New Hampshire Real Estate Salesperson Exam — All Questions

In New Hampshire, a licensee who assists a party in a transaction without representing either the buyer or the seller as a client is acting as a:

• a.Designated agent
• b.Facilitator✓
• c.Dual agent
• d.Subagent

New Hampshire recognizes the facilitator (non-agency) role, in which the licensee helps a party in a transaction without representing either as a client and owes no fiduciary duties. A facilitator must still act honestly and disclose known material defects in the property.

In New Hampshire, disclosed dual agency, where one licensee represents both the buyer and the seller, is permitted only when:

• a.Both parties give informed written consent✓
• b.The property is newly constructed
• c.The managing broker approves verbally
• d.The transaction is all cash

Disclosed dual agency is allowed in New Hampshire only with the informed written consent of both the buyer and the seller. A dual agent may not reveal one party's confidential information to the other. New Hampshire also recognizes designated agency, where separate affiliated agents represent each side within the same firm.

New Hampshire rules require a licensee to give a consumer the written brokerage relationship disclosure:

• a.before the consumer's offer is accepted
• b.at the closing of the transaction itself
• c.within 5 days after showing a property
• d.at the time of the first business meeting✓

The New Hampshire Real Estate Commission's rule fixes the trigger at the first business meeting, and licensees must use the commission's adopted Brokerage Relationship Disclosure Form. A licensee showing another firm's listing also discloses the relationship to that agent before showing and in writing on the offer. Cite: N.H. Admin. R. Rea 701.01(a)-(c).

The New Hampshire brokerage relationship disclosure form need not be handed to visitors at an open house if:

• a.a sign or poster conspicuously states the relationship✓
• b.the licensee is acting only as a transaction facilitator
• c.the visitors already work with another brokerage firm
• d.the seller is personally present in the house that day

New Hampshire's rule waives the form for open house attendees where the broker or salesperson discloses the licensee's relationship with the seller by sign, poster, pamphlet, or other conspicuous means. Cite: N.H. Admin. R. Rea 701.01(d).

When a New Hampshire consumer will not sign the brokerage relationship disclosure form, the licensee must:

• a.decline to show that consumer any property
• b.have the principal broker sign the form instead
• c.note that on a copy and keep it for three years✓
• d.mail the unsigned form in to the commission

If a buyer or seller chooses not to enter a relationship and will not sign the disclosure form, the licensee notes that fact on a copy of the form and keeps the copy for three years. Cite: N.H. Admin. R. Rea 701.01(f).

Unless the parties agree otherwise, a New Hampshire facilitator:

• a.may not present offers between the two parties
• b.owes the same confidentiality that a buyer agent owes a client
• c.must keep the seller's price flexibility secret
• d.has no duty to keep either side's information secret✓

A New Hampshire facilitator assists without representing either side. Unless otherwise agreed the facilitator has no duty to keep information received from the seller or the buyer confidential, though the facilitator must still treat everyone honestly, present all offers in a timely way, and disclose known material conditions. Cite: RSA 331-A:25-f, III.

New Hampshire presumes conclusively that a client consented to designated agency when the client:

• a.was shown a property listed by that same firm
• b.attended the firm's buyer education seminar
• c.paid a retainer fee to the appointing agent
• d.signed a brokerage agreement that explains it✓

Appointment of a designated agent requires the party's written consent at the start of the agency relationship, and the statute creates a conclusive presumption of consent where the party signed a brokerage agreement containing an explanation of designated agency. Cite: RSA 331-A:25-e, II.

When a New Hampshire appointing agent has appointed designated agents for both sides of one transaction, that appointing agent:

• a.becomes a facilitator by operation of the law
• b.is a dual agent, neutral between the two✓
• c.represents whichever side signed the firm on first
• d.must withdraw from that transaction entirely

The appointing agent who has designated agents on both sides is a dual agent, exclusively representing neither party and neutral as to their conflicting interests, but still owing both sides the duties of confidentiality, disclosure of material information, and accounting for funds. Cite: RSA 331-A:25-e, VI.

Under New Hampshire's designated agency statute, information a designated agent knows:

• a.is imputed only to the firm's managing broker
• b.must be reported weekly to the principal broker
• c.is imputed to every other licensee in that firm
• d.is not imputed to the appointing agent or the firm✓

Once a designated agent is appointed, the duties owed to that party belong to the designated agent rather than to other licensees in the firm, and information known or acquired by the designated agent is not imputed to the appointing agent or to other firm licensees. Cite: RSA 331-A:25-e, III, V.

Substituting one New Hampshire designated agent for another requires:

• a.written notice to the state real estate commission
• b.the approval of the other side of the transaction
• c.the informed written consent of the represented party✓
• d.an entirely new brokerage agreement signed with the client

New Hampshire allows substitution of designated agents only with the informed written consent of the party being represented, and appointment of a designated agent never limits the appointing agent's or principal broker's responsibility for a breach of duty. Cite: RSA 331-A:25-e, IV, VIII.

When both sides of a New Hampshire transaction have consented to designated agency, written notice that this has happened must be given:

• a.before the purchase and sale agreement is executed✓
• b.at the closing table, before funds change hands
• c.within 10 days after the offer has been accepted
• d.only when one of the parties asks to see the notice

Where the seller or landlord and the buyer or tenant have each consented to designated agency, written notice that designated agency has occurred with both sides in the transaction must reach both parties before the purchase and sale or lease agreement is executed. Cite: RSA 331-A:25-e, VII(a).

Which of these is NOT one of the duties RSA 331-A:25-a imposes under a brokerage agreement?

• a.diligence in pursuing the client's objectives
• b.confidentiality about the client's information
• c.guaranteeing the property's future resale value✓
• d.accounting for the client's funds and property

RSA 331-A:25-a binds a licensee serving under a brokerage agreement to seven duties: loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting. Guaranteeing future profits or income from a resale is separately listed as prohibited conduct. Cite: RSA 331-A:25-a, I; 331-A:26, XXX.

A New Hampshire licensee's duty to preserve a client's confidential information:

• a.continues after the relationship ends✓
• b.covers only the client's price information
• c.ends when the brokerage agreement itself ends
• d.runs for three years after the transaction closes

The confidentiality duty survives termination, expiration, completion, or performance of the fiduciary relationship. It yields only to the client's written consent, information made public by another source, defense against an accusation of wrongful conduct, or a requirement of law. Cite: RSA 331-A:25-b, I(c); 331-A:25-c, I(c).

A New Hampshire seller agent who prepares an offer for an unrepresented buyer:

• a.creates a buyer agency relationship by doing so
• b.breaches the listing agreement with the seller
• c.performs a ministerial act, forming no agency✓
• d.becomes a disclosed dual agent automatically

Showing property, preparing offers, and conveying them are ministerial acts. Performing them for the other side does not breach the brokerage agreement and does not create an agency relationship, provided agency disclosure has been given to that person in writing. Cite: RSA 331-A:25-b, II(b); 331-A:2, VI-a.

A New Hampshire licensee must disclose a known material on-site environmental condition:

• a.any time before the buyer's written offer✓
• b.after the inspection contingency period has ended
• c.within 24 hours of the scheduled closing date
• d.only if the buyer raises the subject first in writing

A licensee must disclose to a prospective buyer or tenant any material physical, regulatory, mechanical, or on-site environmental condition affecting the property of which the licensee has actual knowledge, at any time prior to the written offer. The statute creates no duty to investigate for defects. Cite: RSA 331-A:25-b, II(c).