New Mexico Broker State Practice Exam

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• The UCC was developed to streamline what kind of transactions?
• What is an inspection contingency in a commercial contract primarily used for?
• Before the seller can accept an offer, the seller's broker must do what regarding property taxes?
• What is a land contract?
• What is a Verified Complaint in the context of the New Mexico Real Estate Commission?
• Under the New Mexico Uniform Owner-Resident Relations Act (NM-UORRA), what right do tenants have regarding their dwelling unit?
• Which statement correctly describes an attornment clause?
• What term refers to a tenant who continues to occupy property after their lease has expired?
• According to standard practice, after a rescission, what must the parties return to each other?
• How many hours of continuing education are active and inactive associate brokers required to complete in three years?
• Which of the following is NOT a duty that must be identified in property management agreements?
• Which of the following documents would provide definitions of key terms in a real estate transaction?
• What is the maximum fine for practicing real estate without a New Mexico issued license?
• What is true about loans secured by interests in timeshare plans?
• What type of tasks do property managers coordinate?
• What information must be included in tax disclosure reports regarding property tax?
• When discussing 'Financing or Cash Purchase', what major aspect is addressed?
• What is essential for a valid sublease agreement?
• In terms of consideration, what must the parties to a contract agree upon?
• What is typically required from the seller in the disclosures section of the contract?
• What does a lease constitute in the real estate context?
• How many years must a qualifying broker be actively engaged as a licensed associate broker to supervise or manage other brokers?
• What fine can corporations face for a first offense under license law?
• What is typically indicated by the possession date in a real estate contract?
• What is a certificate of occupancy?
• What right does “quiet enjoyment” grant to a tenant?
• When must the qualifying broker's information be included on client documents?
• What is the purpose of an early occupancy contingency?
• Which of the following powers does the New Mexico Real Estate Commission have?
• What is typically included in a freehold estate?
• Which entity regulates the timeshare business in New Mexico?
• In tenant improvement negotiations, what is a common alternative to a tenant improvement allowance?
• What do full service gross leases typically include in the lease rate?
• In a triple-net lease, what does the tenant pay for?
• What impact does an anchor tenant typically have on a shopping center?
• What must sellers disclose under seller statutory disclosures?
• What essential information is included in the property address section of an Offer/Purchase Agreement?
• What is a key characteristic of a modified gross lease?
• Under what circumstance can licensees request a hearing?
• What is the term length for members of the New Mexico Real Estate Commission?
• In which decade was the Uniform Commercial Code (UCC) created?
• What does offer and acceptance signify in contract law?
• What role does the inspection process play in the context of real estate transactions?
• What is a typical motive for parties seeking rescission of a contract?
• What is required by the New Mexico Real Estate Appraisers Act to protect consumers?
• What is the decision timeline post-hearing?
• How many hours of approved continuing education courses in property management must associate brokers complete during each licensing cycle?
• What characterizes a periodic estate?
• Which of the following is included in the hearing process?
• Which term describes an agreement allowing a tenant to stay on the property after the lease has ended with landlord consent?
• Which of the following best describes a double-net lease?
• Which of the following is a common documentation task for property managers?
• How many days do laborers have to claim a lien after completing their work?
• An officer of a corporation is subjected to which of the following?
• What are the three primary types of commercial leases?
• How long do purchasers of timeshares have to void their contracts penalty-free?
• What does the Human Rights Act classify as a disability?
• How can water rights be regarded in terms of ownership?
• What is the maximum amount a consumer can receive from the Recovery Fund per incident?
• What is required for a consumer to obtain payment from the Recovery Fund?
• What is NOT one of the five essential elements of a contract?
• What federally protected class is NOT included under federal discrimination laws?
• What is a condition for obtaining an exemption from continuing education requirements?
• What type of buildings are modified gross leases often associated with?
• What is NOT a component of the exclusive right-to-sell form?
• Which of the following accurately describes consideration in a contract?
• What does a closing costs table in real estate transactions typically include?
• Which type of listing agreement involves the exclusive right to sell for residential properties?
• What is the primary role of a lessor?
• To qualify for payment from the Real Estate Recovery Fund, a consumer must NOT be which of the following?
• What distinguishes a turn-key project in commercial leasing?
• What must households with self-contained liquid waste systems pay for?
• In New Mexico, what is required for each property manager?
• For a contract to be valid, what must its purpose be?
• Who is responsible for ensuring that the trust accounts conform to commission rules?
