NM Broker Basics Review Flashcards
Licensees have how many days to respond to a complaint by the Real Estate Commission?
10 days
Title is said to pass in New Mexico when….
The deed has been signed by the grantor.
If a broker has not accounted for a security deposit within the required 30 days, and the tenant files suit, what could happen?
Pay $250 in damages, pay attorney’s fees and courts costs, and forfeit the security deposit
When may a licensee transferring offices start working for the new broker?
When the transfer application is signed by the new qualifying broker; and the license, proof of insurance, and fee are received by the Commission.
When must a property manager send a final accounting to the property owners upon termination, cancellation, or expiration of the management agreement?
Within 60 days
A licensee may sell how many manufactured houses per year?
One
When a QB changes offices, how much must a QB pay for the transfer fee?
$20 per license not to exceed $500.
What is a requirement of a broker in charge?
Must have two years of active license status, must have completed all education requirements, and must have passed the broker exam.
What is not a requirement of a broker in charge?
Must be a New Mexico resident
The New Mexico Real Estate Commission is administratively attached to which agency?
Regulation and Licensing Division
What is FALSE of a broker under investigation by the New Mexico Real Estate Commission?
The broker’s license is suspended until the investigation is completed.
Licensees of other states who apply for a New Mexico license…
must pass the real estate exam
Nonresident brokers may be subpoenaed by delivering the process to the…
Real Estate Commission
Which non licensee can receive a fee for selling another’s real property without violating the license law of New Mexico?
Trustee acting under proper authorization
The maximum time an exclusive listing contract is valid is
Whatever reasonable specific time agreed to by the seller and the broker
What does not requires a real estate license?
Sale of 99 lots in a subdivision, short term rentals, sale of personally owned property.
The Real Estate Commission may not impose?
penalties for Code of Ethics violations
The Responsibilities of the Real Estate Commission are?
Enforcing the license law, rules & regulations, refusing a license for cause.
The governor of the State of NM does what?
fills vacancies on the Real Estate Commission for unexpired terms.
Paying a referral fee to an unlicensed person for information leading to a listing…
Is a violation of the license law.
A brokers license can be revoked if the broker
fails to account for funds that belongs to others
What is exempt from the from the provisions of the real estate license law?
A trustee acting under a deed of trust, a trustee acting under a trust agreement, a person who deals exclusively in mineral rights.
Once an NCA is issues by the commission, the respondent has how many days to respond to the commission to request a hearing?
20 days
The Maximum fine the commission may impose is?
$1,000 per violation
Brokerage office signage must do what?
Be legible, be near the office entrance, contain the trade name of the brokerage
An AB involved in a real estate transaction may except compensation from?
The firms QB Records generated in connection the real estate matters processed through a brokerage must be made available to the Commission upon request
An unlicensed assistant may do what?
Host an open house with her responsible person present
Licensees are notified of impending action against their license by
a Notice of Contemplated Action (NCA)
An AB is required by rule to do what?
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
A broker who prepares a purchase agreement must give a copy of this signed document to the buyer when?
as soon as practically possible
What information must a broker provide to the real estate commission staff who are conducting and investigation of a complaint?
All information requested
What is not a circumstance that would allow the commission to refuse to renew the license of a broker?
A disciplinary action pending against the broker
If an AB violated a license law or commission rule , the QB’s license could be revoked if
they had guilty knowledge of the violation
A QB is not responsible for what?
Maintaining a brokerage office in NM
When acting as a property manager for a principal, the brokerage relationship is what?
agency relationship
Every licensee must meet disclosure requirements to any consumer. Disclosure must include
conflict of interest, description of licensee broker duties, notice of an in house transaction.
what duties are owed to an agent’s client but not a brokers client?
obedience and loyalty
What is not something an NM listing broker is required to disclose?
a seller’s motivation for selling a property
Broker duties must be disclosed
in writing to a prospective customer or client
a buyer’s agent must disclose to a seller facts concerning
financial instability to perform the terms of the contract.
any transaction broker owes the buyer duty to
disclose conditions that adversely affect the property
If asked to estimate the dollar amount a buyer can deduct on his income taxes, a transaction broker should
suggest the buyer seek advice from a tax expert
prior to presenting a document that had potential to be an Express written agreement, a broker does not have to disclose what?
broker license number and the county it was issued
what is the term used when a principal is held liable for the wrongful acts of the agent
respondeat superior
maximum time an exclusive listing contract is valid is
specific time agreed to by the seller and broker.
a broker writes an offer without having a a brokerage service agreement. what type of relationship is this
transaction broker
the duty of honesty and reasonable care means
actively applying skill and expertise.
