N.M. Admin. Code § 16.61.24 § 11
PROPERTY MANAGEMENT TRUST AND CUSTODIAL ACCOUNTS
Operative Text
In addition to the rules set forth in 16.61.23 NMAC, the following also apply to property management trust and custodial accounts. A. A property management trust account shall only contain funds derived from the management of property for others and shall be clearly identified with the banking institution as well as the public as a property management trust account. B. A custodial account utilized for property management shall contain funds derived from the management of property for only one property owner and the account will be in the name of that property owner and will be under the care and direction of the qualifying broker. The property owner may have signatory or viewing rights to this account. C. All funds received by the qualifying broker which are received in association with managed properties, shall be deposited into the property management trust account, excepting funds which are received for the management of property which in whole or part belongs to the qualifying broker, prior to any disbursements. Once deposited, the qualifying broker may then disburse funds as specified in the management agreement. D. Unless the tenant occupies a property owned by the qualifying broker, deposits shall be placed in a property management trust account. Deposits may be held in a property management trust account, or may be disbursed to the owner as specified in the property management agreement and agreed to by the tenant. E. Commingling of funds is not permitted. No funds may be deposited in a property management trust account that are not received in connection with a managed property except as provided for in 16.61.23 NMAC Exceptions to commingling. F. Property ledgers. When the property management trust account contains funds from the rental or lease of more than one property, separate accounting records shall be maintained on each property. [16.61.24.11 NMAC - Rp, 16.61.24.8 NMAC, 1/1/2012; A, 1/1/2014; A, 1/1/2019; A, 1/3/2021]
NMAC 16.61.24 § 11 establishes specific rules governing how property management trust and custodial accounts must be structured and maintained in New Mexico. A trust account must hold only funds tied to managing property for others, while a custodial account is limited to funds from a single property owner and must be held in that owner's name. Commingling of unrelated funds is prohibited, separate ledgers are required when multiple properties are involved, and all incoming funds must be deposited before any disbursements are made.
Plain English — not legal advice.
Under NMAC 16.61.24 § 11, compliant property managers and qualifying brokers maintain clearly labeled trust accounts that hold only funds derived from managed properties, keeping those funds entirely separate from personal or brokerage funds. When managing property for a single owner through a custodial account, the account is titled in that owner's name and operated under the qualifying broker's direction, with the owner potentially holding signatory or viewing rights. Operators also maintain individual property ledgers whenever the trust account holds funds from more than one property, and they deposit all received funds before making any disbursements as outlined in the management agreement.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
NMAC 16.61.24 § 11 provides that security deposits and other funds collected from tenants must generally be held in a properly designated property management trust account, not commingled with unrelated funds. Unless a tenant occupies a property owned by the qualifying broker directly, deposits are to be placed in such a trust account, and any disbursement to the owner must align with the property management agreement and the tenant's agreement. Tenants who have concerns about how their deposits are being held may contact the New Mexico Real Estate Commission or a local tenant-rights organization to understand available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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