New Mexico Real Estate Purchase Agreement

Last Updated: December 20, 2023 by Phil Ahn

New Mexico Real Estate Purchase Agreement Template_1 on

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.

Do Sellers in New Mexico Have to Disclose Property Defects?

New Mexico does require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.   

Required Seller Disclosures in New Mexico

Along with any material defects with the property, sellers in New Mexico will also need to provide the following:

  • Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.
  • Seller’s Property Disclosure – The provided form allows the seller to notify a purchasing individual of any structural or environmental issues correlated with the sale residence. The state of New Mexico does not mandate the disclosure, but it is suggested to assure the condition of the property for the buyer before the conclusion of the sale.
  • 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.