• In the context of commercial real estate, what does TIM stand for?
• What does "Partial Performance" refer to in contract law?
• What action must a laborer take before filing a lien?
• Which of the following best describes undue influence?
• In which situation might a tenant experience constructive eviction?
• What occurs in the event of default in a real estate contract?
• What is treated similarly to surface water under New Mexico regulations?
• What is meant by "Accept Liquidated Damages" in a contract?
• What is the maximum fine for practicing real estate without a proper license?
• Who customarily pays the listing broker's compensation?
• What responsibility do brokers have regarding fees charged to tenants?
• What is the primary function of the New Mexico Real Estate Commission in terms of education?
• Which of the following is NOT a component of the NM Purchase agreement?
• What term describes the owner of the real estate in a leasehold estate?
• What type of leasehold estate has an unknown duration at the time of creation?
• What is a requirement for everyone involved in selling timeshares?
• What type of system do properties not connected to public sewer systems typically use?
• How are members of the New Mexico Real Estate Commission selected in terms of county representation?
• What duty does the New Mexico Real Estate Commission NOT perform?
• What is a key aspect of the seller's role in a land contract?
• Who is primarily impacted by the regulations set forth in the UCC?
• What is the renewal period for real estate licenses in New Mexico?
• What is a key feature of the UCC?
• What information is typically included in the buyer's offer and seller's response section?
• What must active qualifying brokers maintain a current copy of in their office?
• What is a defining characteristic of modified gross leases?
• How long can buyers cancel their purchase agreements after receiving the disclosure certificate?
• What is one of the required courses that new associate brokers must take within their first year of licensure?
• What differentiates a contract release from a rescission?
• What is a mechanic's lien primarily used for in New Mexico?
• What is the ethics requirement for license renewal according to NMREC rules?
• Which scenario describes self-help eviction?
• What actions can the commission take regarding a guilty licensee?
• What does PID stand for in real estate terms?
• Which of the following describes 'Costs to Be Paid' in an Offer/Purchase Agreement?
• What does the New Mexico Uniform Owner-Resident Relations Act (NM-UORRA) define?
• What is one responsibility of active qualifying brokers regarding trust accounts?
• What is it called when a tenant substitutes another tenant's place in the lease but does not fully relieve themselves from liability?
• What is required for individuals to be considered competent parties in a contract?
• What type of waste disposal method is explicitly prohibited from receiving waste?
• What is a shell lease in commercial real estate?
• What comprises the Commission Structure of the NMREC?
• In the context of properties governed by HOAs, what does the seller's agent need to submit to the HOA?
• Which is NOT a characteristic of a typical leasehold estate?
• What type of information is included in the exclusive right-to-sell form concerning offers?
• What does a subordination clause indicate regarding the lease and mortgage?
• Which duty is specifically required from New Mexico licensees representing sellers?
• Which is NOT a remedy available to the innocent party if a breach occurs?
• What is the timeframe for a licensee to request a hearing after a Notice of Charges (NCA)?
• What services can the Liquid Waste Disposal System Assistance Fund provide?
• What is the fundamental requirement for offer and acceptance in a contract?
• In a land contract, what happens after the buyer pays the sales price in full?
• A lease that has a fixed termination and can last for any definite time period is known as what?
• Which type of lease grants a tenant the right to occupy a property for a specific period, like a year?
• Which of the following remedies allows the innocent party to demand the original performance of the contractual obligations?
• When does an investigation by the New Mexico Real Estate Commission typically start?
• What is the primary purpose of the New Mexico Real Estate Recovery Fund?
• What is an outcome of accepting liquidated damages?
• What document is essential for asserting claims in a mechanic's lien?
• What is required from buyers to waive disclosure requirements?
• What is one of the requirements for the installation of a new liquid waste system?
• Which of the following is a condition included under the expanded definition of disabilities?
• What is commonly known as a security deposit?
• What is the primary purpose of the Uniform Commercial Code (UCC)?
• Which scenario exemplifies the use of an estoppel certificate?
• What is a common characteristic of single-net leases?
• How does the UCC impact consumer transactions?
• Which event might lead buyers to find a property undesirable?
• Why was the UCC proposed initially?
• What is the primary role of the 'Definitions' section in an Offer/Purchase Agreement?
• Which type of leasehold estate has a definite duration and is inheritable?
• Which individual group would benefit from the UCC's regulations?
• What does FIRPTA require from buyers when purchasing real estate from foreign sellers?
