New Mexico Real Estate Exam Topics: Complete Breakdown

New Mexico Real Estate Exam Topics

The New Mexico PSI exam has two sections: 80 national questions and 50 state-specific questions (130 total). Passing requires 75% — 98 correct answers. The state section is one of the largest in the country, covering extensive NM-specific law.

National Exam Content Areas

Property Ownership (approximately 8 questions) Real vs. personal property, freehold vs. leasehold estates, forms of co-ownership (joint tenancy, tenancy in common, community property — NM IS a community property state), and government powers (police power, eminent domain, taxation, escheat).

Land Use Controls (approximately 5 questions) Zoning, building codes, environmental regulations, deed restrictions, and easements.

Valuation and Market Analysis (approximately 7 questions) The three appraisal approaches: sales comparison, cost, and income. Principles of value: substitution, conformity, supply and demand, highest and best use.

Financing (approximately 10 questions) Conventional, FHA, VA, and USDA loans. RESPA, TILA/Regulation Z, points, amortization, and predatory lending.

Transfer of Property (approximately 8 questions) Types of deeds, title insurance, recording statutes, and transfer taxes. NM uses deed of trust — non-judicial foreclosure.

Practice of Real Estate (approximately 13 questions) Agency relationships, listing agreements, MLS, antitrust, and property management.

Real Estate Calculations (approximately 10 questions) Commission calculations, prorations, LTV, down payment, and area/acreage.

Contracts (approximately 13 questions) Contract elements, purchase agreements, contingencies, options, leases.

Fair Housing (approximately 6 questions) Federal 7 protected classes, ADA, exemptions.

New Mexico State-Specific Topics (50 questions)

Associate Broker License New Mexico uses the term "Associate Broker" for the entry-level real estate license. A "Qualifying Broker" is the equivalent of a broker. This terminology is tested extensively — know it.

NMREC Structure New Mexico Real Estate Commission has 5 members. Governing law: New Mexico Statutes Annotated Chapter 61, Article 29. Pre-license: 90 hours for Associate Broker. Renewal: every 3 years with 36 hours of CE.

Community Property NM is one of nine community property states. Property acquired during marriage is owned 50/50 by both spouses. Separate property (owned before marriage, inherited, or gifted) remains separate. Know the distinction and how it affects real estate transfers.

Transaction Broker New Mexico permits licensees to act as "Transaction Brokers" — a non-agency facilitation role where the licensee assists both parties without representing either. This is different from dual agency and is a unique NM concept tested on the state exam.

NM Disclosure Requirements Sellers must provide the required NM disclosure form. The Associate Broker is responsible for ensuring proper disclosure.

NM Transfer Tax New Mexico has no state transfer tax — only county document recording fees apply.

Water Rights NM follows the prior appropriation doctrine for water rights ("first in time, first in right"). This is important in the context of NM land values and real property law.

NM Fair Housing Additions Federal 7 classes plus marital status, sexual orientation, and gender identity.

Manufactured Homes NM real property includes manufactured homes under certain conditions — a unique NM classification tested on the state exam.

For a full NM exam and licensing guide, visit [CARealestate.com/states/new-mexico](https://carealestate.com/states/new-mexico).