NEW MEXICO REAL ESTATE MAIN EXAMINATION SET
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔The New Mexico Real Estate Commission has many duties and powers. Which of
the following is a duty or power of another entity? - ✔✔Provide legal advice.
✔✔How long must the landlord give the tenant to repair a breach of contract before
using remedies afforded to landlords under the New Mexico UORRA? - ✔✔Seven days
✔✔Which of the following scenarios is an example of novation? - ✔✔Doug is buying
Norm's farm, but has a serious accident and no longer wants to own a farm, so his
daughter Linda decides to buy the property. Norm agrees to the substitution of Linda for
Doug in the purchase contract, effectively creating a new contract.
✔✔Which type of lawsuit do tenants commonly file against property managers? -
✔✔Fair housing violations
✔✔When it comes to the commingling of property management trust funds in New
Mexico, are there any exceptions to the law? - ✔✔Yes, funds needed to cover bank
fees or charges may be placed in trust accounts.
✔✔A New Mexico property manager is using a third party to advertise the vacation
rental he manages. The third party has a branding policy that prohibits mentioning the
involvement of a real estate licensee or property manager. In order to maintain
compliance with license law, what should he do? - ✔✔Fulfill his obligation to disclose
his status as a licensee separately, promptly after the tenant has made the reservation.
✔✔Which of the following is an adverse material fact that must be disclosed? -
✔✔There is an environmental hazard on the property
✔✔In what language must the listing agreement be written? - ✔✔Clear and
unambiguous
✔✔Which type of insurance can property managers carry to cover accidents that occur
in the office? - ✔✔Commercial general liability
✔✔New Mexico licensee, Adrian, owes his buyer client the duty of obedience. Which of
the following must be true? - ✔✔Adrian is the buyer's agent
✔✔A New Mexico associate broker moved to a new house. What actions must the
associate broker take? - ✔✔Communicate the address change to NMREC within 10
days.
, ✔✔Lisa helped her neighbor sell his New Mexico home by assisting him with the
negotiations. She received no compensation for her assistance. Based on this one
transaction, Lisa _______. - ✔✔Doesn't need a real estate license
✔✔Megan was ready to buy a house and thought she'd found the right real estate office
to employ. But Megan felt uneasy about the broker's credentials. Which one of the
following entities can she contact to verify that the broker is legally licensed? - ✔✔New
Mexico Real Estate Commission
✔✔What's the purpose of the broker protection clause in the listing contract? -
✔✔Allows a broker to earn a commission if a buyer is found shortly after the listing
contract expires.
✔✔What is a tenant's duty under the New Mexico Uniform Owner-Resident Relations
Act? - ✔✔Maintain the unit in clean and safe condition.
✔✔A New Mexico qualifying broker plans to engage in property management activities.
Assuming he's fulfilled his educational requirements, what else must he do before
performing any property management activities? - ✔✔He must state his intention to
engage in property management activities on the appropriate property management
declaration form.
✔✔What's required for both assignments and subleasing in most cases? - ✔✔Landlord
approval
✔✔In a designated agency, who generally plays the role of a facilitator? - ✔✔The
qualifying broker
✔✔How long does a New Mexico licensee have to respond to a notice of contemplated
action? - ✔✔90
✔✔Which of the following duties is NOT owed to a buyer with whom the licensee is
directly working in New Mexico, with whom the licensee has no written brokerage
agreement? - ✔✔Advocating on the buyer's behalf
✔✔NMREC rule and regulations apply to ______. - ✔✔All forms of real estate
advertising
✔✔Which of the following duties does a New Mexico licensee only owe to a client in an
agency relationship ? - ✔✔Obedience
✔✔What's an effluent disposal well? - ✔✔A well that drains hazardous material deep
into the ground
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔The New Mexico Real Estate Commission has many duties and powers. Which of
the following is a duty or power of another entity? - ✔✔Provide legal advice.
✔✔How long must the landlord give the tenant to repair a breach of contract before
using remedies afforded to landlords under the New Mexico UORRA? - ✔✔Seven days
✔✔Which of the following scenarios is an example of novation? - ✔✔Doug is buying
Norm's farm, but has a serious accident and no longer wants to own a farm, so his
daughter Linda decides to buy the property. Norm agrees to the substitution of Linda for
Doug in the purchase contract, effectively creating a new contract.
✔✔Which type of lawsuit do tenants commonly file against property managers? -
✔✔Fair housing violations
✔✔When it comes to the commingling of property management trust funds in New
Mexico, are there any exceptions to the law? - ✔✔Yes, funds needed to cover bank
fees or charges may be placed in trust accounts.
✔✔A New Mexico property manager is using a third party to advertise the vacation
rental he manages. The third party has a branding policy that prohibits mentioning the
involvement of a real estate licensee or property manager. In order to maintain
compliance with license law, what should he do? - ✔✔Fulfill his obligation to disclose
his status as a licensee separately, promptly after the tenant has made the reservation.
✔✔Which of the following is an adverse material fact that must be disclosed? -
✔✔There is an environmental hazard on the property
✔✔In what language must the listing agreement be written? - ✔✔Clear and
unambiguous
✔✔Which type of insurance can property managers carry to cover accidents that occur
in the office? - ✔✔Commercial general liability
✔✔New Mexico licensee, Adrian, owes his buyer client the duty of obedience. Which of
the following must be true? - ✔✔Adrian is the buyer's agent
✔✔A New Mexico associate broker moved to a new house. What actions must the
associate broker take? - ✔✔Communicate the address change to NMREC within 10
days.
, ✔✔Lisa helped her neighbor sell his New Mexico home by assisting him with the
negotiations. She received no compensation for her assistance. Based on this one
transaction, Lisa _______. - ✔✔Doesn't need a real estate license
✔✔Megan was ready to buy a house and thought she'd found the right real estate office
to employ. But Megan felt uneasy about the broker's credentials. Which one of the
following entities can she contact to verify that the broker is legally licensed? - ✔✔New
Mexico Real Estate Commission
✔✔What's the purpose of the broker protection clause in the listing contract? -
✔✔Allows a broker to earn a commission if a buyer is found shortly after the listing
contract expires.
✔✔What is a tenant's duty under the New Mexico Uniform Owner-Resident Relations
Act? - ✔✔Maintain the unit in clean and safe condition.
✔✔A New Mexico qualifying broker plans to engage in property management activities.
Assuming he's fulfilled his educational requirements, what else must he do before
performing any property management activities? - ✔✔He must state his intention to
engage in property management activities on the appropriate property management
declaration form.
✔✔What's required for both assignments and subleasing in most cases? - ✔✔Landlord
approval
✔✔In a designated agency, who generally plays the role of a facilitator? - ✔✔The
qualifying broker
✔✔How long does a New Mexico licensee have to respond to a notice of contemplated
action? - ✔✔90
✔✔Which of the following duties is NOT owed to a buyer with whom the licensee is
directly working in New Mexico, with whom the licensee has no written brokerage
agreement? - ✔✔Advocating on the buyer's behalf
✔✔NMREC rule and regulations apply to ______. - ✔✔All forms of real estate
advertising
✔✔Which of the following duties does a New Mexico licensee only owe to a client in an
agency relationship ? - ✔✔Obedience
✔✔What's an effluent disposal well? - ✔✔A well that drains hazardous material deep
into the ground
