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Real Estate Exam Prep > NM Broker Basics Review > Flashcards

NM Broker Basics Review Flashcards

1
Q

Licensees have how many days to respond to a complaint by the Real Estate Commission?

A

10 days

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2
Q

Title is said to pass in New Mexico when….

A

The deed has been signed by the grantor.

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3
Q

If a broker has not accounted for a security deposit within the required 30 days, and the tenant files suit, what could happen?

A

Pay $250 in damages, pay attorney’s fees and courts costs, and forfeit the security deposit

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4
Q

When may a licensee transferring offices start working for the new broker?

A

When the transfer application is signed by the new qualifying broker; and the license, proof of insurance, and fee are received by the Commission.

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5
Q

When must a property manager send a final accounting to the property owners upon termination, cancellation, or expiration of the management agreement?

A

Within 60 days

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6
Q

A licensee may sell how many manufactured houses per year?

A

One

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7
Q

When a QB changes offices, how much must a QB pay for the transfer fee?

A

$20 per license not to exceed $500.

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8
Q

What is a requirement of a broker in charge?

A

Must have two years of active license status, must have completed all education requirements, and must have passed the broker exam.

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9
Q

What is not a requirement of a broker in charge?

A

Must be a New Mexico resident

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10
Q

The New Mexico Real Estate Commission is administratively attached to which agency?

A

Regulation and Licensing Division

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11
Q

What is FALSE of a broker under investigation by the New Mexico Real Estate Commission?

A

The broker’s license is suspended until the investigation is completed.

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12
Q

Licensees of other states who apply for a New Mexico license…

A

must pass the real estate exam

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13
Q

Nonresident brokers may be subpoenaed by delivering the process to the…

A

Real Estate Commission

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14
Q

Which non licensee can receive a fee for selling another’s real property without violating the license law of New Mexico?

A

Trustee acting under proper authorization

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15
Q

The maximum time an exclusive listing contract is valid is

A

Whatever reasonable specific time agreed to by the seller and the broker

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16
Q

What does not requires a real estate license?

A

Sale of 99 lots in a subdivision, short term rentals, sale of personally owned property.

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17
Q

The Real Estate Commission may not impose?

A

penalties for Code of Ethics violations

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18
Q

The Responsibilities of the Real Estate Commission are?

A

Enforcing the license law, rules & regulations, refusing a license for cause.

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19
Q

The governor of the State of NM does what?

A

fills vacancies on the Real Estate Commission for unexpired terms.

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20
Q

Paying a referral fee to an unlicensed person for information leading to a listing…

A

Is a violation of the license law.

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21
Q

A brokers license can be revoked if the broker

A

fails to account for funds that belongs to others

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22
Q

What is exempt from the from the provisions of the real estate license law?

A

A trustee acting under a deed of trust, a trustee acting under a trust agreement, a person who deals exclusively in mineral rights.

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23
Q

Once an NCA is issues by the commission, the respondent has how many days to respond to the commission to request a hearing?

A

20 days

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24
Q

The Maximum fine the commission may impose is?

A

$1,000 per violation

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25
Q

Brokerage office signage must do what?

A

Be legible, be near the office entrance, contain the trade name of the brokerage

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26
Q

An AB involved in a real estate transaction may except compensation from?

A

The firms QB Records generated in connection the real estate matters processed through a brokerage must be made available to the Commission upon request

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27
Q

An unlicensed assistant may do what?

A

Host an open house with her responsible person present

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28
Q

Licensees are notified of impending action against their license by

A

a Notice of Contemplated Action (NCA)

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29
Q

An AB is required by rule to do what?

A

remit all monies of others to the QB, receive compensation only from the QB, conduct all real estate related activities in the name of the brokerage

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30
Q

A broker who prepares a purchase agreement must give a copy of this signed document to the buyer when?

A

as soon as practically possible

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31
Q

What information must a broker provide to the real estate commission staff who are conducting and investigation of a complaint?

A

All information requested

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32
Q

What is not a circumstance that would allow the commission to refuse to renew the license of a broker?

A

A disciplinary action pending against the broker

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33
Q

If an AB violated a license law or commission rule , the QB’s license could be revoked if

A

they had guilty knowledge of the violation

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34
Q

A QB is not responsible for what?

