NEW MEXICO REAL ESTATE COMPREHENSIVE EXAM
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔What type of relationship is formed if a broker writes a PA for a buyer without written
brokerage relationship? - ✔✔Transaction Broker Relationship
✔✔What is is called when the QB designates an agent to represent the seller & another
agent represents the buyer and the QB acts as a supervisor? - ✔✔Designated Agency
✔✔What is it called when the QB acts as a facilitator in a single transaction for both
buyer & seller? - ✔✔Dual Agency
✔✔What change was made in the appraisal board law? - ✔✔allows a broker to provide
a broker price opinion to a lender to determine value for a loan
✔✔What is does the duty of honesty & reasonable care mean? - ✔✔applying broker's
skill & expertise in a professional manor for the benefit of the principle
✔✔When must the broker disclose the current & future tax levy on a property? -
✔✔PRIOR to writing a purchase offer
✔✔Do you have to prove the selling price of a listing to a neighbor? - ✔✔NO-not in a
non-disclosure state
✔✔What should a broker do if buyer asks about title insurance? - ✔✔advise buyer to
seek legal advice
✔✔When a buyer asks about how much they can deduct on income taxes what should
a broker say? - ✔✔seek advice from tax expert
✔✔If the buyer wants to operate a business out of a home they are looking to purchase,
what should the broker do? - ✔✔recommend the buyer verify zoning on property prior to
purchase
✔✔If a broker had no knowledge of issues not listed on Seller's Property Disclosure are
they liable? - ✔✔NO
✔✔Do septic system permits expire? - ✔✔NO
✔✔Who regulates septic systems? - ✔✔NM Environmental Improved Board
✔✔When do septic systems need to be inspected & certified? - ✔✔PRIOR to closing
, Not more than 180 days (6months) prior to RECORDING
✔✔Who manages the well & water rights? - ✔✔NM State Engineers Office
✔✔How much water is a single family residence entitled to per year? - ✔✔1.0 acre of
water
✔✔When is priority of water rights determined? - ✔✔when permit is filed with State
Engineers office AND
recorded in county to which the property is located
✔✔What is regulated under New Mexico Human Rights? - ✔✔Gender Identity
Sexual Orientation
Spousal Affiliation
Ancestry
✔✔What amount can the Real Estate Recover Fund not fall below? - ✔✔$150,000
✔✔What is the excess amount used for for real estate recovery fund? - ✔✔real estate
education fund
✔✔What is Max amount for Real Estate Recovery Fund per transaction? - ✔✔$10,000
✔✔What is Max amount for Real Estate Recovery Fund per licensee? - ✔✔$30,000
✔✔How long does injured party have to file a claim after receiving a judgement &
making all attempts to collect from broker? - ✔✔1 year
✔✔What actions can the commission take until fund is paid back with interest? -
✔✔may revoke, suspend, or refuse to renew
✔✔When is Real Estate Recovery Fund used? - ✔✔Fraud
Misrepresentation
Negligence
✔✔When are NM Property taxes due? - ✔✔Nov 10 current year
April 10 following year
✔✔When are NM property taxes delinquent? - ✔✔Dec 10 & May 10 each year
✔✔Who is responsible to report sales price of property to County Assessor's Office? -
✔✔PROPERTY OWNERS (BUYERs)
✔✔TRUE/FALSE:
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔What type of relationship is formed if a broker writes a PA for a buyer without written
brokerage relationship? - ✔✔Transaction Broker Relationship
✔✔What is is called when the QB designates an agent to represent the seller & another
agent represents the buyer and the QB acts as a supervisor? - ✔✔Designated Agency
✔✔What is it called when the QB acts as a facilitator in a single transaction for both
buyer & seller? - ✔✔Dual Agency
✔✔What change was made in the appraisal board law? - ✔✔allows a broker to provide
a broker price opinion to a lender to determine value for a loan
✔✔What is does the duty of honesty & reasonable care mean? - ✔✔applying broker's
skill & expertise in a professional manor for the benefit of the principle
✔✔When must the broker disclose the current & future tax levy on a property? -
✔✔PRIOR to writing a purchase offer
✔✔Do you have to prove the selling price of a listing to a neighbor? - ✔✔NO-not in a
non-disclosure state
✔✔What should a broker do if buyer asks about title insurance? - ✔✔advise buyer to
seek legal advice
✔✔When a buyer asks about how much they can deduct on income taxes what should
a broker say? - ✔✔seek advice from tax expert
✔✔If the buyer wants to operate a business out of a home they are looking to purchase,
what should the broker do? - ✔✔recommend the buyer verify zoning on property prior to
purchase
✔✔If a broker had no knowledge of issues not listed on Seller's Property Disclosure are
they liable? - ✔✔NO
✔✔Do septic system permits expire? - ✔✔NO
✔✔Who regulates septic systems? - ✔✔NM Environmental Improved Board
✔✔When do septic systems need to be inspected & certified? - ✔✔PRIOR to closing
, Not more than 180 days (6months) prior to RECORDING
✔✔Who manages the well & water rights? - ✔✔NM State Engineers Office
✔✔How much water is a single family residence entitled to per year? - ✔✔1.0 acre of
water
✔✔When is priority of water rights determined? - ✔✔when permit is filed with State
Engineers office AND
recorded in county to which the property is located
✔✔What is regulated under New Mexico Human Rights? - ✔✔Gender Identity
Sexual Orientation
Spousal Affiliation
Ancestry
✔✔What amount can the Real Estate Recover Fund not fall below? - ✔✔$150,000
✔✔What is the excess amount used for for real estate recovery fund? - ✔✔real estate
education fund
✔✔What is Max amount for Real Estate Recovery Fund per transaction? - ✔✔$10,000
✔✔What is Max amount for Real Estate Recovery Fund per licensee? - ✔✔$30,000
✔✔How long does injured party have to file a claim after receiving a judgement &
making all attempts to collect from broker? - ✔✔1 year
✔✔What actions can the commission take until fund is paid back with interest? -
✔✔may revoke, suspend, or refuse to renew
✔✔When is Real Estate Recovery Fund used? - ✔✔Fraud
Misrepresentation
Negligence
✔✔When are NM Property taxes due? - ✔✔Nov 10 current year
April 10 following year
✔✔When are NM property taxes delinquent? - ✔✔Dec 10 & May 10 each year
✔✔Who is responsible to report sales price of property to County Assessor's Office? -
✔✔PROPERTY OWNERS (BUYERs)
✔✔TRUE/FALSE:
