NM Operations Summary

Escrow/Settlement

Search & Exam Fees

NM’s title insurance premium is a promulgated all-inclusive rate and no separate charge for a title search and examination fee for a policy is permitted. Section 59A-30-6(A) NMSA 1978. Title insurers and agents may charge $50 for each additional chain of title and 15% of the full basic premium for each unplatted tract of unusual complexity. See Rule 13.14.9.16, NMAC.

Title insurance agents may provide an abstract or a title search and examination report for a fee negotiated between the parties.

Document Types

The available kinds of deeds are warranty deed, special warranty deed and quitclaim deed. The statutory forms of these deeds are found at Section 47-1-44 NMSA 1978.

The warranty deed provides general warranty covenants as defined by state statute (Section 47-1-37 NMSA 1978) and is acceptable and customary for all commercial and residential transactions. The special warranty deed provides extremely limited warranty covenants. (See Section 47-1-38 NMSA 1978). The quit claim deed is sufficient to convey any title interest in the real property held by the grantor, but without any warranty covenants whatsoever. A quitclaim deed will not convey after-acquired title.

Use of the special warranty deed is becoming more common, particularly in commercial transactions and from lenders after foreclosure or a deed in lieu. Quitclaim deeds are common in governmental sales or transfers and in gift or intra-family transactions. Personal representative deeds and special master’s deeds are similar to quitclaim deeds, as they contain no warranties. Special warranty deeds and quitclaim deeds may be acceptable for insurability, depending on the circumstance. Underwriter approval is required to insure title acquired under a quitclaim deed.

Taxes

No mortgage taxes in the state of New Mexico

Real Estate Taxes

Real property ad valorem taxes are a super-priority lien under state statute as of January 1 of each calendar year. See Section 7-38-48 NMSA 1978. Assessments of the value of real property are mailed to property owners each April. Taxes may be paid in two equal installments. Tax bills are mailed to property owners by November 1 each year. The first half payment installment is due November 10 and is delinquent after December 10. The second half payment installment is due April 10 of the following year and is delinquent after May 10. Property with unpaid taxes for 3 years or more as of each June 30 is subject to being sold at a tax auction. Section 7-38-60 NMSA 1978.

Commitment/Policy Special Requirements

Policies are customarily signed by a NM licensed individual appointed as an agent by the title insurance underwriter.

Payment Customs

Seller, but may be negotiated between the parties in the purchase agreement.

There is no transfer tax in NM. Recording fees are negotiable, but are typically split between the parties with the seller paying the recording fee for the deed and release of existing seller's mortgage and the purchaser paying all recording fees associated with mortgage, deed of trust and any other recorded loan documents.

Typically, seller will pay for a survey or an Improvement Location Report (ILR) which is a report showing existing improvements for title insurance purposes only. Survey charges are negotiable but customarily paid by the seller for NM boundary surveys or ALTA/ ASCM surveys where an ILR is not acceptable to the title insurance underwriter or for commercial transactions.

Withholding Requirements

No state requirements for withholding

Certificate of Release

Title insurance underwriters (not agents) have the authority pursuant to state statute to execute and record releases of mortgages or deeds of trust subsequent to a 90-day period after payment in full of the mortgage or deed of trust and upon 10-day prior written notice to the lender. See Section 48-7-4.1 NMSA 1978.

Record Retention Requirements

Documents evidencing the insurability of title (See Section 59A-30-11 NMSA 1978) and most escrow documents must be retained for at least 15 years (See Rule 13.14.4.9(E), NMAC).