New Mexico Commercial Lease Agreement

The New Mexico Commercial Lease Agreement is a legally binding contract to lease commercial properties encompassing retail spaces, office buildings, and industrial facilities within New Mexico. This contract usually outlines the terms and conditions the Lessor and the Lessee agreed upon, encompassing rent, lease duration, subleasing options, security deposits, and other vital terms.

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New Mexico Commercial Lease Agreement

Implied Covenant of Good Faith and Fair Dealing

  • Implied covenants of good faith and fair dealing are present in all New Mexico Commercial Lease Agreements.
  • Parties are expected to act with honesty and fairness.
  • Prohibited actions: Anything that harms or disadvantages the other party.
  • Consequences: Breaching this covenant can lead to legal action.

Statutory Notice Periods

End-of-Lease Notice

The Lessee retains the right, as per New Mexico landlord-tenant laws, to terminate the lease agreement upon its natural expiration without the requirement of prior notice.

Rent Adjustment on Fixed-Term Leases

The Lessor may effectuate a rent increase on fixed-term leases, with written notice provided 30 days prior to the conclusion of the rental period.

Breach of the Lease

In the event of a breach of the lease agreement, the Lessor may issue a minimum seven-day notice to cure or quit. Should the Lessee breach the lease agreement again within the subsequent six months, the Lessor may issue again a minimum of seven-day notice to quit.

Nonpayment of Rent

The lessor shall issue a three-day notice to pay or quit in the event of nonpayment of rent.

Criminal Activity

In cases of criminal activity, the Lessor reserves the right to serve an unconditional three-day notice to quit.

Repeat Nonpayment of Rent

In cases of repeated nonpayment of rent, a three-day notice to pay or quit is applicable.

Security Deposits

Purpose of Security Deposit

The Lessor institutes the security deposit as a protective measure, primarily designed to cover unforeseen expenses, encompassing unpaid rent, outstanding bills, or substantial damages to the property.

Deposit Limitation for Leases

New Mexico doesn’t hold any specific regulations on how much the security deposit amount may be demanded. However, normally, the equivalent of one month’s rent is standard across states. 

Security Deposit Receipt

Pursuant to New Mexico landlord-tenant law, a security deposit receipt is not obligatory. Nevertheless, the Lessor has the discretion to provide one to the Lessee at their option.

Security Deposit Interest

The Lessor isn’t required to hold any of the security deposit in an interest-barring account for commercial leases in New Mexico. 

Timely Return of Security Deposit

The Lessor isn’t required to return the security deposit to the Lessee as there are no regulations for the return of security deposits for commercially leased property in the state.


  • Upon request by the Lessee, and in cases where the property predates the year 1978, the Lessor must provide information about lead-based paint. The Lessor shall furnish details along with a copy of the Environmental Protection Agency’s (EPA) pamphlet on lead-based paint.

Termination and Renewal

  • Renewal

For New Mexico Commercial Lease Agreements, there’s no specific mention of how long it can be renewed. However, typically, commercial lease agreements are renewed for one to five years, in some cases longer. Also, a notice of 30 to 90 days before the lease’s end should be provided to the Landlord for the intent of renewal.

  • Lease Termination

Termination of this lease may occur for violations, including breach of the lease, nonpayment of rent, criminal activity, and repeated nonpayment of rent. Refer to specific notice requirements for each violation. Non-compliance permits the Lessor to proceed with termination processes.