Free New Mexico Real Estate Practice Exam

Q1.Which federal environmental law created the Superfund program to clean up contaminated sites and holds current property owners potentially liable for cleanup costs regardless of fault?

• A.Clean Air Act
• B.Safe Drinking Water Act
• C.Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)
• D.Resource Conservation and Recovery Act

Q2.Under New Mexico Real Estate License Law, what constitutes grounds for disciplinary action against a broker's license?

• A.Advertising without including brokerage name
• B.Failing to use approved forms
• C.Not attending voluntary training sessions
• D.Using electronic signatures without consent

Q3.Which of the following would NOT terminate an agency relationship?

• A.Expiration of the listing period
• B.Death of the principal
• C.Bankruptcy of the agent
• D.Mutual agreement to terminate

Q4.In New Mexico, when must a licensee provide the Disclosure of Relationships form to parties in a real estate transaction?

• A.Only when dual agency occurs
• B.At closing
• C.At first substantive contact
• D.Only when specifically requested

Q5.Under New Mexico law, which document must a qualifying broker maintain for each supervised salesperson?

• A.Annual performance reviews
• B.Continuing education certificates
• C.Written supervision agreement
• D.Transaction commission records

Q6.Which federal agency primarily regulates underground storage tanks (USTs)?

• A.Department of Housing and Urban Development (HUD)
• B.Environmental Protection Agency (EPA)
• C.Occupational Safety and Health Administration (OSHA)
• D.Federal Trade Commission (FTC)

Q7.According to New Mexico Real Estate Commission rules, what is the maximum amount a broker can hold in their escrow account without obtaining a surety bond?

• A.$50,000
• B.$75,000
• C.$100,000
• D.$150,000

Q8.Under the Fair Housing Act, which action by a real estate agent would constitute illegal steering?

• A.Showing all available properties in the MLS that meet a client's stated criteria
• B.Directing minority clients away from certain neighborhoods to maintain racial composition
• C.Providing demographic information about schools when specifically requested by a client
• D.Offering to show properties in multiple neighborhoods based on price range

Q9.In New Mexico, if a salesperson's license expires while under a broker's supervision, what is the broker's immediate responsibility?

• A.Continue supervision until renewal is completed
• B.Immediately cease all real estate activities by the salesperson
• C.Allow a 30-day grace period for renewal
• D.Transfer the salesperson to inactive status

Q10.Under New Mexico law, net listings are:

• A.Permitted with full disclosure
• B.Permitted only for commercial properties
• C.Prohibited
• D.Permitted with Real Estate Commission approval

Q11.Under federal fair housing law, which of the following is NOT a protected class?

• A.Race
• B.Religion
• C.Marital status
• D.National origin

Q12.Radon gas exposure in homes is primarily a health concern because it:

• A.Causes immediate respiratory distress
• B.Is the second leading cause of lung cancer
• C.Leads to heavy metal poisoning
• D.Triggers severe allergic reactions

Q13.In New Mexico, which type of deed provides the greatest protection to the grantee?

• A.Quitclaim deed
• B.Special warranty deed
• C.General warranty deed
• D.Bargain and sale deed

Q14.In New Mexico, how long must a broker maintain transaction records after the closing or termination of a transaction?

• A.2 years
• B.3 years
• C.4 years
• D.5 years

Q15.A qualifying broker discovers that an associate broker has been practicing real estate with an expired license for the past 30 days. The associate broker claims they were unaware of the expiration. What are the potential consequences under New Mexico law?

• A.Only the associate broker faces disciplinary action; the qualifying broker has no liability
• B.Both the associate broker and qualifying broker may face disciplinary action
• C.The qualifying broker can avoid liability by immediately terminating the associate broker
• D.No disciplinary action will be taken if the license is renewed within 60 days