Home improvement projects—also known as home repairs, renovations, or remodeling—range from small painting projects to complete reconstruction of rooms or of an entire home.

Home improvement projects can present a number of potential legal issues, including financing and loans (home equity line of credit or HELOC, for example); the construction contract for the work (materials and labor); surveys and lot lines; mechanic’s liens; waivers or releases of mechanic’s liens; insurance against damage or loss (builder’s risk) to the home or materials; and worker’s compensation insurance to insure against personal injuries sustained by a contractor or subcontractor.

In New Mexico, home improvement projects are subject to various legal considerations. Financing such projects often involves securing a home equity line of credit (HELOC) or other loans, which are regulated by state and federal lending laws. The construction contract, which details the scope of work, materials, labor, and payment terms, is a critical legal document that should comply with New Mexico's statutes governing contracts. Before starting a project, homeowners should ensure that property surveys and lot lines are respected to avoid disputes. New Mexico law allows for mechanic's liens, which are claims made by contractors or subcontractors for unpaid work; these liens can be waived or released under certain conditions. Homeowners are advised to obtain builder's risk insurance to protect against damage or loss during the renovation process. Additionally, worker’s compensation insurance is mandatory for contractors with employees to cover personal injuries sustained on the job. Compliance with these regulations helps protect both the homeowner and the professionals involved in home improvement projects.