HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR

HOUSE BILL 653

50th legislature - STATE OF NEW MEXICO - first session, 2011

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; ESTABLISHING A CAUSE OF ACTION FOR THE FILING AND RECORDING OF FALSE DOCUMENTS OF TITLE AFFECTING REAL PROPERTY; PROVIDING FOR REMEDIES; DECLARING AN EMERGENCY.

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

     SECTION 1. LIABILITY FOR FILING AND RECORDING FALSE DOCUMENTS OF TITLE.--

          A. A person shall not prepare for recording or present for recording a title document with knowledge that it contains a false claim of title against real property or an interest in real property.

          B. The state, a county or municipality or a party adversely affected by the filing of a title document containing a false claim of title may bring an action seeking to have the title document declared void ab initio and may seek damages.

          C. A person likely to be damaged by the recording of a title document containing a false claim of title may be granted an injunction against the person presenting the title document on terms that the court considers reasonable.

          D. As used in this section, "title document" means any instrument, deed, contract for the sale of real property or other document purporting to adjudicate, convey or create an interest in real property or a lis pendens.

     SECTION 2. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.

- 2 -