NEW MEXICO REAL ESTATE 2026/2027 QUESTIONS AND
SOLUTIONS RATED A+
✔✔Who regulates time shares? - ✔✔NMREC
✔✔How many MFH can a real estate licensee sell per year? - ✔✔1
✔✔Explain Statute of Frauds - ✔✔-all contracts must be in WRITING to be enforceable
-EXCEPT leases of less than 12 months
✔✔What amount does the NM Homestead Protection Act protect against for personal
non-specific liens or judgements? - ✔✔SINGLE= $60,000
MARRIED= $120,000
✔✔When does transfer of title occur? - ✔✔Time of recording of deed
✔✔In Government Survey System of land description, how much is one section, quarter
section, and township? - ✔✔one section is 640 acres
quarter section is 6,969,600 sqft
one township & range has 36 sections
✔✔ What are the six type of real property - ✔✔1. Residential
2. Commercial
3. Mixed use
4. Industrial
5. Agricultural
6. Special Purpose
✔✔What division is the real estate commission administrively attached to? -
✔✔regulation & licensing division (RDL)
✔✔What is the penalty for violation for violating real estate law or commission rules for
UNLICENSED person? - ✔✔$5000 criminal fine
4th degree felony
18 months in prison
✔✔What is the penalty for violation for violating real estate law or commission rules for
LICENSED person? - ✔✔MAX fine: $500
MAX Commission: $1000/violation
misdemeanor
6 months prison
, ✔✔How long do licensees have to RESPOND to complaint by NMREC? - ✔✔10 days
✔✔How long do licensees have to REQUEST a hearing after NCA? - ✔✔20 days
or license revoked is no request
✔✔How long do licensees have to APPEAL decision to district court after hearing? -
✔✔30 days
✔✔What happens if there is a FALSE statement on license application? - ✔✔NMREC
issues NCA for hearing
✔✔When can a Qualifying Brokers license can be revoked if their Associate Broker is
found guilty of illegal activity? - ✔✔Only if the QB had Guilty Knowledge of the offense
✔✔What is the MINIMUM penalty from NMREC? - ✔✔letter of reprimand
✔✔What is the MAXIMUM fine the NMREC may impose? - ✔✔$1000/violation
✔✔What happens if complaint against broker is filed, and then later dropped? - ✔✔The
commission is still required to investigate if an violation has occurred
✔✔What is the status of the license during the complaint process until the decision of
the commission after the hearing - ✔✔It is still ACTIVE
✔✔What happens with disputes between Associate Brokers and Qualifying Brokers
regarding commissions? - ✔✔They are not investigated by the real estate commission.
✔✔How long should records be available to NMREC? - ✔✔no less than 6 years-in
paper or electronic format
✔✔does NMREC enforce code of ethics? - ✔✔NO
this would be a trade organization
National Association of Relators
✔✔What records must be available to NMREC upon request? - ✔✔ALL records
generated in connection with real estate matters
✔✔Do time shares salespersons need a license? - ✔✔YES
UNLESS they have 15% ownership interest
✔✔What happens if an applicant fails one portion of exam & passes the other? -
✔✔they must pass failed portion within
90 DAYS
SOLUTIONS RATED A+
✔✔Who regulates time shares? - ✔✔NMREC
✔✔How many MFH can a real estate licensee sell per year? - ✔✔1
✔✔Explain Statute of Frauds - ✔✔-all contracts must be in WRITING to be enforceable
-EXCEPT leases of less than 12 months
✔✔What amount does the NM Homestead Protection Act protect against for personal
non-specific liens or judgements? - ✔✔SINGLE= $60,000
MARRIED= $120,000
✔✔When does transfer of title occur? - ✔✔Time of recording of deed
✔✔In Government Survey System of land description, how much is one section, quarter
section, and township? - ✔✔one section is 640 acres
quarter section is 6,969,600 sqft
one township & range has 36 sections
✔✔ What are the six type of real property - ✔✔1. Residential
2. Commercial
3. Mixed use
4. Industrial
5. Agricultural
6. Special Purpose
✔✔What division is the real estate commission administrively attached to? -
✔✔regulation & licensing division (RDL)
✔✔What is the penalty for violation for violating real estate law or commission rules for
UNLICENSED person? - ✔✔$5000 criminal fine
4th degree felony
18 months in prison
✔✔What is the penalty for violation for violating real estate law or commission rules for
LICENSED person? - ✔✔MAX fine: $500
MAX Commission: $1000/violation
misdemeanor
6 months prison
, ✔✔How long do licensees have to RESPOND to complaint by NMREC? - ✔✔10 days
✔✔How long do licensees have to REQUEST a hearing after NCA? - ✔✔20 days
or license revoked is no request
✔✔How long do licensees have to APPEAL decision to district court after hearing? -
✔✔30 days
✔✔What happens if there is a FALSE statement on license application? - ✔✔NMREC
issues NCA for hearing
✔✔When can a Qualifying Brokers license can be revoked if their Associate Broker is
found guilty of illegal activity? - ✔✔Only if the QB had Guilty Knowledge of the offense
✔✔What is the MINIMUM penalty from NMREC? - ✔✔letter of reprimand
✔✔What is the MAXIMUM fine the NMREC may impose? - ✔✔$1000/violation
✔✔What happens if complaint against broker is filed, and then later dropped? - ✔✔The
commission is still required to investigate if an violation has occurred
✔✔What is the status of the license during the complaint process until the decision of
the commission after the hearing - ✔✔It is still ACTIVE
✔✔What happens with disputes between Associate Brokers and Qualifying Brokers
regarding commissions? - ✔✔They are not investigated by the real estate commission.
✔✔How long should records be available to NMREC? - ✔✔no less than 6 years-in
paper or electronic format
✔✔does NMREC enforce code of ethics? - ✔✔NO
this would be a trade organization
National Association of Relators
✔✔What records must be available to NMREC upon request? - ✔✔ALL records
generated in connection with real estate matters
✔✔Do time shares salespersons need a license? - ✔✔YES
UNLESS they have 15% ownership interest
✔✔What happens if an applicant fails one portion of exam & passes the other? -
✔✔they must pass failed portion within
90 DAYS
