AN ACT
RELATING TO LICENSING LAWS; REVISING REAL ESTATE LICENSING
FEES; REQUIRING CONSENT TO BE SUED IN NEW MEXICO AS A QUALIFICATION FOR
OBTAINING A REAL ESTATE LICENSE; REMOVING THE STATUTORY LIMIT ON LATE FEES FOR
LICENSE RENEWAL; PROVIDING THAT A CERTAIN BALANCE IN THE REAL ESTATE RECOVERY
FUND BE TRANSFERRED TO THE REAL ESTATE COMMISSION FUND; AMENDING AND REPEALING
SECTIONS OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 61-29-4 NMSA 1978 (being Laws 1959,
Chapter 226, Section 3, as amended) is amended to read:
"61-29-4. CREATION OF COMMISSION--POWERS AND
DUTIES.--There is created the "New Mexico real estate
commission". The commission shall
be appointed by the governor and shall consist of five members who shall have
been residents of the state for three consecutive years immediately prior to
their appointment, four of whom shall have been real estate brokers licensed in
New Mexico and one of whom shall be a member of the public who has never been
licensed as a real estate broker or salesperson; provided not more than one
member shall be from any one county within the state. The members of the commission shall serve for
a period of five years or until their successors are appointed and qualified. Members to fill vacancies shall be appointed
for any unexpired term. The governor may
remove any member for cause. The
commission shall possess all the powers and perform all the duties prescribed
by Chapter 61, Article 29 NMSA 1978 and as otherwise provided by law, and it is
expressly vested with power and authority to make and enforce any rules and
regulations to carry out the provisions of that article. Prior to any final action on any proposed
changes or amendments to the rules and regulations of the commission, the
commission may publish notice of the proposed action in its official
publication, distribute the publication to each active licensee and give the
time and place for a public hearing on the proposed changes. The hearing shall be held at least thirty
days prior to any proposed final action.
Any changes or amendments to the rules shall be filed in accordance with
the procedures of the State Rules Act and shall become effective thirty days
after notification to all active licensees of the filing of the changes or
amendments."
Section 2. Section 61-29-7 NMSA 1978 (being Laws 1959,
Chapter 226, Section 6, as amended) is amended to read:
"61-29-7. REIMBURSEMENT AND EXPENSES.--Each member of
the commission shall receive per diem and mileage as provided in the Per Diem
and Mileage Act and shall receive no other compensation, perquisite or
allowance."
Section 3. Section 61-29-8 NMSA 1978 (being Laws 1959,
Chapter 226, Section 7, as amended) is amended to read:
"61-29-8. LICENSE FEES--DISPOSITION.--
A. The following fees shall be established and
charged by the commission and paid into the real estate commission fund:
(1) for each examination, a fee not to exceed
ninety-five dollars ($95.00);
(2) for each broker's license issued, a fee not
to exceed two hundred seventy dollars ($270) and for each renewal thereof, a
fee not to exceed two hundred seventy dollars ($270);
(3) for each real estate salesperson's license
issued, a fee not to exceed two hundred seventy dollars ($270) and for each
renewal thereof, a fee not to exceed two hundred seventy dollars ($270);
(4) subject to the provisions of Paragraph (10)
of this subsection, for each change of place of business or change of employer
or contractual associate, a fee not to exceed twenty dollars ($20.00);
(5) for each duplicate license, where the license
is lost or destroyed and affidavit is made thereof, a fee not to exceed twenty
dollars ($20.00);
(6) for each license history, a fee not to exceed
twenty-five dollars ($25.00);
(7) for copying of documents by the commission, a
fee not to exceed one dollar ($1.00) per copy;
(8) for each license law and rules and
regulations booklet, a fee not to exceed ten dollars ($10.00) per booklet;
(9) for each hard copy or electronic list of
licensed real estate brokers and salespersons, a fee not to exceed twenty
dollars ($20.00);
(10) for each license reissued for a real estate
salesperson because of change of address of the broker's office, death of the
licensed broker when a successor licensed broker is replacing the decedent and
the salesperson remains in the office or because of a change of name of the
office or the entity of the licensed broker, a fee in an amount not to exceed
twenty dollars ($20.00) to be paid by the licensed broker or successor broker
as the case may be; but if there are eleven or more affected salespersons in
the licensed broker's office, the total fee paid to effect reissuance of all of
those licenses shall not exceed two hundred dollars ($200);
(11) for each application to the commission to
become an approved sponsor of pre-licensing and continuing education courses, a
fee not to exceed five hundred dollars ($500) and for each renewal thereof a
fee not to exceed five hundred dollars ($500);
(12) for each application to the commission to
become an approved instructor of pre-licensing and continuing education
courses, a fee not to exceed seventy dollars ($70.00) per course; and
(13) for each application to the commission to
renew certification as a commission-approved instructor, a fee not to exceed
one hundred dollars ($100).
