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

N.M. Stat. § 48-7-20 (2026)

Limitation of exercise of all due-on-sale [options]

✓ current as of May 2026
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A lender may not exercise its option pursuant to a due-on-sale clause upon:

A. the creation of a lien or other encumbrance subordinate to the lender's security instrument which does not relate to a transfer of rights of occupancy in the property;

B. the creation of a purchase money security interest for household appliances;

C. a transfer by devise, descent or operation of law on the death of a joint tenant or tenant by the entirety;

D. the granting of a leasehold interest of three years or less not containing an option to purchase; E. a transfer to a relative resulting from the death of a borrower;

F. a transfer where the spouse or children of the borrower become an owner of the property;

G. a transfer resulting from a decree of a dissolution of marriage, legal separation agreement or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property; or

H. a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property.

History: Laws 1983, ch. 314, § 6.

ANNOTATIONS

Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.

Am. Jur. 2d, A.L.R. and C.J.S. references. — What transfers justify acceleration under "due-on-sale" clause of real estate mortgage, 22 A.L.R.4th 1266.

Notes of Decisions
Cited in 2 cases (1 in the last 5 years), 2018–2024 · leading case: Est. of Robert Cornell, Jr. v. Bayview Loan Servicing, 908 F.3d 1008 (6th Cir. 2018).
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Est. of Robert Cornell, Jr. v. Bayview Loan Servicing, 908 F.3d 1008 (6th Cir. 2018). “1628 ; N.M. Stat. §§ 48-7-20, 48-7-24. 7 Welcoming these claims into federal court, therefore, would not "disturb[ ] any congressionally approved balance of federal and state judicial responsibilities," or clog the "currents of litigation" in federal court.”
RH Fund 28, LLC v. O'Niell, No. 1:23-cv-01023 (D.N.M. Oct. 17, 2024). · cites it 3× “The Due on Sale clause states: Except as otherwise provided in Section 48-7-20 NMSA 1978, as amended, Lender may, at Lender’s option, declare immediately due and payable all sums secured by this Mortgage upon the sale or transfer, without Lender’s prior written consent, of all…”
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