What must a home seller disclose in New Mexico?

Is a seller disclosure form required by law?

The Real Estate Disclosure Act (NMSA §§ 47-13-1 to 47-13-5) is the state’s main disclosure statute. It does not set out a condition checklist like roof, foundation or plumbing. It covers three things: facts a seller does not have to disclose, the property tax estimate, and a note about solar systems. The other statutes and rules I read do not impose a general form either.

That does not mean silence is safe for the agents involved: the broker rules below apply to every licensed agent in the deal. This article reports what the statutes and the Real Estate Commission’s rules say. It does not review private contract or listing forms, so read any form you are asked to sign.

What a New Mexico seller must do: the property tax estimate

Before accepting an offer, the seller or the seller’s broker must ask the county assessor for the estimated amount of property tax levy and give the buyer or the buyer’s broker a written copy (§ 47-13-4(B)). Key rules:

• The request uses the listed price as the value. The statute defines the estimate as one-third of the listed price multiplied by the current tax rates (§ 47-13-1.1).
• The assessor must answer in writing by the close of business the next business day, and may do it through an online tool (§ 47-13-4(D)).
• The estimate must show the current year’s tax and the estimate for the year after the sale, with a disclaimer that the actual levy may be higher or lower (§ 47-13-4(E)).
• The buyer must acknowledge receipt in writing. A buyer may waive it in writing before making the offer, by stating the estimate is not readily available (§ 47-13-4(C), (F)).

Why it matters: the Legislature found that the current year’s tax “can be a misleading guide” to the tax in the years after a sale (§ 47-13-4(A)). For how the tax works, see New Mexico property tax.

What licensed brokers must disclose

Under 16.61.19.8(A)(5) NMAC, every licensed broker owes buyers and sellers written disclosure of any adverse material facts actually known about the property or the transaction. The rule excludes information protected by federal fair housing laws or the New Mexico Human Rights Act. The same rule requires brokers to advise parties to consult an attorney about any document that may become a written agreement (16.61.19.8(B)(3)).

A broker who represents the seller also may not tell the buyer the seller’s motivation, or that the seller would accept a lower price, unless the seller authorizes it in writing (16.61.19.8(B)(7)). Duties in this rule are about what the broker knows; the buyer should still pay for a home inspection.

What a seller does not have to disclose

NMSA § 47-13-2 says a seller, landlord or agent has no duty to disclose, and is not liable for not disclosing, that the property is or was:

Section 47-13-3 adds that no lawsuit lies for not disclosing these facts, and that failing to disclose them is not grounds to cancel or rescind a sale.

Federal lead-based paint rule (homes built before 1978)

The EPA’s rule applies to most housing built before 1978. At sale, the seller and agent must give the pamphlet Protect Your Family From Lead in Your Home, disclose known lead paint and hazards, hand over available reports, and include a Lead Warning Statement. The buyer gets 10 days to inspect or assess, which the parties may change in writing or the buyer may waive. Keep signed disclosures for three years. The EPA exempts foreclosure sales and housing built after 1977. See home buying steps.