B. All fees set by the commission shall be set
by rule and only after all requirements have been met as prescribed by Chapter
61, Article 29 NMSA 1978. Any changes or
amendments to the rules shall be filed in accordance with the provisions of the
State Rules Act.
C. The commission shall deposit all money
received by it from fees in accordance with the provisions of Chapter 61,
Article 29 NMSA 1978 with the state treasurer, who shall keep that money in a
separate fund to be known as the "real estate commission fund", and
money so deposited in that fund is appropriated for the purpose of carrying out
the provisions of Chapter 61, Article 29 NMSA 1978 or to maintain the real
estate recovery fund as required by the Real Estate Recovery Fund Act and shall
be paid out of the fund upon the vouchers of the executive secretary of the
commission or his designee; provided that the total fees and charges collected
and paid into the state treasury and any money so deposited shall be expended
only for the purposes authorized by Chapter 61, Article 29 NMSA 1978.
D. The commission shall by rule provide for a
proportionate refund of the license issuance fee or the license renewal fee if
the license is issued or renewed for a period of three years pursuant to
Section 61‑29-11 NMSA 1978 and is terminated with more than one year
remaining."
Section 4. Section 61-29-9 NMSA 1978 (being Laws 1959,
Chapter 226, Section 8, as amended) is amended to read:
"61-29-9. QUALIFICATIONS FOR LICENSE.--
A. Licenses shall be granted only to persons who
are deemed by the commission to be of good repute and competent to transact the
business of a real estate broker or salesperson in a manner that safeguards the
interests of the public.
B. An applicant for a broker's license shall be
a legal resident of the United States and have reached the age of
majority. Each applicant for a broker's
license shall have passed the real estate examination approved by the
commission and shall:
(1) have performed actively as a real estate
salesperson for at least twenty-four months out of the preceding thirty-six
months immediately prior to filing application and furnish the commission a
certificate that he has completed successfully a broker basics course approved
by the commission;
(2) furnish the commission a certificate that he
has completed successfully one hundred eighty classroom hours of instruction in
basic real estate courses approved by the commission;
(3) furnish the commission a certificate that he
is a duly licensed real estate broker in good standing in another state,
providing he has completed successfully ninety classroom hours of instruction
in basic real estate courses approved by the commission, thirty hours of which
shall have been a broker basics course; or
(4) furnish the commission satisfactory proof of
his equivalent experience in an activity closely related to or associated with
real estate and furnish the commission a certificate that he has completed
successfully ninety classroom hours of instruction in basic real estate courses
approved by the commission, thirty hours of which shall have been a broker
basics course; and
(5) if not a resident of New Mexico, file with
the commission an irrevocable consent that lawsuits and actions may be
commenced against him in the proper court of any county of this state in which
a cause of action may arise or in which the plaintiff may reside, by the
service of any process or pleadings authorized by the laws of this state on the
commission, the consent stipulating and agreeing that such service of process
or pleadings on the commission is as valid and binding as if personal service
had been made upon the applicant in New Mexico.
The instrument containing the consent shall be acknowledged and, if
executed on behalf of a corporation or association, shall be accompanied by a
certified copy of the resolution of the proper officers or managing board
authorizing the executing officer to execute the instrument. Service of process or pleadings shall be
served in duplicate upon the commission; one shall be filed in the office of
the commission and the other immediately forwarded by registered mail to the
main office of the applicant against which the process or pleadings are
directed.
C. Each applicant for a real estate
salesperson's license shall be a legal resident of the United States, have reached
the age of majority, have passed the real estate examination approved by the
commission and furnish the commission a certificate that he has completed
successfully sixty classroom hours of instruction in basic real estate courses
approved by the commission.
D. The commission shall require the information
it deems necessary from every applicant to determine his honesty,
trustworthiness and competency.
Corporations, partnerships or associations may hold a broker's license
issued in the name of the corporation, partnership or association, provided at
least one member of the partnership or association or one officer or employee
of a corporation who actively engages in the real estate business first secures
a broker's license. The license shall be
issued in the name of the corporation, partnership or association, naming the
partner, associate, officer or employee as qualifying broker for the
corporation, partnership or association."
Section 5. Section 61-29-11 NMSA 1978 (being Laws 1959,
Chapter 226, Section 10, as amended) is amended to read:
"61-29-11. ISSUANCE, RENEWAL AND SURRENDER OF
LICENSES.--
A. The commission shall issue to each qualified
applicant a license in the form and size prescribed by the commission.
