A. Unless exempt pursuant to Subsection F of this section, prior to closing, a lot owner shall furnish to a purchaser copies of:
(1) the declaration of the association, other than the plats and plans;
(2) the bylaws of the association;
(3) any covenants, conditions and restrictions applicable to the lot;
(4) the rules of the association; and
(5) a disclosure certificate from the association.
B. Within ten business days after receipt of a written request from a lot owner or the lot owner's representative, the association shall furnish a disclosure certificate containing the information necessary to enable the lot owner to comply with the provisions of this section. A lot owner providing a disclosure certificate pursuant to Subsection A of this section shall not be liable to the purchaser for any erroneous information provided by the association and included in the disclosure certificate.
C. A purchaser shall not be liable for any unpaid assessment or fee greater than the amount, prorated to the date of closing, set forth in the disclosure certificate prepared by the association.
D. A lot owner shall not be liable to a purchaser for the failure or delay of the association to provide the disclosure certificate in a timely manner.
E. The information contained in the disclosure certificate shall be current as of the date on which the disclosure certificate is furnished to the lot owner by the association.
F. A disclosure certificate shall not be required in the case of a disposition:
(1) pursuant to court order;
(2) by a government or governmental agency;
(3) by foreclosure or deed in lieu of foreclosure; or
(4) that may be canceled at any time and for any reason by the purchaser without penalty.
G. The statements contained in the disclosure certificate pursuant to Paragraphs (2) and (3) of Subsection M of Section 47-16-2 NMSA 1978 shall only be valid for sixty days from their creation. Beginning sixty-one days after the creation of the disclosure certificate, the lot owner may request that the association update any changes to statements contained in the disclosure certificate pursuant to Paragraphs (2) and (3) of Subsection M of Section 47-16-2 NMSA 1978. Upon a lot owner's request for changes to statements contained in the disclosure certificate pursuant to this subsection, the association shall provide the updated information within three business days of the lot owner's request and may impose a reasonable fee not to exceed fifty dollars ($50.00). The updated information shall only be valid for sixty days from the update.
H. Notwithstanding any local ordinance or ordinance enacted by a home rule municipality, an association may impose reasonable charges not to exceed three hundred dollars ($300) for preparation of a disclosure certificate as required by the Homeowner Association Act, to be collected at the time of closing; provided that the transaction closes.
History: Laws 2013, ch. 122, § 12; 2019, ch. 30, § 6.
ANNOTATIONSThe 2019 amendment, effective July 1, 2019, provided that lot owners may request updates to disclosure certificates beginning 61 days after the creation of the disclosure certificate, provided a three day time limit within which the association must respond with updated information, and placed a three hundred dollar ($300) cap that a homeowner association may charge for preparation of a disclosure certificate; in Subsection B, after the first occurrence of "lot owner", added "or the lot owner's representative"; added a new Subsection G and redesignated former Subsection G as Subsection H; and in Subsection H, added "Notwithstanding any local ordinance or ordinance enacted by a home rule municipality", after "reasonable charges", added "not to exceed three hundred dollars ($300)", and after "Homeowner Association Act", added "to be collected at the time of closing; provided that the transaction closes".
Compiler's notes. — Laws 2013, ch. 122, §§ 1 through 14 were erroneously compiled as 47-7E-1 through 47-7E-14 NMSA 1978, and have been recompiled as 47-16-1 through 47-16-14 NMSA 1978 by the compiler.