New Mexico Real Estate Broker Exam — All Questions

Under New Mexico's broker-duties framework, the statutory broker duties are owed:

• a.Only to the broker's own client
• b.Only after a written agency agreement is signed
• c.Only to the buyer in a transaction
• d.To the parties in a transaction, whether or not an agency relationship exists✓

In New Mexico, every associate broker and qualifying broker owes the statutory broker duties, such as honesty, reasonable care, and disclosure of adverse material facts, to the parties whether or not an agency relationship exists. An agency agreement adds further duties to a client, but the baseline broker duties apply to all.

Which of the following must a New Mexico broker provide to a prospective buyer or seller early in the relationship?

• a.A completed appraisal
• b.A written disclosure of the broker duties✓
• c.A title commitment
• d.A property tax estimate

New Mexico requires a broker to provide a written disclosure of the broker duties to a prospective buyer or seller, so the consumer understands the duties every broker owes before working together. This disclosure is a core compliance step for New Mexico brokers.