A licensee’s commingling of funds may include?
Mixing clients money with personal accounts, Using clients money, Failing to deposits clients money.
How long after a termination of a property agreement does the manager have to reconcile monies and give and accounting to the owner?
60 days
A QB managing property has to document what regarding a deposit into a trust account.
Amount of deposit, Related property, Dates of receipt and deposit amount
A broker must record what when a tenant pays rent?
date received, date deposited, name of tenant
A tenancy agreement must contain
rental address, date possession begins, how payments are to be applied
A property manager collecting rent from six individual units is required to have
One property management trust account
To terminate tenancy upon non payment of rent, a property manger must give how many days written notice
3 days
The trustee of a trust account can only be
the Qualifying Broker
What is not required to be maintained in a separate trust account by a QB
gross receipts
The maximum time a broker may legally hold onto a security deposit
30 days
When must the broker disclose the current and future tax levy on a property
Prior to writing a purchase offer
The NM Environmental Improvement Board requires the inspection of a property onsite wastewater system upon
Any Transfer of ownership of a property
Changes of residential ownership in NM require disclosure of sales price info for the property. how is this done
submitting the property tax affidavit to the county assessor
The homeowner association act states that a seller of a property located in an HOA must provide the buyer with documents prior to closing
Bylaws & rules of HOA, C.C&R’s, Declaration of HOA
How many days prior to closing must the seller provide the buyer with a Disclosure Certificate from the HOA
7 days
Homeowners are given the opportunity to conduct a lead based paint inspection/ risk assessment at their own expense for
a 10 day period
HUD has the authority to impose civil penalties for violating the Lead Based Paint Disclosure Act up to
$11, 000 per violation
If a purchaser terminates the purchase agreement upon receiving the HOA Disclosure Certificate, the seller must refund fees/earnest money within
15 days
Under commission rules, what does error & omission insurance not cover?
Fraud and misrepresentation
How much water is a single household allowed to use from a newly permitted domestic well?
1-acre foot per year
A claim against the Real Estate Recovery Fund is limited to NO more than
$10,000
NM Human Rights Act differs from Federal Fair Housing law because only the NM act prohibits discrimination against
sexual orientation
The Real Estate recovery fund must be maintained at a minimum of
$150,000
For time shares, a purchaser has how many days of right of recision
7 days
Mandated by the Commission, E&O Insurance deductible per claim shall not be greater than
$1,000
A real estate broker is in compliance with fair housing practice
refusing to rent to an alcoholic classified as mentally ill due to abusive & aggressive behavior
Complaints of Violations against the NM Human Rights Act filed with the commission or district court within
180 days
NM law exempts real estate brokerage from licensure by the manufactured housing division that sell no more than
1 unit per year
Changes or amendments to Commission rules are effective ____ days after notification to all active licensees
30
a violation of real estate law or commission rules could be considered a _______________ felony
4th degree
a violator of real estate law or commission rules could be subject to __________ and/or_____________
18 months imprisonment and/or $5,000 fine.
Licensees have ____ days to respond to a complaint by the real estate commission
10
If it finds cause, the commission will issue a ______________
Notice of Contemplated Action (NCA)
When given a Notice of Contemplated Action (NCA) a Licensee has ____ days to request a hearing
20
If Licensee does not request a hearing within 20 days, the commission may ____________________ license
revoke
QB’s may only have their license revoked for the illegal activity of their AB’s if they have _________________
guilty knowledge
The status of the license is still ____________ during the complaint process until the decision of the commission after the hearing
active
Decisions of the commission in favor of the licensee are __________
final
If commission rules against the licensee, the licensee may seek judicial review in _________________
district court
Appeals are made to district court within ____ days of the commission decision
30
Commission may fine licensee based on the Uniform Licensing Act up to ____________ per offense
$1,000
The minimum penalty that the commission may impose is a ___________________
Letter of reprimand
Any licensee whose license has been revoked may re-apply, and must meet all the requirements of _______________
original license
Re-issuance of license is at the discretion of the ____________
commission
NMREC inspections include, but are not limited to -Address of the real estate or time-share office
- 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
Records shall be retained for a period no less than ____ years
6
A person or business organization that for any consideration disposes, acquires or attempts to acquire any interest in real estate for others
qualified broker
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
associate broker
Prohibited activities of an unlicensed assistant
- 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.
