Agency
In New Mexico, an agent who knowingly misrepresents the condition of a property faces which consequences?
AOnly a NMREC warning letter
BCivil liability for fraud or misrepresentation, administrative discipline from NMREC including license sanctions✓ Correct
CNo consequences if the buyer signed an 'as is' clause
DOnly consequences if the buyer suffered a financial loss over $10,000
Explanation
Knowing misrepresentation is fraud, exposing the agent to civil liability (rescission, damages), and administrative action by NMREC (license suspension or revocation). An 'as is' clause doesn't protect against intentional fraud.
Related New Mexico Agency Questions
- In New Mexico, 'apparent authority' (ostensible agency) is created when:
- In New Mexico, an exclusive right-to-sell listing gives the broker:
- Which of the following best describes a 'net listing' in New Mexico?
- In New Mexico, when a listing broker and selling broker are from different firms, the selling broker is generally considered:
- An agent who is appointed by operation of law in an emergency situation to protect their principal's property is known as a(n):
- In New Mexico, a listing broker's 'protection period' clause in a listing agreement means:
- A New Mexico buyer's agent who finds out the seller has received another offer should:
- In New Mexico, what is the agent's duty of 'diligence' in representing a seller?
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →