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New Mexico · NMSA 1978, §§47-6-17, 47-6-23, 47-6-27.1New Mexico subdivision lots: the disclosure statement, the six-month inspection and the right to rescind

Under the New Mexico Subdivision Act, a subdivider discloses in writing, before selling, leasing or conveying land in a subdivision, the information the county commission requires so the buyer can make an informed decision (NMSA 1978, §47-6-17(A)). For subdivisions of five to 100 parcels the statement covers at least the subdivider, title and encumbrances, recorded restrictions, the escrow agent, utilities and their cost, the maximum annual water requirement and water availability and quality, depth to groundwater, liquid and solid waste disposal, access, who maintains the roads, terrain management, and the state agencies' opinions (§47-6-17(B)). If the buyer hasn't inspected the parcel before buying, the agreement must give six months to inspect it personally, and after that inspection the buyer may rescind and get every payment back once title is revested in the seller – by written notice within three days of the inspection (§47-6-23). A sale, lease or other conveyance in a subdivision the county hasn't approved is voidable by the buyer, with restitution, and the action is brought within six years (§47-6-27.1(A)); a buyer harmed by a violation can sue for actual damages, and a buyer in an approved subdivision can compel promised improvements (§47-6-27.1(B)–(C)).

The rules

  1. 1. Disclosure (§47-6-17)

    Written statement before the sale, including water, waste disposal and road maintenance.

  2. 2. Inspection (§47-6-23)

    Not inspected before buying: six months to inspect in person.

  3. 3. Rescission (§47-6-23)

    Written notice within three days of the inspection; full refund on revesting title.

  4. 4. Unapproved subdivision (§47-6-27.1(A))

    Voidable by the buyer, with restitution, within six years.

  5. 5. Promised improvements (§47-6-27.1(C))

    Buyer can sue to compel them within six years.

What the TC can do

  • On a lot purchase from a subdivider, get the buyer's signed copy of the disclosure statement into the deal file.
  • If the buyer hasn't seen the lot, calendar the six-month inspection window and the three-day notice deadline after it.
  • Check that the county approved the subdivision before closing.

Questions about New Mexico subdivision lots

Can a New Mexico buyer back out after seeing the lot?

Yes, if the buyer hadn't inspected the parcel before buying: the agreement gives six months to inspect, and written notice within three days after the inspection rescinds the purchase with a full refund once title is revested (NMSA 1978, §47-6-23).

What if the New Mexico subdivision wasn't approved by the county?

The sale is voidable at the buyer's option with restitution of everything paid; the action is brought within six years (NMSA 1978, §47-6-27.1(A)).

Related guides

Track the inspection window and the three-day rescission deadline as tasks in ClosingCode.

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Source: NMSA 1978, §§47-6-17, 47-6-23 and 47-6-27.1 (nmonesource.com, 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.