What are the 3 functions of the NMREC
Licensing, Education, Enforcement
How many members are on the NMREC?
5
NMREC members serve a ____ term
5 year
an owner has ____ days to return a deposit to a tenant
30
A property manager has ____ days after agreement terminates to give owner final a accounting of trust funds
60
A landlord has ____ days to convict a tenant for non-payment
3
for a breach of rental agreement (aside from non-payment) a landlord can give a ____ day notice to cure breach or terminate
7
Property managers are required to have at least ____ trust account
1
A brokerage trust account is used for _____________ and _____________
earnest money and money from sales
Broker has ____ to return license to NMREC upon request of transfer
48 hrs
Associate Brokers cannot register a ________ _________
Trade name
NMREC does not enforce ____________________
the Code of Ethics
Parent Agency to Commission is _____________
Regulation and Licensing Department
Brokers moving to another state must notify the commission of their new address within ______ days
10
A property management trust account may not be used for __________
sales money
OLDCAR
Obedience, Loyalty, Disclosure, Confidentiality, Accountability, Reasonable skill, care and diligence
a relationship when a broker is entitled to a commission
Exclusive right to sell (exclusive representative)
When seller appoints brokerage as exclusive agency but retains the right to sell independently
Exclusive Agency
A written listing agreement wherein the owner appoints the broker as the representative, but not exclusively.
Open listing
When is Tax Disclosure provided to buyer?
prior to writing a purchase agreement
A Septic inspection can be no older than ____days
180
Broker can deposit gross receipts and commission into a ___________ account
broker operating
A seller must provide a buyer with the HOA disclosure certificate at least _______ days prior to closing
7
upon written request by property owner, HOA must provide the Disclosure certificate within _____ business days
10
Upon receiving an HOA disclosure certificate, a purchaser has ____ days to terminate contract
15
When a brokerage ceases to use a trade name, the qualifying broker shall, within ____ days return all broker licenses to commission.
10
When advertising real property owned by a broker the AD must include the __________________ and the _________________ registered with commission
phone number and the trade name
upon informal notification of being on the certified child support enforcement list , The broker must provide commission with a statement of compliance within ____ days.
10
the maximum fine the commission may impose is ___________ per violation
$1,000
______________ and ____________ does not cover fraud and misrepresentation
Omissions and Errors
claims against Real Estate Recovery Fund cannot exceed more than _________________
$10,000
New Mexico Human rights act differs from Federal Fair Housing act because ONLY NM’s act prohibits discrimination due to _________________________
sexual orientation
The amount of the Real Estate Recovery Fund must be maintained at a minimum balance of ______________
$150,000
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
7
Errors and Omission insurance deductible shall not be greater that _________
$1,000
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
180
NM law exempts real estate brokerages from licensure by the manufactured housing division that sell not more than ___ per year
1
NMAC rules requires policy limits of not less than ________ per incident
$100,000
NMCA rules require policy limits of not less than _________ aggregate per licensee
$500,000
if a purchaser terminates the purchase agreement upon receiving the HOA disclosure certificate, the seller must refund earnest money within _______ days of termination
15
HUD has the has the authority to impose civil penalties for violation the Lead Paint Disclosure act up to ___________ per violation
$11,000
Homeowners given the opportunity to conduct a Lead based paint inspection at their own expense have ____ days
10
The New Mexico Environmental Improvement Board requires the inspection of a property’s on-site waste water system upon _____________
any transfer of ownership
Homes built before _______ may contain lead based paint
1978
the trustee of a trust account can only be a ___________
qualifying broker
If a substantial violation (drugs, criminal activity, damage) to rental agreement occurs, the owner may a ___ day notice to terminate tenancy
3
Transfer of fee title will not ___________ a lease
terminate
which duties are owed to an agents client but not to a transaction brokers client
loyalty and obedience
