New Mexico Real Estate Broker Basics for
Kaplan Broker Basics 2021 Fourth Edition
Workbook EXAM QUESTIONS WITH ANSWERS.
A broker who prepares a purchase agreement MUST give a copy of this signed
document to the buyer
A. within five days after acceptance of the offer
B. as soon as practically possible
C. at the time all parties' signatures are obtained
D. no later than closing - CORRECT ANSWER✅✅B. as soon as practically possible
A broker writes an offer without having a brokerage service agreement. What brokerage
relationship has been created between the broker and the buyer?
A. Agency
B. Fiduciary
C. Transaction Broker
D. Dual Agency - CORRECT ANSWER✅✅C. Transaction Broker
A broker's license can be revoked if the broker
A. fails to account for funds that belong to others
B. is unwilling to act as a broker
C. pays a commission to a broker of another state
D. entrusts earnest money with another cooperating broker - CORRECT
ANSWER✅✅A. fails to account for funds that belong to others
A buyer relied on the seller's property disclosure, which stated that the seller was not
aware of any problems with the plumbing, but discovered within a few weeks that the
entire system of pipes in the house was badly deteriorated, springing one leak after
another. A plumber who examined the system after the problems arose found fairly
recent repairs to the system. What is the liability of the seller's agent in this case?
A. If the agent did not know of the problem, the agent has no liability in this matter
B. The agent shares the sellers' liability by virtue of their agency relationship
C. The agent had a duty to discover this problem and disclose it as part of their agency
duties
, D. The agent shares the liability with the seller, because the agent was required to
approve the seller's property condition disclosure - CORRECT ANSWER✅✅A. If the
agent did not know of the problem, the agent has no liability in this matter
A buyer's agent MUST disclose to a seller facts concerning a buyer's
A. willingness to pay more than the purchase price
B. reasons for purchasing the property
C. financial inability to perform the terms of the contract
D. willingness to accept methods of financing other than those offered - CORRECT
ANSWER✅✅C. financial inability to perform the terms of the contract
A claim against the Real Estate Recovery Fund is limited to NOT more than
A. $10,000
B. $6,600
C. $3,300
D. none of these - CORRECT ANSWER✅✅A. $10,000
A licensee's commingling of funds may include
A. mixing clients' money with personal accounts
B. misappropriating and using clients' money
C. failing to deposit clients' money in a trust
D. All of these - CORRECT ANSWER✅✅D. All of these
A property manager collecting rents for six individual rented units is REQUIRED to have
a MINIMUM of
A. one property management trust account
B. one special trust account
C. one custodial account
D. six individual property management trust accounts - CORRECT ANSWER✅✅A. one
property management trust account
A QB is responsible for all of the following EXCEPT
A. conducting business under the trade name and from the address registered with the
NMREC
B. maintaining a brokerage office located in New Mexico
C. maintaining full and complete records of real estate matters conducted through the
business
D. maintaining a written employment or independent contractor agreements with
associate brokers affiliated with the brokerage - CORRECT ANSWER✅✅B.
maintaining a brokerage office located in New Mexico
Kaplan Broker Basics 2021 Fourth Edition
Workbook EXAM QUESTIONS WITH ANSWERS.
A broker who prepares a purchase agreement MUST give a copy of this signed
document to the buyer
A. within five days after acceptance of the offer
B. as soon as practically possible
C. at the time all parties' signatures are obtained
D. no later than closing - CORRECT ANSWER✅✅B. as soon as practically possible
A broker writes an offer without having a brokerage service agreement. What brokerage
relationship has been created between the broker and the buyer?
A. Agency
B. Fiduciary
C. Transaction Broker
D. Dual Agency - CORRECT ANSWER✅✅C. Transaction Broker
A broker's license can be revoked if the broker
A. fails to account for funds that belong to others
B. is unwilling to act as a broker
C. pays a commission to a broker of another state
D. entrusts earnest money with another cooperating broker - CORRECT
ANSWER✅✅A. fails to account for funds that belong to others
A buyer relied on the seller's property disclosure, which stated that the seller was not
aware of any problems with the plumbing, but discovered within a few weeks that the
entire system of pipes in the house was badly deteriorated, springing one leak after
another. A plumber who examined the system after the problems arose found fairly
recent repairs to the system. What is the liability of the seller's agent in this case?
A. If the agent did not know of the problem, the agent has no liability in this matter
B. The agent shares the sellers' liability by virtue of their agency relationship
C. The agent had a duty to discover this problem and disclose it as part of their agency
duties
, D. The agent shares the liability with the seller, because the agent was required to
approve the seller's property condition disclosure - CORRECT ANSWER✅✅A. If the
agent did not know of the problem, the agent has no liability in this matter
A buyer's agent MUST disclose to a seller facts concerning a buyer's
A. willingness to pay more than the purchase price
B. reasons for purchasing the property
C. financial inability to perform the terms of the contract
D. willingness to accept methods of financing other than those offered - CORRECT
ANSWER✅✅C. financial inability to perform the terms of the contract
A claim against the Real Estate Recovery Fund is limited to NOT more than
A. $10,000
B. $6,600
C. $3,300
D. none of these - CORRECT ANSWER✅✅A. $10,000
A licensee's commingling of funds may include
A. mixing clients' money with personal accounts
B. misappropriating and using clients' money
C. failing to deposit clients' money in a trust
D. All of these - CORRECT ANSWER✅✅D. All of these
A property manager collecting rents for six individual rented units is REQUIRED to have
a MINIMUM of
A. one property management trust account
B. one special trust account
C. one custodial account
D. six individual property management trust accounts - CORRECT ANSWER✅✅A. one
property management trust account
A QB is responsible for all of the following EXCEPT
A. conducting business under the trade name and from the address registered with the
NMREC
B. maintaining a brokerage office located in New Mexico
C. maintaining full and complete records of real estate matters conducted through the
business
D. maintaining a written employment or independent contractor agreements with
associate brokers affiliated with the brokerage - CORRECT ANSWER✅✅B.
maintaining a brokerage office located in New Mexico
