New Mexico Lien: A Complete Guide to Liens in the State

In New Mexico, a lien is a legal restriction that prevents the transfer of real estate from one owner to another until an existing debt is settled. Once recorded, a lien gives creditors the power to enforce their rights and stops property owners from selling, refinancing, or transferring ownership until the debt is cleared.

What Is a Lien in New Mexico?

According to Chapter 48, Article 2 of the New Mexico Statutes, a lien is a legal claim placed on certain property, which serves as collateral for fulfilling an obligation. Liens can be placed on real property, such as homes, land, and commercial buildings, or on personal property, including vehicles, equipment, or business assets.

Once they are officially recorded, liens become part of the public record. They notify buyers, lenders, and title companies about any existing debts on a property.

For those who own property, liens can prevent them from refinancing or selling until the issues are sorted out. On the other hand, for creditors, liens provide a reliable and enforceable way to reclaim owed money.

Types of Liens in New Mexico

The most common liens filed in New Mexico include:

1. Property Tax Lien This is a legal claim on a property made by local government agencies. These liens are recorded when the owner of a property fails to pay their personal, business, or real estate taxes. These liens take precedence and can lead to tax sales.

2.Mechanic’s or Materialman’s Liens A mechanic's lien is a legal claim on a property that ensures that a contractor who provides labor or materials for construction work gets paid for their work.

3. Municipal Lien

A municipal lien is a claim on a property because of unpaid or overdue municipal services like utility bills, costs for removing unsafe buildings or debris, and sidewalk repairs or construction. Typically, this lien is filed by the municipal clerk.

4. Judgment Liens

A judgment lien is created when a creditor wins a court case and formally files the judgment against the debtor's assets.

5. Medical Lien A medical lien is a legal claim that permits healthcare providers to get paid for their services from the funds granted in a personal injury settlement. This typically occurs when a person receives medical care without having paid in advance.

How to Search for Liens in New Mexico

Lien records in New Mexico are open to the public and can be accessed in various ways:

• County Clerk’s Offices: Each of the 33 counties in New Mexico maintains records of property and lien filings. Anyone interested can search lien records by providing the property owner’s name, parcel number, or legal description.
• Online County Systems: Larger counties such as Bernalillo (Albuquerque), Doña Ana (Las Cruces), and Santa Fe offer online portals for accessing property and lien records.
• New Mexico Courts Case Lookup: You can find judgment liens using the state judiciary’s online case system.
• Title Companies and Third-Party Services: These companies offer professional lien searches to the public for a fee. Information from these platforms can help investors make informed decisions before buying a property.

Lien filings generally include the name of the lienholder, the amount of debt, the date it was filed, and a description of the property.

Lien Records in Major New Mexico Cities

New Mexico’s lien records are organized by county, which means you need to check with the specific county office for searches:

• Albuquerque (Bernalillo County): Bernalillo County Clerk provides access to property and lien records online and in person.
• Las Cruces (Doña Ana County): Doña Ana County Clerk provides lien and property record searches.
• Rio Rancho (Sandoval County): The Sandoval County Clerk maintains lien filings. Interested persons can access records by visiting the County Clerk's Office.
• Santa Fe (Santa Fe County): The Santa Fe County Clerk allows both online and in-person searches for liens and deeds.
• Roswell (Chaves County): The Chaves County Clerk’s Office manages lien records. Interested persons can access records by visiting the County Clerk's Office.

Every county in New Mexico has its own regulations regarding online access, fees, and certified copies.

How Long Does a Lien Stay on Property in New Mexico?

The duration of a lien in New Mexico depends on its type:

• Property Tax Liens: In New Mexico, there is no specific duration for how long a property tax lien remains active. However, the property is subject to a foreclosure auction after three years of being overdue.
• Mechanic’s Liens: In New Mexico, a mechanic's lien is valid for 2 years.
• Judgment Liens: Valid for 14 years in New Mexico, longer than in many states.
• Mortgage Liens: Continue until the mortgage loan is fully paid and released.

Without a recorded release, liens may remain active even after repayment.

How to Remove a Lien in New Mexico

Removing a lien in New Mexico involves either paying off the debt or challenging the lien’s validity. Common methods include:

1. Paying the Debt in Full: After the debt is paid, the lienholder is required to issue a release. This must be filed with the county clerk.
2. Negotiating a Settlement: Sometimes, creditors might agree to accept partial payment or work out different payment arrangements. Once you fulfill the requirements of the arrangement, the creditor will record a lien release.
3. Court Petition: Property owners have the option to ask the court to remove liens that are fraudulent, invalid, or were filed incorrectly.
4. Recording a Release or Satisfaction: Property owners must ensure that the lienholder files a release with the county clerk once the debt is paid. Liens can still affect property records even after the debt is paid if a release is not properly recorded.

Understanding the types of liens in New Mexico, their duration, and the removal process is essential for buyers, sellers, and lenders. This will help interested persons make informed decisions before entering a real estate transaction. However, since New Mexico has strict rules about filing and redemption deadlines, it's a good idea to talk to a county clerk, lawyer, or title company to make sure liens are managed correctly. By resolving these issues properly, property owners can maintain clear property titles and avoid problems in real estate transactions.