HOUSE BILL 388

48th legislature - STATE OF NEW MEXICO - second session, 2008

INTRODUCED BY

Richard J. Berry

AN ACT

RELATING TO REAL PROPERTY; REQUIRING DISCLOSURE OF REAL PROPERTY TAXES.

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

     Section 1. Section 58-21A-1 NMSA 1978 (being Laws 2003, Chapter 436, Section 1) is amended to read:

     "58-21A-1. SHORT TITLE.--[Sections 1 through 14 of this act] Chapter 58, Article 21A NMSA 1978 may be cited as the "Home Loan Protection Act"."

     Section 2. A new section of the Home Loan Protection Act is enacted to read:

     "[NEW MATERIAL] DISCLOSURE OF REAL PROPERTY TAXES.--At least three days prior to the closing of any home loan and again at the time of closing, a creditor shall disclose to the borrower in clear, conspicuous writing in at least twelve-point bold type:

          A. property taxes imposed on the real property that is the subject of the home loan for the tax year in which the home loan is closed; and

          B. a good faith estimate of the property taxes that may be imposed on the real property that is the subject of the home loan for the two tax years following the tax year in which the home loan is closed, taking into account any foreseeable change in the assessed valuation of the subject property."

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2008.

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