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HOUSE BILL 100
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Janelle Anyanonu
AN ACT
RELATING TO PROPERTY MANAGEMENT; EXEMPTING SERVICES RENDERED BY
ATTORNEYS AT LAW AND CONTRACTORS IN THE PERFORMANCE OF PROPERTY
MANAGEMENT FROM THE PROVISIONS OF CHAPTER 61, ARTICLE 29 NMSA
1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 61-29-2 NMSA 1978 (being Laws 1999,
Chapter 127, Section 1, as amended) is amended to read:
"61-29-2. DEFINITIONS AND EXCEPTIONS.--
A. As used in Chapter 61, Article 29 NMSA 1978:
(1) "agency relationship" means the fiduciary
relationship created solely by an express written agency
agreement between a person and a brokerage, authorizing the
brokerage to act as an agent for the person according to the
scope of authority granted in that express written agreement
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for real estate services subject to the jurisdiction of the
commission;
(2) "agent" means the brokerage authorized,
solely by means of an express written agreement, to act as a
fiduciary for a person and to provide real estate services that
are subject to the jurisdiction of the commission; in the case
of an associate broker, "agent" means the person who has been
authorized to act by that associate broker's qualifying broker;
(3) "associate broker" means a person who, for
compensation or other valuable consideration, is associated
with or engaged under contract by a qualifying broker to carry
on the qualifying broker's business as a whole or partial
vocation, and:
(a) lists, sells or offers to sell real
estate; buys or offers to buy real estate; or negotiates the
purchase, sale or exchange of real estate or options on real
estate;
(b) is engaged in managing property for
others;
(c) leases, rents or auctions or offers
to lease, rent or auction real estate;
(d) advertises or makes any
representation as being engaged in the business of buying,
selling, exchanging, renting, leasing, auctioning or dealing
with options on real estate for others as a whole or partial
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vocation; or
(e) engages in the business of charging
an advance fee or contracting for collection of a fee in
connection with a contract under which the qualifying broker
undertakes primarily to promote the sale of real estate through
its listing in a publication issued primarily for that purpose
or for the purpose of referral of information concerning real
estate to other qualifying brokers or associate brokers;
(4) "auctioneer" means a person who auctions
or offers to auction real property;
(5) "brokerage" means a licensed qualifying
broker and the licensed real estate business represented by the
qualifying broker and its affiliated licensees;
(6) "brokerage relationship" means the legal
or contractual relationship between a person and a brokerage in
a real estate transaction subject to the jurisdiction of the
commission;
(7) "client" means a person who has entered
into an express written agreement with a brokerage for real
estate services subject to the jurisdiction of the commission;
(8) "commercial real estate" means real estate
that is zoned:
(a) for business or commercial use by a
city or county; or
(b) by a city or county to allow five or
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more multifamily units; provided that all units are located on
a single parcel of land with a single legal description;
(9) "commission" means the New Mexico real
estate commission;
(10) "customer" means a person who uses real
estate services without entering into an express written
agreement with a brokerage subject to the jurisdiction of the
commission;
(11) "foreign broker" means a real estate
broker who does not hold a real estate license issued by the
commission, but who holds a current and valid real estate
broker's license issued by another state in the United States,
a province of Canada or any other sovereign nation;
(12) "license" means a qualifying broker's
license or an associate broker's license issued by the
commission;
(13) "licensee" means a person holding a valid
qualifying broker's license or an associate broker's license
subject to the jurisdiction of the commission;
(14) "nonresident licensee" means an associate
or qualifying broker holding a real estate license issued by
the commission and whose license application address is not
within the state of New Mexico;
(15) "property management" means real estate
services as specified by a management agreement that include
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marketing, showing, renting and leasing of real property;
collection and disbursement of funds on behalf of the owner;
supervision of employees and vendors; coordination of
maintenance and repairs; management of tenant relations; and
preparation of leases or rental agreements, financial reports
and other documents. "Property management" does not mean
inspections of property, repairs and maintenance incidental to
the sale and marketing of property as authorized by the owner
or the management of a condominium or homeowner association or
advertising or taking reservations for vacation rental
properties;
(16) "qualifying broker" means a licensed real
estate broker who has qualified a proprietorship, corporation,
partnership or association to do business as a real estate
brokerage in the state of New Mexico, who discharges the
responsibilities specific to a qualifying broker as defined by
the commission and who for compensation or other consideration
from another:
(a) lists, sells or offers to sell real
estate; buys or offers to buy real estate; or negotiates the
purchase, sale or exchange of real estate or options on real
estate;
(b) is engaged in managing property for
others;
(c) leases, rents or auctions or offers
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to lease, rent or auction real estate;
(d) advertises or makes any
representation as being engaged in the business of buying,
selling, exchanging, renting, leasing, auctioning or dealing
with options on real estate for others as a whole or partial
vocation; or
(e) engages in the business of charging
an advance fee or contracting for collection of a fee in
connection with a contract under which the qualifying broker
undertakes primarily to promote the sale of real estate through
its listing in a publication issued primarily for that purpose
or for the purpose of referral of information concerning real
estate to other qualifying brokers or associate brokers;
(17) "real estate" means land, improvements,
leaseholds and other interests in real property that are less
than a fee simple ownership interest, whether tangible or
intangible; and
(18) "transaction broker" means a qualifying
broker, associate broker or brokerage that provides real estate
services without entering into an agency relationship.
