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New Mexico Real Estate exam NEWEST 400
QUESTIONS AND VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR
New Mexico Real Estate
In the absence of any agreement to the contrary, a New Mexico broker directly providing
service to a buyer is a ______.
Transaction broker
When a listing agreement establishes an agency relationship between the seller and the
licensee, the seller into the client, and the licensee into the ______.
Agent
A few minutes after a New Mexico seller’s broker receives an offer on her listing, another
buyer's broker emailed, saying that he'd be sending her an offer in a few hours. A few
minutes later, a third broker contacted her and promised his buyer's offer would be to her
the following morning. What should the seller’s agent do?
Present the offer that has already been received.
Claire represents the seller in a transaction. Which of the following best describes her
responsibility to work with the buyer's broker?
She should cooperate fully with the buyer's broker.
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Online and social media advertisements for New Mexico real estate must _______.
Comply with all New Mexico advertising rules
Which of the following statements about qualifying and associate brokers and employment
or independent contractor agreements in New Mexico is correct?
A written employment agreement is required.
Any New Mexico real estate advertisement must include _______.
The firm’s trade name
New Mexico law requires that brokers maintain the comparison between trust accounts,
bank statements, and property ledgers, which is known as _______.
Performing a reconciliation
A New Mexico associate broker is working with her seller clients and buyer customers. Her
qualifying broker is accompanying her to the closing. Whose responsibility is it to supervise
the associate broker?
The qualifying broker
Which of the following actions is a required responsibility of a qualifying broker who has
opened a firm?
Monitor licensee paperwork.
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How long must a qualifying broker retain a complete record of all real estate transactions for
that office?
At least six years
Broker Saul has just signed a written agreement with his newest licensee, Jill, stating that Jill
is an independent contractor. To ensure Jill is properly classified, Saul should do which of the
following?
Base her compensation on her sales output
A qualifying broker is working with a licensed associate. What task(s) may the associate
broker perform?
Associate brokers may do all of these things.
An associate broker in New Mexico is affiliated with a qualifying broker. From whom may the
associate broker accept compensation?
Only from the affiliated qualifying broker
In New Mexico, how long must electronic real estate transaction files be kept with the firm?
Six years
A licensee is responsible for providing all trust fund money she receives to her supervisor
immediately when she receives it. What license does she hold?
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, Page 4 of 82
Associate broker
What is the purpose of an employment agreement between the qualifying broker and an
associate broker in New Mexico?
Defines the terms of the qualifying broker’s and worker’s professional relationship.
An advertisement may be misleading if it _______.
Doesn’t include the firm’s trade name
In New Mexico, who is responsible for supervising affiliate brokers, reviewing their
transactional paperwork, and ensuring legal compliance when advertising for services
requiring a license?
Qualifying brokers
In New Mexico, when are owner-brokers NOT required to disclose their ownership in
advertising or signs?
They are always required to disclose ownership.
At which point in the residential selling process does scheduling a photographer take place?
Preparing for listing
In what language must the listing agreement be written?
Clear and unambiguous
4
New Mexico Real Estate exam NEWEST 400
QUESTIONS AND VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR
New Mexico Real Estate
In the absence of any agreement to the contrary, a New Mexico broker directly providing
service to a buyer is a ______.
Transaction broker
When a listing agreement establishes an agency relationship between the seller and the
licensee, the seller into the client, and the licensee into the ______.
Agent
A few minutes after a New Mexico seller’s broker receives an offer on her listing, another
buyer's broker emailed, saying that he'd be sending her an offer in a few hours. A few
minutes later, a third broker contacted her and promised his buyer's offer would be to her
the following morning. What should the seller’s agent do?
Present the offer that has already been received.
Claire represents the seller in a transaction. Which of the following best describes her
responsibility to work with the buyer's broker?
She should cooperate fully with the buyer's broker.
1
, Page 2 of 82
Online and social media advertisements for New Mexico real estate must _______.
Comply with all New Mexico advertising rules
Which of the following statements about qualifying and associate brokers and employment
or independent contractor agreements in New Mexico is correct?
A written employment agreement is required.
Any New Mexico real estate advertisement must include _______.
The firm’s trade name
New Mexico law requires that brokers maintain the comparison between trust accounts,
bank statements, and property ledgers, which is known as _______.
Performing a reconciliation
A New Mexico associate broker is working with her seller clients and buyer customers. Her
qualifying broker is accompanying her to the closing. Whose responsibility is it to supervise
the associate broker?
The qualifying broker
Which of the following actions is a required responsibility of a qualifying broker who has
opened a firm?
Monitor licensee paperwork.
2
, Page 3 of 82
How long must a qualifying broker retain a complete record of all real estate transactions for
that office?
At least six years
Broker Saul has just signed a written agreement with his newest licensee, Jill, stating that Jill
is an independent contractor. To ensure Jill is properly classified, Saul should do which of the
following?
Base her compensation on her sales output
A qualifying broker is working with a licensed associate. What task(s) may the associate
broker perform?
Associate brokers may do all of these things.
An associate broker in New Mexico is affiliated with a qualifying broker. From whom may the
associate broker accept compensation?
Only from the affiliated qualifying broker
In New Mexico, how long must electronic real estate transaction files be kept with the firm?
Six years
A licensee is responsible for providing all trust fund money she receives to her supervisor
immediately when she receives it. What license does she hold?
3
, Page 4 of 82
Associate broker
What is the purpose of an employment agreement between the qualifying broker and an
associate broker in New Mexico?
Defines the terms of the qualifying broker’s and worker’s professional relationship.
An advertisement may be misleading if it _______.
Doesn’t include the firm’s trade name
In New Mexico, who is responsible for supervising affiliate brokers, reviewing their
transactional paperwork, and ensuring legal compliance when advertising for services
requiring a license?
Qualifying brokers
In New Mexico, when are owner-brokers NOT required to disclose their ownership in
advertising or signs?
They are always required to disclose ownership.
At which point in the residential selling process does scheduling a photographer take place?
Preparing for listing
In what language must the listing agreement be written?
Clear and unambiguous
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