N.M. Admin. Code § 14.12.4.14

Current through Register Vol. 35, No. 21, November 5, 2024

Section 14.12.4.14 - BROKER'S CONSUMER PROTECTION BOND

A. Each broker shall maintain a consumer protection bond with the division. Each bond may be satisfied by a surety bond or other security in the form and in the amount prescribed by the division, with a minimum amount of fifty thousand dollars ($50,000.00). Each branch office shall have an associate broker with a proper license and fifty thousand dollars ($50,000.00) consumer protection bond. Each surety in the form of a cash consumer protection bond must be posted with a financial institution located in New Mexico. Out of state brokers shall submit an affidavit consenting to service of process in New Mexico in connection with all claims filed pursuant to the provisions of the act.

B. Each bond shall be indemnity for any loss sustained by a consumer as a result of:

(1) a violation by the broker of any provision of the act or these regulations;

(2) fraud by the broker in the execution or performance of a contract;

(3) the misrepresentation or the making of a false promise by the broker or through the advertising, or the agents of the broker.

N.M. Admin. Code § 14.12.4.14

14.12.4.14 NMAC - Rp, 14.12.2.32 NMAC, 12-01-10