New Mexico Real Estate Law Questions & 100% Correct Answers | Latest Update | Graded A+

A broker is performing as a property manager and deposits rent into her operating account. This is an example of which of the following? : The answer is COMMINGLING. Mixing a broker's money with a client's money is commingling (and illegal). A lessee has the greatest protection with a(n) : The answer is ESTATE FOR YEARS. An estate for years locks the holder into the lease for a specific period of time, which cannot be terminated without cause, even if the property is sold. A broker who has done a proper CMA discusses the probable market value of the property with the seller, but the seller wants to list the property for an unrealistic price. The broker may do all the following EXCEPT : The answer is TAKE THE LISTING AT THE PROPOSED SELLER'S PRICE, PLANNING ON REDUCING THE PRICE IN THE FUTURE WHEN THE SELLER IS MORE REALISTIC. Whether a CMA or a formal appraisal is used, the figure sought is the property's market value, and while it is the property owner's privilege to set whatever 2 | P a g e listing price the owner chooses, a broker should consider rejecting any listing that is severely out of line. What is the LEAST specific method for identifying real property? : The answer is STREET ADDRESS. A legal description is a precise method of identifying a parcel of land and includes metes and bounds, rectangular survey, and lot and block as methods for identification. A street address is not a legal description and, therefore, not as precise. The disadvantage of a buyer receiving a quitclaim deed is that : The answer is THE GRANTOR MAKES NO WARRANTIES REGARDING THE TITLE OF THE PROPERTY. The quitclaim deed contains no warranties and only states that if the grantor owns the property, the property will become the grantee's. A property owner contracted to have a swimming pool installed on her property. When the pool was complete, she refused to pay for the improvement, and the contractor filed a lien for nonpayment. This lien was MOST likely a : The answer is MECHANIC'S LIEN. The lien filed by the contractor would be a mechanic's lien and would be a specific, involuntary lien on the property.