NEW MEXICO ACTUAL
EXAM QUESTIONS AND
CORRECT ANSWERS
LATEST UPDATE
2026/2027 GRADED A+ .
, 1. George is interested in getting his associate broker real estate license in New Mexico. Which of the following will
George be required to do?: Complete a criminal background check.
2. In contract law, when does partial performance occur?: When a party does some, but not all, of what the party has agreed to do
3. In a designated agency, who generally plays the role of a facilitator?: The qualifying broker
4. If the commission determines discipline is required for a license law viola-tion, what is the commission likely to
do?: Issue a notice of contemplated action.
5. What language may be included in a contract after the assignor's name to make it clear that the contract is
assignable✓✓ CORRECT ANSWER "And/or assigns"
6. In New Mexico, which of the following scenarios is an example of a dual agency situation✓✓ CORRECT
ANSWER An associate broker is an agent of both the seller and buyer in a sales transaction.
7. George has closed a transaction. Which final step must he complete as part of the typical residential sales process✓✓
CORRECT ANSWER Retain copies of transactional paperwork.
8. Which of the following property management trust fund-handling scenarios is permitted in New Mexico✓✓
CORRECT ANSWER Broker Alex deposited a rent check into his brokerage's property management trust account before disbursing it to the property owner.
9. What happens to an earnest money deposit if buyers back out of a purchase contract✓✓ CORRECT ANSWER It varies,
based on seller instructions described in the listing contract.
10. Your buyer is making an offer on a house with an enclosed liquid waste system. She asks you what
responsibilities she'll have if she's the new owner. Which one of the following should you tell her✓✓ CORRECT
ANSWER "You'll need to get an annual operating permit, which means you'll have to pay a fee and show that the system is in good working order every
year."
11. How many hours of pre-licensing education does New Mexico require as-sociate broker applicants to
complete✓✓ CORRECT ANSWER 90
12. Licensees in New Mexico who are found guilty of a license law violation could receive penalties from
NMREC, including the possibility of .: Mon-
etary fines
13. Who does a transaction broker represent in a transaction in New Mexico?-
: No one
EXAM QUESTIONS AND
CORRECT ANSWERS
LATEST UPDATE
2026/2027 GRADED A+ .
, 1. George is interested in getting his associate broker real estate license in New Mexico. Which of the following will
George be required to do?: Complete a criminal background check.
2. In contract law, when does partial performance occur?: When a party does some, but not all, of what the party has agreed to do
3. In a designated agency, who generally plays the role of a facilitator?: The qualifying broker
4. If the commission determines discipline is required for a license law viola-tion, what is the commission likely to
do?: Issue a notice of contemplated action.
5. What language may be included in a contract after the assignor's name to make it clear that the contract is
assignable✓✓ CORRECT ANSWER "And/or assigns"
6. In New Mexico, which of the following scenarios is an example of a dual agency situation✓✓ CORRECT
ANSWER An associate broker is an agent of both the seller and buyer in a sales transaction.
7. George has closed a transaction. Which final step must he complete as part of the typical residential sales process✓✓
CORRECT ANSWER Retain copies of transactional paperwork.
8. Which of the following property management trust fund-handling scenarios is permitted in New Mexico✓✓
CORRECT ANSWER Broker Alex deposited a rent check into his brokerage's property management trust account before disbursing it to the property owner.
9. What happens to an earnest money deposit if buyers back out of a purchase contract✓✓ CORRECT ANSWER It varies,
based on seller instructions described in the listing contract.
10. Your buyer is making an offer on a house with an enclosed liquid waste system. She asks you what
responsibilities she'll have if she's the new owner. Which one of the following should you tell her✓✓ CORRECT
ANSWER "You'll need to get an annual operating permit, which means you'll have to pay a fee and show that the system is in good working order every
year."
11. How many hours of pre-licensing education does New Mexico require as-sociate broker applicants to
complete✓✓ CORRECT ANSWER 90
12. Licensees in New Mexico who are found guilty of a license law violation could receive penalties from
NMREC, including the possibility of .: Mon-
etary fines
13. Who does a transaction broker represent in a transaction in New Mexico?-
: No one
