Understanding the fundamentals of a real estate purchase agreement can make selling or buying a property easier, as it includes key information, such as the proposed purchase price and terms. Moreover, this legal instrument is required by law for all real estate purchase transactions. That's why the Realtor's Association of New Mexico and local officials encourage people to use it.
If you're looking for more information about it, you've come to the right place! Here's everything you need to know about the New Mexico real estate purchase agreement!
Real Estate Purchase Agreement
Also known as a residential purchase and sale agreement, this real estate contract binds two parties in a transaction to buy/sell a property. The real estate purchase agreement effectively serves to make an offer on a building, house, apartment, or area of land for sale. The seller can accept, reject, or negotiate the terms before the closing date arrives.
Based on the state laws and regulations on a residential real estate transaction, a New Mexico purchase agreement must include the following:
- Duly documented terms and conditions of sale
- Both parties' names
- Both parties' legal property address
- Disclosures (see information below)
Most states have specific requirements about the information sellers and brokers have to disclose in this real estate contract, including the following:
- If someone died there
- If the unit was occupied by a person infected with the human immunodeficiency virus
- Whether a homicide, assault, suicide, sexual assault, or other crime considered a felony occurred there
However, New Mexico law doesn't require them to disclose these details. Instead, buyers should do their own research to make sure they feel completely comfortable occupying the premises.
Laws and Disclosure
These real estate contracts should include the following disclosures, following local and federal law.
Lead-Based Paint Disclosure
Sellers must provide buyers with a disclosure statement informing them of potential lead-based paint contamination on the property if it was built in or before 1978.
Seller's Property Disclosure
Potential buyers should also be informed of any structural or environmental issues or material defects related to the property if listed with a broker from the New Mexico Association of Realtors or similar agencies.
Estimated Property Tax Levy Disclosure by a County Assessor
These real estate contracts must also include a digital or physical response from a local county assessor on the estimated property tax levy and an authenticated certificate.
Homeowners' Association Disclosure
Moreover, sellers must also provide buyers with this disclosure if the property is subject to the Homeowners Association Act within seven days before closing.
Public Improvement District
If the property is in a Public Improvement District, the seller must also provide some written notices to the prospective buyer under the state statute.
Are you in New Mexico and need help creating this real estate contract? Doorloop has got you covered! You can download several free forms on our website, including purchase agreements, lease termination letters, sublease agreements, and more! In addition, you can find valuable information about the laws and regulations in New Mexico, including the following:
Can a Seller Decline the Offer on a New Mexico Real Estate Contract?
Yes, they can! The seller must accept the prospective buyer's offer to make it binding and can get out of the contract if the buyer doesn't comply with the agreed contingencies.
What Is The Effective Day On A New Mexico Real Estate Purchase Agreement?
Under New Mexico Laws, the effective date is when both parties agree to the terms and execute the contract.
Should I Write the Contract on My Own, or Can I Download a Template?
You can make these real estate contracts on your own or download some templates. The New Mexico Association of Realtors offers a few. However, we invite you to check out the resources that Doorlop offers!
How Should I Fill Out the Real Estate Contract?
If you want to fill out this real estate contract, you only have to download our customizable template, complete the information for each party, and set the deal's terms and conditions.