New Hampshire Real Estate Salesperson Exam — All Questions
19 questions
Real estate salespersons in New Hampshire are licensed and regulated under RSA 331-A by:
- a.The county registry of deeds
- b.The New Hampshire Association of Realtors
- c.The New Hampshire Real Estate Commission✓
- d.The New Hampshire Secretary of State
The New Hampshire Real Estate Commission administers RSA 331-A, licensing brokers and salespersons and disciplining violations. A trade association is a private membership organization and does not license practitioners.
Under New Hampshire license law, a real estate salesperson must:
- a.Hold a broker license to list property
- b.Practice independently once licensed
- c.Be associated with and supervised by a licensed broker✓
- d.Register directly with the town where they work
A New Hampshire salesperson holds an entry-level license and must be associated with and supervised by a licensed broker. The salesperson may not operate independently; the broker is responsible for supervising the salesperson's activities and the office's trust accounts.
A New Hampshire salesperson may lawfully accept a commission for brokerage services from:
- a.The buyer directly at closing
- b.The broker with whom the salesperson is associated✓
- c.Any cooperating broker in the transaction
- d.The seller directly upon listing
A New Hampshire salesperson may accept compensation for brokerage services only from the associated broker, not directly from a buyer, seller, or another broker. The broker is responsible for supervision and for paying affiliated salespersons.
A New Hampshire listing agreement clause giving the broker power to sign the sale contract for the owner is:
- a.valid for the first 90 days of a listing
- b.null and void and of no legal effect✓
- c.permitted for commercial property only
- d.enforceable once the clause is notarized
New Hampshire voids any listing provision purporting to give the broker or agent power to execute contracts for the sale of the property. The sale contract must be executed by the owner, or by an attorney-in-fact under a written power of attorney the owner properly executed. Cite: RSA 331-A:25-g.
A New Hampshire principal broker's escrow account must be:
- a.opened in the name of the depositing buyer alone
- b.a money market fund of the broker's own choosing
- c.at the office of the closing attorney for the deal
- d.in an insured financial institution within the state✓
The principal broker maintains an escrow account separate from the individual or office account, in an insured financial institution within New Hampshire, into which all deposits on fully executed contracts are promptly deposited, and signs a permit letting the commission audit it. Cite: RSA 331-A:13, I, V.
A New Hampshire principal broker has held a contract deposit more than 90 days past the closing date with no performance, agreement, or court order. The broker may:
- a.notify all parties by certified mail and wait 60 days✓
- b.keep the entire deposit as compensation the broker has earned
- c.turn the deposit over to the real estate commission
- d.return it to the buyer without notifying the seller
New Hampshire's release process starts after 90 days: certified mail to all parties saying the deposit will be distributed as specified unless they perform, sign a mutual release, or start litigation within 60 days of the mailing date. Releasing it then frees the broker from liability under the chapter only. Cite: RSA 331-A:13, VI.
A New Hampshire principal broker may put business or personal funds into the escrow account:
- a.to cover bank service charges or a minimum balance✓
- b.to lend a buyer the money for an earnest deposit
- c.whenever the broker keeps a separate ledger sheet
- d.to make up a shortage in a client's own deposit
The statute permits the broker's own funds in escrow for two narrow purposes: covering service charges the depository assesses to the account, and maintaining a minimum balance the depository's regulations require. Cite: RSA 331-A:13, VII.
New Hampshire escrow rules forbid a principal broker from:
- a.holding more than one separate escrow account at once
- b.forwarding a deposit to the closing agent early
- c.placing deposits in an interest-bearing escrow account
- d.drawing checks against uncollected contract deposits✓
No checks may be drawn against uncollected contract deposits. Interest-bearing escrow is allowed with the interest accruing to the depositing party unless otherwise agreed in writing, and deposits may be forwarded to the closing agent, title company, or attorney for purposes of performance. Cite: RSA 331-A:13, II, III, IV.
Before a New Hampshire principal or managing broker license is issued or renewed, the applicant must file a surety bond of not less than:
- a.$10,000
- b.$25,000✓
- c.$50,000
- d.$100,000
The bond runs to the state for the benefit of any aggrieved person and is conditioned on faithful accounting for funds entrusted to the broker. The commission may revoke a principal or managing broker's license if the bond stops being in full force. Cite: RSA 331-A:14.
