NM Real Estate Exam Flashcards

NM Real Estate Exam Flashcards How many MFH can a real estate licensee sell per year?1 What relationship would a property manager be in with the property owner?Exclusive agency What happens if an applicant fails one portion of exam & passes the other?they must pass failed portion within90 DAYSor they will have to retake both What is a requirement for application of broker's license?must have recommendation of 2 reputable citizens who OWN real estate in applicant's country What is is called when the QB designates an agent to represent the seller & another agent represents the buyer and the QB acts as a supervisor?Designated Agency if a broker has 10 security depositscollected 5 rents & EMHow many trust accounts would they need?

• trust accounts

What division is the real estate commission administrively attached to?regulation & licensing division (RDL) What is regulated under New Mexico Human Rights? Gender IdentitySexual OrientationSpousal AffiliationAncestry What are the requirements that need to be met for licensee transferring offices & working with new QB?Must be STAMPED & received by Commission1. transfer application2. transfer license3. proof of E & O4. $20 transfer fee How much notice is required by either party to terminate rental agreement (less than 1 yr)?30 daysUniform Owner/Resident Relations Act What must be documented for deposits?amountpropertydate of receipt & deposit of fundsNOT broker's federal tax ID # What course is required within 1st year of licensure of broker's licensed in NM as AB?New Broker Business Practices Course Do septic system permits expire?NO What is MINIMUM coverage for E & O?$100,000/claim$500,000 combined limit How much water is a single family residence entitled to per year?

1.0 acre of water does NMREC enforce code of ethics?NOthis would be a trade organizationNational Association of Relators Can brokers renting their own units put rents into a trust account?

NO What is the penalty for violation for violating real estate law or commission rules for UNLICENSED person?$5000 criminal fine4th degree felony18 months in prison If a broker had no knowledge of issues not listed on Seller's Property Disclosure are they liable?

NO What are two things not in trust account? -brokers may NOT deposit commission checks-GRT What happens with disputes between Associate Brokers and Qualifying Brokers regarding commissions?They are not investigated by the real estate commission.

What records must be available to NMREC upon request?ALL records generated in connection with real estate matters What happens if broker has not accounted for security deposit within 30 days and tenant files suit?-landlord may be required to pay $250 in damages-pay attorney's fees and court costs-forfeits complete security deposit & any right to future damage claims When is priority of water rights determined? when permit is filed with State Engineers office ANDrecorded in county to which the property is located Who manages the well & water rights?NM State Engineers Office How many days after expiration of the management agreement does property manager have to send final accounting to property owners?60 days What is the MAX fee charged for exam$95 What happens if there is a FALSE statement on license application?NMREC issues NCA for hearing What is a requirement for applying OR renewing NM real estate broker's license or upgrading an AB to QB license?must be fingerprintedsubmitted to NM Department of Public Safety or EQUIVALENT department from state of residenceFBI to conduct national criminal history background How long does QB have to notice/return license to NMREC when AB transfers license?48 hours What is the only MUST on a sign advertising a propertyOffice numberBrokerage Name Do time shares salespersons need a license? YESUNLESS they have 15% ownership interest When is Real Estate Recovery Fund used?FraudMisrepresentationNegligence Can an unlicensed assistant host an open house with their responsible person present?

YES What type of relationship is formed if a broker writes a PA for a buyer without written brokerage relationship?Transaction Broker Relationship Who regulates time shares?NMREC How long does a broker have to notify NMREC of new address 10 days What change was made in the appraisal board law? allows a broker to provide a broker price opinion to a lender to determine value for a loan What amount does the NM Homestead Protection Act protect against for personal non-specific liens or judgements?

SINGLE= $60,000MARRIED= $120,000

Are licensees required to disclose their license number or county where issued?

NO What is all property & assets acquired while a couple is married considered?Community Property What actions can the commission take until fund is paid back with interest?may revoke, suspend, or refuse to renew Does the QB have to maintain an office in state of NMNOcan be virtual What are trust accounts established as?checking account Does a tenancy agreement need to contain property owner name?

NO

When a buyer asks about how much they can deduct on income taxes what should a broker say?seek advice from tax expert Is it a broker duty to disclose a seller's motivation for selling the property to potential buyer?

