New Mexico License Law
Under New Mexico license law, which of the following constitutes commingling?
ADepositing client funds into a separate trust account
BMixing client trust funds with the broker's personal or business funds✓ Correct
CMaintaining separate ledgers for each client
DTransferring earnest money to the title company at closing
Explanation
Commingling occurs when a licensee mixes client trust funds with their own personal or business operating funds, which is prohibited under New Mexico license law.
People Also Study
Related New Mexico Questions
- In New Mexico, a licensee is prohibited from practicing real estate if their license is:New Mexico License Law
- Under New Mexico law, a licensee who wishes to place their license on inactive status must:New Mexico License Law
- A New Mexico licensee who fails to complete continuing education before the renewal deadline will have their license:New Mexico License Law
- A New Mexico real estate broker must avoid 'commingling' funds. Which of the following actions constitutes commingling?Agency
- In New Mexico, an agent must disclose to their client any personal interest in a transaction. This is required by the fiduciary duty of:Agency
- In New Mexico, a real estate licensee who witnesses a fair housing violation by their client should:Fair Housing
- In New Mexico, how soon must a new salesperson apply for their license after passing the exam?New Mexico License Law
- When a New Mexico borrower pays off their deed of trust loan, the trustee must issue a:Finance
Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Math Concepts
State-Specific Concepts
Trust Account RulesLicense Law
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 →