New Mexico License Law
In New Mexico, a licensee's failure to disclose a material defect known to them is considered:
AAcceptable if the buyer did not ask
BActive or passive fraud and a violation of NMSA 1978 Ch. 61 Art. 29, potentially resulting in license discipline and civil liability✓ Correct
COnly a civil matter unrelated to license law
DPermissible if the seller instructed the agent not to disclose
Explanation
Intentional concealment of a known material defect constitutes fraud — whether active (affirmative misrepresentation) or passive (deliberate concealment). It violates NM license law, may result in NMREC discipline, and exposes the licensee to civil liability for damages.
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