NO What is the MINIMUM penalty from NMREC?letter of reprimand Explain Statute of Frauds-all contracts must be in WRITING to be enforceable-EXCEPT leases of less than 12 months When do septic systems need to be inspected & certified?PRIOR to closingNot more than 180 days (6months) prior to RECORDING What is it called when the QB acts as a facilitator in a single transaction for both buyer & seller?Dual Agency What happens if broker owes child support? (HSD-NM Human Services Dept) NMREC Investigates30 days to submit statement of compliance after notification of delinquent child supportState of Compliance is issued from NM HSDif not submitted in 30 days-NMREC with suspend license How many days notice does a property management need to give for breach of agreement (violation) or to cure default (repairs maintenance)

• daysUniform Owner/Resident Relations Act

If 2 QBs are sharing an office, do bother QBs need a sign?YES What are examples of things brokers CANNOT say when advertising a property?-marries couples only-upscale community-no children allowed Where are QB's required to place ALL monies belonging to others?-properly established trust account in bank-savings & loan institutions-title company-other NM QB's When should signed copies of PA be given to buyer?as soon as possible after signing What are the six type of real property1. Residential2. Commercial3. Mixed use4. Industrial5.Agricultural6. Special Purpose What term means the principle is responsible for the actions for the agent?Respondent Superior When are NM property taxes delinquent?Dec 10 & May 10 each year Who are trade names registered with?NMRECABs do NOT register a trade namereal estate brokerage business must be conducted under trade name & from brokerage address registered with commission True/FalseBroker duties MUST be disclosed in writing to prospective customer or client TRUE What is the status of the license during the complaint process until the decision of the commission after the hearing It is still ACTIVE What is does the duty of honesty & reasonable care mean?applying broker's skill & expertise in a professional manor for the benefit of the principle Who is responsible to report sales price of property to County Assessor's Office?PROPERTY OWNERS (BUYERs) What are the differences in the duties of an AGENT vs the duties of a Transaction broker?Obedience & Loyalty What amount can the Real Estate Recover Fund not fall below?

$150,000

What is MAX deductible for E & O?$1000 What happens if complaint against broker is filed, and then later dropped?The commission is still required to investigate if an violation has occurred When can a Qualifying Brokers license can be revoked if their Associate Broker is found guilty of illegal activity?Only if the QB had Guilty Knowledge of the offense How long do licensees have to REQUEST a hearing after NCA?20 daysor license revoked is no request How do licenses need to be displayed for a virtual office?link with "real estate licenses"

TRUE/FALSE:NM is a community property state TRUE

How long does an applicant have to make application for license after PASSING exam?180 days What is the MAX premium per year charged for E & O?$500 per year What happens if the QB cannot perform actual supervison?appoint broker-in-charge in writing to commissiondoes not need to be a QB-must meet requirements When must the broker disclose the current & future tax levy on a property?PRIOR to writing a purchase offer What is MAX fee for each license transferred? $20if 11 or more- MAX fee is $200 How long should records be available to NMREC? no less than 6 years-in paper or electronic format What is the MAX time a broker can legally hold onto a security deposit?30 days How many days notice does property manager need to give for NON-payment of rent or substantial violation?

• daysUniform Owner/Resident Relations Act

What is E&O insurance?Professional liability insuranceinsures AGAINST innocent or negligent mistakesdoes NOT cover fraud or misrepresentationnot required for inactive licensees Where does the QB need a sign?legible sign conspicuous place near entrance of the office What is the excess amount used for for real estate recovery fund?real estate education fund What is Max amount for Real Estate Recovery Fund per transaction?

$10,000

If the buyer wants to operate a business out of a home they are looking to purchase, what should the broker do?recommend the buyer verify zoning on property prior to purchase Is it a broker duty to attend closing?NO What is the MAX fee for real estate license? $270 What is the penalty for violation for violating real estate law or commission rules for LICENSED person?MAX fine: $500MAX Commission: $1000/violationmisdemeanor6 months prison Do you have to prove the selling price of a listing to a neighbor?NO-not in a non-disclosure state How are social media advertising disclosure requirements met?a link to information How long do licensees have to APPEAL decision to district court after hearing?30 days Can a property manager refuse to rent to an alcoholic that has a history & pattern of violence & still be in compliance with fair housing laws?YES-bc of violence