Using the promulgated New Mexico real estate forms from the Realtors® Association of New Mexico, there is a process for offers and counter offers. This process, if properly followed, will produce a document trail that makes it very clear later as to the motivations and desired actions of all participants.

1. The Buyer(s) execute a purchase agreement, or offer to buy.
2. Their broker presents the offer to the Seller(s) broker, who presents it to the Seller.
3. The Seller will execute another document, the counter offer, which indicates the differences in what the purchase offer indicates and what they are willing to do.
4. The Buyer can accept that counter offer or do their own counter to that one.

This back and forth process requires a fresh counter offer document, normally one page, for each step. This leaves an excellent paper trail for all the negotiations. It is important to realize that the purchase agreement is still valid in all its terms throughout this process. Each counter offer indicates that the purchase agreement and named previous counter offers are a part of the agreement. Each subsequent counter offer is to submit changes to all previous terms.

In other words, unless amended by a counter offer, all terms in the purchase agreement are agreed to by both parties. If you don't agree with something, it must be specifically addressed in a counter offer. And subsequent counter offers can change previous agreed upon items in counter offers or the purchase agreement.

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There are a great number of time sensitive processes and actions involved in a real estate transaction after you've come to a contractual agreement and until closing. We'll list them here and link to descriptions of each. To make it easier, a new window will open with each to keep this one visible. First a few definitions:

Delivery - The deadline date for delivery of documents or inspection or other reports.

Objections - Buyers, upon receipt of certain documents, surveys and inspection reports, have a specified amount of time in which to object to the contents of those items.

Resolution - When there are objections, the Seller has a specified time in which to respond as to whether they can or will correct items or not. Resolution of an item normally means that the transaction is still on track and that item is no longer an issue.

OK, we have those basic definitions out of the way, so let's go on to the steps in a normal transaction. If it's land, then items that have to do with structures and inspection of them would not be a part of the process. Here are the steps:

1. Contract is signed, so copies are delivered to all parties and the title insurance binder is ordered from the appropriate title insurance company. Details
2. The property condition disclosure is normally delivered right away for land or homes. There are objection and resolution deadlines. Details
3. If there are road maintenance documents, water rights, or well documents, these are normally delivered quickly also. There are deadlines for objections and resolutions. Details
4. If inspections are part of the process, the buyer should begin lining up inspectors and appointments as soon as possible to meet all deadlines. Inspection deliveries are a part of this step. There are deadlines for objections and resolution. Details
5. Special inspections and objections requirements are involved for septic systems. Details
6. The title insurance binder is provided by the title company and delivered to the Buyer(s). There are deadlines for objections and resolution. Details
7. If financing is involved, the Buyer(s) should apply for their loan quickly, as there are deadlines for this, as well as for proof of final approval. Details
8. If a home or structure is involved, the Buyer(s) should apply for insurance right away, as there is a deadline to get out of the transaction if insurance isn't available. Details
9. If a home is being purchased, there will likely be objections to the inspections. These may involve requirements for repairs, etc. There are deadlines. Details
10. A survey is almost always involved in a purchase. There are deadlines for delivery, objections and resolutions. Details
11. A day or two before closing, all objections should be resolved. In the case of a home, there can be a walk-through by the Buyer(s) to make sure all is in order for the closing and funding. Details
12. The closing takes place either local or remote. The title company funds the transaction only after recording at the courthouse. Details

That's it! It's a lot of paperwork, many deadlines, and hopefully not too much stress. Our goal is to make it all a walk in the park for our clients.

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I'm informed that they are working on the problem, and I hope we'll see the photos come back in a day or so.

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Fiserv, a technology services company is predicting an average price increase nationally of 7.2% between now and 2014.  But, they found that there were ten areas that would do much better in the same period.  Here's their prediction:

1. Washington State: Bremerton-Silverdale, +44.7 percent
2. Oregon: Bend, +33.6 percent
3. Michigan: Detroit-Livonia-Dearborn, +33.1 percent
4. California: Napa Valley, +31.7 percent
5. Nevada: Carson City, +31.6 percent
6. Florida: Panama City-Lynn Haven-Panama City Beach, +26.9 percent
7. Arizona: Flagstaff, +26 percent
8. New Mexico: Sante Fe, +25.8 percent
9. Wyoming: Cheyenne, +23.7 percent
10. Alaska: Anchorage, +20 percent

Note Santa Fe at number 8.  Taos should move in tandem with Santa Fe if history is any guide.

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LIQUID WASTE SUMMARY

(Flows under 2,000 gallons per day)

Permits:  Any person in the State of New Mexico who does not have access to a community sewer system must obtain a Liquid Waste Permit issued by the New Mexico Environment Department before building or transporting a home onto a property.   A permit is also required for any modification to the system or property i.e. change the disposal method, change the design flow, replace part or all of the system, or change the lot size of the property.   A permit can be obtained by completing the application form and providing the Department with the following items: floor plans, recorded warranty deed, Uniform Property Code, and a soil analysis.  A test hole may also be required if you are building in an area where it is suspected that a high water table or bedrock problems exist.   Permits may be cancelled by the Department if the system is not completed within one year or it is found that information provided in the application is false or inaccurate.  All installations must be performed by a licensed contractor i.e. MM1, MM-98, MS1, MS3.  A homeowner can also do the installation provided he/she completes the homeowner training and passes a homeowners test.   All installations must receive a final inspection by the Department before it is activated.  Any unpermitted existing systems must apply for a Certificate of Registration from the Department.

