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.

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.

There were 1358 foreclosures in ABQ during the quarter, and prices are down 14.9% from the market peak.

The Taos real estate market has experienced an increase in foreclosures over the last three years and in all price ranges.

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