Court Opinion

ID: 9597282
Source: CourtListenerOpinion
Date Created: 2023-08-22 00:57:18.922844+00
Date Added: 2024-06-11T09:54:17.470354
License: Public Domain

STOWERS, Justice, dissenting. I dissent with the majority opinion for several reasons. To begin with, the Taos realty purchased by the Naumburgs is not protected by the Residential Home Loan Act (Act), NMSA 1978, Sections 56-8-22 to -30 (Cum.Supp.1982); therefore, the Act is not applicable to this case. The purpose of the Residential Home Loan Act is to provide certain rights and protections to New Mexicans when they purchase a residential home, i.e. a residence. “A ‘residence’ is the place where one actually lives or has his home; a person’s dwelling place or place of habitation; an abode; the house where one’s home is, a dwelling house.” Perez v. Health and Social Services, 91 N.M. 334, 337, 573 P.2d 689, 692 (Ct.App.1977), cert. denied, 91 N.M. 491, 576 P.2d 297 (1978). The evidence indicates that the Naumburgs’ residence, i.e. home, is in Santa Fe, not Taos. The Naumburgs never intended to make the real property in Taos their home. The trial court found that they purchased the Taos realty as a recreational investment property with the intent of using it only sporadically until it was resold. For this reason, the Residential Home Loan Act does not apply. Secondly, the absolute prohibition against prepayment is not a penalty forbidden by Section 56-8-30. Section 56-8-30 merely states that a contract provision which requires a penalty or premium for prepayment is not enforceable. (Emphasis added.) In interpreting statutes we are bound to give words used in a statute their ordinary meaning unless a different intent is clearly indicated. If a statute makes sense as written, then we should not read into a statute language that is not there. Perez, 91 N.M. at 336, 573 P.2d at 191. In this case, the real estate contract does not include a provision which requires a penalty or premium; therefore, the contract is not contrary to Section 56-8-30. Moreover, Section 56-8-30 does not provide a complete prohibition against prepayment, nor can one be read into the statute. If the Legislature had intended to impose an absolute prohibition against prepayment, they could have simply said “contract provisions which prohibit prepayment are unenforceable.” The Legislature did not do this. Therefore, the contract in this case is not prohibited by or contrary to Section 56-8-30 because it includes a provision which prohibits prepayment before a specified time. Furthermore, I would reverse the trial court on the Pattisons’ cross-appeal. In their cross-appeal, the Pattisons state that the trial court erred in holding that the prepayment prohibition clause in the parties’ real estate contract is unenforceable. I agree with the Pattisons that the prepayment prohibition clause is enforceable under common law doctrines. Enforceability of the prepayment prohibition clause is supported by the general rule of law that a contract purchaser, promissory note payor, or mortgagor has no right of prepayment without the specific granting of such a right. See 91 C.J.S. Vendor and Purchaser § 103C (1955); 77 Am.Jur.2d Vendor and Purchaser §§ 302-303 (1975); 59 C.J.S. Mortgages § 447A (1949); 10 C.J.S. Bills and Notes § 462 (1938); 55 Am. Jur.2d Mortgages § 397 (1971). The above authorities indicate that a vendor is not .obligated to accept payment by a vendee before the time fixed for performance and that if a contract fixes the time for payment, the contract will control. Therefore, because the Naumburgs entered into the contract with the knowledge and understanding that the real estate contract specifically prohibited prepayment, the prohibition against prepayment is enforceable and the Naumburgs have no right of prepayment. For the above reasons, I dissent.