HOUSE BILL 34

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Richard J. Berry

AN ACT

RELATING TO TITLE INSURANCE; REQUIRING DISCLOSURE OF CERTAIN INFORMATION CONCERNING PROPERTY TAXES.

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

     Section 1. A new section of the New Mexico Title Insurance Law is enacted to read:

     "[NEW MATERIAL] PURCHASE OF RESIDENTIAL PROPERTY--DISCLOSURE OF INFORMATION CONCERNING PROPERTY TAXES.--

          A. At the time of the initial communication between a title insurer that has been requested to issue a title insurance policy on residential property and the purchaser of that residential property, the title insurer, or a title insurance agent acting on the title insurer's behalf, shall disclose to the purchaser that:

                (1) the rate of the annual increase in the valuation of the property for property tax purposes in prior years may have been limited to three percent, pursuant to the provisions of Section 7-36-21.2 NMSA 1978;

                (2) the limit on the annual increase in valuation will not apply during the first tax year following the change of ownership; and

                (3) the valuation of the property and the resulting property tax to be paid by the purchaser may be substantially higher than the previous valuation and property taxes paid on the property by previous owners.

          B. The superintendent shall promulgate rules ensuring that:

                (1) the disclosure required by Subsection A of this section is in clear, conspicuous writing that the purchaser is likely to notice; and

                (2) the standards for the disclosure will be applied statewide in a uniform manner."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2009.

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