Lot Size Requirements: The lot size requirements apply to conventional systems that discharge to the soil.

A conventional system shall not be installed on a lot less than 0.75 acres where there is not an established on site disposal system, except as provided under Section 301.F.

The design flow for a conventional disposal system shall not exceed 500 gallons per acre.  Lot size X 500 = design flow allowed for that piece of property.   For lots that exceed 500 gallons per acre or lots that do not meet minimum lot size, advanced/alternative systems that reduce Total Nitrogen (TN) per Section 603 may be approved.

On-site systems installed after the effective date of the Regulations (9/1/05) on lots recorded prior to February 1, 1990 shall:  If between 0.5 and .075 acres and the depth to groundwater exceeds 101’, may be approved until Sept1, 2007.  If the lot is between 0.5 and 0.75 acres and the depth to ground water exceeds 600’ may be approved until September, 2010.

* Date of record is the date of legal recording in the county clerk’s office or for subdivision having received                      final approval date of record shall be 2 ½ years from the date of final governmental approval.

* Roadways easements cannot be included as part of the lot size.

*43,560 square feet = 1 acre

Design Flow: The design flow established for residential homes is as follows:

1 bedroom = 150 gallons per day

2 bedroom = 300 gallons per day

3 bedroom = 375 gallons per day

4 bedroom = 450 gallons per day

5 bedroom = 525 gallons per day

Any room that meets the definition of a bedroom (door which provides for privacy and a window that can be utilized as a fire escape) will be considered a bedroom and calculated into the design flow.  Bathrooms are not calculated into the design flow.

For multiple units on a property such as a duplex or guest house, the flow for each home must be added together to determine the total flow.

For commercial discharges refer to Table 201.1 of the New Mexico Liquid Waste Regulations.

Rental spaces for mobile homes will be calculated as three bedrooms.

Setback Requirements: Setback distances apply to any part of the on-site liquid waste system and its designated replacement area:

Table 302.1: Minimum setback and clearance requirements

(1) * Applies to privy pits, enclosed systems, other liquid waste treatment units.

(2) ** Plus depth of channel.

(3) *** Unlined privy pits shall provide clearance of at least 4 feet.

(4) **** Plus 2 feet for each additional foot of depth in excess of 1 foot below perforated pipe.

(5) ***** May be 5 feet when Schedule 40 PVC/DWV pipe is used.

(6) ******Or applicable plumbing code.

B. Setback distances to watercourses, canals and arroyos shall be measured from the edge of the seasonal high water flow to the on-site liquid waste system component. Setback distances to artificially controlled lakes or reservoirs shall be measured from the closest projected shoreline at the maximum controlled water level.

[20.7.3.302 NMAC - Rp, 20.7.3.303 NMAC, 9/1/05]

Clearance Requirements: 4 feet of suitable soil is required between the bottom of an absorption area and high water table or bedrock.   A reduction in this clearance may be allowed with appropriate advanced treatment or alternative disposal such as a mound system.  Holding tanks (no discharge) may be allowed in these circumstances.

Treatment Units: Conventional treatment units must be certified by the Department for use (ask for a list).   All tanks shall be watertight.  Tanks installed after 1976 must have a baffle.  All manholes on new installations must have risers to grade with secure lids.  A secure lid shall consist of the following:  A pad lock, a twist lock cover requiring special tools for removal, covers weighting 58 pounds or more, and a hinge and hasp mechanism, other mechanisms approved by NMED.  All new installations require effluent filters.  Tanks must be 2.5 times the design flow of the home.

All advanced treatment units must be approved for use by the NMED.  Ask for list. Advanced treatment units installed to meet a lot size constraint will be permitted with conditions such as maintenance contracts, monitoring of effluent etc.

Holding tanks must be 4 times the design flow of the home, be water tight, have alarm systems, and pumping records must be provided to the Department.

All installations must be installed in accordance with manufacturer’s requirements.

Absorption Field: Conventional drain fields/leach field shall be allowed in suitable soils only.  Suitable soil is determined by a ribbon test or percolation test.  Square footage required for residential units are calculated as follows:  Design Flow X 2 = Required Square Footage.  For example a one bedroom home (150 gpd) requires 300 square ft.  A two bedroom (300 gpd) requires 600 square ft.  etc.  Extremely clayey soils shall be calculated as follows: Design Flow X 5 = Required Square Footage. Soils that percolate too fast (course sand) will require secondary treatment/disinfection provided the water table is greater than 30 feet.

