New Hampshire Real Estate Broker Exam — All Questions

In a New Hampshire brokerage firm, who is accountable to the Commission for the firm's trust accounts and the supervision of its affiliated licensees?

• a.Each individual salesperson for their own transactions only
• b.The local Realtor board
• c.The principal broker✓
• d.The closing attorney

Each New Hampshire firm must have a principal broker who is responsible for the firm's licensed activity, its trust accounts, and supervision of affiliated licensees. This concentrated accountability is central to why the broker credential requires added experience and education.

A New Hampshire firm operates two offices. The licensee designated to supervise the day-to-day activity of a branch office on the principal broker's behalf is best described as the:

• a.Transaction coordinator
• b.Managing broker✓
• c.Designated seller's agent
• d.Independent salesperson

A firm with more than one office typically designates a managing broker to supervise a branch on behalf of the principal broker. The managing broker handles day-to-day oversight at that location, but ultimate responsibility for the firm remains with the principal broker.

A New Hampshire broker receives an earnest money deposit on a listing. To comply with trust-account rules, the broker must:

• a.Deposit it into the firm's general operating account to simplify bookkeeping
• b.Keep it in the broker's personal savings account until closing
• c.Endorse it directly to the seller before any contingencies are met
• d.Hold it in a separate trust or escrow account, apart from personal and business funds, and disburse it only as authorized✓

Client funds such as earnest money must be held in a separate trust or escrow account, apart from the broker's personal and business operating funds. Commingling or converting client money is a serious violation, and the broker must keep records that allow reconciliation and disburse only as authorized.