Maria is selling her rural property in Taos County, New Mexico. The property has historically been irrigated using water from a local acequia. Maria's associate broker advises her that she only needs to disclose physical defects in the home's structure on the Residential Real Estate Disclosure Statement. Is this advice correct?
Correct Answer
A) No, because the NM disclosure statement requires disclosure of water source, water rights status, and conditions that materially affect the property
The New Mexico Residential Real Estate Disclosure Statement goes beyond structural defects and requires sellers to disclose the water source, water rights status, and any other conditions that materially affect the property. Acequia membership conveys water use rights and obligations that can significantly affect the value and use of rural or agricultural property. Failure to disclose these conditions constitutes a material omission under NMAC Title 16, Chapter 61 and New Mexico water rights law (NMSA 1978, Chapter 72).
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Related Topics & Key Terms
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Related Concepts
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