Broker Basics NM 01 Licensing Study
Guide Exam Questions Fully Solved.
What is the New Mexico Real Estate Commission (NMREC) ? - Answer Government agency
that enforces the license law, enacts rules to clarify and/or implement the law and sets
education, application and renewal requirements.
What is parent company of New Mexico Real Estate Commission (NMREC) ? - Answer the NM
Regulation & Licensing Department
How are NMREC's member chosen? - Answer They are appointed by the governor; does not
require the state legislature to confirm commissioners
What is the make up of the NMREC. - Answer 5 Commissioners:
a) 4 brokers; 1 non-licensed public member who serve 5 year terms, Not paid.
b) No more than one commissioner from any one county at a time
c) Commissioners must be NM residents for 3 consecutive years before being appointed
How does the anagram LEE define NMREC's mandate? - Answer Licensing; Education;
Enforcement
What does the NMREC not do? - Answer 1) does not enforce NAR's Code of Ethics 2) does not
hear procuring cause disputes between firms; 3) Does not hear payment disputes between QBs
and ABs.
What defines a QB? - Answer 1) Act in their own name
2) Sue a member of the public for payment
3) List, sell, lease, auction, exchange, deal in real estate options or manage the real property of
others for compensation
4) Can be a QB for more than one brokerage or a QB for one and an AB for another
What is needed to become a QB? - Answer 4 years experience with 100 points; one
transaction per year for each of the 4 years of the 5 before applying to be a qualifying broker.
, When can you submit fingerprints for license? - Answer No earlier than 21 days
How many days must a QB notify NMREC after move? - Answer 10 days
How must QB display licenses from a virtual office or website? - Answer Must have links to RE
licenses.
If a QB can supervise an office, what must he do? - Answer Have a QB or similar as broker in
charge.
How long must a QB hold on to records - Answer 6 years
What must a QB insure first-year licensees take? - Answer New Broker Business Practices or
CCIM 101 CE
What must an AB do the first year? - Answer Take New Broker Business Practices or CCIM 101
CE
What are the exemptions to licensing laws? - Answer 1) property owner selling own property
2) an owner's regular employees
3) an attorney doing legal work
4) A person acting with written PoA (no more than 2 per year)
5) a person with written PoA related to 4th degree of consanguinity.
6) A receiver, bankruptcy, trustee, probate executor, selling per court order, deed of trust
trustee or trust agreement trustee.
7) Govt officials
8 Mineral rights brokers not selling surface rights
9) Time share with 15% ownership of property
What is the E&O coverage each broker must have? - Answer $100,000 per claim, $500,000
total per broker.
What is the E&O max premium a broker must have? - Answer $500 per year with $1000 max
Guide Exam Questions Fully Solved.
What is the New Mexico Real Estate Commission (NMREC) ? - Answer Government agency
that enforces the license law, enacts rules to clarify and/or implement the law and sets
education, application and renewal requirements.
What is parent company of New Mexico Real Estate Commission (NMREC) ? - Answer the NM
Regulation & Licensing Department
How are NMREC's member chosen? - Answer They are appointed by the governor; does not
require the state legislature to confirm commissioners
What is the make up of the NMREC. - Answer 5 Commissioners:
a) 4 brokers; 1 non-licensed public member who serve 5 year terms, Not paid.
b) No more than one commissioner from any one county at a time
c) Commissioners must be NM residents for 3 consecutive years before being appointed
How does the anagram LEE define NMREC's mandate? - Answer Licensing; Education;
Enforcement
What does the NMREC not do? - Answer 1) does not enforce NAR's Code of Ethics 2) does not
hear procuring cause disputes between firms; 3) Does not hear payment disputes between QBs
and ABs.
What defines a QB? - Answer 1) Act in their own name
2) Sue a member of the public for payment
3) List, sell, lease, auction, exchange, deal in real estate options or manage the real property of
others for compensation
4) Can be a QB for more than one brokerage or a QB for one and an AB for another
What is needed to become a QB? - Answer 4 years experience with 100 points; one
transaction per year for each of the 4 years of the 5 before applying to be a qualifying broker.
, When can you submit fingerprints for license? - Answer No earlier than 21 days
How many days must a QB notify NMREC after move? - Answer 10 days
How must QB display licenses from a virtual office or website? - Answer Must have links to RE
licenses.
If a QB can supervise an office, what must he do? - Answer Have a QB or similar as broker in
charge.
How long must a QB hold on to records - Answer 6 years
What must a QB insure first-year licensees take? - Answer New Broker Business Practices or
CCIM 101 CE
What must an AB do the first year? - Answer Take New Broker Business Practices or CCIM 101
CE
What are the exemptions to licensing laws? - Answer 1) property owner selling own property
2) an owner's regular employees
3) an attorney doing legal work
4) A person acting with written PoA (no more than 2 per year)
5) a person with written PoA related to 4th degree of consanguinity.
6) A receiver, bankruptcy, trustee, probate executor, selling per court order, deed of trust
trustee or trust agreement trustee.
7) Govt officials
8 Mineral rights brokers not selling surface rights
9) Time share with 15% ownership of property
What is the E&O coverage each broker must have? - Answer $100,000 per claim, $500,000
total per broker.
What is the E&O max premium a broker must have? - Answer $500 per year with $1000 max
