I
f you're considering helping a friend, family member, or neighbor buy, sell, or rent a property without a real estate license, think twice. In New Mexico, doing so can be a felony offense. A change in the law that took effect in 2011 makes it a fourth-degree felony to lease, rent, manage, sell, exchange, auction, or option property for others without a licensed broker's permission.

    The penalty for this offense can include fines of up to $5,000 and 18 months in jail. However, selling or leasing one's own property is still perfectly legal under New Mexico law. The attorney general or district attorney may also take action against individuals who violate the law.

    In tourist-driven communities like Las Cruces, unlicensed activity is common. For example, a father helped his daughter and son-in-law sell their home by advertising it in a local newspaper and negotiating with buyers on their behalf. Another homeowner assisted his neighbor by showing the property to potential renters and executing a lease on their behalf.

    However, there's an exception for family members who assist with the sale or lease of another family member's property through a power of attorney. This written authorization allows relatives up to the fourth degree (including great-great grandparents, first cousins, and grand nephews and nieces) to represent or act on each other's behalf in private affairs.

    Landlords and tenants should familiarize themselves with The New Mexico Owner-Resident Relations Act, which outlines the rules for renting and leasing residential properties. Real estate is a complex business that requires proper training, background, and legal authority to handle correctly.