Trenches:   Shall be no longer that 150 ft.  Total depth to trench bottom can be no more than 6 feet.  4’ of suitable soil below the trench is required.   End caps must be placed on all distribution lines.  Capped inspection ports are to be installed at the end of each trench and brought to grade.  If more than one trench is being installed a T must be utilized.  A distribution box is required if more than two trenches are being installed. Pressure dosing shall be utilized if more than 500 linear ft of leach line is required.  Pipe/Infiltration shall be level.  Aggregate shall be ¾ in to2 ½ inch in size.  A maximum of 3 ft of aggregate is allowed below the pipe.  Trenches shall to 4 ft apart edge to edge.  For any additional ft of gravel (in excess of 1 ft) 2 ft of separation must be added.  Infiltrators must be 7 ft apart center to center.

The length of a trench for pipe and gravel can be calculated by dividing the square footage required by the credit given per sq ft/linear ft.

Trench is:        1’ wide trench              2’wide              3’wide

Gravel under pipe is:               1’                     2 credits                      3 credits          4 credits

1.5                   3 credits                      4 credits          5 credits

2                      4 credits                      5 credits          6 credits

2.5                   5 credits                      6 credits          7 credits

3                      6 credits                      7 credits

For example a trench that 2 ’wide with 2’ of gravel under the pipe requiring 750 sq ft of absorption would be calculated:  750(sq ft required)  divided by 5 (credits) = 150 linear feet of trench.

A trench that is utilizing chamber units varies in credit given per unit.  (Ask for list)  Infiltrators (High Capacity Quick 4) are awarded 19.3 sf/unit.  High Capacity 6 ft units are awarded 30 sf/unit.  Divide square footage required by 19.3 or 30 to calculate the number of units required.

It is recommended that liquid waste systems not be placed underneath roadways.

Two residences can discharge into one liquid waste system provided lot size requirements are met and the system is designed accordingly.   Well splits must be registered with the State Engineers Office (827-6120).

Liquid waste shall be disposed of on the same piece of property on which it is generated.

Grey Water Systems: Gray water with discharges less than 250 gallons per day of private residential gray water will be allowed if it can meet required conditions of the Regulations.

Split flow systems are credited with an 80 percent nitrate reduction.

Property Transfer: An inspection of the system must undergo a Transfer of Ownership inspection by a licensed installer or a NAWT certified party at time of sale.

In Conclusion: If you have further questions or concerns you may contact the Taos Field Office staff at (505) 758-8808 or our Liquid Waste Specialist at (505) 753-7256.  You may also obtain information or forms from our website:  www.nmenv.state.nm.us under the liquid waste tab.

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This post is about water rights, but I suppose the situation could crop up on any item, such as mineral rights, that the title companies will not insure in the Taos real estate market.  It's not the fact that they will not insure these rights, as that's understood.  However, a recently closed deal brought up a practice that flies in the face of what buyers assume they get for services from a title company.

The Taos Real Estate Title Search

When my buyer thought of a title search, he assumed that he would be provided with ALL documents related to the property that were found in the county records in the search.  NOT THE CASE!  Because they don't want to insure water rights, the title companies will file away a document and not give it to the buyer if it pertains to water rights.  That's even if it is a recorded deed.  This is not unique to the Taos real estate market, but you should be aware of this practice.

While it is suggested that buyers retain an attorney to transfer water rights, there was an expectation that any documents pertaining to those rights would be provided when they are found in the search.  NOT THE CASE.  Since the title company doesn't want to increase their risk, they simply don't provide the documents found.  Since a great many taos real estate properties do not have recorded water rights documents, this forces them to spend extra money to hire an independent searcher or an attorney to make sure that documents aren't overlooked of filed away.  Make sure you get all of the documents related to your Taos real estate market purchase.

So, don't assume that a title search is going to give you all documents recorded for the property's legal description.  If there's a puddle there, and you want to know if you have rights to the puddle, you're going to have to hire an attorney, or at least an independent researcher in the taos real estate market.

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I just received one of these offering a $10,000 bonus to the broker bringing the buyer for a home in my MLS.  Now, in fairness to the listing  broker, it could be at the insistence of the seller, but it's still a terrible tactic in my opinion.  Basically and logically, it's expecting a broker's behavior to change based on an offer to "sweeten the pot."  What else would you expect?  If they're offering that much money to me to produce a buyer, then they must be expecting some different behavior from me as a buyer broker.

Either or both, I'm supposed to push my buyer toward a certain property, or I'm supposed to get them to pay more than it may be worth, depending on the nature of the bonus offer.  Logically and ethically, if this property meets the criteria specified by my buyer, including price range, then I'm going to show it to them...period.  Offering me more money is soliciting me to take more affirmative action to get my client to buy THAT  property.  Sorry, but this is just plain unethical.  I can't think of any ethical reason for me to accept such a bonus.

So, if you're my buyer client in the Taos real estate market, be assured that I'm going to pass any such "bonuses" directly to you.  I never want one of my clients to look back and wonder if there was some ulterior motive in my advice.

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Here's the press release from Dow.  They're installed flat against the roof deck, so no propped up solar panels to mar the beauty of your home.  They're about twice as expensive installed as regular shingles...according to Dow.  So, maybe you should add something to that estimate for realism.  But, it's definitely an amazing invention that can't work better anywhere than in Taos.

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