N.M. Stat. » Chapter 48 — Liens and Mortgages
New Mexico Statutes

N.M. Stat. § 48-7-17 (2026)

Due-on-sale generally enforceable

✓ laws through the 2025 session (retrieved May 2026)
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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. ANNOTATIONS

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.

Notes of Decisions
Cited in 2 cases, 1987–1990 · leading case: Los Quatros, Inc. v. State Farm Life Ins., 800 P.2d 184 (N.M. 1990).
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Los Quatros, Inc. v. State Farm Life Ins., 800 P.2d 184 (N.M. 1990). · cites it 2× “, loans made or assumed during the period March 15, 1979 through October 15, 1982. As to all other loans, the legislature declared that, notwithstanding any provision of the statutory or common law of this state to the contrary, a lender may enter into or enforce a contract…”
Quintana v. First Interstate Bank, 737 P.2d 896 (N.M. Ct. App. 1987). “We read Brummund to state generally that due-on-sale clauses are allowed; Brummund does not appear to address how much discretion lenders have in exercising options under such clauses.”
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