NM Stat § 19-7-19 (2021)
2021 New Mexico Statutes|Chapter 19 - Public Lands|Article 7 - Sale and Lease of Lands|Section 19-7-19 - [Failure to comply with contract; forfeiture at option of commissioner.]

Failure by a purchaser of state lands to comply with the terms and conditions of his contract of purchase shall, at the option of the commissioner, work a forfeiture of such contract after notice as prescribed by Section 19-7-50 NMSA 1978. In case of forfeiture all monies theretofore paid on any such contract shall remain the property of the state. History: Laws 1912, ch. 82, § 60; Code 1915, § 5238; C.S. 1929, § 132-163; 1941 Comp., § 8-820; 1953 Comp., § 7-8-20. ANNOTATIONSBracketed material. — The bracketed material was inserted by the compiler and is not part of the law. Cross references. — For forfeiture of lease for failure to pay rent, see 19-7-34 NMSA 1978. For grounds of forfeiture of grazing or agricultural lands, see 19-7-35 NMSA 1978. For forfeiture procedure on violation of lease or other written instrument, see 19-7-50 NMSA 1978. For forfeiture of timberland purchase contract for failure to observe protective regulations, see 19-11-4 NMSA 1978. For obligation of lessee or purchaser to destroy rodent pests, see 77-15-4 NMSA 1978. Issuance of patent prior to completion of payments. — No specific authority is given the commissioner of public lands to issue a patent to a portion of a tract of land sold under contract when only that part covered by the patent has been paid for and the balance due under said contract has not been paid at the time the patent is issued. Zinn v. Hampson, 1956-NMSC-088, 61 N.M. 407, 301 P.2d 518. Exclusive remedy. — The only remedy the state has where a contract purchaser defaults is cancellation of the contract and retention on moneys paid in as liquidated damages. 1955 Op. Att'y Gen. No. 55-6130. Contract not personal obligation. — The state upon default cannot proceed against the purchaser for no personal obligation is created in this type of transaction. 1955 Op. Att'y Gen. No. 55-6130. Nature of state's security. — The only security for the payment of the purchase price that the state has is the land itself, and thus the legal title which remains in the state until final payment is made is the only inducement to purchaser to complete and fully execute the contract. 1955 Op. Att'y Gen. No. 55-6130. Complete performance of contract required. — Where pursuant to Enabling Act, § 10, a tract of public land was sold by purchase contract of 30-year term, and various assignments and parceling thereof occurred, until payment in full for the tract was tendered, the state could honor the assignment of the purchase contract and the assignee of the vendee's interest in 10 parcels could have equitable title thereto, but even though said assignee had paid for its 10 parcels, it could not receive patents thereto until the contract was fully and completely performed as to the entire original acreage. 1958 Op. Att'y Gen. No. 58-206. Effect of partial assignee's default. — Where contract purchaser of state lands had made assignments of his interest to various parties, default of any assignee could gravely prejudice the others' ultimate acquisition of legal title because of this section. 1958 Op. Att'y Gen. No. 58-206.