HOUSE BILL 374

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Monica Youngblood

AN ACT

RELATING TO PROPERTY; AMENDING THE HOMEOWNER ASSOCIATION ACT; PROVIDING A CAP ON FEES CHARGED FOR A DISCLOSURE CERTIFICATE.

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

     SECTION 1. Section 47-16-12 NMSA 1978 (being Laws 2013, Chapter 122, Section 12) is amended to read:

     "47-16-12. SALE OF LOTS--DISCLOSURE CERTIFICATE.--

          A. Unless exempt pursuant to Subsection F of this section, prior to closing, a lot owner shall furnish to a purchaser copies of:

                (1) the declaration of the association, other than the plats and plans;

                (2) the bylaws of the association;

                (3) any covenants, conditions and restrictions applicable to the lot;

                (4) the rules of the association; and

                (5) a disclosure certificate from the association.

          B. Within ten business days after receipt of a written request from a lot owner, the association shall furnish a disclosure certificate containing the information necessary to enable the lot owner to comply with the provisions of this section. A lot owner providing a disclosure certificate pursuant to Subsection A of this section shall not be liable to the purchaser for any erroneous information provided by the association and included in the disclosure certificate.

          C. A purchaser shall not be liable for any unpaid assessment or fee greater than the amount, prorated to the date of closing, set forth in the disclosure certificate prepared by the association.

          D. A lot owner shall not be liable to a purchaser for the failure or delay of the association to provide the disclosure certificate in a timely manner.

          E. The information contained in the disclosure certificate shall be current as of the date on which the disclosure certificate is furnished to the lot owner by the association.

          F. A disclosure certificate shall not be required in the case of a disposition:

                (1) pursuant to court order;

                (2) by a government or governmental agency;

                (3) by foreclosure or deed in lieu of foreclosure; or

                (4) that may be canceled at any time and for any reason by the purchaser without penalty.

          G. An association may impose [reasonable charges] a charge not to exceed one hundred fifty dollars ($150) for preparation of a disclosure certificate as required by the Homeowner Association Act."

     SECTION 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.

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