NEW MEXICO REAL ESTATE STUDY GUIDE 2026/2027
QUESTIONS AND SOLUTIONS RATED A+
✔✔The term used where the principle is responsible for the actions for the agent is -
✔✔Respondent Superior.
✔✔A broker writes a purchase agreement for a buyer without written brokerage
relationship - what kind of relationship is this? - ✔✔This is transaction broker
relationship.
✔✔_____________ is when the QB designates an agent to represent the seller,
another
agent to represent the buyer, and the qualifying broker acts as a supervisor. -
✔✔Designated agency
✔✔Dual agency - ✔✔Dual Agency - QB acts as a facilitator in a single transaction for
both buyer and seller.
✔✔Is a broker allowed to provide a broker price opinion to a lender? - ✔✔The appraisal
board law was changed to allow a broker to provide a broker price opinion
to a lender to determine value for a loan.
✔✔Duty of honesty and resonable care means? - ✔✔Applying the broker's skill and
expertise in a professional manner for the benefit of the principle
✔✔Disclose of tax levy? - ✔✔A broker must disclose the current and fute tax levy on a
property prior to writing a purchase offer
✔✔In a non-disclosure state do you need to disclose the selling price of a listing to the
neighbor? - ✔✔You do not
✔✔Septic Systems permits - ✔✔Permits do not expire
✔✔Who regulates the septic systems - ✔✔regulated by the New Mexico Environmental
Improved Board
✔✔Inspection of Septic systems - ✔✔-Septic systems needed to be inspected and
certified prior to closing, not more than 180 days (6 months) prior to recording
✔✔Wells and water rights are managed by who - ✔✔Managed by the New Mexico
State Engineer's Office
o Single family residence is entitled to 1.0 acre foot of water per year
o Priority of water rights is determined when permit is filed with State Engineers
office and recorded in county to which the property is located.
, ✔✔How much water is entitled to a single family residence? - ✔✔1.0 acre foot of water
per year
✔✔What is the priority of water rights? - ✔✔Priority of water rights is determined when
permit is filed with State Engineers
office and recorded in county to which the property is located.
✔✔New Mexico Human Rights - ✔✔Gender Identity, Sexual Orientation, Spousal
Affiliation, Ancestry - are added
✔✔Real Estate Recovery Fund - ✔✔Cannot fall below $150,000, excess amount may
be used for real estate
education fund
✔✔How are New Mexico property taxes paid? - ✔✔New Mexico property taxes are paid
in arrears.
✔✔When are NM Property taxes due? - ✔✔Property taxes are due November 10 of
current year and April 10 of following year
✔✔When are NM Property taxes delinquent? - ✔✔Delinquent on December 10 and May
10 of each year
✔✔Who is responsible to report the sales price of the property? - ✔✔Since 2004,
property owners (buyers) are responsible to report the sales price of the
property to the County Assessor's Office.
✔✔New Mexico is what type of property state? - ✔✔NM is a community property state.
In NM all property and assets acquired while a couple is married is considered
community property
✔✔Who regulates time shares in New Mexico? - ✔✔New Mexico Real Estate
Commission regulates time shares.
✔✔How many manufactured houses can a real estate licensee seller per year? - ✔✔1
manufactured house
✔✔Statute of Fraud - ✔✔-All contracts must be in writing to be enforceable
- Except leases of less than 12 months
QUESTIONS AND SOLUTIONS RATED A+
✔✔The term used where the principle is responsible for the actions for the agent is -
✔✔Respondent Superior.
✔✔A broker writes a purchase agreement for a buyer without written brokerage
relationship - what kind of relationship is this? - ✔✔This is transaction broker
relationship.
✔✔_____________ is when the QB designates an agent to represent the seller,
another
agent to represent the buyer, and the qualifying broker acts as a supervisor. -
✔✔Designated agency
✔✔Dual agency - ✔✔Dual Agency - QB acts as a facilitator in a single transaction for
both buyer and seller.
✔✔Is a broker allowed to provide a broker price opinion to a lender? - ✔✔The appraisal
board law was changed to allow a broker to provide a broker price opinion
to a lender to determine value for a loan.
✔✔Duty of honesty and resonable care means? - ✔✔Applying the broker's skill and
expertise in a professional manner for the benefit of the principle
✔✔Disclose of tax levy? - ✔✔A broker must disclose the current and fute tax levy on a
property prior to writing a purchase offer
✔✔In a non-disclosure state do you need to disclose the selling price of a listing to the
neighbor? - ✔✔You do not
✔✔Septic Systems permits - ✔✔Permits do not expire
✔✔Who regulates the septic systems - ✔✔regulated by the New Mexico Environmental
Improved Board
✔✔Inspection of Septic systems - ✔✔-Septic systems needed to be inspected and
certified prior to closing, not more than 180 days (6 months) prior to recording
✔✔Wells and water rights are managed by who - ✔✔Managed by the New Mexico
State Engineer's Office
o Single family residence is entitled to 1.0 acre foot of water per year
o Priority of water rights is determined when permit is filed with State Engineers
office and recorded in county to which the property is located.
, ✔✔How much water is entitled to a single family residence? - ✔✔1.0 acre foot of water
per year
✔✔What is the priority of water rights? - ✔✔Priority of water rights is determined when
permit is filed with State Engineers
office and recorded in county to which the property is located.
✔✔New Mexico Human Rights - ✔✔Gender Identity, Sexual Orientation, Spousal
Affiliation, Ancestry - are added
✔✔Real Estate Recovery Fund - ✔✔Cannot fall below $150,000, excess amount may
be used for real estate
education fund
✔✔How are New Mexico property taxes paid? - ✔✔New Mexico property taxes are paid
in arrears.
✔✔When are NM Property taxes due? - ✔✔Property taxes are due November 10 of
current year and April 10 of following year
✔✔When are NM Property taxes delinquent? - ✔✔Delinquent on December 10 and May
10 of each year
✔✔Who is responsible to report the sales price of the property? - ✔✔Since 2004,
property owners (buyers) are responsible to report the sales price of the
property to the County Assessor's Office.
✔✔New Mexico is what type of property state? - ✔✔NM is a community property state.
In NM all property and assets acquired while a couple is married is considered
community property
✔✔Who regulates time shares in New Mexico? - ✔✔New Mexico Real Estate
Commission regulates time shares.
✔✔How many manufactured houses can a real estate licensee seller per year? - ✔✔1
manufactured house
✔✔Statute of Fraud - ✔✔-All contracts must be in writing to be enforceable
- Except leases of less than 12 months
