2023 New Mexico Statutes › Chapter 47 - Property Law › Article 7D - Condominium Act - Protection of Condominium Purchasers › Section 47-7D-1 - Requirement for disclosure statement.

A. Except as provided in Subsection B of this section, Sections 53 through 72 of the Condominium Act apply to all units restricted to residential use subject to that act [47-7A-1 through 47-7D-20 NMSA 1978].
B. Neither a disclosure statement nor a resale certificate need be prepared or delivered in the case of:
(1) a gratuitous disposition of a unit;
(2) a disposition pursuant to court order;
(3) a disposition by a government or governmental agency;
(4) a disposition by foreclosure or deed in lieu of foreclosure;
(5) a disposition to a person in the business of selling real estate who intends to offer those units to purchasers;
(6) a disposition that may be canceled at any time and for any reason by the purchaser without penalty;
(7) a disposition to a nonresident alien; or
(8) a disposition of a unit restricted to nonresidential use.
History:
Laws 1982, ch. 27, § 53.
ANNOTATIONS
Compiler's notes.
— This section is similar to § 4-101 of the Uniform Condominium Act, with the following main exceptions: Subsection A of this section of the state Condominium Act deletes the language of subsection (a) of § 4-101 of the Uniform Condominium Act, providing for waiver or modification of the protections of this article in condominiums where all units are restricted to nonresidential use; "disclosure" is substituted for "public offering" in the introductory paragraph of Subsection B of this section of the state Condominium Act; and Paragraphs (7) and (8) of Subsection B of this section of the state Condominium Act are not contained in subsection (b) of § 4-101 of the Uniform Condominium Act.
COMMISSIONERS' COMMENT
In the case of commercial and industrial condominiums, the purchaser is often more sophisticated than the purchaser of residential units and thus better able to bargain for the protections he believes necessary. While this may not always be true, no objective test can be developed which easily distinguishes those commercial purchasers who are able to protect themselves from those who, in the ordinary course of business, have not developed such sophistication. At the same time, the cost of protection imposed by Article 4 [this article] may be substantial. Accordingly, subsection (a) [Subsection A] permits waiver or modification of Article 4 [this article] protections in condominiums where all units are restricted to non-residential use, e.g., in the case of most commercial and industrial condominiums. However, except for certain waivers of implied warranties of quality (see § 4-115 [not adopted]) and certain exemptions from public offering statement and resale certificate requirements (see subsection (b) [Subsection B]), no express waiver of the protections of this article with respect to the purchasers of residential units is permitted by this subsection. Accordingly, by operation of § 1-104 [47-7A-4 NMSA 1978], the rights provided by this article may not be waived in the case of residential purchasers. Moreover, because of the interrelated rights of residential and commercial owners in mixed-use condominiums, waiver or modification of rights conferred by this article is restricted to purchasers in wholly nonresidential condominiums.
Compiler's notes.
— The reference to "Sections 53 through 72 of the Condominium Act" in Subsection A seems incorrect, as the Condominium Act contains only 69 sections. Sections 53 to 69 of the Condominium Act are compiled as 47-7A-2, 47-7D-1 to 47-7D-12, 47-7D-17 to 47-7D-20 NMSA 1978.
Am. Jur. 2d, A.L.R. and C.J.S. references.
— 15A Am. Jur. 2d Condominiums and Cooperative Apartments §§ 14, 16, 22.
31 C.J.S. Estates § 153 et seq.