New Hampshire Real Estate Salesperson Exam — All Questions
11 questions
Under RSA 477:4-a, the sale of certain New Hampshire residential property must include notices addressing the potential presence of:
- a.Homeowners association fees
- b.Property taxes and school districts
- c.Radon, arsenic in well water, and lead-based paint✓
- d.Flood zones and earthquakes only
New Hampshire's RSA 477:4-a requires the purchase and sale of certain residential property to include notices about the potential presence of radon, arsenic in well water, and, for older homes, lead-based paint. These notices alert buyers to health-related conditions they may wish to investigate.
Earnest money that a New Hampshire salesperson receives from a buyer must be:
- a.Sent to the Real Estate Commission for safekeeping
- b.Held by the salesperson in a personal account until closing
- c.Given directly to the seller when the offer is made
- d.Promptly delivered to the associated broker for deposit in the broker's trust account✓
Client funds such as earnest money must be handled through the broker's trust (escrow) account and kept separate from personal and business funds. A salesperson who receives the money must promptly deliver it to the associated broker. Commingling or converting trust money is a serious violation of RSA 331-A.
New Hampshire's real estate transfer tax rate is:
- a.$.50 per $100 of price or consideration
- b.$.75 per $100 of price or consideration✓
- c.$1.50 per $100 of price or consideration
- d.$2.00 per $100 of price or consideration
The statutory rate is $.75 per $100, or fractional part, of the price or consideration, computed to the nearest whole dollar. Because the same rate falls on each side of the deal, the combined burden on a transfer is $1.50 per $100. Cite: RSA 78-B:1, I(b).
The New Hampshire real estate transfer tax is:
- a.divided between them by local town ordinance
- b.imposed at the same rate on buyer and seller✓
- c.paid by the buyer alone out of the loan funds
- d.paid by the seller alone at the closing table
Both sides buy and attach indicia of tax paid to the instrument, and the statute says the rate established in RSA 78-B:1 applies to the purchaser, grantee, assignee or transferee and to the seller, grantor, assignor or transferor alike. Cite: RSA 78-B:4, I-III.
Where the New Hampshire price or consideration is $4,000 or less, the transfer tax is:
- a.half of the usual rate
- b.a minimum tax of $50
- c.waived by the statute
- d.a minimum tax of $20✓
The statute sets a floor: where the price or consideration is $4,000 or less there is a minimum tax of $20. That floor applies to each party, since the rate provision reaches buyer and seller alike. Cite: RSA 78-B:1, I(b).
Before a New Hampshire contract for the purchase and sale of property with a building is executed, the seller must disclose:
- a.the private water supply and the sewage system✓
- b.the names of all of the prior owners of it
- c.the current balance of the seller's mortgage
- d.the property's most recent appraisal value
RSA 477:4-c requires disclosure of the private water supply type, location, malfunctions, installation date, most recent water test and any problem with it, and sewage system tank size, type, location, malfunctions, age, service date, and servicing contractor, with the buyer signing a copy. Cite: RSA 477:4-c.
For a New Hampshire one- to four-family dwelling, the seller's written disclosure covers water supply, sewage disposal, insulation, flood hazard zone, and:
- a.a residential heating oil underground storage tank✓
- b.the year the roof covering was last fully replaced
- c.any homeowners association dues and assessments
- d.the most recent annual property tax bill amount
RSA 477:4-d requires this disclosure prior to or during preparation of an offer on property used or proposed to be used as a one to four family dwelling, and the buyer acknowledges receipt by signing a copy. Cite: RSA 477:4-d, I.
If a New Hampshire seller does not know the required water supply or insulation information:
- a.the sale may not proceed until it is obtained
- b.the licensee must research and supply the data
- c.the buyer is treated as waiving the disclosure
- d.the unavailability must be conveyed in writing✓
Where information required about the private water supply system, private sewage disposal system, or insulation is not available, that fact must itself be conveyed in writing. Cite: RSA 477:4-d, II.
New Hampshire law about a property that was the site of a homicide or a suicide provides that the owner or agent:
- a.may never disclose the fact to any person
- b.need not disclose it unless the buyer asks✓
- c.must disclose the fact to the buyer's lender
- d.must disclose the fact in every listing run
RSA 477:4-e relieves the owner and the owner's agent of any duty to disclose that the property was the site of a homicide, other felony, or suicide unless the buyer requests the information and the owner or agent knows it. No cause of action arises from disclosing at the buyer's request. Cite: RSA 477:4-e, I.
Before or during preparation of an offer on a New Hampshire condominium unit, the seller must give the buyer written notice of:
- a.the developer's original sale price for the unit
- b.any litigation now pending against the association
- c.the right to obtain association documents✓
- d.the unit's share of the master insurance bill
The notice tells the buyer of the right to obtain RSA 356-B:58, I information from the unit owners' association, including the declaration, by-laws, formal rules, monthly and annual fee amounts, and special assessments made in the last three years. The buyer signs a copy. Cite: RSA 477:4-f.
Money a New Hampshire salesperson receives in a real estate transaction must be:
- a.forwarded directly to the closing agent's office
- b.immediately delivered to the principal broker✓
- c.deposited by the salesperson within three days
- d.held until both sides have signed the contract
All monies a salesperson or associate broker receives in a transaction handled on behalf of the managing or principal broker must be immediately delivered to that broker, who is the one responsible for the escrow account. Cite: N.H. Admin. R. Rea 702.02.