The seller must provide specific written notices to the buyer, as required by state law, before accepting an offer if the property is located in a Public Improvement District. [1]
- Property Tax Levy: Before accepting a purchase offer, the seller must obtain a written estimate of the property tax levy from the local county assessor. [2]
- Homeowners’ Association Disclosure: If the property is under the Homeowners Association Act, the seller must disclose this at least seven days before closing. The buyer can cancel the purchase within seven days of disclosure. [3]
Required Seller Disclosures
Lead-Based Paint Disclosure
Sellers are required by federal law to inform buyers about any known lead paint hazards in homes built before 1978, as stated in (42 U.S. Code § 4852d).
Seller Property Disclosure Statement
Brokers and agents are typically required complete this form to reveal "adverse material facts" (§ 16.61.19.8(a)(5)).
Do Sellers in New Mexico Have to Disclose Property Defects?
Yes, in New Mexico, real estate sellers must disclose any material defects. In contrast, some states follow the caveat emptor principle, where if a buyer neglects a thorough inspection, they may have no legal recourse to reverse the transaction (§ 47-13 et seq.).
Additionally, brokers must disclose any known adverse material facts about the property or transaction to prospective buyers as a condition of their license (§ 16.61.19).
