BROKER BASICS STUDY GUIDE EXAM
QUESTIONS AND ANSWERS 2026
VERIFIED.
Which of the following is FALSE regarding trade names? - ANS Associate brokers must register
a trade name
All of the following are broker duties EXCEPT - ANS Attend closings
The duty of honesty and reasonable care means - ANS Actively applying a broker's skill and
expertise for the benefit of their client
Who regulates septic systems in New Mexico? - ANS New Mexico Environmental
Improvement Department
When is a septic system required to be inspected and certified? - ANS Prior to the transfer of
ownership of the property interest
How long must transaction files be maintained, even if a deal does not close - ANS six years
What is required of office signage? - ANS It must be in a conspicuous location near the
entrance to the office
@2026/2027 ALLRIGHTS RESERVED.
, All signs advertising property for sale must include which of the following - ANS Brokerage
name and the office phone number
The Real Estate Commission may NOT impose - ANS Penalties for Code of Ethics Violations
Licensees have how many days to respond to a complaint by the Real Estate Commission? -
ANS 10 days
The MAXIMUM fine that the commission may impose is? - ANS $1,000 per violation
Brokers SHOULD NOT disclose which of the following - ANS The motivation of their client
Which of the following is FALSE of E&O insurance by the state provider? - ANS It covers fraud
and misrepresentation
New Mexico Human Rights Act differs from Federal Fair Housing laws because ONLY the New
Mexico's Act? - ANS Prohibits discrimination due to sexual orientation
When must broker duties be disclosed? - ANS In writing to a prospective customer or client
What must an associate broker do within the first year of obtaining a license - ANS Complete
the new broker business practice course
The appraisal board law was changed to allow a broker to do which of the following -
ANS Charge a fee for a broker price opinion
All of the following are duties of the New Mexico Real Estate Commission EXCEPT? -
ANS Enforce the code of ethics
@2026/2027 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS 2026
VERIFIED.
Which of the following is FALSE regarding trade names? - ANS Associate brokers must register
a trade name
All of the following are broker duties EXCEPT - ANS Attend closings
The duty of honesty and reasonable care means - ANS Actively applying a broker's skill and
expertise for the benefit of their client
Who regulates septic systems in New Mexico? - ANS New Mexico Environmental
Improvement Department
When is a septic system required to be inspected and certified? - ANS Prior to the transfer of
ownership of the property interest
How long must transaction files be maintained, even if a deal does not close - ANS six years
What is required of office signage? - ANS It must be in a conspicuous location near the
entrance to the office
@2026/2027 ALLRIGHTS RESERVED.
, All signs advertising property for sale must include which of the following - ANS Brokerage
name and the office phone number
The Real Estate Commission may NOT impose - ANS Penalties for Code of Ethics Violations
Licensees have how many days to respond to a complaint by the Real Estate Commission? -
ANS 10 days
The MAXIMUM fine that the commission may impose is? - ANS $1,000 per violation
Brokers SHOULD NOT disclose which of the following - ANS The motivation of their client
Which of the following is FALSE of E&O insurance by the state provider? - ANS It covers fraud
and misrepresentation
New Mexico Human Rights Act differs from Federal Fair Housing laws because ONLY the New
Mexico's Act? - ANS Prohibits discrimination due to sexual orientation
When must broker duties be disclosed? - ANS In writing to a prospective customer or client
What must an associate broker do within the first year of obtaining a license - ANS Complete
the new broker business practice course
The appraisal board law was changed to allow a broker to do which of the following -
ANS Charge a fee for a broker price opinion
All of the following are duties of the New Mexico Real Estate Commission EXCEPT? -
ANS Enforce the code of ethics
@2026/2027 ALLRIGHTS RESERVED.
