New Mexico Real Estate Broker Exam — All Questions

Which disbursement from a New Mexico trust account is expressly treated as commingling?

• a.Paying an inspection fee agreed to in writing by the parties
• b.Transferring funds to another properly designated trust account in the same brokerage
• c.Paying a fee due the broker once the basis for it can be calculated
• d.Paying a commission split to anyone other than the qualifying broker✓

Wrongful disbursements that constitute commingling include disbursing commission or commission splits from a trust or custodial account to any entity other than the qualifying broker, paying personal expenses, and paying gross receipts tax directly from the account. Cite: 16.61.23.11(B)(4) NMAC.

A New Mexico bank requires a $500 minimum balance to avoid service charges on the brokerage trust account. The qualifying broker may:

• a.Place non-trust funds in the account up to that minimum balance✓
• b.Take the $500 from the largest property ledger
• c.Do nothing; any of the broker's own money in the account is commingling
• d.Place up to $5,000 of the broker's money in the account

The rule's exceptions to commingling allow non-trust funds in an amount not exceeding the financial institution's required minimum balance to maintain the account and avoid charges, and also allow funds to cover credit card and bank fees. Cite: 16.61.23.11(D)(1) and (D)(2) NMAC.

A New Mexico associate broker's name appears in 30-point type on a listing flyer. The brokerage trade name registered with the commission must appear in type that is at least:

• a.The same size as the associate broker's name
• b.At least one-third the size of that name✓
• c.At least half the size of the associate broker's name
• d.Eight-point type, whatever the broker's name measures

Since January 1, 2017, the brokerage trade name and telephone number must be prominently displayed in a type size not less than thirty-three percent of the type size of the associate broker's name, or of the team name where a team is advertising. Cite: 16.61.32.8(C) NMAC.

A New Mexico broker owns a duplex and advertises it for rent. The broker's license status:

• a.Must appear in the advertisement and on any sign
• b.Need not be disclosed anywhere, because the broker owns the property
• c.Must be disclosed in the rental or lease agreement, though not in the advertising or signs✓
• d.Must be disclosed only to the commission

A broker advertising to sell or exchange property the broker owns must say so in the advertising and signs and in the listing, purchase or exchange agreement. For a rental or lease the advertising disclosure is not required, but the disclosure must appear in the rental or lease agreement. Cite: 16.61.32.8(D) NMAC.

A New Mexico qualifying broker asks an unlicensed assistant to help fill the pipeline. Which task is prohibited?

• a.Placing and removing signs on listed property as directed
• b.Typing a listing agreement the broker prepared
• c.Ordering repairs as directed by the responsible person
• d.Cold-calling homeowners to set listing appointments✓

Unlicensed assistants may place signs, order repairs, type documents the responsible person prepared, and deposit funds under supervision. Telephone solicitation of any kind designed to procure buyers, sellers, listings or listing appointments is expressly prohibited. Cite: 16.61.21.8 and 16.61.21.9(H) NMAC.