New Mexico HOA and Condo Laws, in Plain English

The Condominium Act, compiled across NMSA 47-7A through 47-7D, is New Mexico's condominium statute and applies to condominiums created in the state after the act took effect in 1982, with older condominiums remaining under the prior Building Unit Ownership Act unless they elect to come under this act. It covers how a condominium is created, altered and terminated, the powers and management of the unit owners' association, assessments and association records, and purchaser protections including the disclosure statement given on original sales and the resale certificate given on later resales.

• NMSA 47-7D-9 (Resales of units)

  Unless the sale requires a disclosure statement or is exempt under 47-7D-1, a unit owner furnishes the purchaser before conveyance the declaration (without plats and plans), the bylaws, the rules, and a resale certificate from the association with ten items: restraints on alienability, the monthly common expense assessment and any unpaid common or special assessment due from the seller, other fees, capital expenditures anticipated for the current and next two fiscal years, reserves and their designated portions, the most recent balance sheet and income and expense statement, the current operating budget, unsatisfied judgments, insurance for the benefit of unit owners, and any leasehold term. The association furnishes the certificate within 10 working days after receipt of the unit owner's request; no fee is stated. The purchaser is not liable for any unpaid assessment or fee beyond the amount set forth; the seller is not liable for the association's errors or delay, but the purchase contract is voidable by the purchaser until the certificate is provided and for 7 days thereafter, or until conveyance, whichever comes first.

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The Homeowner Association Act governs homeowner associations for planned communities of lots, other than condominiums governed by the Condominium Act, and applies to associations created and existing in New Mexico as of the act's 2013 effective date, with a few provisions exempting smaller associations formed earlier. It covers how an association is created and recorded, board and officer duties and budgeting, meetings and voting, record disclosure to members, covenant enforcement and dispute resolution, and the disclosure certificate a lot owner must give a buyer.

• NMSA 47-16-11 (Disclosure certificate; right to cancel)

  A person selling a lot subject to an association must disclose in writing that the lot is within a development subject to an association. Where the association is subject to the Homeowner Association Act, the seller or the seller's agent obtains the disclosure certificate from the association and provides it to the purchaser no later than 7 days before closing, and the purchaser or the purchaser's agent may cancel the purchase contract within 7 days after receiving it.

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• NMSA 47-16-12 (Sale of lots; disclosure certificate)

  Before closing a lot owner furnishes the purchaser the declaration (without plats and plans), the bylaws, the covenants, conditions, and restrictions, the rules, and a disclosure certificate from the association; within 10 business days after receipt of a written request from the lot owner or the owner's representative the association furnishes the certificate. The purchaser is not liable for any unpaid assessment or fee greater than the amount, prorated to the date of closing, set forth in the certificate; the seller is not liable for the association's errors or delay; the certificate is current as of the date the association furnishes it. Dispositions by court order, by a government, by foreclosure or deed in lieu, or freely cancellable by the purchaser are exempt. The assessment and fee statements are valid for 60 days, after which the owner may request an update, furnished within 3 business days for a fee not exceeding $50 and valid another 60 days. Since 2019 the association may charge no more than $300 for preparing the certificate, collected at the time of closing and only if the transaction closes.

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• NMSA 47-16-2 (Disclosure certificate contents)

  The Homeowner Association Act's definitions, including the twelve items a disclosure certificate must contain: any right of first refusal or other restraint on alienability; the monthly common expense assessment and any unpaid common expense or special assessment due from the selling owner; other fees payable by lot owners; capital expenditures anticipated and board-approved for the current and next two fiscal years; reserves and the portions designated for approved projects; the most recent balance sheet and income and expense statement; the current operating budget; unsatisfied judgments and pending suits material to the association of which it has actual knowledge; insurance coverage for the benefit of lot owners and the board; whether the association's records reflect alterations or improvements to the lot that violate the declaration; the remaining term of any leasehold estate; and the association's contact person and contact information.

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