Notwithstanding any provision of the statutory or common laws of this state to the contrary, a lender may enter into or enforce a contract containing a due-on-sale clause with respect to a real property loan, except as provided in Sections 5 and 6 [48-7-19, 48-7-20 NMSA 1978] of this act.
History: Laws 1983, ch. 314, § 3.
Not restraint on alienation. — Due-on-sale clauses in a commercial mortgage are not a restraint on alienation of property. Brummund v. First Nat'l Bank, 1983-NMSC-002, 99 N.M. 221, 656 P.2d 884; Quintana v. First Interstate Bank, 1987-NMCA-062, 105 N.M. 784, 737 P.2d 896.
Law reviews. — For annual survey of New Mexico law relating to property, see 12 N.M.L. Rev. 459 (1982).
Am. Jur. 2d, A.L.R. and C.J.S. references. — Validity, construction, and application of provisions entitling mortgagee to increase interest rate on transfer of mortgaged property, 92 A.L.R.3d 822.
What transfers justify acceleration under "due-on-sale" clause of real estate mortgage, 22 A.L.R.4th 1266.
Validity and enforceability of due-on-sale real-estate mortgage provisions, 61 A.L.R.4th 1070.
Structure New Mexico Statutes
Chapter 48 - Liens and Mortgages
Section 48-7-1 - Right of possession.
Section 48-7-4 - Release on record upon satisfaction of mortgage.
Section 48-7-4.1 - Alternative form of release of mortgage; filing by title insurer.
Section 48-7-5 - [Failure to release; penalty; civil liability.]
Section 48-7-6 - [Release by administrator or executor of deceased mortgagee.]
Section 48-7-7 - Sale of real property under power of sale; allowed if trustor agrees.
Section 48-7-8 - Mortgage escrow funds; limitation; credit against principal.
Section 48-7-9 - Mortgages; future advances; lien.
Section 48-7-10 - Mortgages; insurance proceeds.
Section 48-7-11 to 48-7-14 - Repealed.
Section 48-7-15 - Purpose [of "due-on-sale" law].
Section 48-7-16 - Definitions.
Section 48-7-17 - Due-on-sale generally enforceable.
Section 48-7-18 - Real property loan contract controls.
Section 48-7-19 - Limitation of enforcement of regulated due-on-sale clauses.
Section 48-7-20 - Limitation of exercise of all due-on-sale [options].
Section 48-7-21 - Security; safeguard.
Section 48-7-22 - Due-on-sale policy on nonregulated contracts.