1. A. An owner may charge an applicant a screening fee that shall not exceed fifty dollars ($50.00) to cover the cost of obtaining information about the applicant, including the cost of a consumer credit report, a reference check or a screening service; provided that the owner:

   1. (1) provides the applicant with written or digital notice of the screening fee and the applicant agrees in writing to pay the screening fee;
   2. (2) shall not charge the applicant a screening fee when the owner knows or should know that a dwelling unit is not available for rent at that time or will not be available at the beginning of the residency;
   3. (3) provides the applicant with a written or digital receipt for the screening fee paid by the applicant;
   4. (4) shall place a hold on a credit card or wait to deposit cash or checks for an applicant's screening fee until all prior applicants have either been screened and rejected or offered the dwelling unit and declined to enter into a rental agreement; and
   5. (5) shall not charge any other fees to process an application.

2. B. An owner shall return the screening fee within thirty calendar days to an applicant if:

   1. (1) a prior applicant is offered the dwelling unit and agrees to enter into a rental agreement; or

   2. (2) the owner does not:

      1. (a) obtain a consumer credit report;
      2. (b) perform a reference check;
      3. (c) use a screening service to obtain information about the applicant; or
      4. (d) process the application.

3. C. A screening fee that is returned as provided in Subsection B of this section shall be:

   1. (1) returned by certified mail;
   2. (2) destroyed upon the applicant's request if paid by check; or
   3. (3) made available for the applicant to retrieve.

History: Laws 2025, ch. 122, § 3.

ANNOTATIONS

Effective dates. — Laws 2025, ch. 122 contained no effective date provision, but, pursuant to N.M. Const., art. IV, § 23, was effective June 20, 2025, 90 days after adjournment of the legislature.