B. A single act of a person in performing or
attempting to perform an activity described in Paragraph (16)
of Subsection A of this section makes the person a qualifying
broker. A single act of a person in performing or attempting
to perform an activity described in Paragraph (3) of Subsection
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A of this section makes the person an associate broker.
C. The provisions of Chapter 61, Article 29 NMSA
1978 do not apply to:
(1) a person who as owner performs any of the
activities included in this section with reference to property
owned by the person, except when the sale or offering for sale
of the property constitutes a subdivision containing one
hundred or more parcels;
(2) the employees of the owner or the
employees of a qualifying broker acting on behalf of the owner,
with respect to the property owned, if the acts are performed
in the regular course of or incident to the management of the
property and the investments;
(3) isolated or sporadic transactions not
exceeding two transactions annually in which a person acts as
attorney-in-fact under a duly executed power of attorney
delivered by an owner authorizing the person to finally
consummate and to perform under any contract the sale, leasing
or exchange of real estate on behalf of the owner; and the
owner or attorney-in-fact has not used a power of attorney for
the purpose of evading the provisions of Chapter 61, Article 29
NMSA 1978;
(4) transactions in which a person acts as
attorney-in-fact under a duly executed power of attorney
delivered by an owner related to the attorney-in-fact within
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the fourth degree of consanguinity or closer, authorizing the
person to finally consummate and to perform under any contract
for the sale, leasing or exchange of real estate on behalf of
the owner;
(5) the services rendered by an attorney at
law in the performance of the attorney's duties as an attorney
at law;
(6) the services rendered in the performance
of property management by an attorney at law;
(7) the services rendered in the performance
of property management by a contractor licensed pursuant to the
Construction Industries Licensing Act;
[(6)] (8) a person acting in the capacity of a
receiver, trustee in bankruptcy, administrator or executor, a
person selling real estate pursuant to an order of any court or
a trustee acting under a trust agreement, deed of trust or will
or the regular salaried employee of a trustee;
[(7)] (9) the activities of a salaried
employee of a governmental agency acting within the scope of
employment;
[(8)] (10) persons who deal exclusively in
mineral leases or the sale or purchase of mineral rights or
royalties in any case in which the fee to the land or the
surface rights are in no way involved in the transaction; or
[(9)] (11) an auctioneer; provided that
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payments to an auctioneer for services rendered in connection
with an auction shall be made to the auctioneer by a qualifying
broker, and prior to performing an auction of real estate, the
auctioneer shall enter into a transaction-specific written
agreement with a qualifying broker that includes:
(a) a description of the parties, the
real estate and any additional information necessary to
identify the specific transaction governed by the agreement;
(b) the terms of compensation between
the auctioneer and the qualifying broker;
(c) the effective date and definitive
termination date of the agreement; and
(d) a statement that the auctioneer
agrees to: 1) cooperate fully with the qualifying broker and
all associate brokers designated by the qualifying broker; 2)
conduct all contact with parties, including the general public
and other brokers, in association with the qualifying broker or
associate brokers designated by the qualifying broker; and 3)
conduct all marketing and solicitations for business in the
name of the qualifying broker."
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