NM Broker Basics Exam Practice Questions and Answers

NM Broker Basics Exam Practice Questions and Answers 54321 NMREC - Correct Answer ️️ -5 appointed members of the state and serve for 5 yrs 4 must be licensed RE brokers 3 consecutive years as state resident 2 (no more than) 1 Unlicensed member of the public RE Broker functions - Correct Answer ️️ -Buying Selling Leasing/Renting Auctioning Exchanging Listing Negotiating Dealing in options Real Estate Commission - Correct Answer ️️ -Governing body that issues RE licenses Can renew, suspend or revoke Trade Organization - Correct Answer ️️ -NAR - National Association of REALTORS - voluntary Members: subscribe to specific code of ethics and have access to MLS Does NOT issues RE licenses To be a member, must first have RE license issues by their state regulating agency Violations by licensee - Correct Answer ️️ -Misdemeanor Fined no more than $500 Imprisonment for no more than 6 mos or both Violations by non-licensee - Correct Answer ️️ -4th degree felony Max penalty is 18 months imprisonment Fine $5000 or both LEE - Correct Answer ️️ -Commission Functions Licensing Education Enforcement Qualifying Broker - Correct Answer ️️ -Broker qualified a proprietorship, corporation, partnership or association to do business as a RE brokerage in the state of NM and who discharges responsibilities of a qualifying broker as set forth in NMAC (16.61.16.9) Associate Broker - Correct Answer ️️ -Person holding NM's broker associate broker's license who is affiliated with a NM qualifying broker Exceptions to License Requirement - Correct Answer ️️ -- Property owners, with respect to property owned - Regular employees, of prop owner or of qualifying broker with respect to prop owned or managed by broker - Person holding power of attorney from owner authorizing final consummation of RE transaction, provided transactions are isolated or sporadic, and not exceeding 2 per year Transactions where attorney in fact under duly executed power of attorney delivered by owner related to attorney in fact by up to 4th degree of consanguinity - Attorneys acting as attorneys - Public officials, court appointees, executors, trustees Brokers of severed mineral interests - Business opportunity brokers Severed Mineral Interests - Correct Answer ️️ -Precious minerals, gas, oil, etc that no longer run with the land State owned Fingerprint/Arrest Certificate - Correct Answer ️️ -No earlier than 21 days prior to submitting docs to apply for or renew a license License Transfer - Correct Answer ️️ -When broker requests transfer, QB or broker in charge must: -return that broker's license to NMREC within 48 HOURS -all RE activity on part of Associate Broker shall cease until transfer has been completed - brokers moving to another state must notify NMREC of their new address within 10 DAYS -responsibility of each licensee to update commission with any change of name, physical or email address, they must have current info at all times License Inactivation - Correct Answer ️️ -When broker requests their license to be put on inactive status, qualifying broker or broker in charge must return, by mail or in person, that license to commission within 48 HOURS Takes place at time the license is received and stamped at commission or upon receipt of written notification to commission by QB or broker in charge Core Courses - Correct Answer ️️ -3 courses per year 1 elective 1 ethics 1 of your choosing Refusal Suspension and Revocation (ULA + NLA) - Correct Answer ️️ -10 days to provide any information in file and response to complaint 20 days to request hearing after receiving response 30 days to appeal court decision in district court NCA - Correct Answer ️️ -Notice of contemplated action Issued to licensee by NMREC, NMREC hears complaints and makes decisions - may be appealed to a court provided by ULA Gives licensee 20 days to request hearing, if fail to do this - you'll be in default Has power to subpoena ULA - Correct Answer ️️ -Uniform Licensing Act Evidential documentation in accordance with ULA used to respond within 10 DAYS of having been provided with a copy of the complaint and having been informed by the commission in writing that a complaint has been filed against them Investigation may proceed without benefit of that person's response Refusal, Suspension and Revocation of Licenses - Correct Answer ️️ -Licenses may not be refused, suspended or revoked except upon a hearing as provided by the Uniform Licensing Act (ULA) Licensees are notified of pending action against their license by a NCA issued to licensee by commission Concealment - Correct Answer ️️ -Failure to make required disclosure Type of misrepresentation Pay attention to misrepresentation and omission - Correct Answer ️️ -of material facts 1 Intentional 2 Careless Misrepresentation of either can be grounds for suspension or revocation of license Continued negligence in making representations or in practice may also serve as grounds for action against a licensee False promises If investigation reveals that complaint DOES involve violation - Correct Answer ️️ -of RE license law or commission rules: commission may refer complaint to attorney general's office and request that a notice of contemplated action be issued to respondent or offer respondent a pre-NCA settlement Withdrawal of complaint by member of commission, public or