THE CE SHOP: 3. BROKER BASICS
EXAM QUESTIONS AND ANSWERS 2026
VERIFIED.
When are New Mexico qualifying brokers and associate brokers required to complete the
commission-approved Uniform Owner-Resident Relations Act course? - ANS Both before
offering property management services and during every three-year licensing cycle
A broker in your New Mexico firm tells you that having a buyer sign a written buyer brokerage
agreement is sufficient for creating an agency relationship. Is this true? - ANS No. The
agreement must specifically indicate that an agency relationship is intended.
Which of the following is an example of something that would be covered under E&O
insurance? - ANS A broker's use of lockboxes
All licensees who have a New Mexico license must complete continuing education requirements
every _______. - ANS Three years
You're a New Mexico real estate licensee who just inherited a windfall, and you've decided to
purchase an investment property. Must you disclose your license status on the purchase
agreement? - ANS Yes, you must disclose this under the Additional Disclosures section.
In New Mexico, a _______ directs the sheriff to evict a tenant and restore possession to the
landlord. - ANS Writ of restitution
@2026/2027 ALLRIGHTS RESERVED.
, Who does a transaction broker represent in a transaction in New Mexico? - ANS No one
Each buyer of a New Mexico timeshare must receive a(n) _______, which contains information
about the total price, the term of the timeshare, and details of the agreement between the
developer and person managing the timeshare, among other items. - ANS Disclosure
Lorenzo just received a prestigious fellowship to study abroad for a year! However, he still has
six months left on his one-year apartment lease. His landlord has given him permission to draw
up a new agreement with his sister Maggie, whereby Maggie will live in the apartment, pay rent
to Lorenzo, and then Lorenzo will pay the landlord. This is an example of ______. -
ANS Subleasing
Suzy is the buyer in an installment sales contract. What type of title will she have to the
property once she meets her contractual obligations? - ANS Legal
If the commission determines discipline is required for a license law violation, what is the
commission likely to do? - ANS Issue a notice of contemplated action.
Which one of the following statements about the New Mexico Real Estate Appraisers Act is
true? - ANS Its passage created the Real Estate Appraisers Board.
Both the buyer and the seller have to sign the purchase and sale agreement in order to
demonstrate that ______. - ANS They understand the terms
Short-sale homes are usually sold "as-is," meaning the seller isn't going to make any repairs. In
such a case, a(n) _______ addendum may be included. - ANS Buyer purchasing as-is
The appraisal on Jean's property came in at $22,000 less than the agreed-upon sales price, so
the buyer, Thomas, wants to renegotiate the terms. If they can come up with a new price that is
satisfactory to both parties, what will they use to document this? - ANS Amendment
@2026/2027 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND ANSWERS 2026
VERIFIED.
When are New Mexico qualifying brokers and associate brokers required to complete the
commission-approved Uniform Owner-Resident Relations Act course? - ANS Both before
offering property management services and during every three-year licensing cycle
A broker in your New Mexico firm tells you that having a buyer sign a written buyer brokerage
agreement is sufficient for creating an agency relationship. Is this true? - ANS No. The
agreement must specifically indicate that an agency relationship is intended.
Which of the following is an example of something that would be covered under E&O
insurance? - ANS A broker's use of lockboxes
All licensees who have a New Mexico license must complete continuing education requirements
every _______. - ANS Three years
You're a New Mexico real estate licensee who just inherited a windfall, and you've decided to
purchase an investment property. Must you disclose your license status on the purchase
agreement? - ANS Yes, you must disclose this under the Additional Disclosures section.
In New Mexico, a _______ directs the sheriff to evict a tenant and restore possession to the
landlord. - ANS Writ of restitution
@2026/2027 ALLRIGHTS RESERVED.
, Who does a transaction broker represent in a transaction in New Mexico? - ANS No one
Each buyer of a New Mexico timeshare must receive a(n) _______, which contains information
about the total price, the term of the timeshare, and details of the agreement between the
developer and person managing the timeshare, among other items. - ANS Disclosure
Lorenzo just received a prestigious fellowship to study abroad for a year! However, he still has
six months left on his one-year apartment lease. His landlord has given him permission to draw
up a new agreement with his sister Maggie, whereby Maggie will live in the apartment, pay rent
to Lorenzo, and then Lorenzo will pay the landlord. This is an example of ______. -
ANS Subleasing
Suzy is the buyer in an installment sales contract. What type of title will she have to the
property once she meets her contractual obligations? - ANS Legal
If the commission determines discipline is required for a license law violation, what is the
commission likely to do? - ANS Issue a notice of contemplated action.
Which one of the following statements about the New Mexico Real Estate Appraisers Act is
true? - ANS Its passage created the Real Estate Appraisers Board.
Both the buyer and the seller have to sign the purchase and sale agreement in order to
demonstrate that ______. - ANS They understand the terms
Short-sale homes are usually sold "as-is," meaning the seller isn't going to make any repairs. In
such a case, a(n) _______ addendum may be included. - ANS Buyer purchasing as-is
The appraisal on Jean's property came in at $22,000 less than the agreed-upon sales price, so
the buyer, Thomas, wants to renegotiate the terms. If they can come up with a new price that is
satisfactory to both parties, what will they use to document this? - ANS Amendment
@2026/2027 ALLRIGHTS RESERVED.