• What does a nondisturbance clause typically protect for tenants?
• What is the primary function of a nondisturbance clause in a lease?
• What is the responsibility of a landlord in an assignment of lease?
• What is likely to happen as a tenant's business grows in the context of a percentage lease?
• What is greywater?
• Which of the following is NOT included in property management tasks?
• How is the natural breakpoint calculated in a percentage lease?
• Which of the following is not a duty of New Mexico licensees when representing sellers?
• Where can information related to public improvement disclosures be found in New Mexico?
• What is the maximum imprisonment term for individuals practicing real estate without a license?
• What type of compensation is awarded for a breach of contract?
• What must a seller's agent do regarding the disclosure of PID-related information?
• What is the legal term for the physical removal of a tenant from a property?
• What does the default clause typically address in a real estate contract?
• What does free consent in a contract imply?
• What does "Sue for Specific Performance" entail?
• What does the 'use clause' in a lease agreement define?
• Which type of property purchases are exempt from FIRPTA?
• What does common area maintenance (CAM) charges cover?
• The three primary commercial lease categories differ mainly based on what aspect?
• What must be included in the disclosure statement received by timeshare buyers?
• What must a licensee disclose regarding brokerage relationships?
• Which agency regulates wastewater and septic systems in New Mexico?
• What does a financing contingency allow in a commercial sales contract?
• Under what conditions can the district court reverse or remand a commission's decision?
• Which of the following best describes a conditional release of a contract?
• What does the term "novation of parties" refer to in contract law?
• What do lenders typically look for in a buyer as per the 'Financing or Cash Purchase' details?
• What does consideration refer to in a contract?
• How does the New Mexico Real Estate Commission contribute to industry standards?
• Funds in excess of what amount are transferred to the New Mexico Real Estate Commission?
• Which of the following is an example of a negotiable instrument under the UCC?
• Where does the money in the New Mexico Real Estate Recovery Fund come from?
• No one can dump waste into which of the following?
• What additional detail must buyers receive about the timeshare agreement?
• A leasehold that is termed as a "month-to-month tenancy" is most likely which type of estate?
• How does the UCC ensure clarity in contract terms?
• What does a wood-destroying pest inspection check for?
• What opportunity must the accused licensee be given?
• What happens if the New Mexico Real Estate Commission finds evidence of a violation?
• When does the effective date of the purchase agreement occur?
• What does the term "lease listing agreement" refer to?
• Before installing a new liquid waste system, what is required?
• What is typically required from a public member on the NMREC?
• Which type of appraisal can a state-licensed residential appraiser perform?
• What term describes a tenant's right to occupy a property?
• What does a contingency clause specify?
• Which type of possession occurs when a tenant stays on the property after the right to possess has terminated?
• What disclosures are HOAs not required to provide?
• What term describes a tenant who refuses to vacate after the expiration of their lease?
• A respondent has how many days to file an appeal from the commission's final decision?
• Which two criteria exempt licensees from continuing education requirements in New Mexico?
• What is the purpose of an estoppel certificate?
• What type of estate automatically renews itself for successive tenancies unless terminated by either party?
• What does a disclaimer in the tax disclosure reports indicate?
• Which department oversees the liquid waste treatment and disposal program in New Mexico?
• Which term best describes the agreed-upon sum that a buyer plans to pay for a property?
• Which term describes a professional who manages rental properties for a fee?
• When does the protection period terminate for a seller?
• What duties do New Mexico licensees owe to all buyers and sellers?
• What type of ownership arrangement do timeshares represent?
• Which of the following is a requirement for the lawful objective of a contract?
• What is one of the required courses included in the qualifying broker education?
• What key feature distinguishes absolute net leases from other net leases?
• In an assignment of a contract, what typically remains applicable to the original party?
• In a percentage lease, how is rent structured?
• What type of gross lease offers full services including utilities and maintenance?
• What do definitions in a real estate contract typically provide?
• Homeowners in a PID must pay a portion of what?
• How many hours of continuing education related to property management must qualifying brokers complete to maintain their license?
• Individuals practicing real estate in New Mexico without a license are guilty of what type of crime?
• When can a party typically accept liquidated damages in a breach of contract scenario?
• What defines an anchor tenant in a retail context?
• How many hours of training can licensees use toward their continuing education requirements?
• What aspect does the 'Earnest Money' section primarily focus on?
• Which group is protected under the New Mexico Human Rights Act?
