Page 1 of 64
New Mexico Real Estate exam ALL 300
QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE THIS YEAR
New Mexico Real Estate
A New Mexico licensee is required to disclose when acting as a transaction broker in a
transaction _______.
If the broker has an ownership interest in the property.
Which of the following options lists the party or parties to whom New Mexico brokers owe
the duty of obeying all federal, state, and local fair housing and anti-discrimination laws?
To all buyers and sellers in the transaction.
Which of the following is something a transaction broker does?
Advocates for neither the buyer nor the seller
Which of the following duties is NOT owed to a buyer with whom the licensee is directly
working in New Mexico, with whom the licensee has no written brokerage agreement?
Advocating on the buyer’s behalf
A New Mexico broker has a signed listing agreement with seller clients. Which of the
following information is the broker allowed to divulge to any buyers?
The roof leaks during heavy rains.
New Mexico licensee, Adrian, owes his buyer client the duty of obedience. Which of the
following must be true?
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Adrian is the buyer’s agent.
What gives an agent in an agency relationship the authority to act on the client’s behalf?
The consent of both parties
The seller reveals to their broker that the electrical receptacles in the garage workshop are
inoperable. Should this be disclosed?
his is a material fact that must be disclosed regardless of the brokerage relationship.
A buyer’s agent shows her five New Mexico properties. One of these properties is owned by a
seller who listed the property with his agent. There is a latent defect in the property of which
the buyer’s agent and the seller’s agent are both aware. To whom must the adverse material
facts be disclosed?
Both the buyer and the seller
Silas is a New Mexico broker acting as a transaction broker with an expressed written listing
agreement. He has shown a buyer a number of properties and now realizes that his listing
would probably be exactly what the buyer wants. How should Silas handle this situation?
Silas should help the buyer and seller to come to mutual agreement about the sale terms.
What is owed to a client in an agency relationship, but not to a client in a transaction
brokerage?
Aggressive support of one party's goals to the exclusion of the other party's goal.
New Mexico broker Xavier does not have a written brokerage agreement with buyer
Sunshine, who is interested in a property being sold by Xavier’s client. Based on this, which of
the following duties does Xavier owe Sunshine?
Complete Sunshine's purchase offer and present it to Xavier in a timely fashion.
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If the New Mexico property you’ve listed belongs to your daughter, you must _______.
Disclose that you have a personal conflict of interest, and that your daughter is a party to the
transaction
Which of the following duties does a New Mexico licensee only owe to a client in an agency
relationship ?
Obedience
In New Mexico, both transaction brokers and dual agents ______.
Take on the role of facilitator in the transaction.
New Mexico licensee Bailey has listed a home for her clients, the Thompsons. Bailey showed
the property to the Hoslers and wrote their offer for them, which the Thompsons accepted.
Which of the following duties does Bailey owe to both the Thompsons and the Hoslers?
Keeping confidential all confidential information she received from them
If you are a New Mexico associate broker working with a buyer customer, which of the
following is NOT a duty you owe the buyer?
You must advocate for the buyer's best interest in negotiations.
Which of the following is an adverse material fact that must be disclosed?
There is an environmental hazard on the property.
Which one of the following do New Mexico brokers NOT owe their customers?
The duty to provide legal advice
Your client asks you a question regarding a legal matter. What should you do?
Advise your client she should seek legal advice.
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Marcus has a personal interest in a rental property that he's listing for sale. He's required to
_______.
Make full disclosure as to his interest
You’re a New Mexico broker working with your seller client, Shep. He asks you the legal
implications of making an offer on the property he wishes to buy. What should you tell him?
“I’m not an attorney, so I’m not allowed to answer that. I recommend that you consult with
an attorney about that and any other legal questions you have.”
What’s a legal requirement for a New Mexico licensee to engage in dual agency?
Both clients’ written consent
New Mexico broker Angela submitted an offer on behalf of her buyer, Craig. What duty does
she owe Craig regarding any counter-offers he receives?
She must present all written counter-offers Craig receives in a timely manner.
A buyer is working with a broker without a written agreement in place. What is the buyer's
relationship with the broker?
The buyer is the broker’s customer.
Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo.
What is Luciana's responsibility to Sofia?
Disclose that the buyer will not have the funds for the down payment unless he sells his
current home.
A New Mexico licensee who assists, but doesn’t have fiduciary responsibilities to, both the
buyer and the seller in the same transaction is known as what?
Transaction broker
4
New Mexico Real Estate exam ALL 300
QUESTIONS AND CORRECT ANSWERS
LATEST UPDATE THIS YEAR
New Mexico Real Estate
A New Mexico licensee is required to disclose when acting as a transaction broker in a
transaction _______.
If the broker has an ownership interest in the property.
Which of the following options lists the party or parties to whom New Mexico brokers owe
the duty of obeying all federal, state, and local fair housing and anti-discrimination laws?
To all buyers and sellers in the transaction.
Which of the following is something a transaction broker does?
Advocates for neither the buyer nor the seller
Which of the following duties is NOT owed to a buyer with whom the licensee is directly
working in New Mexico, with whom the licensee has no written brokerage agreement?
Advocating on the buyer’s behalf
A New Mexico broker has a signed listing agreement with seller clients. Which of the
following information is the broker allowed to divulge to any buyers?
The roof leaks during heavy rains.
New Mexico licensee, Adrian, owes his buyer client the duty of obedience. Which of the
following must be true?
1
, Page 2 of 64
Adrian is the buyer’s agent.
What gives an agent in an agency relationship the authority to act on the client’s behalf?
The consent of both parties
The seller reveals to their broker that the electrical receptacles in the garage workshop are
inoperable. Should this be disclosed?
his is a material fact that must be disclosed regardless of the brokerage relationship.
A buyer’s agent shows her five New Mexico properties. One of these properties is owned by a
seller who listed the property with his agent. There is a latent defect in the property of which
the buyer’s agent and the seller’s agent are both aware. To whom must the adverse material
facts be disclosed?
Both the buyer and the seller
Silas is a New Mexico broker acting as a transaction broker with an expressed written listing
agreement. He has shown a buyer a number of properties and now realizes that his listing
would probably be exactly what the buyer wants. How should Silas handle this situation?
Silas should help the buyer and seller to come to mutual agreement about the sale terms.
What is owed to a client in an agency relationship, but not to a client in a transaction
brokerage?
Aggressive support of one party's goals to the exclusion of the other party's goal.
New Mexico broker Xavier does not have a written brokerage agreement with buyer
Sunshine, who is interested in a property being sold by Xavier’s client. Based on this, which of
the following duties does Xavier owe Sunshine?
Complete Sunshine's purchase offer and present it to Xavier in a timely fashion.
2
, Page 3 of 64
If the New Mexico property you’ve listed belongs to your daughter, you must _______.
Disclose that you have a personal conflict of interest, and that your daughter is a party to the
transaction
Which of the following duties does a New Mexico licensee only owe to a client in an agency
relationship ?
Obedience
In New Mexico, both transaction brokers and dual agents ______.
Take on the role of facilitator in the transaction.
New Mexico licensee Bailey has listed a home for her clients, the Thompsons. Bailey showed
the property to the Hoslers and wrote their offer for them, which the Thompsons accepted.
Which of the following duties does Bailey owe to both the Thompsons and the Hoslers?
Keeping confidential all confidential information she received from them
If you are a New Mexico associate broker working with a buyer customer, which of the
following is NOT a duty you owe the buyer?
You must advocate for the buyer's best interest in negotiations.
Which of the following is an adverse material fact that must be disclosed?
There is an environmental hazard on the property.
Which one of the following do New Mexico brokers NOT owe their customers?
The duty to provide legal advice
Your client asks you a question regarding a legal matter. What should you do?
Advise your client she should seek legal advice.
3
, Page 4 of 64
Marcus has a personal interest in a rental property that he's listing for sale. He's required to
_______.
Make full disclosure as to his interest
You’re a New Mexico broker working with your seller client, Shep. He asks you the legal
implications of making an offer on the property he wishes to buy. What should you tell him?
“I’m not an attorney, so I’m not allowed to answer that. I recommend that you consult with
an attorney about that and any other legal questions you have.”
What’s a legal requirement for a New Mexico licensee to engage in dual agency?
Both clients’ written consent
New Mexico broker Angela submitted an offer on behalf of her buyer, Craig. What duty does
she owe Craig regarding any counter-offers he receives?
She must present all written counter-offers Craig receives in a timely manner.
A buyer is working with a broker without a written agreement in place. What is the buyer's
relationship with the broker?
The buyer is the broker’s customer.
Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo.
What is Luciana's responsibility to Sofia?
Disclose that the buyer will not have the funds for the down payment unless he sells his
current home.
A New Mexico licensee who assists, but doesn’t have fiduciary responsibilities to, both the
buyer and the seller in the same transaction is known as what?
Transaction broker
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