10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
These 10 free NMREB questions are organized by exam domain, so you can see how each part of the New Mexico Real Estate Broker Exam blueprint is tested. Reveal the answer and explanation under each question.
A restaurant tenant bolts commercial ovens and prep counters to the floor for use in the business. The lease is silent. Before the lease expires, the tenant removes them and repairs the damage caused by removal. How are the items classified?
Correct answer: C - Trade fixtures; timely removal is allowed if removal damage is repaired
A 12-unit property has $216,000 potential gross income, $10,800 vacancy loss, $4,800 parking income, $69,000 operating expenses, $6,000 replacement reserves, $48,000 debt service, and $18,000 book depreciation. Treating reserves as an operating expense, what value is indicated at a 7.5% capitalization rate?
Correct answer: A - $1,800,000
A current borrower has private mortgage insurance (PMI) on a conventional mortgage covered by the Homeowners Protection Act. The loan is not classified as high risk, and its scheduled principal balance has fallen to 77% of the home's original value. Which statement is accurate?
Correct answer: D - PMI should have ended at the scheduled 78% threshold
During a showing of a 1950s home, renovation workers begin sanding damaged pipe-wrap material and visible dust becomes airborne. No testing has been done. What should the broker do first?
Correct answer: B - Move everyone away, stop the disturbance, and recommend a qualified asbestos evaluation
A buyer offers $490,000. The seller delivers a $505,000 counteroffer, which the buyer rejects. Before the original offer's stated expiration, the buyer says, "I accept my original $490,000 offer." What is the legal effect?
Correct answer: D - No contract; the counteroffer terminated the original offer
A 24-unit rental community enforces a no-pet policy. An applicant provides reliable information showing a disability-related need for an assistance animal, and there is no individualized evidence of a direct threat or substantial property damage. The manager's best response is to:
Correct answer: B - Approve a reasonable accommodation to the no-pet rule
The New Mexico Real Estate Commission sends a broker a copy of a complaint and written notice that it has been filed. Six working days later, the complainant requests withdrawal. Which rule governs?
Correct answer: D - The original 10-working-day response deadline remains; withdrawal does not require dismissal
At month-end, the reconciled bank balance, trust register, and total property ledgers each equal $42,600. One property ledger is negative $275, offset by another owner's surplus. Which action is required?
Correct answer: A - Trace and correct the deficit; matching totals do not cure a negative property ledger
A prospective buyer asks a New Mexico broker to prepare the buyer's first written offer. The broker has shown homes but has not delivered the broker-duties disclosure. Before drafting the offer, what must the broker do?
Correct answer: C - Disclose the duties in writing and obtain the buyer's acknowledgment
A New Mexico ranch listing includes a well and an acequia crossing. The seller says water use "comes with the land," but the file contains no permit, adjudication, or ditch documents. Which explanation is most accurate?
Correct answer: B - Verify the actual water right; owning land alone proves neither priority nor authorized use
The NMREB exam also covers these domains. Drill them in the full free practice test:
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