New Mexico Security Deposit Late-Accounting & Bad-Faith Remedies

Section 47-8-18 provides significant consequences if the owner fails to give the required written deduction statement and balance within the statutory period, including forfeiture of withholding rights and liability for court costs and reasonable attorney fees. A separate subsection provides a $250 civil penalty for bad-faith retention.

Last reviewed: August 30, 20261 official source cited

Missed statementWithholding rights may be forfeited

The statute also addresses counterclaims and an independent damages action.

Court costs / attorney feesStatutory consequence

For failure described in subsection D.

Bad-faith civil penalty$250

Separate remedy in subsection E.

Do not treat a remedy as automatic

The exact timing language, whether a compliant statement was mailed, the amount due, and whether retention was in bad faith are factual and legal questions. RentBillCheck reports the source framework but does not decide liability.

Check the exact lease term and dates. New Mexico deposit limits differ by rental-agreement duration, and the accounting rule has specific timing language. Educational information only.

Official sources

New Mexico Regulation and Licensing DepartmentNew Mexico Real Estate License Law & Rules — Owner-Resident Relations ↗

Official state publication reproducing NMSA 1978 § 47-8-18, including deposit limits, normal-wear rule, 30-day accounting and remedies.

Related New Mexico guides

Security Deposit →Short-Term Deposit Limit →Deposit Interest →30-Day Rule →