New Mexico Real Estate Broker Exam — All Questions

Under the broker-duties framework, a New Mexico broker must disclose to the parties:

• a.The broker's personal income
• b.The names of all other clients the broker serves
• c.Adverse material facts the broker actually knows about the property or transaction✓
• d.A guarantee that the property has no defects

A New Mexico broker must disclose any adverse material facts the broker actually knows about the property or the transaction, such as a known material defect. The broker need not independently inspect the property but may not conceal known problems or misrepresent the property.

Earnest money that a New Mexico associate broker receives from a buyer must be:

• a.Delivered to the qualifying broker so it is handled through the brokerage's trust account✓
• b.Deposited in the associate broker's personal account until closing
• c.Sent to the Real Estate Commission for safekeeping
• d.Paid directly to the seller when the offer is made

Client money such as earnest money must be handled through the brokerage's trust (escrow) account, which the qualifying broker maintains, and kept separate from personal funds. An associate broker who receives the money must deliver it to the qualifying broker. Commingling or converting trust money is a serious violation.