Free New Mexico State Law Practice Test — LicenseIQ

Question 1

A broker with an ADA-qualifying disability wants an assistant to perform additional licensed-type tasks. Which condition applies?

Accepted Answer

16.61.21.10 NMAC allows the accommodation if the assistant is under the broker's direct control, is not held out as a broker, and the Commission is notified before services begin.

Question 2

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 3

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 4

Within how many days must a broker notify the Commission of a change in residential or email address?

Accepted Answer

16.61.11 NMAC requires notice within 10 days. The 48-hour period applies to returning licenses to the Commission.

Question 5

An owner wants to sell lots in his own subdivision without a broker's license. Under 61-29-2(C), the owner exemption does not apply once the subdivision contains how many parcels?

Accepted Answer

The owner exemption excludes a sale or offering of a subdivision of 100 or more parcels. Smaller numbers are distractors borrowed from subdivision-filing thresholds.

Question 6

Within what time must a claimant file a verified petition with the Commission for Recovery Fund payment?

Accepted Answer

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.

Question 7

On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 8

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 9

Under what circumstance may a trust account bear interest?

Accepted Answer

A special trust account is permitted only by written agreement naming the QB as sole trustee, the institution, the rate, who gets the interest, and final disposition.

Question 10

A salesperson wants to buy a FSBO home for his own investment. He must:

Accepted Answer

A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.

Question 11

Who is responsible for all real estate activities conducted within a New Mexico brokerage?

Accepted Answer

16.61.16.8 NMAC places responsibility for all real estate activities in the brokerage on the qualifying broker.

Question 12

Which activity may an unlicensed assistant generally perform?

Accepted Answer

Unlicensed staff may perform clerical tasks like typing licensee-prepared ads, but may not compose ads, negotiate or show property.

Question 13

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 14

Which activity is exempt from New Mexico licensing?

Accepted Answer

Persons dealing only in mineral leases, rights, or royalties without the fee or surface interest are exempt. An auctioneer is exempt only with a transaction-specific written agreement with a qualifying broker, and non-cash compensation still counts as valuable consideration.

Question 15

A life estate is measured by:

Accepted Answer

A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).

Question 16

Through how many transactions must a qualifying broker guide a newly licensed broker, at a minimum?

Accepted Answer

16.61.16.9(H) NMAC requires guidance through the first six transactions, or longer if the QB considers it necessary.

Question 17

How long is a New Mexico Real Estate Commissioner's term?

Accepted Answer

Members serve five-year terms or until successors are appointed and qualified. Three years is the residency requirement, which is the tempting mix-up.

Question 18

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 19

Which is a wrongful disbursement from a trust account?

Accepted Answer

Disbursing commissions or splits to anyone other than the qualifying broker is wrongful. The QB pays associates from the brokerage's funds after receiving the commission.

Question 20

Which statement about FHA-insured loans is correct?

Accepted Answer

FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.

Question 21

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

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.)

Question 22

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 23

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 24

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

Question 25

A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Accepted Answer

Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

New Mexico real estate state law practice test

1. A broker with an ADA-qualifying disability wants an assistant to perform additional licensed-type tasks. Which condition applies?

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

3. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

4. Within how many days must a broker notify the Commission of a change in residential or email address?

5. An owner wants to sell lots in his own subdivision without a broker's license. Under 61-29-2(C), the owner exemption does not apply once the subdivision contains how many parcels?

6. Within what time must a claimant file a verified petition with the Commission for Recovery Fund payment?

7. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

8. A home sells for $400,000 with a 5% total commission. What is the total commission?

9. Under what circumstance may a trust account bear interest?

10. A salesperson wants to buy a FSBO home for his own investment. He must:

11. Who is responsible for all real estate activities conducted within a New Mexico brokerage?

12. Which activity may an unlicensed assistant generally perform?

13. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

14. Which activity is exempt from New Mexico licensing?

15. A life estate is measured by:

16. Through how many transactions must a qualifying broker guide a newly licensed broker, at a minimum?

17. How long is a New Mexico Real Estate Commissioner's term?

18. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

19. Which is a wrongful disbursement from a trust account?

20. Which statement about FHA-insured loans is correct?

21. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

22. A licensee representing the seller who learns the buyer will pay more than the offer must:

23. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

24. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

25. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Sources