Free New Mexico Real Estate Practice Exam

Q1.Which of the following scenarios best describes dual agency?

• A.A listing agent refers the buyer to a buyer's agent in a different brokerage
• B.One brokerage represents both the seller and the buyer in the same transaction
• C.A salesperson works under two different brokers simultaneously
• D.A buyer uses two different agents to search for homes

Q2.Under NMSA Chapter 61, Article 29, the New Mexico Real Estate Commission is composed of how many members, and who appoints them?

• A.Five members appointed by the Governor, with at least two being public members
• B.Seven members appointed by the Governor, with at least three being public members
• C.Nine members elected by licensed brokers statewide
• D.Five members appointed by the New Mexico Legislature

Q3.Under TRID rules, how many business days before closing must a lender provide the borrower with the Closing Disclosure?

• A.One business day
• B.Two business days
• C.Three business days
• D.Five business days

Q4.Under NMSA 1978, §61-29-12, which of the following disclosures is a New Mexico Associate Broker required to provide to all parties in a real estate transaction at the time of first substantive contact?

• A.A Comparative Market Analysis (CMA) showing the property's estimated value
• B.The Disclosure of Buyer Agency form signed by the qualifying broker
• C.The NMREC-approved Disclosure of Brokerage Relationship (DBR) form
• D.A written list of all other properties currently listed by the brokerage

Q5.A property has a net operating income (NOI) of $45,000. A buyer wants to achieve a 7.5% capitalization rate. What is the maximum price the buyer should pay for this property?

• A.$600,000
• B.$337,500
• C.$450,000
• D.$675,000

Q6.An agent calls homeowners in a neighborhood warning that 'people from another group are moving in and your property values will drop — sell now.' This practice is called:

• A.Legitimate market advisory — agents must warn clients of demographic trends
• B.Blockbusting — a Fair Housing Act violation that uses fear of demographic change to induce sales
• C.Redlining — the practice of denying services to residents of specific areas
• D.Puffery — exaggerated statements not actionable under fair housing law

Q7.Under NMSA 1978, §61-29-15, a Qualifying Broker in New Mexico who wishes to open their own independent brokerage must hold an active qualifying broker's license for at least how many years before doing so?

• A.One year
• B.Two years
• C.Three years
• D.Five years

Q8.The New Mexico Human Rights Act expands fair housing protections beyond the federal Fair Housing Act by prohibiting housing discrimination based on which characteristic NOT covered under federal law?

• A.Sexual orientation
• B.Race
• C.National origin
• D.Religion

Q9.A client reports a fraudulent wire moments ago. What should occur first?

• A.Wait for the next business day.
• B.Delete the email.
• C.Immediately contact the sending financial institution for a recall or freeze and initiate the incident plan and IC3 report.
• D.Post the details publicly.

Q10.A broker who supervises affiliated salespersons must ensure that all licensees under their supervision comply with the Fair Housing Act. Which of the following acts by an affiliated salesperson would most directly expose the supervising broker to federal Fair Housing Act liability?

• A.Steering a prospective minority buyer away from listings in predominantly white neighborhoods by only showing properties in minority-concentrated areas
• B.Failing to return a client's phone call within 24 hours
• C.Advertising a property without including the broker's name in the ad
• D.Submitting an offer below the listed asking price on behalf of a buyer client

Q11.Which reporting clause is most consistent with Arizona's property-management agreement requirements?

• A.Reports when convenient
• B.Reports as needed
• C.A monthly owner statement delivered electronically by the fifteenth day of the following month
• D.No reports unless the owner complains

Q12.Which loan type requires the property to meet HUD Minimum Property Standards, potentially requiring seller repairs before the loan can close?

• A.FHA loans
• B.Conventional conforming loans
• C.VA loans only
• D.USDA Rural Development loans only

Q13.Which statement correctly limits the ten-business-day broker review rule?

• A.It applies to the covered instruments identified by § 32-2151.01, not automatically to every PM record
• B.It is a universal deadline for every bank change
• C.It replaces all retention rules
• D.It applies only after an audit begins

Q14.What does A.R.S. § 18-552 require after awareness of a security incident involving covered computerized personal information?

• A.Ignore it unless a client complains.
• B.Conduct a prompt investigation to determine whether a breach occurred.
• C.Notify every Arizona resident before investigating.
• D.Delete affected systems immediately.

Q15.A New Mexico associate broker represents a buyer in the purchase of a residential property. During a walkthrough, the associate broker personally observes a significant crack in the foundation that the seller has not disclosed. The seller's agent claims it is merely cosmetic. The associate broker believes it may be a structural issue. Under New Mexico law, the buyer's associate broker's obligations include:

• A.Deferring to the seller's agent's characterization, as the associate broker is not a licensed structural engineer and cannot make technical determinations.
• B.Disclosing the observed condition to the buyer client and recommending that the buyer obtain a professional inspection of the foundation before proceeding.
• C.Notifying the New Mexico Real Estate Commission directly about the undisclosed defect before advising the buyer.
• D.Withdrawing from the transaction immediately, as representing a buyer in a property with undisclosed defects creates an unacceptable legal risk for the associate broker.