Free Brokerage Office Administration Course Exam Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Brokerage Office Administration Course Exam practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A corporation wants to conduct real estate brokerage activity in New Mexico. What must it do before operating as a brokerage?

   1. A. Register only its corporate name with the secretary of state
   2. B. Employ or contract with a qualifying broker to qualify the entity
   3. C. Affiliate every owner as an associate broker
   4. D. Appoint an unlicensed office manager as the responsible person

   Answer: B

   Explanation: The controlling definition describes a qualifying broker as one who has "qualified a proprietorship, corporation, partnership or association to do business as a real estate brokerage." The corporation therefore needs a qualifying broker.

   Reference: 16.61.1 NMAC — 16.61.9.8

2. 2At a brokerage with a physical office, where must the licenses of the qualifying broker and affiliated brokers be displayed?

   1. A. At the physical brokerage office
   2. B. At the county clerk's office
   3. C. At each listed property
   4. D. At the commission's examination site

   Answer: A

   Explanation: The rule directs the qualifying broker to "Prominently display in the brokerage office" the broker's own license and the licenses of affiliated associate brokers working from the office.

   Reference: 16.61.16 NMAC — 16.61.16.9(B) NMAC

3. 3How long must a qualifying broker retain brokerage transaction records that are not property-management records?

   1. A. Three years
   2. B. Four years
   3. C. Six years
   4. D. Seven years

   Answer: C

   Explanation: 16.61.16.9(F) NMAC requires the qualifying broker to "Maintain all transaction records for six years if not performing property management."

   Reference: 16.61.16 NMAC — 16.61.16.9(F) NMAC

4. 4Where must a brokerage ensure its trust-account records can be accessed for regulatory review?

   1. A. From the brokerage office registered with the commission
   2. B. Only from the financial institution's main office
   3. C. Only from the property owner's residence
   4. D. From the county assessor's public terminal

   Answer: A

   Explanation: 16.61.23.10(A) NMAC says, "Records shall be maintained at or accessible from the brokerage office as registered with the commission."

   Reference: 16.61.23 NMAC — 16.61.23.10(A) NMAC

5. 5A qualifying broker has affiliated brokers in the brokerage. How must the office policies be delivered to each affiliated broker?

   1. A. With a signed acknowledgment that the policies were received, read, and accepted
   2. B. By oral review at the broker's first closing
   3. C. By filing them only with the commission
   4. D. With a property owner's signature after each transaction

   Answer: A

   Explanation: The policies must be provided to each broker and "must include a signed acknowledgement by broker that policies were received and read and that broker agrees to follow the policies."

   Reference: 16.61.16 NMAC — 16.61.16.9(L)(1) NMAC

6. 6What baseline standard applies to every New Mexico real estate advertisement?

   1. A. It must be a true and factual representation and not confuse or mislead
   2. B. It must quote the property's assessed value
   3. C. It must disclose the seller's financing motivation
   4. D. It must reproduce the full brokerage office policy

   Answer: A

   Explanation: 16.61.32.8 NMAC requires advertising to be "a true and factual representation" and not be presented in a manner that will confuse or mislead the public.

   Reference: 16.61.32 NMAC — 16.61.32.8(A) NMAC

7. 7How may a qualifying broker engage associate brokers or other qualifying brokers for the brokerage?

   1. A. By a written agreement consistent with each license type's regulatory responsibilities
   2. B. By an oral agreement confirmed after the first transaction
   3. C. By a referral agreement limited to compensation
   4. D. By a property-management agreement signed by brokerage clients

   Answer: A

   Explanation: The rule allows engagement "by written agreement" when its terms are consistent with the responsibilities imposed by 16.61.16.9 and 16.61.17.9 NMAC.

   Reference: 16.61.16 NMAC — 16.61.16.8 NMAC

8. 8To whom may a commission split be disbursed directly from a brokerage trust account?

   1. A. The qualifying broker
   2. B. The associate broker who earned it
   3. C. The transaction coordinator
   4. D. The unlicensed brokerage owner

   Answer: A

   Explanation: The rule prohibits "disbursing commission or commission splits from any trust or custodial account to any entity other than the qualifying broker."

   Reference: 16.61.23 NMAC — 16.61.23.11

9. 9Before a brokerage acts for an owner in managing a property, what must be in place?

   1. A. A signed written management agreement between the brokerage and owner
   2. B. An oral listing agreement between the tenant and associate broker
   3. C. A referral agreement between the owner and county assessor
   4. D. A trade-name application signed by each tenant

   Answer: A

   Explanation: 16.61.24.13(A) NMAC requires "a signed written management agreement between the brokerage and the owner for each property managed" before acting for the owner.

   Reference: 16.61.24 NMAC — 16.61.24.13(A) NMAC

10. 10During each three-year cycle, how much approved property-management continuing education must a qualifying broker who offers those services complete in addition to the foundational course?

    1. A. Four hours
    2. B. Eight hours
    3. C. Twelve hours
    4. D. Thirty hours

    Answer: C

    Explanation: The rule requires qualifying brokers offering property management to "complete a minimum of 12 hours of approved continuing education courses in property management" each cycle.

    Reference: 16.61.24 NMAC — 16.61.24.9(C) NMAC