NEW MEXICO REAL ESTATE FINAL EXAM 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔Where does the QB need a sign? - ✔✔legible sign conspicuous place near entrance
of the office
✔✔If 2 QBs are sharing an office, do bother QBs need a sign? - ✔✔YES
✔✔Where are QB's required to place ALL monies belonging to others? - ✔✔-properly
established trust account in bank
-savings & loan institutions
-title company
-other NM QB's
✔✔What are two things not in trust account? - ✔✔-brokers may NOT deposit
commission checks
-GRT
✔✔What are trust accounts established as? - ✔✔checking account
✔✔if a broker has 10 security deposits
collected 5 rents & EM
How many trust accounts would they need? - ✔✔2 trust accounts
✔✔Can brokers renting their own units put rents into a trust account? - ✔✔NO
✔✔What must be documented for deposits? - ✔✔amount
property
date of receipt & deposit of funds
NOT broker's federal tax ID #
✔✔How many days after expiration of the management agreement does property
manager have to send final accounting to property owners? - ✔✔60 days
✔✔How many days notice does property manager need to give for NON-payment of
rent or substantial violation? - ✔✔3 days
Uniform Owner/Resident Relations Act
✔✔How many days notice does a property management need to give for breach of
agreement (violation) or to cure default (repairs maintenance) - ✔✔7 days
, Uniform Owner/Resident Relations Act
✔✔How much notice is required by either party to terminate rental agreement (less than
1 yr)? - ✔✔30 days
Uniform Owner/Resident Relations Act
✔✔What is the MAX time a broker can legally hold onto a security deposit? - ✔✔30
days
✔✔What happens if broker has not accounted for security deposit within 30 days and
tenant files suit? - ✔✔-landlord may be required to pay $250 in damages
-pay attorney's fees and court costs
-forfeits complete security deposit & any right to future damage claims
✔✔Are licensees required to disclose their license number or county where issued? -
✔✔NO
✔✔Can a property manager refuse to rent to an alcoholic that has a history & pattern of
violence & still be in compliance with fair housing laws? - ✔✔YES-bc of violence
✔✔Is it a broker duty to attend closing? - ✔✔NO
✔✔Is it a broker duty to disclose a seller's motivation for selling the property to potential
buyer? - ✔✔NO
✔✔When should signed copies of PA be given to buyer? - ✔✔as soon as possible after
signing
✔✔What are the differences in the duties of an AGENT vs the duties of a Transaction
broker? - ✔✔Obedience & Loyalty
✔✔What relationship would a property manager be in with the property owner? -
✔✔Exclusive agency
✔✔What term means the principle is responsible for the actions for the agent? -
✔✔Respondent Superior
✔✔What type of relationship is formed if a broker writes a PA for a buyer without written
brokerage relationship? - ✔✔Transaction Broker Relationship
QUESTIONS AND SOLUTIONS RATED A+
✔✔Where does the QB need a sign? - ✔✔legible sign conspicuous place near entrance
of the office
✔✔If 2 QBs are sharing an office, do bother QBs need a sign? - ✔✔YES
✔✔Where are QB's required to place ALL monies belonging to others? - ✔✔-properly
established trust account in bank
-savings & loan institutions
-title company
-other NM QB's
✔✔What are two things not in trust account? - ✔✔-brokers may NOT deposit
commission checks
-GRT
✔✔What are trust accounts established as? - ✔✔checking account
✔✔if a broker has 10 security deposits
collected 5 rents & EM
How many trust accounts would they need? - ✔✔2 trust accounts
✔✔Can brokers renting their own units put rents into a trust account? - ✔✔NO
✔✔What must be documented for deposits? - ✔✔amount
property
date of receipt & deposit of funds
NOT broker's federal tax ID #
✔✔How many days after expiration of the management agreement does property
manager have to send final accounting to property owners? - ✔✔60 days
✔✔How many days notice does property manager need to give for NON-payment of
rent or substantial violation? - ✔✔3 days
Uniform Owner/Resident Relations Act
✔✔How many days notice does a property management need to give for breach of
agreement (violation) or to cure default (repairs maintenance) - ✔✔7 days
, Uniform Owner/Resident Relations Act
✔✔How much notice is required by either party to terminate rental agreement (less than
1 yr)? - ✔✔30 days
Uniform Owner/Resident Relations Act
✔✔What is the MAX time a broker can legally hold onto a security deposit? - ✔✔30
days
✔✔What happens if broker has not accounted for security deposit within 30 days and
tenant files suit? - ✔✔-landlord may be required to pay $250 in damages
-pay attorney's fees and court costs
-forfeits complete security deposit & any right to future damage claims
✔✔Are licensees required to disclose their license number or county where issued? -
✔✔NO
✔✔Can a property manager refuse to rent to an alcoholic that has a history & pattern of
violence & still be in compliance with fair housing laws? - ✔✔YES-bc of violence
✔✔Is it a broker duty to attend closing? - ✔✔NO
✔✔Is it a broker duty to disclose a seller's motivation for selling the property to potential
buyer? - ✔✔NO
✔✔When should signed copies of PA be given to buyer? - ✔✔as soon as possible after
signing
✔✔What are the differences in the duties of an AGENT vs the duties of a Transaction
broker? - ✔✔Obedience & Loyalty
✔✔What relationship would a property manager be in with the property owner? -
✔✔Exclusive agency
✔✔What term means the principle is responsible for the actions for the agent? -
✔✔Respondent Superior
✔✔What type of relationship is formed if a broker writes a PA for a buyer without written
brokerage relationship? - ✔✔Transaction Broker Relationship