A

Maintaining a brokerage office in NM

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35
Q

When acting as a property manager for a principal, the brokerage relationship is what?

A

agency relationship

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36
Q

Every licensee must meet disclosure requirements to any consumer. Disclosure must include

A

conflict of interest, description of licensee broker duties, notice of an in house transaction.

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37
Q

what duties are owed to an agent’s client but not a brokers client?

A

obedience and loyalty

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38
Q

What is not something an NM listing broker is required to disclose?

A

a seller’s motivation for selling a property

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39
Q

Broker duties must be disclosed

A

in writing to a prospective customer or client

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40
Q

a buyer’s agent must disclose to a seller facts concerning

A

financial instability to perform the terms of the contract.

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41
Q

any transaction broker owes the buyer duty to

A

disclose conditions that adversely affect the property

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42
Q

If asked to estimate the dollar amount a buyer can deduct on his income taxes, a transaction broker should

A

suggest the buyer seek advice from a tax expert

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43
Q

prior to presenting a document that had potential to be an Express written agreement, a broker does not have to disclose what?

A

broker license number and the county it was issued

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44
Q

what is the term used when a principal is held liable for the wrongful acts of the agent

A

respondeat superior

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45
Q

maximum time an exclusive listing contract is valid is

A

specific time agreed to by the seller and broker.

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46
Q

a broker writes an offer without having a a brokerage service agreement. what type of relationship is this

A

transaction broker

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47
Q

the duty of honesty and reasonable care means

A

actively applying skill and expertise.

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48
Q

A licensee’s commingling of funds may include?

A

Mixing clients money with personal accounts, Using clients money, Failing to deposits clients money.

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49
Q

How long after a termination of a property agreement does the manager have to reconcile monies and give and accounting to the owner?

A

60 days

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50
Q

A QB managing property has to document what regarding a deposit into a trust account.

A

Amount of deposit, Related property, Dates of receipt and deposit amount

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51
Q

A broker must record what when a tenant pays rent?

A

date received, date deposited, name of tenant

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52
Q

A tenancy agreement must contain

A

rental address, date possession begins, how payments are to be applied

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53
Q

A property manager collecting rent from six individual units is required to have

A

One property management trust account

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54
Q

To terminate tenancy upon non payment of rent, a property manger must give how many days written notice

A

3 days

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55
Q

The trustee of a trust account can only be

A

the Qualifying Broker

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56
Q

What is not required to be maintained in a separate trust account by a QB

A

gross receipts

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57
Q

The maximum time a broker may legally hold onto a security deposit

A

30 days

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58
Q

When must the broker disclose the current and future tax levy on a property

A

Prior to writing a purchase offer

59
Q

The NM Environmental Improvement Board requires the inspection of a property onsite wastewater system upon

A

Any Transfer of ownership of a property

60
Q

Changes of residential ownership in NM require disclosure of sales price info for the property. how is this done

A

submitting the property tax affidavit to the county assessor

61
Q

The homeowner association act states that a seller of a property located in an HOA must provide the buyer with documents prior to closing

A

Bylaws & rules of HOA, C.C&R’s, Declaration of HOA

62
Q

How many days prior to closing must the seller provide the buyer with a Disclosure Certificate from the HOA

A

7 days

63
Q

Homeowners are given the opportunity to conduct a lead based paint inspection/ risk assessment at their own expense for

A

a 10 day period

64
Q

HUD has the authority to impose civil penalties for violating the Lead Based Paint Disclosure Act up to

A

$11, 000 per violation

65
Q

If a purchaser terminates the purchase agreement upon receiving the HOA Disclosure Certificate, the seller must refund fees/earnest money within

A

15 days

66
Q

Under commission rules, what does error & omission insurance not cover?

A

Fraud and misrepresentation

67
Q

How much water is a single household allowed to use from a newly permitted domestic well?

