Free New Mexico Property Practice Test — LicenseIQ

Question 1

A title search is performed primarily to:

Accepted Answer

A title search establishes the chain of title and reveals encumbrances or defects before closing. (Reclassified from section 17 to section 9 / CORE - not NJ-specific.)

Question 2

A home's current and correct value is $270,000. The owner claims the head-of-family exemption, and the tax rate is 30 mills. What is the annual tax?

Accepted Answer

Taxable value is 270,000 / 3 = $90,000. Subtract the $2,000 head-of-family exemption to get $88,000. At 30 mills: 88 x $30 = $2,640. $2,700 forgets the exemption.

Question 3

The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

Accepted Answer

Adjust the comparable, never the subject. The subject is superior, so add $15,000 to the comp: $315,000.

Question 4

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 5

A special warranty deed warrants title only against defects that:

Accepted Answer

Special (limited) warranty deeds protect only against problems created during the grantor's ownership; general warranty deeds cover the entire history.

Question 6

Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

Accepted Answer

Certified General appraisers may appraise any property. Certified Residential appraisers are limited to 1-4 unit residential; Licensed Residential to noncomplex 1-4 units under $1 million.

Question 7

In a deed, the party conveying title is the ____ and the party receiving title is the ____.

Accepted Answer

The seller (grantor) conveys to the buyer (grantee). A deed is the document; title is the ownership rights it transfers.

Question 8

The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

Accepted Answer

The habendum clause defines the estate conveyed; the granting clause contains the words of conveyance.

Question 9

A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

Accepted Answer

Taxes = $6,000 / 12 = $500; insurance = $1,200 / 12 = $100. PITI = $1,193.54 + $500 + $100 = $1,793.54.

Question 10

Who may perform an appraisal of real property for a lender?

Accepted Answer

Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.

Question 11

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 12

A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

Accepted Answer

The abstract summarizes the recorded history; the chain of title lists successive owners; an attorney's opinion of title evaluates it.

Question 13

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 14

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 15

A quitclaim deed is most often used to:

Accepted Answer

Quitclaim deeds convey whatever interest the grantor may have, without warranties, making them useful for removing clouds or releasing claims.

Question 16

Which action may a life tenant take WITHOUT the remainderman's consent?

Accepted Answer

A life tenant may occupy or lease the property for the duration of the life estate but cannot sell, mortgage or commit waste that harms the remainderman's future interest.

Question 17

Which claimant may recover from the Real Estate Recovery Fund?

Accepted Answer

Recovery requires a final judgment for fraud, willful misrepresentation, or conversion, and no coverage by insurance or bond. Spouses and relatives within the third degree are barred.

Question 18

Which document need NOT be given to a short-term vacation renter?

Accepted Answer

16.61.24.16(E) NMAC states a UORRA copy is not required for vacation renters, while the rental agreement must list the rate, times, deposits, fees, rules, and cancellation policy.

Question 19

Before accepting an offer on residential property, the seller or seller's broker must:

Accepted Answer

47-13-4 requires the seller or seller's broker to request the levy estimate, using the list price, before accepting an offer. The buyer acknowledges receipt in writing.

Question 20

How long must a brokerage keep transaction records when it does not perform property management?

Accepted Answer

Transaction records are kept six years. Property management records are kept for the agreement term plus six years after termination.

Question 21

What must every New Mexico brokerage advertisement for property include at a minimum (other than directional signs)?

Accepted Answer

16.61.32.8(B) NMAC requires the registered trade name and current registered office phone in advertising. Directional signs are exempt.

Question 22

Before offering property management services, a brokerage must:

Accepted Answer

16.61.24.9 and 16.61.23.12 NMAC require a declaration of intent on the Commission's form. New Mexico has no separate manager license or bond.

Question 23

What is the head-of-family property tax exemption?

Accepted Answer

7-37-4 allows up to $2,000 off taxable value, claimed once per tax year in one county. $10,000 is the 2025 veteran exemption.

Question 24

A married couple bought land during the marriage, titled in the husband's name only. The husband signs a deed alone. Under New Mexico law, the deed is:

Accepted Answer

40-3-13 requires both spouses to join in transfers of community real property, and an instrument executed by one spouse in violation is void, subject to written ratification.

Question 25

In New Mexico, taxable value for property tax purposes equals what percentage of current and correct value?

Accepted Answer

7-37-3 sets the tax ratio at 33 1/3 percent of value.

New Mexico real estate property practice test

1. A title search is performed primarily to:

2. A home's current and correct value is $270,000. The owner claims the head-of-family exemption, and the tax rate is 30 mills. What is the annual tax?

3. The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

4. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

5. A special warranty deed warrants title only against defects that:

6. Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

7. In a deed, the party conveying title is the and the party receiving title is the .

8. The deed clause that defines the extent of the estate granted, often beginning 'to have and to hold,' is the:

9. A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

10. Who may perform an appraisal of real property for a lender?

11. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

12. A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):

13. A real estate licensee who is not an attorney may:

14. Under the statute of frauds, a real estate sales contract must be:

15. A quitclaim deed is most often used to:

16. Which action may a life tenant take WITHOUT the remainderman's consent?

17. Which claimant may recover from the Real Estate Recovery Fund?

18. Which document need NOT be given to a short-term vacation renter?

19. Before accepting an offer on residential property, the seller or seller's broker must:

20. How long must a brokerage keep transaction records when it does not perform property management?

21. What must every New Mexico brokerage advertisement for property include at a minimum (other than directional signs)?

22. Before offering property management services, a brokerage must:

23. What is the head-of-family property tax exemption?

24. A married couple bought land during the marriage, titled in the husband's name only. The husband signs a deed alone. Under New Mexico law, the deed is:

25. In New Mexico, taxable value for property tax purposes equals what percentage of current and correct value?

Sources