NEW MEXICO REAL ESTATE EXAMS SCRIPT 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔How long does a broker have to notify NMREC of new address - ✔✔10 days
✔✔How long does QB have to notice/return license to NMREC when AB transfers
license? - ✔✔48 hours
✔✔What are the requirements that need to be met for licensee transferring offices &
working with new QB? - ✔✔Must be STAMPED & received by Commission
1. transfer application
2. transfer license
3. proof of E & O
4. $20 transfer fee
✔✔What is MAX fee for each license transferred? - ✔✔$20
if 11 or more- MAX fee is $200
✔✔What happens if broker owes child support? (HSD-NM Human Services Dept) -
✔✔NMREC Investigates
30 days to submit statement of compliance after notification of delinquent child support
State of Compliance is issued from NM HSD
if not submitted in 30 days-NMREC with suspend license
✔✔What is E&O insurance? - ✔✔Professional liability insurance
insures AGAINST innocent or negligent mistakes
does NOT cover fraud or misrepresentation
not required for inactive licensees
✔✔What is the MAX premium per year charged for E & O? - ✔✔$500 per year
✔✔What is MINIMUM coverage for E & O? - ✔✔$100,000/claim
$500,000 combined limit
✔✔What is MAX deductible for E & O? - ✔✔$1000
, ✔✔What course is required within 1st year of licensure of broker's licensed in NM as
AB? - ✔✔New Broker Business Practices Course
✔✔Can an unlicensed assistant host an open house with their responsible person
present? - ✔✔YES
✔✔Who are trade names registered with? - ✔✔NMREC
ABs do NOT register a trade name
real estate brokerage business must be conducted under trade name & from brokerage
address registered with commission
✔✔What happens if the QB cannot perform actual supervison? - ✔✔appoint broker-in-
charge in writing to commission
does not need to be a QB-must meet requirements
✔✔Does the QB have to maintain an office in state of NM - ✔✔NO
can be virtual
✔✔True/False
Broker duties MUST be disclosed in writing to prospective customer or client - ✔✔TRUE
✔✔Does a tenancy agreement need to contain property owner name? - ✔✔NO
✔✔How do licenses need to be displayed for a virtual office? - ✔✔link with "real estate
licenses"
✔✔How are social media advertising disclosure requirements met? - ✔✔a link to
information
✔✔What are examples of things brokers CANNOT say when advertising a property? -
✔✔-marries couples only
-upscale community
-no children allowed
✔✔What is the only MUST on a sign advertising a property - ✔✔Office number
Brokerage Name
✔✔Where does the QB need a sign? - ✔✔legible sign conspicuous place near entrance
of the office
QUESTIONS AND SOLUTIONS RATED A+
✔✔How long does a broker have to notify NMREC of new address - ✔✔10 days
✔✔How long does QB have to notice/return license to NMREC when AB transfers
license? - ✔✔48 hours
✔✔What are the requirements that need to be met for licensee transferring offices &
working with new QB? - ✔✔Must be STAMPED & received by Commission
1. transfer application
2. transfer license
3. proof of E & O
4. $20 transfer fee
✔✔What is MAX fee for each license transferred? - ✔✔$20
if 11 or more- MAX fee is $200
✔✔What happens if broker owes child support? (HSD-NM Human Services Dept) -
✔✔NMREC Investigates
30 days to submit statement of compliance after notification of delinquent child support
State of Compliance is issued from NM HSD
if not submitted in 30 days-NMREC with suspend license
✔✔What is E&O insurance? - ✔✔Professional liability insurance
insures AGAINST innocent or negligent mistakes
does NOT cover fraud or misrepresentation
not required for inactive licensees
✔✔What is the MAX premium per year charged for E & O? - ✔✔$500 per year
✔✔What is MINIMUM coverage for E & O? - ✔✔$100,000/claim
$500,000 combined limit
✔✔What is MAX deductible for E & O? - ✔✔$1000
, ✔✔What course is required within 1st year of licensure of broker's licensed in NM as
AB? - ✔✔New Broker Business Practices Course
✔✔Can an unlicensed assistant host an open house with their responsible person
present? - ✔✔YES
✔✔Who are trade names registered with? - ✔✔NMREC
ABs do NOT register a trade name
real estate brokerage business must be conducted under trade name & from brokerage
address registered with commission
✔✔What happens if the QB cannot perform actual supervison? - ✔✔appoint broker-in-
charge in writing to commission
does not need to be a QB-must meet requirements
✔✔Does the QB have to maintain an office in state of NM - ✔✔NO
can be virtual
✔✔True/False
Broker duties MUST be disclosed in writing to prospective customer or client - ✔✔TRUE
✔✔Does a tenancy agreement need to contain property owner name? - ✔✔NO
✔✔How do licenses need to be displayed for a virtual office? - ✔✔link with "real estate
licenses"
✔✔How are social media advertising disclosure requirements met? - ✔✔a link to
information
✔✔What are examples of things brokers CANNOT say when advertising a property? -
✔✔-marries couples only
-upscale community
-no children allowed
✔✔What is the only MUST on a sign advertising a property - ✔✔Office number
Brokerage Name
✔✔Where does the QB need a sign? - ✔✔legible sign conspicuous place near entrance
of the office
