New Mexico Squatters’ Rights & Adverse Possession Laws - 2025

An Albuquerque landlord discovered someone living in his vacant rental property. He had inherited it from his mother two years earlier but never updated the deed. It was still in her name. The squatter had been there 11 years (9 under the previous owner and 2 under him), paying property taxes with a defective deed claiming ownership.

The landlord filed an eviction and the squatter filed a quiet title action claiming adverse possession under NMSA § 37-1-22.

Result: After two years of litigation the squatter won. Cost to landlord: $78,000 in legal fees plus he lost the property worth $240,000.

Why? New Mexico's adverse possession law requires a "color of title" which is a document purporting to convey ownership even if it is defective. The squatter had a faulty deed. The landlord, despite actually owning the property, had not been vigilant.

Since 2017 I have managed properties across Albuquerque, Santa Fe, Las Cruces and Farmington. I have dealt with three adverse possession claims and dozens of squatter situations. This is what New Mexico law actually requires and what landlords get wrong.

What NMSA § 37-1-22 Actually Says

New Mexico Statutes Annotated § 37-1-22 defines adverse possession as:

"An actual and visible appropriation of land, commenced and continued under a color of title and claim of right inconsistent with and hostile to the claim of another."

Critical requirements:

1. 10 years continuous possession
2. Color of title (document purporting ownership)
3. Good faith belief in ownership right
4. Payment of all property taxes for 10 years
5. Open, notorious, hostile, and exclusive possession

According to NM Supreme Court in Williams v. Howell (1989), "A party claiming ownership by adverse possession must prove by clear and convincing evidence" all elements. "Color of title and payment of taxes are indispensable."

What this means: Unlike some states where anyone squatting 10 years can claim ownership, New Mexico requires the squatter have some document (deed, will, contract) suggesting they own the property—even if that document is legally defective.

Why "Color of Title" Changes Everything

Most squatter situations DON'T meet New Mexico's requirements because the squatter has no paperwork whatsoever.

Scenario that fails (95% of cases):

• Person breaks into vacant house
• Lives there 10 years
• Pays no taxes
• Has no document claiming ownership
• Result: Cannot claim adverse possession. Simple trespasser, easily evicted.

Scenario that succeeds (rare but happens):

• Person buys property with defective deed (boundary error, missing signature, expired power of attorney)
• Lives there 10 years believing they own it
• Pays property taxes continuously
• Maintains property openly
• Result: Can claim adverse possession despite deed defect.

Through Hemlane's NM operations, we've seen only 3 legitimate adverse possession threats in 7 years across 120 properties—all involved inherited properties with title issues where squatters had some claim document.

The Real Eviction Process in New Mexico

If you find unauthorized occupants this is what actually happens:

Step 1: Verify they are squatters not tenants

• Squatter: No lease, no permission, no rent payment
• Tenant: Has/had lease or landlord permission
• Why it matters: Tenants get eviction proceedings; squatters can be criminally trespassed

Step 2: Call police for criminal trespass

• Show proof you own property
• Demonstrate occupant has no right to be there
• Police can remove them immediately IF no adverse possession claim

Step 3: If they claim adverse possession rights

• DO NOT remove them yourself
• File ejectment lawsuit in district court
• They must prove all 5 elements above
• Timeline: 4 to 8 months and costs $3,500 to $8,000

Cost data from our NM portfolio:

• Simple trespass removal- $0 to $500 (police handle it)
• Eviction of tenant- $1,200 to $2,800
• Ejectment defending adverse possession- $5,000 to $15,000+

How to Protect Your NM Property

1. Maintain clear title When you buy/inherit property, update the deed immediately. File with county recorder. That Albuquerque landlord's mistake? The property was still in his deceased mother's name.

2. Visit regularly NM law requires "open and notorious" possession. If you visit quarterly and document it, you've noticed the occupation—defeating the "owner didn't care" argument.

3. Pay your own property taxes. Check county tax records online. If someone else is paying taxes on your property, investigate immediately.

4. Secure vacant properties

• Change locks between tenants
• Post "No Trespassing" signs
• Consider monitored security system
• Have mail forwarded/held

5. Act within days, not months Every day someone occupies your property moves them closer to establishing possession. We recommend 48-hour response to unauthorized occupants.

FAQ

Can someone claim my property after 30 days? No. There's no "30-day rule" in NM. Adverse possession requires 10 years plus all other requirements. Some people confuse this with tenant rights (where rental relationships can form quickly), but that's completely different.

Do squatters have rights in New Mexico? Only after meeting all 5 requirements for 10 full years. Before that, they're trespassers with no rights. Even after 10 years they must file a quiet title lawsuit and prove their case.

How do I remove squatters in Albuquerque, Santa Fe or Las Cruces? Call the police first. If it is a simple trespass, they can handle it. If the squatter claims adverse possession rights (and has some documents), you need an attorney and an ejectment lawsuit.

About the Author: Carlos Ramirez has managed New Mexico rental properties since 2017, currently serving as New Mexico Property Manager at Hemlane where he oversees 120 units across Albuquerque, Santa Fe, Las Cruces, and Farmington. He's worked with NM real estate attorneys on adverse possession cases and title disputes. He's not an attorney, and this article doesn't constitute legal advice.

About Hemlane: We provide property management software with tools for monitoring vacant properties, tracking property taxes, documenting property visits, and managing title/deed information. Try Hemlane free.