SENATE BILL 137

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Mark Boitano

AN ACT

RELATING TO REAL ESTATE TRANSACTIONS; REMOVING REFINANCING OF EXISTING LOANS FROM THE REQUIREMENT TO HAVE AVAILABLE FUNDS AT CLOSING.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 48-7-10.1 NMSA 1978 (being Laws 2003, Chapter 200, Section 1) is amended to read:

     "48-7-10.1. AVAILABLE FUNDS REQUIRED AT CLOSING.--

          A. Unless the consideration necessary to complete a sale of real property [or the refinancing of an existing loan] has been previously delivered, a person shall not close on the sale of real property [or the refinancing involving a loan from a financial institution] until the lender provides available funds to a third-party fiduciary conducting the closing in an amount sufficient to complete the sale [or the refinancing] and to pay, in accordance with the conditions and instructions of the parties to the transaction, all sums required to be paid through and at the time of the closing. [The title company may disburse] Available funds may be disbursed once the deed and mortgage are recorded with the county clerk.

          B. As used in this section, "available funds" means funds subject to immediate withdrawal by cash or check in a depository account with a financial institution, held in the name of and subject to the control of a third-party fiduciary conducting the closing, not including a person or entity that is a party to the transaction, cooperating in the closing of a transaction."

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