The New Mexico residential real estate purchase agreement (“residential purchase and sale agreement”) outlines the property transferring ownership, the amount of money to be paid to the seller, the manner in which the buyer will produce the compensation, and all other details which clarify the rights and responsibilities of both parties.
Required Seller Disclosures in New Mexico
Residential real estate purchase agreements commonly contain promises and provisions guaranteeing a property’s condition. Many states legally require sellers to disclose explicit information concerning a property’s condition. In states where this is required and a seller willfully hides such information, they can be sued for fraud.
In New Mexico, sellers are required to disclose all known material defects on the property to buyers. This disclosure should be given to the buyer before the purchase agreement is signed.
Estimated Property Tax Levy Disclosure. The seller is also required to disclose tax burden information. According to New Mexico Statutes, the seller must request from the county assessor the estimated amount of property tax levy with respect to the property and specify the listed price as the value of the property to be used in the estimate. The seller is required to provide a copy of the assessor’s response, in writing, to the prospective buyer. (§ 47-13-4)