NEW MEXICO REAL ESTATE BROKER BASICS UPDATED
ACTUAL EXAM 100% VERIFIED QUESTIONS AND CORRECT
ANSWERS
If asked to estimate the dollar amount a buyer can deduct on
his income taxes, a transaction broker should
A. Calculate the interest deduction for the buyer
B. Call the listing broker and ask for disclosure of the tax
deduction
C. Suggest that the buyer seek advise from a tax expert
D. Call the county assessor to determine what the taxes are on
the property
C. Suggest that the buyer seek advise from a tax expert
Prior to presenting any document that has the potential to
become an express written agreement, a broker MUST
disclose in writing all of the following EXCEPT
A. Any written brokerage relationship the broker has with any
other parties to the transaction
B. Any material interest or relationship of a business,
personal, or family nature that broker has in the transaction
C. Other brokerage relationship options available in New
Mexico
D. Broker's license number and county where it was issued
D. Broker's license number and county where it was issued
,What term is used when the principal is held liable for the
wrongful acts of the agent?
A. Respondeat superior
B. Agency law
C. Broker Duties
D. Liability
A. Respondeat superior
Broker Howard has a three-month listing on a property. A
buyer walks into his office and asks Howard if he will
represent her in the purchase of the property. Howard
A. May not represent both the buyer and the seller
B. Must report all details of the transaction to the NMREC
C. May represent both parties, if both give their consent
D. May not represent both parties, even if both give their
consent
C. May represent both parties, if both give their consent
The maximum time an exclusive listing contract is valid is
, A. Any period up to a statutory limit of two years
B. Whatever reasonable specific time is agreed to by the seller
and the broker
C. 90 days
D. 120 days
B. Whatever reasonable specific time is agreed to by the seller
and the broker
A broker writes an offer without having a brokerage service
agreement. What brokerage relationship has been created
between the broker and the buyer?
A. Agency
B. Fiduciary
C. Transaction Broker
D. Dual Agency
C. Transaction Broker
The duty of honesty and reasonable care means
A. Following all lawful instructions of the principal
B. Actively applying a broker's skill and expertise in a
professional manner for the benefit of the broker's principal
ACTUAL EXAM 100% VERIFIED QUESTIONS AND CORRECT
ANSWERS
If asked to estimate the dollar amount a buyer can deduct on
his income taxes, a transaction broker should
A. Calculate the interest deduction for the buyer
B. Call the listing broker and ask for disclosure of the tax
deduction
C. Suggest that the buyer seek advise from a tax expert
D. Call the county assessor to determine what the taxes are on
the property
C. Suggest that the buyer seek advise from a tax expert
Prior to presenting any document that has the potential to
become an express written agreement, a broker MUST
disclose in writing all of the following EXCEPT
A. Any written brokerage relationship the broker has with any
other parties to the transaction
B. Any material interest or relationship of a business,
personal, or family nature that broker has in the transaction
C. Other brokerage relationship options available in New
Mexico
D. Broker's license number and county where it was issued
D. Broker's license number and county where it was issued
,What term is used when the principal is held liable for the
wrongful acts of the agent?
A. Respondeat superior
B. Agency law
C. Broker Duties
D. Liability
A. Respondeat superior
Broker Howard has a three-month listing on a property. A
buyer walks into his office and asks Howard if he will
represent her in the purchase of the property. Howard
A. May not represent both the buyer and the seller
B. Must report all details of the transaction to the NMREC
C. May represent both parties, if both give their consent
D. May not represent both parties, even if both give their
consent
C. May represent both parties, if both give their consent
The maximum time an exclusive listing contract is valid is
, A. Any period up to a statutory limit of two years
B. Whatever reasonable specific time is agreed to by the seller
and the broker
C. 90 days
D. 120 days
B. Whatever reasonable specific time is agreed to by the seller
and the broker
A broker writes an offer without having a brokerage service
agreement. What brokerage relationship has been created
between the broker and the buyer?
A. Agency
B. Fiduciary
C. Transaction Broker
D. Dual Agency
C. Transaction Broker
The duty of honesty and reasonable care means
A. Following all lawful instructions of the principal
B. Actively applying a broker's skill and expertise in a
professional manner for the benefit of the broker's principal
