NM REAL ESTATE EXAM QUESTIONS
AND ANSWERS 2026 VERIFIED.
What are the six type of real property - ANS 1. Residential
2. Commercial
3. Mixed use
4. Industrial
5. Agricultural
6. Special Purpose
What division is the real estate commission administrively attached to? - ANS regulation &
licensing division (RDL)
What is the penalty for violation for violating real estate law or commission rules for
UNLICENSED person? - ANS $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? - ANS MAX fine: $500
MAX Commission: $1000/violation
misdemeanor
6 months prison
@2026/2027 ALLRIGHTS RESERVED.
, How long do licensees have to RESPOND to complaint by NMREC? - ANS 10 days
How long do licensees have to REQUEST a hearing after NCA? - ANS 20 days
or license revoked is no request
How long do licensees have to APPEAL decision to district court after hearing? - ANS 30 days
What happens if there is a FALSE statement on license application? - ANS NMREC issues NCA
for hearing
When can a Qualifying Brokers license can be revoked if their Associate Broker is found guilty of
illegal activity? - ANS Only if the QB had Guilty Knowledge of the offense
What is the MINIMUM penalty from NMREC? - ANS letter of reprimand
What is the MAXIMUM fine the NMREC may impose? - ANS $1000/violation
What happens if complaint against broker is filed, and then later dropped? - ANS 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 - ANS It is still ACTIVE
What happens with disputes between Associate Brokers and Qualifying Brokers regarding
commissions? - ANS They are not investigated by the real estate commission.
How long should records be available to NMREC? - ANS no less than 6 years-in paper or
electronic format
@2026/2027 ALLRIGHTS RESERVED.
AND ANSWERS 2026 VERIFIED.
What are the six type of real property - ANS 1. Residential
2. Commercial
3. Mixed use
4. Industrial
5. Agricultural
6. Special Purpose
What division is the real estate commission administrively attached to? - ANS regulation &
licensing division (RDL)
What is the penalty for violation for violating real estate law or commission rules for
UNLICENSED person? - ANS $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? - ANS MAX fine: $500
MAX Commission: $1000/violation
misdemeanor
6 months prison
@2026/2027 ALLRIGHTS RESERVED.
, How long do licensees have to RESPOND to complaint by NMREC? - ANS 10 days
How long do licensees have to REQUEST a hearing after NCA? - ANS 20 days
or license revoked is no request
How long do licensees have to APPEAL decision to district court after hearing? - ANS 30 days
What happens if there is a FALSE statement on license application? - ANS NMREC issues NCA
for hearing
When can a Qualifying Brokers license can be revoked if their Associate Broker is found guilty of
illegal activity? - ANS Only if the QB had Guilty Knowledge of the offense
What is the MINIMUM penalty from NMREC? - ANS letter of reprimand
What is the MAXIMUM fine the NMREC may impose? - ANS $1000/violation
What happens if complaint against broker is filed, and then later dropped? - ANS 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 - ANS It is still ACTIVE
What happens with disputes between Associate Brokers and Qualifying Brokers regarding
commissions? - ANS They are not investigated by the real estate commission.
How long should records be available to NMREC? - ANS no less than 6 years-in paper or
electronic format
@2026/2027 ALLRIGHTS RESERVED.
