New Mexico Disclosure Obligations

Guidance on what residential real estate sellers must tell prospective home buyers when selling a house in New Mexico.

When you are selling real estate in New Mexico, you face the challenge of convincing buyers of its value: how beautiful the home and land are, how well-made the structure is, and so on. Yet New Mexico, like most states, requires that home sellers disclose certain conditions about the home and property to potential buyers, which can add to your marketing challenge. What must you disclose about your home in the Land of Enchantment, by when, and how might this ultimately affect your sale?

Disclosure Laws in New Mexico for Home Sales

The legal requirements placed upon home sellers with regard to disclosures are laid out in New Mexico Statutes § 47-13 et seq., also known as the Real Estate Disclosure Act.
Sellers are expected to provide buyers with a written disclosure of all material defects in their property about which they have actual knowledge. In plain English, this means that you should tell the buyer, in writing, about any significant problems with the property, such as a busted heating pump, a missing window, or a broken pipe.
In addition, your broker will be expected, as a condition of holding his or her license, to tell prospective buyers about any adverse material facts the broker actually knows about the property or the transaction. New Mexico Statutes § 16.61.19.
These disclosures should be given to the buyer before the two of you sign a purchase contract. Intuitively, this makes sense. A buyer who learns of severe defects with the property after signing might quickly renegotiate the price, or back out of the sale entirely.