A

1-acre foot per year

68
Q

A claim against the Real Estate Recovery Fund is limited to NO more than

A

$10,000

69
Q

NM Human Rights Act differs from Federal Fair Housing law because only the NM act prohibits discrimination against

A

sexual orientation

70
Q

The Real Estate recovery fund must be maintained at a minimum of

A

$150,000

71
Q

For time shares, a purchaser has how many days of right of recision

A

7 days

72
Q

Mandated by the Commission, E&O Insurance deductible per claim shall not be greater than

A

$1,000

73
Q

A real estate broker is in compliance with fair housing practice

A

refusing to rent to an alcoholic classified as mentally ill due to abusive & aggressive behavior

74
Q

Complaints of Violations against the NM Human Rights Act filed with the commission or district court within

A

180 days

75
Q

NM law exempts real estate brokerage from licensure by the manufactured housing division that sell no more than

A

1 unit per year

76
Q

Changes or amendments to Commission rules are effective ____ days after notification to all active licensees

A

30

77
Q

a violation of real estate law or commission rules could be considered a _______________ felony

A

4th degree

78
Q

a violator of real estate law or commission rules could be subject to __________ and/or_____________

A

18 months imprisonment and/or $5,000 fine.

79
Q

Licensees have ____ days to respond to a complaint by the real estate commission

A

10

80
Q

If it finds cause, the commission will issue a ______________

A

Notice of Contemplated Action (NCA)

81
Q

When given a Notice of Contemplated Action (NCA) a Licensee has ____ days to request a hearing

A

20

82
Q

If Licensee does not request a hearing within 20 days, the commission may ____________________ license

A

revoke

83
Q

QB’s may only have their license revoked for the illegal activity of their AB’s if they have _________________

A

guilty knowledge

84
Q

The status of the license is still ____________ during the complaint process until the decision of the commission after the hearing

A

active

85
Q

Decisions of the commission in favor of the licensee are __________

A

final

86
Q

If commission rules against the licensee, the licensee may seek judicial review in _________________

A

district court

87
Q

Appeals are made to district court within ____ days of the commission decision

A

30

88
Q

Commission may fine licensee based on the Uniform Licensing Act up to ____________ per offense

A

$1,000

89
Q

The minimum penalty that the commission may impose is a ___________________

A

Letter of reprimand

90
Q

Any licensee whose license has been revoked may re-apply, and must meet all the requirements of _______________

A

original license

91
Q

Re-issuance of license is at the discretion of the ____________

A

commission

92
Q

NMREC inspections include, but are not limited to -Address of the real estate or time-share office

A
  • the sign identifying the office
  • the procedure used to deposit money
  • the trust records
  • the indexing or numbering system used in filing records
  • advertising
  • availability of current statutes and regulations of place of business
  • purchases, offers to purchase, counter offers, sales, lead-based paint disclosures, current, expired and cancelled listings; the names of all principles or parties to the transaction; the names of persons to whom compensation is paid
93
Q

Records shall be retained for a period no less than ____ years

A

6

94
Q

A person or business organization that for any consideration disposes, acquires or attempts to acquire any interest in real estate for others

A

qualified broker

95
Q

A person who for any consideration is associated directly with a real estate qualifying broker to participate in any activity defined for a real estate broker

A

associate broker

96
Q

Prohibited activities of an unlicensed assistant

A
  • Preparing legal documents such as listing and sales contracts
  • Interpreting documents, offering opinions or advice
  • obtaining personal or property information from a client or customer of the responsible person
  • Picking up from or delivering to customers of clients financial documents prepared by the title companions, lenders, or other third persons for the purpose of obtaining signatures
  • Attending closings without responsible party
  • Representing themselves as being an AB or QB
  • Telephone solicitation of any kind designed to produce transactions requiring licensure.
97
Q

What are the 3 functions of the NMREC

A

Licensing, Education, Enforcement

98
Q

How many members are on the NMREC?