B. The license shall show the name and address
of the licensee. A real estate
salesperson's license shall show the name of the broker by whom he is
engaged. The license of the real estate
salesperson shall be delivered or mailed to the broker by whom the real estate
salesperson is engaged and shall be kept in the custody and control of that
broker.
C. Every license shall be renewed every three
years on or before the last day of the month following the licensee's month of
birth. Upon written request for renewal
by the licensee, the commission shall certify renewal of a license if there is
no reason or condition that might warrant the refusal of the renewal of a
license. The licensee shall provide
proof of compliance with continuing education requirements and pay the renewal
fee. If a licensee has not made
application for renewal of license, furnished proof of compliance with
continuing education requirements and paid the renewal fee by the license
renewal date, the license shall expire.
The commission may require a person whose license has expired to apply
for a license as if he had not been previously licensed under Chapter 61,
Article 29
NMSA 1978 and further require that he be reexamined. The commission shall require a person whose
license has expired to pay when he applies for a license, in addition to any
other fee, a late fee. If during a
period of one year from the date the license expires the person or his spouse
is either absent from this state on active duty military service or the person
is suffering from an illness or injury of such severity that the person is
physically or mentally incapable of making application for a license, payment
of the late fee and reexamination shall not be required by the commission if,
within three months of the person's permanent return to this state or
sufficient recovery from illness or injury to allow the person to make an
application, the person makes application to the commission for a license. A copy of that person's or his spouse's
military orders or a certificate from the applicant's physician shall accompany
the application. A person excused by
reason of active duty military service, illness or injury as provided for in
this subsection may make application for a license without imposition of the
late fee. All fees collected pursuant to
this subsection shall be disposed of in accordance with the provisions of
Section 61‑29‑8 NMSA 1978.
The revocation of a broker's license automatically suspends every real
estate salesperson's license granted to any person by virtue of association
with the broker whose license has been revoked, pending a change of
broker. Upon the naming of a new broker,
the suspended license shall be reactivated without charge if granted during the
three-year renewal cycle.
D. Each resident licensed broker shall maintain
within this state a fixed office that conforms with local regulations. Every office operated by a licensed broker
shall have a licensed broker in charge who is a natural person. The license of the broker and each real
estate salesperson associated with that broker shall be prominently displayed
in the office. The address of the office
shall be designated in the broker's license, and no license issued shall
authorize the licensee to transact real estate business at any other
address. In case of removal from the
designated address, the licensee shall make application to the commission
before the removal or within ten days thereafter, designating the new location
of his office and paying the required fee, whereupon the commission shall issue
a license for the new location if the new location complies with the terms of
Chapter 61, Article 29 NMSA 1978. A
licensed broker shall maintain a sign on his office of such size and content as
the commission prescribes. In making
application for a license or for a change of address, the licensee shall verify
that his office conforms with local regulations.
E. When a real estate salesperson is discharged
or terminates his association or employment with the broker with whom he is
associated, it is the duty of that broker to deliver or mail to the commission
that real estate salesperson's license within forty-eight hours. The commission shall hold the license on
inactive status. It is unlawful for a
real estate salesperson to perform any of the acts authorized by Chapter 61,
Article 29 NMSA 1978 either directly or indirectly under authority of an
inactive license after his association has been terminated and his license as
salesperson has been returned to the commission as provided in that article
until the appropriate fee has been paid and the license has been reissued by
the commission."
Section 6. Section 61-29-22 NMSA 1978 (being Laws 1980,
Chapter 82, Section 3, as amended) is amended to read:
"61-29-22. ADDITIONAL FEES.--
A. The commission shall collect an annual fee
not in excess of ten dollars ($10.00) from each real estate licensee prior to
the issuance of the next license.
B. The commission shall collect from each
successful applicant for an original real estate license, in addition to his
original license fee, a fee not in excess of ten dollars ($10.00).
C. The additional fees provided by this section
shall be credited to the real estate recovery fund. The amount of the real estate recovery fund
shall be maintained at two hundred fifty thousand dollars ($250,000). If the real estate recovery fund falls below
this amount, the commission shall have authority to adjust the annual amount of
additional fees to be charged licensees or to draw on the real estate
commission fund in order to maintain the fund level as required in this
section. If on July 1 of any year, the
balance in the fund exceeds four hundred thousand dollars ($400,000), the
amount over four hundred thousand dollars ($400,000) shall be transferred to
the real estate commission fund to be used for the purposes of carrying out the
provisions of Chapter 61, Article 29 NMSA 1978."
Section 7. REPEAL.--Section 61-29-14 NMSA 1978 (being
Laws 1959, Chapter 226, Section 13, as amended) is repealed.