Real Estate Practice in New Hampshire
New Hampshire practice includes handling client funds through broker trust accounts and required notices about certain property conditions. This chapter covers trust money and disclosure duties.
Trust Accounts and Client Funds
Client funds such as earnest money must be handled through the broker's trust (escrow) account and kept separate from the broker's personal and business funds. A salesperson who receives client money must promptly deliver it to the associated broker for deposit. Commingling or converting trust money is one of the most serious violations of RSA 331-A.
Required Property Notices and Material Defects
New Hampshire law (RSA 477:4-a) requires the purchase and sale of certain residential property to include notices addressing the potential presence of radon, arsenic in well water, and, for older homes, lead-based paint. Licensees must also disclose known material physical defects in a property they are marketing and may not help conceal them. Honest disclosure protects buyers and reduces the licensee's exposure to complaints.
Advertising and Honest Dealing
Advertising must be truthful and must be conducted under the associated broker; a salesperson may not advertise listed property independently of the broker. Licensees must avoid misrepresentation and disclose known material adverse facts. Accurate, broker-supervised advertising protects consumers and limits the licensee's exposure to discipline.