Free New Mexico Real Estate Practice Exam Questions (December 2024) 50+

“If the investigation reveals that the complaint does involve a violation of the Real Estate License Law or the commission rules, the commission may refer the complaint to the attorney general’s office and request that a notice of contemplated action (NCA) be issued to the respondent.” Per New Mexico License Law 16.61.35.11.

The New Mexico Human Rights Act prohibits discrimination based on Ancestry, Sexual Orientation, Spousal Affiliation, and Gender Identity. The Federal Fair Housing Act only covers Color, Disability, Familial status, Gender, National Origin, Race, and Religion. Weight is not covered.

Errors and omissions insurance is a type of professional liability insurance that protects agents against claims of inadequate work or negligent actions. Errors and omissions insurance for real estate agents in New Mexico is mandatory.

“When a brokerage ceases using a trade name, the qualifying broker shall, within 10 days, return the qualifying broker’s license and the licenses of all qualifying and associate brokers affiliated with the brokerage to the commission, advise the commission in writing that the trade name is no longer being used, and remove all signs and advertising using the trade name.” Per New Mexico License Law 16.61.11.8.

“The members of the commission shall serve for a period of five years or until their successors are appointed and qualified.” Per New Mexico Real Estate Code 61-29-4.

“An owner may increase the rent payable by the resident in a month-to-month residency by providing written notice to the resident of the proposed increase at least thirty days prior to the periodic rental date specified in the rental agreement or, in the case of a fixed term residency, at least thirty days prior to the end of the term.” Per New Mexico License Law 47-8-15.

“$10,000 per judgment regardless of the number of persons aggrieved or parcels of real estate involved in the transaction.” Per New Mexico License Law 61-29-23.

“Mails a letter (certified, return receipt requested) within twenty (20) days after service of the notice requesting a hearing.” Per New Mexico License Law 16.61.35.11.

“Changes or amendments to the rules shall be filed in accordance with the procedures of the State Rules Act [14-4-1 NMSA 1978] and shall become effective thirty days after notification to all active licensees of the filing of the changes or amendments.” Per New Mexico License Law 61-29-4.

The New Mexico Human Rights Act prohibits discrimination based on Ancestry, Sexual Orientation, Spousal Affiliation, and Gender Identity. The Federal Fair Housing Act only covers Color, Disability, Familial status, Gender, National Origin, Race, and Religion.

New Mexico Real Estate Commission is in charge of real estate licensing in all scenarios; this includes re-issuance.

In lien theory states banks or mortgage lenders never retain title to the property. Instead, the mortgage lender holds a lien against the property. New Mexico practices lien theory.

This would be best described as an associate broker. Per definitions outlined under New Mexico License Law 61-29-2.

“Non Supervisory Level: to apply for a non supervisory Qualifying Broker level license that allows them to establish a brokerage and operate without subordinate Associate Brokers, the licensee must have achieved at least 2 years of continuous ACTIVE licensure.” Per New Mexico Real Estate Commission

“If on July 1 of any year, the balance in the fund exceeds four hundred thousand dollars ($400,000), the amount over four hundred thousand dollars ($400,000) shall be transferred to the real estate commission fund to be used for the purposes of carrying out the provisions of Chapter 61, Article 29 NMSA 1978.” Per New Mexico License Law 61-29-22.

Dual agency is legal in New Mexico as long as there is written consent from all parties prior to entering into negotiations. Per New Mexico License Law

The New Mexico Human Rights Act prohibits discrimination based on Ancestry, Sexual Orientation, Spousal Affiliation, and Gender Identity. The Federal Fair Housing Act only covers Color, Disability, Familial Status, Gender, National Origin, Race, and Religion. Familial Status is covered.

Commingling is when a licensee mixes funds held in care for a client with their own funds.

“The commission shall be appointed by the governor and shall consist of five members.” Per New Mexico Real Estate Code 61-29-4.

“Supervisory Level: to apply for a Qualifying Broker level license that would allow the broker to establish a brokerage and operate with subordinate Associate Brokers must have at least 4 years continuous ACTIVE licensure as a NM Associate Broker prior to application.” Per New Mexico Real Estate Commission

The New Mexico Human Rights Act prohibits discrimination based on Ancestry, Sexual Orientation, Spousal Affiliation, and Gender Identity. The Federal Fair Housing Act only covers Color, Disability, Familial status, Gender, National Origin, Race, and Religion.

“36 hour CE Requirement for Associate Brokers: All active and inactive associate brokers shall successfully complete thirty-six (36) credit hours of continuing education in courses approved by the commission during each 3-year licensing cycle.” Per New Mexico Real Estate Commission

“Brokers must also maintain a current residential address with the commission and notify the commission within 10 days of a residential address change.” Per New Mexico License Law 16.61.11.8.

