If you have purchased or are thinking of purchasing a timeshare in New Mexico, or are facing a timeshare foreclosure, it’s important to learn the answers to the following questions:
- How do I cancel a New Mexico timeshare agreement?
- What disclosures are required in a timeshare purchase?
- What are New Mexico’s timeshare sales laws?
- If I stop making payments, what is the foreclosure procedure in New Mexico (judicial or nonjudicial)?
The laws governing timeshares in New Mexico are contained in the state's Time Share Act. Read on to find out some of the most important features of New Mexico timeshare law.
(Be sure to check out Nolo’s Buying or Selling a Timeshare and Timeshare Foreclosures topic areas where you can find information about selling or donating your timeshare, timeshare foreclosures, options to avoid a timeshare foreclosure, and consequences of a timeshare foreclosure.)
Right to Cancel a Timeshare in New Mexico
If you sign a timeshare purchase contract, you can cancel it within seven days after signing. The contract must conspicuously disclose your right to cancel and how you can exercise that right (N.M. Stat. Ann § 47-11-5(A)).
You can cancel the contract by hand delivering or by mailing notice to the developer or to its agent for service of process. Once the developer or its agent receives the notice, it must refund all payments within 30 days (N.M. Stat. Ann § 47-11-5(B)).
(Learn more about cancelling a timeshare purchase in Nolo’s article How Do I Cancel a Timeshare Contract?)
Disclosure Statement Required
A timeshare developer in New Mexico must fully and conspicuously disclose the following information to each timeshare purchaser in a disclosure statement:
- your total financial obligation (including the initial purchase price and any additional charges)
- any person who has or may have the right to alter, amend, or add to those charges, and the terms and conditions under which such charges may be imposed
- the nature and duration of each agreement between the developer and the person managing the timeshare program or its facilities
- the date of availability of each amenity and facility that is not completed at the time of sale
- the specific terms of the timeshare
- your right to cancel and how you may exercise that right, and
- a statement that under New Mexico law an instrument conveying a timeshare must be recorded in the office of the clerk of the county where the real property is located to protect that interest (N.M. Stat. Ann § 47-11-4).
Timeshare Sales Law
In New Mexico, timeshare salespersons must have a real estate broker or salesperson license issued by the state real estate commission (N.M. Stat. Ann § 47-11-2.1(A)).
Timeshare Foreclosure Procedure
If you take out a loan to purchase an interest in a deeded timeshare and fail to make your timeshare mortgage payments or keep up with the assessments, you will likely face foreclosure. (In addition to monthly mortgage payments, timeshare owners are ordinarily responsible for maintenance fees, special assessments, utilities, and taxes, collectively referred to as “assessments.” Find out more in Nolo’s article Can a Timeshare Be Foreclosed for Nonpayment of Fees or Assessments?)
In New Mexico, timeshares are deemed to be an interest in real estate and are governed by the state's real estate laws (N.M. Stat. Ann § 47-11-3). Timeshare foreclosures are generally judicial, which means they are administered though the state court system. (Learn more about the New Mexico foreclosure process.)
(To learn more about the difference between judicial and nonjudicial foreclosure, and the procedures for each, visit Nolo's Judicial v. Nonjudicial Foreclosure page.)
New Mexico Timeshare Laws
You can access the New Mexico statutes by going to www.nmonesource.com. Hover over “Public Access Law” and click on “Search Statutes and Court Rules.” Then pick either “Desktop” or “Tablet/Smartphone” (whichever you are using), click “ok” and then “Find New Mexico Statutes.” Enter the citation you want to search for (for example, 47-11-5) and click on “Go!”
(For general articles on foreclosure in New Mexico, visit our New Mexico Foreclosure Law Center.)