What’s on the New Mexico Seller Disclosure Form?

Chances are, you know New Mexico home better than anyone, flaws and all. If you’re making plans to sell your Land of Enchantment property, you may be wondering how much you need to reveal on the New Mexico seller disclosure form, officially known as the Adverse Material Facts Disclosure Statement.

Disclosure forms like this provide potential buyers with a clearer picture of your property’s condition and history, giving them a better idea of what the property needs in terms of repairs. Additionally, it can also protect you from any potential legal hiccups.

In this post, we’ll tell you what to expect, how much detail to provide, and what could go wrong if you leave something out. We’ll also provide a downloadable Disclosure Litmus Test to help you identify any red flags.

How Much Is Your New Mexico Home Worth Now?

Home values in New Mexico have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.

What is the New Mexico seller disclosure form?

The New Mexico seller disclosure form, or Adverse Material Facts Disclosure Statement, is a document developed by the New Mexico Association of Realtors. It’s designed to help you disclose any known issues or facts about your home that could impact its value or a buyer’s decision to proceed with the purchase.

New Mexico law requires sellers to disclose all material facts — in other words, anything that could impact the buyer’s use or enjoyment of the property. The Adverse Material Facts Disclosure Statement form acts as a guide to help you do this thoroughly. It covers everything from structural issues and past repairs to neighborhood conditions and HOA rules.

Note: Even if you’re selling a home “as is” in New Mexico, you’re still required to be truthful and transparent about what you know.

What’s included in the New Mexico seller disclosure form?

Below is a section-by-section summary of what you’ll be asked to disclose when selling a home in New Mexico. This is just a brief overview of what you can expect to see on your disclosure form; the actual contents of your form may vary.

Access

Easements or shared/private road agreements
Access disputes or unclear/uninsurable access points
Anyone who regularly crosses or uses part of the property

Appliances

Issues with major appliances, including anything inefficient, damaged, or not working

Basements or subterranean areas

Moisture, water intrusion, seepage, or past flooding
Sump pump problems or failures

Building, structural, or foundation

Cracks in walls, ceilings, slabs, or stucco
Unlevel floors, sticking doors/windows, or sagging beams
Any structural or foundation-related concerns

Built-in systems

Problems with garage door openers, central vacuum, intercoms, smart-home tech, or security systems
Missing or damaged components

Domestic water supply

Issues with well, municipal, or community water
Low production or poor water quality
Required hook-ups or drought/legal restrictions

Wiring

Aluminum wiring
Faulty switches, outlets, circuits, or limited connectivity (internet/phone)

Flooding

Interior or exterior flooding events
Broken or inefficient pipes
Drainage, grading, or standing water problems

Hazardous or environmental

Asbestos, mold, radon, or lead-based paint reports
Underground storage tanks
Drug labs, cannabis production, landfill or waste-related issues

Heating or cooling

Ineffective or inoperable HVAC systems
Rooms without heating or cooling

Insurance claims

Fire, hail, smoke, or water damage claims
Whether insurance funds were used for repairs

Irrigation rights or systems

Ditch or irrigation well issues
Disputed rights or low production
Drought or legal restrictions

Noise, odors, or pollution

Continuous or occasional noise
Odors inside or outside the home, including pet odors

Pest or animal issues

Rodent problems, termites, or other infestations
Damage caused by animals

Plumbing

Leaks or inoperable plumbing systems
Issues with gas lines, radiant heat, water heaters, or supply lines
Defective piping products (Kitec, polybutylene, Entran II)

Pools, spas, or saunas

Abandoned or nonfunctional systems
Equipment or mechanical problems
Leaks or surface/liner issues

Renewable energy

Solar, wind, or hydropower system malfunctions
Problems with batteries, converters, or turbines

Roofs, gutters, and skylights

Leaks or deterioration
Ponding on the roof
Clogged gutters or downspouts
Inefficient or broken components

Download and print our Disclosure Litmus Test

Use this link to download a printable checklist (62KB) to prepare for completing the New Mexico seller disclosure form. The questions on this Seller Disclosure Litmus Test reflect the types of details and issues you may need to reveal about your home — and what buyers expect to know.

Check off anything that applies to your New Mexico property. If you’re unsure about something, make a note to ask your real estate agent or investigate further. The goal is to help you think through what needs to be documented and disclosed during the sale process.

What is not required to be disclosed? New Mexico law does not require you to disclose if someone died in the home or if a felony was committed, if a previous occupant had HIV or AIDS, or if a sex offender lives nearby. You’re also not obligated to disclose the presence of supposed paranormal activity or personal reasons for selling, unless you are directly asked, and your answer could be misleading.

Find a Top Agent to Help You Navigate Disclosures

HomeLight’s free Agent Match platform can connect you with a top-performing agent in your market who can help you navigate your entire home-selling journey — from disclosures to closing.

Common mistakes sellers make on the disclosure form

Here are some of the most common missteps sellers make when filling out the New Mexico Adverse Material Facts Disclosure Statement:

  • Checking “yes” without providing an explanation: If you check a yes box that includes an “Explain” line, not providing the details could lead to delays in selling the property.
  • Guessing instead of explaining: If you’re not sure about something, don’t make assumptions — just state that you don’t know or add an explanation.
  • Failing to attach supporting documents: Inspection reports, permits, repair invoices, and warranties help verify your disclosures.
  • Not disclosing repaired issues: Even if you’ve fixed a problem listed on the form, like a roof leak or plumbing issue, it still needs to be reported.
  • Minimizing or softening the truth: Downplaying a defect can open you up to legal risk if the buyer later discovers the issue was worse than described.

What if you fail to disclose something important?

If you fail to disclose a known material fact about your New Mexico home, the buyer may have grounds to cancel the contract or sue you after the sale. In some cases, nondisclosure can be considered fraud under New Mexico law, particularly if the omission appears intentional. Being upfront early in the process helps prevent bigger headaches later.

When and how buyers review the disclosure

Under New Mexico’s standard purchase contract, you’re expected to provide a completed Adverse Material Facts Disclosure Statement within seven days of contract acceptance. The buyer then has a set review period, typically seven to 10 days, to examine the form and decide whether to proceed, request repairs, or cancel the deal.

Partner with a top New Mexico agent to protect your sale

Disclosing your home’s condition is one of the most important — and legally sensitive — parts of the selling process in New Mexico. A top local agent can help you understand what’s required, avoid common pitfalls, and provide expert guidance so you can complete the Adverse Material Facts Disclosure Statement accurately and confidently.

Unsure where to start? HomeLight’s free Agent Match platform connects you with trusted real estate agents in your New Mexico market. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your goals and selling timeline.

See the top real estate agents in 8 New Mexico markets:

If you’re buying and selling at the same time, check out HomeLight’s Buy Before You Sell program, which can streamline the entire process so you only move once. Watch this short video to see how it works.

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