A buyer's associate broker in New Mexico is advising a client purchasing agricultural land that includes an acequia membership and appurtenant water rights. The broker correctly identifies several things that are true about acequias and water rights in New Mexico. Which of the following statements about New Mexico acequias and water rights is NOT accurate?
Correct Answer
D) Acequia membership and associated water assessments terminate automatically when the property is sold to a new owner
Option D is NOT accurate. Acequia membership and the associated water use rights, obligations, and assessments do not terminate automatically upon the sale of real property. Because acequias are political subdivisions of New Mexico (NMSA 1978, Chapter 73, Article 2), membership obligations — including annual assessments and labor requirements — typically run with the land or transfer to the new owner. A buyer who purchases property with acequia membership inherits those obligations, which is precisely why disclosure of acequia membership is essential in rural and agricultural real estate transactions in New Mexico.
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Related Topics & Key Terms
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Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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