NM REAL ESTATE EXAM QUESTIONS
& ANSWERS(RATED A+)
What are the six type of real property - ANSWER1. Residential
2. Commercial
3. Mixed use
4. Industrial
5. Agricultural
6. Special Purpose
What division is the real estate commission administrively attached to? -
ANSWERregulation & licensing division (RDL)
What is the penalty for violation for violating real estate law or commission rules for
UNLICENSED person? - ANSWER$5000 criminal fine
4th degree felony
18 months in prison
What is the penalty for violation for violating real estate law or commission rules for
LICENSED person? - ANSWERMAX fine: $500
MAX Commission: $1000/violation
misdemeanor
6 months prison
How long do licensees have to RESPOND to complaint by NMREC? - ANSWER10
days
How long do licensees have to REQUEST a hearing after NCA? - ANSWER20 days
or license revoked is no request
How long do licensees have to APPEAL decision to district court after hearing? -
ANSWER30 days
What happens if there is a FALSE statement on license application? -
ANSWERNMREC issues NCA for hearing
When can a Qualifying Brokers license can be revoked if their Associate Broker is found
guilty of illegal activity? - ANSWEROnly if the QB had Guilty Knowledge of the offense
What is the MINIMUM penalty from NMREC? - ANSWERletter of reprimand
What is the MAXIMUM fine the NMREC may impose? - ANSWER$1000/violation
, What happens if complaint against broker is filed, and then later dropped? -
ANSWERThe commission is still required to investigate if an violation has occurred
What is the status of the license during the complaint process until the decision of the
commission after the hearing - ANSWERIt is still ACTIVE
What happens with disputes between Associate Brokers and Qualifying Brokers
regarding commissions? - ANSWERThey are not investigated by the real estate
commission.
How long should records be available to NMREC? - ANSWERno less than 6 years-in
paper or electronic format
does NMREC enforce code of ethics? - ANSWERNO
this would be a trade organization
National Association of Relators
What records must be available to NMREC upon request? - ANSWERALL records
generated in connection with real estate matters
Do time shares salespersons need a license? - ANSWERYES
UNLESS they have 15% ownership interest
What happens if an applicant fails one portion of exam & passes the other? -
ANSWERthey must pass failed portion within
90 DAYS
or they will have to retake both
How long does an applicant have to make application for license after PASSING exam?
- ANSWER180 days
What is the MAX fee charged for exam - ANSWER$95
What is the MAX fee for real estate license? - ANSWER$270
What is a requirement for application of broker's license? - ANSWERmust have
recommendation of 2 reputable citizens who OWN real estate in applicant's country
What is a requirement for applying OR renewing NM real estate broker's license or
upgrading an AB to QB license? - ANSWERmust be fingerprinted
submitted to NM Department of Public Safety or EQUIVALENT department from state of
residence
FBI to conduct national criminal history background
& ANSWERS(RATED A+)
What are the six type of real property - ANSWER1. Residential
2. Commercial
3. Mixed use
4. Industrial
5. Agricultural
6. Special Purpose
What division is the real estate commission administrively attached to? -
ANSWERregulation & licensing division (RDL)
What is the penalty for violation for violating real estate law or commission rules for
UNLICENSED person? - ANSWER$5000 criminal fine
4th degree felony
18 months in prison
What is the penalty for violation for violating real estate law or commission rules for
LICENSED person? - ANSWERMAX fine: $500
MAX Commission: $1000/violation
misdemeanor
6 months prison
How long do licensees have to RESPOND to complaint by NMREC? - ANSWER10
days
How long do licensees have to REQUEST a hearing after NCA? - ANSWER20 days
or license revoked is no request
How long do licensees have to APPEAL decision to district court after hearing? -
ANSWER30 days
What happens if there is a FALSE statement on license application? -
ANSWERNMREC issues NCA for hearing
When can a Qualifying Brokers license can be revoked if their Associate Broker is found
guilty of illegal activity? - ANSWEROnly if the QB had Guilty Knowledge of the offense
What is the MINIMUM penalty from NMREC? - ANSWERletter of reprimand
What is the MAXIMUM fine the NMREC may impose? - ANSWER$1000/violation
, What happens if complaint against broker is filed, and then later dropped? -
ANSWERThe commission is still required to investigate if an violation has occurred
What is the status of the license during the complaint process until the decision of the
commission after the hearing - ANSWERIt is still ACTIVE
What happens with disputes between Associate Brokers and Qualifying Brokers
regarding commissions? - ANSWERThey are not investigated by the real estate
commission.
How long should records be available to NMREC? - ANSWERno less than 6 years-in
paper or electronic format
does NMREC enforce code of ethics? - ANSWERNO
this would be a trade organization
National Association of Relators
What records must be available to NMREC upon request? - ANSWERALL records
generated in connection with real estate matters
Do time shares salespersons need a license? - ANSWERYES
UNLESS they have 15% ownership interest
What happens if an applicant fails one portion of exam & passes the other? -
ANSWERthey must pass failed portion within
90 DAYS
or they will have to retake both
How long does an applicant have to make application for license after PASSING exam?
- ANSWER180 days
What is the MAX fee charged for exam - ANSWER$95
What is the MAX fee for real estate license? - ANSWER$270
What is a requirement for application of broker's license? - ANSWERmust have
recommendation of 2 reputable citizens who OWN real estate in applicant's country
What is a requirement for applying OR renewing NM real estate broker's license or
upgrading an AB to QB license? - ANSWERmust be fingerprinted
submitted to NM Department of Public Safety or EQUIVALENT department from state of
residence
FBI to conduct national criminal history background