• Before transferring a management agreement to another brokerage, what must the qualifying brokers of both brokerages execute?
• In real estate terminology, what does 'Closing' indicate?
• What does the UCC allow for in terms of contract modifications?
• When should the seller's agent give the disclosure certificate to the buyer's agent?
• What is the public benefit perspective on water ownership in the context of prior appropriation?
• Which of the following is NOT a function of the Liquid Waste Disposal System Assistance Fund?
• According to New Mexico regulations, property management includes tasks such as:
• What is the requirement for the core course related to educational hours during the licensing cycle?
• After terminating or discharging an associate broker, how long does the active qualifying broker have to return the associate broker's license to the commission?
• What must claimants provide to assert their right to a mechanic's lien?
• What is one requirement for the NMED when a professional is contracted to install a septic system?
• What is typically associated with triple-net leases?
• What key information is contained within the 'Property' section of the agreement?
• What must a buyer's agent do upon receiving the Tax Disclosure report?
• What type of offers are New Mexico brokers not required to submit to sellers?
• How many hours of qualifying broker refresher course must be completed during each renewal cycle?
• What is a "protection period" in a listing agreement?
• What constitutes a breach of contract?
• What type of listing agreement would you use for agricultural properties in New Mexico?
• What is typically prohibited in most leases without the landlord's permission?
• How is lien priority determined in New Mexico?
• What does the 'Possession' clause dictate in an Offer/Purchase Agreement?
• What is one of the sanctions the New Mexico Real Estate Commission can impose on licensees?
• Which of the following can lead to a rescission of a contract due to a mistake?
• What board was created under the New Mexico Real Estate Appraisers Act?
• What must listing brokers do before the seller accepts an offer?
• What type of form must brokers submit to the commission when they intend to engage in property management?
• Which statement is true regarding failure to pay PID-related levies?
• Where is the hearing for a licensee typically conducted?
• Whose responsibility is it to ensure proper waste disposal in households?
• What term describes the concept of both parties agreeing to terminate a contract before execution?
• What is unique about a short-sale addendum in real estate transactions?
• What would be an example of unilateral rescission?
• What does the inspection addendum detail?
• Which of the following is a goal of the UCC?
• If a broker fails to complete the core course in year three of the cycle, by when must the course be completed?
• What is the scope of properties a state-certified general real estate appraiser can appraise?
• Within how many days must active qualifying brokers notify the commission of an address or phone number change?
• What is the primary mission of the New Mexico Environment Department?
• For which type of properties are percentage leases commonly used?
• What type of crime is committed when violating a New Mexico license law?
• In what scenario would a buyer utilize an appraisal contingency?
• According to law, property owners must provide lessees with notification of which of the following?
• What is the residency requirement for members of the New Mexico Real Estate Commission?
• What is a primary characteristic of a nonfreehold estate?
• What is the annual core course requirement set by NMREC?
• What is meant by "novation of contract"?
• Which of the following is NOT regulated by the UCC?
• Who is subjected to the same sanctions for violations as individuals in a corporation?
• Which scenario exemplifies undue influence in a contractual agreement?
• What do licensees provide as part of their regular actions?
• Up to how much can a penalty be imposed for a violation of license law?
• How should trust account money be handled according to commission rules?
• What can the New Mexico Real Estate Commission review during investigations?
• When can original contractors claim a lien in New Mexico after finishing their work?
• What does a loan contingency in a real estate sale specify?
• What does NMREC stand for?
• Who is referred to as the lessee in a leasing agreement?
• What additional protected classes does the New Mexico Human Rights Act include?
• What document must be included with every written residential management agreement?
• What does the term 'Contingencies' refer to in an Offer/Purchase Agreement?
• What does "Unilateral Rescission" allow one party to do?
• How many experience points must qualifying broker applicants earn in real estate transactions during the four years preceding application?
• What is typically excluded from property disclosures in commercial transactions?
• Why is a lead-based paint inspection required for homes built before 1978?
• What does not need to be disclosed about properties stigmatized by previous events?
• Under what condition is it illegal for an HOA to prepare a disclosure document?
• What is the minimum engagement period required for a qualifying broker to be eligible for licensing in New Mexico?
• Which term refers to a situation where a tenant vacates due to being unable to enjoy the leased premises?
• What is "Mutual Rescission" in contract terms?
• What course must brokers complete before offering property management services?
• What ethical principle must be followed by New Mexico licensees?
• What is the role of a property manager?
• What can HOAs charge for creating disclosure certificates?