Failing to reconcile trust account records monthly is, in New Hampshire:
- a.prohibited conduct carrying disciplinary action✓
- b.the depository bank's job, not the broker's
- c.a bookkeeping preference, not a legal duty
- d.excused whenever the account had no activity
RSA 331-A:26 lists failing to promptly place trust funds in a proper trust account, or failing to reconcile records monthly, among the acts for which a licensee may be disciplined after a hearing. Cite: RSA 331-A:26, VIII.
In New Hampshire, a licensee's failure to return money or documents within 30 days after a rightful demand is:
- a.excused when a commission is still owed
- b.a matter for the Attorney General
- c.prima facie proof of conversion✓
- d.a fee dispute for small claims court
Conversion of money, a deed, note, mortgage, abstract, or other evidence of title delivered in trust is prohibited conduct, and failure to return it within 30 days after the owner is entitled to and demands it is prima facie evidence of that conversion. Cite: RSA 331-A:26, VII.
A New Hampshire licensee may accept something other than cash or its equivalent as earnest money only if:
- a.the buyer signs a promissory note for the balance
- b.the owner is told in writing and acknowledges it✓
- c.the principal broker gives verbal approval of it
- d.the amount involved is less than $1,000 total
The fact must be communicated in writing to the owner before the owner accepts the offer, shown in the earnest money receipt, and acknowledged in writing by the owner. Otherwise accepting non-cash earnest money is prohibited conduct. Cite: RSA 331-A:26, XI.
A New Hampshire principal broker must preserve records relating to a real estate transaction for:
- a.one full year
- b.three years✓
- c.five years
- d.seven years
New Hampshire sets three years both for transaction records a principal broker keeps following consummation and for the escrow and trust account records showing dates deposited and withdrawn, to whom paid, and other required detail. Cite: RSA 331-A:26, XVIII, XIX.
A New Hampshire salesperson may accept a commission for licensed activity from:
- a.the principal broker the salesperson is licensed with✓
- b.the seller, paid directly at the closing table itself
- c.the cooperating brokerage firm on the other side of the deal
- d.the closing attorney's own client trust account
Accepting a commission or other valuable consideration from anyone except the licensed principal broker with whom the salesperson or broker is licensed is prohibited conduct. A former affiliate may still be paid by the previous responsible broker for deals worked while supervised there. Cite: RSA 331-A:26, XX, XXIV.
A New Hampshire licensee convicted of embezzlement must inform the commission in writing:
- a.at the next license renewal date
- b.within 30 days of the conviction✓
- c.within 10 business days of conviction
- d.only after the sentencing concludes
The licensee must notify the commission in writing within 30 days of conviction for forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, or similar offenses, including pleas of guilty or nolo contendere and deferred or suspended sentences. Cite: RSA 331-A:26, XXXVII.
Submitting a New Hampshire property owner's name to an electronic database others can access requires:
- a.a written waiver issued by the commission
- b.nothing at all, since the listing is public
- c.the owner's express written permission✓
- d.the listing broker's approval and nothing more
Submitting a property owner's name to any electronic database or multiple listing service that may be accessed by anyone other than the owner's own broker, without the owner's express written permission, is prohibited conduct. Cite: RSA 331-A:26, XXXVIII.
A New Hampshire advertisement carrying a salesperson's cell phone number must also include:
- a.the individual salesperson's own license number
- b.the brokerage office's regular business hours
- c.the property's assessed value for the tax year
- d.the principal broker's or firm's name and phone✓
Any advertising with a home, cell, pager, fax, or direct office number, an email address, or another way to reach a licensee or team directly must also carry the individual principal broker's or firm's name and telephone number, with each number clearly identified. Cite: RSA 331-A:16, IV(b).
A New Hampshire principal broker may pay a licensee's commission to that licensee's limited liability company only if:
- a.the LLC registers separately with the commission
- b.every member of the LLC holds an active license✓
- c.the LLC is owned entirely by family members
- d.the payment does not exceed $10,000 per deal
All partners, members, officers, or shareholders of the unlicensed entity must hold valid active licenses, at least one must be the licensee who earned the money, the entity must avoid prohibited acts and be registered to do business in New Hampshire, and the broker must keep records for three years. Cite: RSA 331-A:16-b, I.
A New Hampshire salesperson suing for an unpaid commission may sue:
- a.the cooperating brokerage on the other side
- b.the seller who benefited from the agent's work
- c.the broker the salesperson worked under✓
- d.the buyer's mortgage lender at the closing
No salesperson may sue in the salesperson's own capacity for a fee or commission unless the action is against the broker with whom the person is or was licensed when the service was performed. No unlicensed person may sue for compensation at all. Cite: RSA 331-A:32.