New Mexico Practice exam
What language may be included in a contract after the assignor's name to make it clear that the contract is assignable?
"And/or assigns"
Potential buyer Nate has just asked listing agent Samantha if the property he's interested in is subject to an HOA. Samantha says it is, and Nate asks how he can learn more about the HOA's policies and fees. What should Samantha say?
"I'll request a disclosure certificate from the HOA and get it to you as soon as it's ready."
Your buyer is making an offer on a house with an enclosed liquid waste system. She asks you what responsibilities she'll have if she's the new owner. Which one of the following should you tell her?
"You'll need to get an annual operating permit, which means you'll have to pay a fee and show that the system is in good working order every year."
Which of these is an example of a real estate violation?
A licensee didn't inform all parties that she was the listing agent.
In New Mexico, a violation of license law by a licensee is _______.
A misdemeanor or felony
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
A New Mexico associate broker, acting as a property manager, provides her property owner client with an "owner's statement" monthly, including information such as deposited and disbursed funds. What is the primary reason for this associated broker to provide this report?
Because it is a statutory requirement
When are New Mexico qualifying brokers and associate brokers required to complete the commission-approved Uniform Owner-Resident Relations Act course?
Both before offering property management services and during every three-year licensing cycle
George is interested in getting his associate broker real estate license in New Mexico. Which of the following will George be required to do?
Complete a criminal background check.
Where can real estate agents and homeowners find information about filling out a permit for a new septic system?
On the New Mexico Environment Department website
The owner of a nail salon that is located in a strip mall pays base rent of $1,800 and 10% of gross sales. What kind of lease do they have?
Percentage
Which of the following people is exempt from the licensing requirements for engaging in real estate activities in New Mexico?
Rebecca is an attorney who is a member of the state bar association. She focuses on real estate and property law for her firm.
Bob signed a contract to purchase Ingrid's apartment building. Bob decided he didn't want to be a landlord, and Ingrid decided she didn't want to sell and move to Maui. They mutually agreed to cancel the contract, and Ingrid returned Bob's earnest money. This is referred to as ______.
Rescission
George has closed a transaction. Which final step must he complete as part of the typical residential sales process?
Retain copies of transactional paperwork.
New Mexico mechanic's lien laws are designed to protect _______.
Subcontractors and suppliers
Which one of the following professionals must provide preliminary notice in order to reserve the right to claim a lien later on?
Tammy, a plumber who's about to start work on a building that will contain six condominiums
A New Mexico listing agreement is between which parties?
The seller and the brokerage firm
Which of the following elements is unrelated to the New Mexico property management agreement requirements?
The tenant's duties
Both the buyer and the seller have to sign the purchase and sale agreement in order to demonstrate that ______.
They understand the terms
Applicants must complete pre-licensing courses no more than _______ years prior to applying to take the licensing exams.
Three
In contract law, when does partial performance occur?
When a party does some, but not all, of what the party has agreed to do
Which type of insurance can property managers carry to protect against employee claims of injury?
Worker's compensation
Leslie is motivated to finish up her CE requirements at the beginning of the new renewal period. She completes the required hours, and even ends up taking an extra eight hours of continuing education courses more than a year before her license expiration date! How many of these extra credit hours can she carry over into the new renewal period?
Zero
Landlords may protect themselves from having to pay for damages to the property caused by the tenant by collecting a security ______ from the tenant.
Deposit
Which of the following is a power granted to the New Mexico Real Estate Commission?
Discipline licensees who violate license law or commission rules
A New Mexico licensee's client asks several legal questions regarding an offer to purchase. To avoid giving the client legal advice, the licensee should _______.
Encourage him to speak with a legal professional
When a contract is executory (for instance, in a land contract), what type of title does the buyer hold?
Equitable
What type of insurance are license applicants required to carry in New Mexico?
Errors and omissions insurance
A New Mexico landlord takes matters into his own hands and evicts tenants by removing their belongings and changing the locks without going through legal procedures. What type of eviction is this?
Illegal eviction
Jean and Ron have the temporary right to live at 555 Elm Street. They can come and go and use the property as they see fit, but they can't do so indefinitely. They must vacate the property at the end of next year. What sort of interest do they have in 555 Elm Street?
Leasehold estate
Which type of lease will typically include taxes and insurance in the base rent, but not utilities or janitorial services?
Modified gross lease
Licensees in New Mexico who are found guilty of a license law violation could receive penalties from NMREC, including the possibility of _______.
Monetary fines
Kendra enters a contract to sell her home to Madge. After the inspection, Madge insists that Kendra replace the roof, which is damaged. Kendra refuses, and the parties agree to cancel
Mutually rescinding the contract
What entity supplies the forms needed to apply for a real estate license in New Mexico?
New Mexico Real Estate Commission
The New Mexico Uniform Owner-Resident Relations Act applies to _______.
The rental of dwelling units
How many hours of pre-licensing education does New Mexico require associate broker applicants to complete?
90
When managing a short-term or vacation rental property in New Mexico, which of the following is required to be provided to tenants?
A tenant agreement with statutorily required details, such as fee disclosures
Which of these photos would be a potential MLS violation?
A view of the master bedroom, including the bed, dresser, and jewelry armoire
In New Mexico, which of the following scenarios is an example of a dual agency situation?
An associate broker is an agent of both the seller and buyer in a sales transaction.
Which of the following property management trust fund-handling scenarios is permitted in New Mexico?
Broker Alex deposited a rent check into his brokerage's property management trust account before disbursing it to the property owner.
If the commission determines discipline is required for a license law violation, what is the commission likely to do?
Issue a notice of contemplated action.
Which of the following describes how the New Mexico Uniform Owner-Resident Relations Act affects the state as a whole?
It encourages both landlords and tenants to improve the quality of housing in New Mexico.
What happens to an earnest money deposit if buyers back out of a purchase contract?
It varies, based on seller instructions described in the listing contract.
Who does a transaction broker represent in a transaction in New Mexico?
No one
Licensee Jonathan signed a listing agreement with a new client. Which of these actions should Jonathan plan to perform next, before he publishes the listing on the MLS?
Prepare a features list.
In New Mexico, who is responsible for supervising affiliate brokers, reviewing their transactional paperwork, and ensuring legal compliance when advertising for services requiring a license?
Qualifying brokers
Obvious staging can signal what?
The property is vacant.
In a designated agency, who generally plays the role of a facilitator?
The qualifying broker
What's the best description of NMREC requirements for how large an associate broker must make her qualifying broker's trade name on her ads?
The qualifying broker's name must be no smaller than 33% of the font size of the associate broker's name.
Which of the following is a required part of a New Mexico tenancy agreement?
The rent amount and where it is to be paid