“The commission shall be appointed by the governor and shall consist of five members.” Per New Mexico Real Estate Code 61-29-4.

Generally speaking, everyone must comply. The law applies to owners, managers, salespersons, brokers, builders, appraisers, rental agents, and more.

“There is created in the state treasury a fund which shall be known as the "real estate recovery fund" to be administered by the real estate commission in accordance with the provisions of the Real Estate Recovery Fund Act.” Per New Mexico License Law 61-29-21

Errors and omission insurance does not cover fraud and misrepresentation.

“..that the minimum coverage shall not be less than one hundred thousand dollars ($100,000) for an individual claim and not less than a five-hundred-thousand-dollar ($500,000) aggregate limit per policy and that the deductible shall not be greater than one thousand dollars ($1,000).” Per New Mexico License Law 16.61.5.9.

A violation of license law by an unlicensed individual can result in a fourth degree felony, 18-month imprisonment, and a $5,000 fine. Per New Mexico License Law 61-29-17

The New Mexico Human Rights Act prohibits discrimination based on Ancestry, Sexual Orientation, Spousal Affiliation, and Gender Identity. The Federal Fair Housing Act only covers Color, Disability, Familial status, Gender, National Origin, Race, and Religion. Credit is not covered.

“When an associate broker request that their license be transferred the qualifying broker or the broker in charge, shall within 48 hours return the license to the commission.” Per New Mexico License Law.

“The owner or the resident may terminate a week-to-week residency by a written notice given to the other at least seven days prior to the termination date specified in the notice.” Per New Mexico License Law 47-8-37

“Consist of five members who shall have been residents of the state for three consecutive years immediately prior to their appointment.” Per New Mexico Real Estate Code 61-29-4.

“Four of whom shall have been associate brokers or qualifying brokers licensed in New Mexico and one of whom shall be a member of the public who has never been licensed as an associate broker or a qualifying broker.” Per New Mexico Real Estate Code 61-29-4.

“Brokers are responsible for providing the commission with a current email address and phone number; and for notifying the commission within 10 days of a change of email address.” Per New Mexico License Law 16.61.11.8.

A fiduciary relationship is one in which the agent is held in a position of special trust and confidence by the principal.

“36 hour CE Requirement for Associate Brokers: All active and inactive associate brokers shall successfully complete thirty-six (36) credit hours of continuing education in courses approved by the commission during each 3-year licensing cycle.” Per New Mexico Real Estate Commission

All of the following actions are allowed aside from attending a closing without the responsible person present. All unlicensed real estate do’s and don’ts are outlined in New Mexico License Law 16.61.21.8-16.61.21.9

A violation of license law by a licensed individual can result in a misdemeanor, 6-month imprisonment, and a $5,00 fine. Per New Mexico License Law 61-29-17

This would be best described as a qualifying broker. Per definitions outlined under New Mexico License Law 61-29-2.

“The amount of the real estate recovery fund shall be maintained at one hundred fifty thousand dollars ($150,000).” Per New Mexico License Law 61-29-22.

“The owner shall store all personal property of the resident left on the premises for not less than thirty days.” Per New Mexico License Law 47-8-34.1

New Mexico is a Community Property state. The states that have community property laws are: Louisiana, Arizona, California, Texas, Washington, Idaho, Nevada, New Mexico, and Wisconsin. Community property is property acquired that is considered to be obtained by mutual effort.

Regarding real estate license reciprocity, New Mexico has reciprocity with some other states but not all.

“...that the minimum coverage shall not be less than one hundred thousand dollars ($100,000) for an individual claim and not less than a five-hundred-thousand-dollar ($500,000) aggregate limit per policy and that the deductible shall not be greater than one thousand dollars ($1,000).” Per New Mexico License Law 16.61.5.9.

“A deductible amount for each claim of not more than $1,000 per claim and no deductible for legal expenses and defense.” Per New Mexico License Law 16.61.5.9.

“Commingling. Commingling of trust or custodial account funds is not permitted.” Per New Mexico Real Estate Code 16.61.23.11

Unlike some states, in New Mexico, there is no state law that dictates what a broker may charge for a commission. The commission is completely negotiable in the listing contract.

“The commission may impose a civil penalty on any person who is found, through a court or administrative proceeding, to have acted in violation of Chapter 61, Article 29 NMSA 1978 in an amount not to exceed one thousand dollars ($1,000) for each violation or, if the commission can so determine, in the amount of the total commissions received by the person for the unlicensed activity.” Per New Mexico License Law

““Complainant” means any person who claims to be aggrieved by an unlawful discriminatory practice and who has filed a complaint with the human rights division within 180 days after the alleged unlawful discriminatory act was committed.” Per New Mexico Human Rights Act 9.1.1.7.