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New Mexico · 16.61.23 NMACNew Mexico earnest money: trust accounts, timing and the six-year records rule

Under the New Mexico Real Estate Commission's rules, a qualifying broker who receives other people's money in a real estate transaction deposits it only in a trust account at an acceptable financial institution, with a title company, or with another qualifying broker involved in the transaction; the account is designated "trust account" with the brokerage's registered trade name and reconciled monthly (16.61.23.8 NMAC). Sales money goes into the brokerage trust account – or a title company instead – and never into the property management trust account; an interest-bearing special trust account needs a written agreement signed by all parties naming the broker as sole trustee and saying who gets the interest (16.61.23.9). The deposit is made per the parties' written agreement, with a receipt record showing the dates received and deposited, the payer, the amount and the property (16.61.23.11(A)). Funds are paid out as soon as reasonably possible, but not before the transaction is completed except on court order (16.61.23.11(B)). Trust account records are kept for six years after the transaction is completed (16.61.23.10(B)).

The rules

  1. 1. Where (16.61.23.8(A), .9(A))

    Brokerage trust account, a title company, or another broker in the deal.

  2. 2. When (16.61.23.11(A))

    As the parties' written agreement says; receipt record kept.

  3. 3. Interest (16.61.23.9(C))

    Special trust account only on a written agreement signed by all parties.

  4. 4. Pay-out (16.61.23.11(B))

    Not before the transaction is completed, except on court order.

  5. 5. Records (16.61.23.10(B))

    Six years after the transaction is completed.

What the TC can do

  • Check that the purchase agreement says who holds the earnest money and by when it is deposited.
  • Get the deposit receipt from the broker or title company into the deal file.
  • When the deal falls through, expect the money to stay put until the release or a court order.

Questions about New Mexico earnest money

When must a New Mexico broker deposit earnest money?

Per the written agreement of the parties to the transaction, into the proper trust account (16.61.23.11(A)(1) NMAC).

How long does a New Mexico broker keep earnest money records?

Six years after the transaction is completed (16.61.23.10(B) NMAC).

Related guides

Track the earnest money deposit and the receipt as a task with an owner and a due date in ClosingCode.

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Source: New Mexico Real Estate Commission rules, 16.61.23.8–16.61.23.11 NMAC (srca.nm.gov, read October 28, 2026).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.