A

5

99
Q

NMREC members serve a ____ term

A

5 year

100
Q

an owner has ____ days to return a deposit to a tenant

A

30

101
Q

A property manager has ____ days after agreement terminates to give owner final a accounting of trust funds

A

60

102
Q

A landlord has ____ days to convict a tenant for non-payment

A

3

103
Q

for a breach of rental agreement (aside from non-payment) a landlord can give a ____ day notice to cure breach or terminate

A

7

104
Q

Property managers are required to have at least ____ trust account

A

1

105
Q

A brokerage trust account is used for _____________ and _____________

A

earnest money and money from sales

106
Q

Broker has ____ to return license to NMREC upon request of transfer

A

48 hrs

107
Q

Associate Brokers cannot register a ________ _________

A

Trade name

108
Q

NMREC does not enforce ____________________

A

the Code of Ethics

109
Q

Parent Agency to Commission is _____________

A

Regulation and Licensing Department

110
Q

Brokers moving to another state must notify the commission of their new address within ______ days

A

10

111
Q

A property management trust account may not be used for __________

A

sales money

112
Q

OLDCAR

A

Obedience, Loyalty, Disclosure, Confidentiality, Accountability, Reasonable skill, care and diligence

113
Q

a relationship when a broker is entitled to a commission

A

Exclusive right to sell (exclusive representative)

114
Q

When seller appoints brokerage as exclusive agency but retains the right to sell independently

A

Exclusive Agency

115
Q

A written listing agreement wherein the owner appoints the broker as the representative, but not exclusively.

A

Open listing

116
Q

When is Tax Disclosure provided to buyer?

A

prior to writing a purchase agreement

117
Q

A Septic inspection can be no older than ____days

A

180

118
Q

Broker can deposit gross receipts and commission into a ___________ account

A

broker operating

119
Q

A seller must provide a buyer with the HOA disclosure certificate at least _______ days prior to closing

A

7

120
Q

upon written request by property owner, HOA must provide the Disclosure certificate within _____ business days

A

10

121
Q

Upon receiving an HOA disclosure certificate, a purchaser has ____ days to terminate contract

A

15

122
Q

When a brokerage ceases to use a trade name, the qualifying broker shall, within ____ days return all broker licenses to commission.

A

10

123
Q

When advertising real property owned by a broker the AD must include the __________________ and the _________________ registered with commission

A

phone number and the trade name

124
Q

upon informal notification of being on the certified child support enforcement list , The broker must provide commission with a statement of compliance within ____ days.

A

10

125
Q

the maximum fine the commission may impose is ___________ per violation

A

$1,000

126
Q

______________ and ____________ does not cover fraud and misrepresentation

A

Omissions and Errors

127
Q

claims against Real Estate Recovery Fund cannot exceed more than _________________

A

$10,000

128
Q

New Mexico Human rights act differs from Federal Fair Housing act because ONLY NM’s act prohibits discrimination due to _________________________

A

sexual orientation

129
Q

The amount of the Real Estate Recovery Fund must be maintained at a minimum balance of ______________

A

$150,000

130
Q

The developer of a time share shall not record a conveyance instrument until after the expiration of the purchaser’s right of rescission, which is_____ days

A

7

131
Q

Errors and Omission insurance deductible shall not be greater that _________

A

$1,000

132
Q

complaints of violations against the New Mexico Human Rights Act may be filed with the commissioner or with the district court within ____ days after violation

A

180

133
Q

NM law exempts real estate brokerages from licensure by the manufactured housing division that sell not more than ___ per year

A

1

134
Q

NMAC rules requires policy limits of not less than ________ per incident

A

$100,000

135
Q

NMCA rules require policy limits of not less than _________ aggregate per licensee

A

$500,000

136
Q

if a purchaser terminates the purchase agreement upon receiving the HOA disclosure certificate, the seller must refund earnest money within _______ days of termination

A

15

137
Q

HUD has the has the authority to impose civil penalties for violation the Lead Paint Disclosure act up to ___________ per violation

A

$11,000

138
Q

Homeowners given the opportunity to conduct a Lead based paint inspection at their own expense have ____ days

A

10

139
Q

The New Mexico Environmental Improvement Board requires the inspection of a property’s on-site waste water system upon _____________

A

any transfer of ownership

140
Q

Homes built before _______ may contain lead based paint

A

1978

141
Q

the trustee of a trust account can only be a ___________

A

qualifying broker

142
Q

If a substantial violation (drugs, criminal activity, damage) to rental agreement occurs, the owner may a ___ day notice to terminate tenancy

A

3

143
Q

Transfer of fee title will not ___________ a lease

A

terminate

144
Q

which duties are owed to an agents client but not to a transaction brokers client

A

loyalty and obedience

Real Estate Exam Prep (3 decks)

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