1. When an associate broker leaves one qualifying broker, within what time must the qualifying broker return the license to the Commission?
Answer & explanation
Answer: A. 16.61.8 and 16.61.16.9(O) NMAC require return within 48 hours. Ten days is the period for reporting address and phone changes.
2. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)
3. Within what time must a claimant file a verified petition with the Commission for Recovery Fund payment?
Answer & explanation
Answer: B. 61-29-23 requires the petition within two years after the final judgment. The claim is filed with the Commission, not a court, after the claimant already holds the judgment.
4. On a $250,000 loan, how much is 2 discount points?
Answer & explanation
Answer: A. 1 point = 1% of the loan. 2 points = 0.02 x $250,000 = $5,000.
5. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?
Answer & explanation
Answer: C. Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.
6. Under an open listing, the seller owes a commission to:
Answer & explanation
Answer: C. Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.
7. When competing brokerages agree to charge the same commission rate, they commit:
Answer & explanation
Answer: D. Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.
8. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?
Answer & explanation
Answer: B. Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.
9. A commercial space of 2,400 rentable square feet is quoted at $27 per square foot per year. What is the monthly rent?
Answer & explanation
Answer: B. Annual rent = 2,400 x $27 = $64,800; monthly = $64,800 / 12 = $5,400. Commercial rates are quoted per square foot per YEAR.
10. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:
Answer & explanation
Answer: B. Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.
11. A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?
Answer & explanation
Answer: B. LTV = loan / price = $361,250 / $425,000 = 0.85 = 85%. (15% is the down payment percentage.)
12. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?
Answer & explanation
Answer: A. Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.
13. An associate broker commingles escrow funds without the qualifying broker's knowledge. Can the Commission revoke the qualifying broker's license for that act?
Answer & explanation
Answer: D. 61-29-12(B) bars revoking a qualifying broker's license for an affiliate's act unless the Commission is satisfied the qualifying broker had guilty knowledge. Independent contractor status is not the reason.
14. Which deposit of the broker's own money into a trust account is permitted without prior Commission approval?
Answer & explanation
Answer: C. The exceptions allow non-trust funds for the bank's minimum balance and for bank and credit card fees. Other broker funds require full disclosure and specific prior written Commission approval. Leaving earned fees in the account is commingling.
15. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?
Answer & explanation
Answer: D. Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.
16. An associate broker has closed 6 residential sale sides, 5 residential lease sides, and 3 commercial improved sale sides. How many qualifying-broker transaction points is that?
Answer & explanation
Answer: C. Residential sales are 5 points, residential leases 4, and commercial improved sales 8: 6 x 5 + 5 x 4 + 3 x 8 = 30 + 20 + 24 = 74. The applicant needs 100.
17. How long is a New Mexico Real Estate Commissioner's term?
Answer & explanation
Answer: D. Members serve five-year terms or until successors are appointed and qualified. Three years is the residency requirement, which is the tempting mix-up.
18. A borrower pays $4,500 for 1.5 discount points. What is the loan amount?
Answer & explanation
Answer: C. Loan = cost of points / points as a percentage = $4,500 / 0.015 = $300,000.
19. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?
Answer & explanation
Answer: C. Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.
20. A broker received a 4.2% commission totaling $12,600. What was the sale price?
Answer & explanation
Answer: C. Sale price = commission / rate = $12,600 / 0.042 = $300,000.
21. A rectangular lot is 100 ft by 150 ft. How many square feet is it?
Answer & explanation
Answer: C. Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)
22. For unlicensed activity, the Commission may impose a civil penalty of up to how much per violation, payable into the Recovery Fund?
Answer & explanation
Answer: C. 61-29-17.2 lets the Commission impose up to $1,000 per violation, or the amount of commissions received, plus costs, and directs the money to the Recovery Fund. The $5,000 figure is the court-imposed civil penalty under 61-29-17(C).
23. Two well-qualified brokers from Bernalillo County seek the same open Commission seat while another Bernalillo County broker already serves. What limits the appointment?
Answer & explanation
Answer: D. 61-29-4 provides that not more than one member shall be from any one county. A second Bernalillo County appointee could not be seated while the current one serves.
24. An associate broker signs with a new brokerage on Monday. The transfer form, fee, E&O certificate, and license reach the Commission and are stamped Thursday. When is the transfer effective?
Answer & explanation
Answer: D. A transfer is effective on the date the fee, form, and license are received and stamped at the Commission office, provided current E&O proof is included.
25. Within how many days must a broker notify the Commission of a change in residential or email address?
Answer & explanation
Answer: D. 16.61.11 NMAC requires notice within 10 days. The 48-hour period applies to returning licenses to the Commission.
Sources
Source verification pending. Confirm current requirements with your state regulator.