HOA Disclosure New Mexico

Frontier Subdivision, 144 lots, New Mexico. $50 yearly assessment. 3 of 5 Directors do not have internet. 5 of 5 have no cell service.
Tryin' to keep is simple.

Annual meeting. Change of Officers. Audit.
I am not currently on the BoD; I forward questions at their direction.

During the audit a discrepancy was found regarding a lot that had transferred ownership. No HOA Disclosure Certificate was found to accompany the transfer.
The Secretary/Treasurer was made aware of the transfer when the County sent their yearly property owner list (received January 12, 2024).
The S/T contacted the realtor (also purchaser), apologized for bother and requested a copy for our files.
Realtor responded: Sale was "private treaty" and did not require an HOA Disclosure. Purchaser/realtor requested an invoice for any amounts due, assuring it would be paid in full immediately.
(I did not think to capture an image of the Disclosure Certificate being used. I recall the header using "New Mexico law" and "homeowners".)

NM HOA Act
Section 11
A. A seller or the seller's agent shall obtain a disclosure certificate from the association and provide it to the purchaser no later than seven days before closing; and ...
Section 12
A. Unless exempt ...., a lot owner shall furnish to a purchaser copies of:
(1) the declaration of the association, other than the plats and plans;

I'm hoping someone can assist me in locating information on 'private treaty' sales that don't require a disclosure certificate. The realtor/purchaser has not been forthcoming with any documentation to support this caveat.
If there is no such caveat, please advise.

The HOA must provide the info when asked.

If they are not asked, it's not an issue for the HOA.

Simply forward the email to the auditor along with the explanation that no one sought the information, so the Association isn't responsible.

I agree.

FWIW regarding "private treaty sale": Did you google on this? These two sites seem clear that a "private treaty sale" is the standard "list it, take offers, sell it" home sale:

https://www.homeloanexperts.com.au/first-home-buyers-guide/private-treaty-sale/

https://www.rwsp.net/news/what-does-sold-by-private-treaty-mean

Right now I think the realtor was bs'ing you. Regardless, the issue is moot, as the HOA has no legal obligation to provide a disclosure certificate unless asked for one.

There ya go! I have to agree.

Copy of email response in file. Wipe hands.

Note: The 'auditor' is the incoming Officer.

We're a frontier subdivision in an unincorporated town. Articles state: Purpose of Association is to provide for the maintenance of the roads + exercise powers, fix, levy, collect, et al.
An attorney once referred to our type of HOA as "one of those road maintenance organizations".

Statue isn't interpreted as requiring an outside auditor. Please correct if warranted.

Thank you

Thank you ElleN,

Treasurer asks: If no disclosure is provided and there are past due assessments, who is responsible for payment of outstanding amount(s)?

This thread has pointed out a vulnerability in our Docs. There is a window of 4 months between adding late charges and filing a lien. The payment due date and the lien file date have been in the docs since inception. There has never been a cause to explore statutes for remedy to close the window a bit tighter.

Printing this thread for review by the BoD.

Thank you very much.

Thank you MelissaP1,

Understood. Appreciated.

114 'sold lots' @ full $50 assessment. Per. Year.
30 'unsold' developer lots at $10 ("Developer Exception" for 'unsold' lots). Per. Year.
Directors are volunteers.

$25 to file lien
$25 to remove lien
^^ Requires 2 trips to the County Seat.
2 trips to County at 150 miles each, round trip @ .67 per mile: $200.00
Late fee: $25

In the above process, would you consider the late fee to be the only 'punitive' charge?
What argument could one make to a judge, to allow the late fee to remain in the balance?

Thank you

If one reads the CC&Rs carefully, I am betting they will clearly state that the assessment is against the lot, not the owner. In my opinion and based on experience, the HOA can hold whoever owns the lot responsible for past due assessments, violations present before closing, et cetera. If a new owner does not like this, then the HOA should point to the CC&R section that says as much. It is up to the new owner to figure out he/she may have a valid legal claim against the title company or former owner. The HOA should not be giving legal advice. The HOA can give legal information, like what the CC&Rs say.

If all your HOA is obliged to do is maintain roads, I would be thankful. I like what the attorney said. Maybe the attorney was being a bit cute but the attorney was also quite possibly reflecting years of legal experience with covenants for these 'frontier HOAs.'