• What is the maximum area of trees or gardens permitted for noncommercial irrigation under a domestic well permit?
• If claims exceed available funds in the Recovery Fund, how are claims satisfied?
• What must property managers possess from their qualifying broker to offer property management services?
• Which type of lease involves the tenant paying one of the TIM expenses in addition to rent?
• How many business days does the HOA have to provide the disclosure certificate?
• What must a management agreement include if law prohibits certain documents from being given to the owner?
• New fees may be levied if the fund's balance is under what amount?
• Which option describes the right of a tenant to renew a lease after it expires?
• What characterizes mutual agreement in a contract?
• How can appropriators risk forfeiting their water rights?
• Practicing real estate without a New Mexico issued license is classified as which degree of felony?
• What is an excluded activity not typically covered by property management?
• Why is the effective date of a contract important?
• What is the purpose of an appraisal contingency?
• Under what conditions can homeowners install their own septic systems in New Mexico?
• Which of the following is NOT a stigmatizing event that requires disclosure?
• Which of the following best describes the role of the New Mexico Real Estate Commission?
• What is required for a qualifying broker to assign a management contract to another brokerage?
• Which of the following would typically be a responsibility of a property manager?
• What is one consequence licensees might face from the New Mexico Real Estate Commission?
• What is a potential consequence of novation that may require legal assistance?
• Which aspect of business does the UCC primarily address?
• What is a sublease?
• Which of the following is an option for resolving a breach of contract?
• How many hours of education must qualifying broker applicants complete?
• What must landlords provide concerning legal notifications according to leasing regulations?
• What does a Notice of Contemplated Action (NCA) signify?
• What does novation involve in contractual terms?
• What fund exists in New Mexico to assist households in need regarding liquid waste disposal?
• Which of the following is NOT required when filing a mechanic's lien?
• What is a primary consideration when a tenant seeks a certificate of occupancy?
• What does a leasehold estate primarily establish between the parties?
• Which of the following is NOT a type of listing agreement recognized by the New Mexico Association of REALTORS®?
• Who must individuals apply to in order to install a well in New Mexico?
• What is the definition of duress in contractual terms?
• In New Mexico, what is the management system used for water rights?
• Which of the following is a requirement for brokers involved in property management services?
• What does the term “covenant” refer to in the context of real estate?
• What interest rate is applied to claims satisfied from the Recovery Fund?
• What must active qualifying brokers ensure that affiliated associate brokers complete within their first year of licensure?
• What is the purpose of earnest money in a real estate transaction?
• What can trainees do under the New Mexico Real Estate Appraisers Act?
• What must a proposed accused licensee do to challenge the charges against them?
• What is included in the property management agreement related to the owner's financial status?
• What is necessary for both parties in a contract regarding mutual agreement?
• How many days do claimants have to provide a preliminary notice after beginning work?
• How is a tenant improvement allowance generally used?
• What is the typical time frame for a buyer to rescind a contract following seller disclosures?
• In a tenancy at sufferance, what is the process called that the landlord may initiate to evict a tenant?
• What does a preliminary title report identify?
• The commission can recover what in addition to fines for violations?
• Which type of transactions does the UCC govern to ensure fairness?
• What information must be conspicuously displayed on all documents presented to clients or customers?
• In real estate, where would a seller document any known material defects of the property?
• What is the purpose of a public improvement district (PID)?
• Which principle allows the first person to utilize water to have priority over later claims?
• What type of information can be found on the NMED's website?
• What does the contingency of selling an existing home require from the buyer?
• What is typically included under 'Fixtures and Personal Property' in an Offer/Purchase Agreement?
• What is the role of the New Mexico Real Estate Commission in the education of brokers?
• What are the member requirements for the NMREC?
• What is the maximum time allowed for notifying about a change in office address?
• What is the primary mission of the New Mexico Real Estate Commission (NMREC)?
• Who has the authority to prosecute violations of real estate regulations in New Mexico?
• Which individuals are exempt from the license requirement for property management services?
• What is the primary purpose of a home inspection contingency?
• Which parties are primarily involved in an Offer/Purchase Agreement?
• Which legal action is intended to achieve exact execution of contractual terms?
• Which leasehold estate is not inheritable and terminates automatically upon the death of either party?
• What is commonly referred to in the 'Default' section of an Offer/Purchase Agreement?
• What is one critical piece of information that must be included in the PID disclosure?
• What must a seller's agent download for a specific PID?