New Hampshire Real Estate Practice Exam

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. 1. Which minimum surety bond must a New Hampshire principal or managing broker provide before license issuance or renewal?

   • ANo bond if the broker maintains escrow
   • BA bond of at least $25,000correct
   • CA bond of at least $5,000
   • DA bond only after the first consumer complaint

   Why: RSA 331-A:14 requires a surety bond of at least $25,000 for principal and managing brokers. Maintaining escrow does not replace the bond.

   Practice of real estate

2. 2. A New Hampshire agent must defend against a wrongful-conduct accusation in a listed tribunal. What confidentiality exception may apply?

   • AUnlimited publication of all client secrets for marketing
   • BDisclosure whenever a competing agent requests it
   • CDisclosure solely because the listing expired
   • DDisclosure necessary for that defense in the specified proceedingcorrect

   Why: Disclosure necessary for that defense in the specified proceeding. The exception is tied to necessary defense in the listed proceeding, not a general publicity right.

   Agency

3. 3. A New Hampshire buyer signs a brokerage agreement creating agency. What kind of relationship does the statute describe?

   • AA relationship limited to holding title as trustee
   • BA relationship excluding duties to the principal
   • CA fiduciary relationship between principal and agentcorrect
   • DA relationship automatically created by any fee payment

   Why: RSA 331-A:2 defines agency as a fiduciary relationship arising from a brokerage agreement. It is more than a payment arrangement or a ministerial service.

   Agency

4. 4. A New Hampshire principal broker plans to open a branch office next month. What must be submitted before opening?

   • AA branch-office applicationcorrect
   • BOnly the first closed transaction file
   • COnly a year's sales report
   • DNothing until the next renewal

   Why: RSA 331-A:16(I) requires a branch-office application before opening and a designated managing broker for every branch office. Each branch also needs a designated managing broker.

   Practice of real estate

5. 5. A New Hampshire branch managing broker leaves the firm and a qualified temporary manager is appointed. By when must a permanent branch managing broker be appointed?

   • AOnly when the temporary manager retires
   • BOnly if a sale closes
   • CWithin 1 year of the original vacancycorrect
   • DWithin 5 years of temporary appointment

   Why: RSA 331-A:16-a allows a licensed temporary branch manager after the managing broker's death, disability or affiliation change, with a permanent appointment required within one year. The statutory clock runs from the original vacancy, not a later temporary appointment.

   Practice of real estate

6. 6. Where must a New Hampshire principal broker maintain the required escrow account?

   • AAny personal bank account used only occasionally
   • BAn uninsured account wherever the buyer lives
   • CA salesperson separate operating account
   • DAn insured financial institution within New Hampshirecorrect

   Why: RSA 331-A:13 requires escrow separate from personal and office accounts in an insured New Hampshire institution. A convenient personal account does not qualify.

   Practice of real estate

7. 7. Why may a New Hampshire broker place limited personal or business funds in escrow?

   • ATo reserve money for the brokerage next advertising campaign
   • BTo advance commissions expected from future closings
   • CTo help another client meet a down-payment requirement
   • DTo cover bank service charges or a required minimum balancecorrect

   Why: RSA 331-A:13(VII) permits funds for account service charges or the bank minimum balance. It does not permit mixing ordinary operating funds with client money.

   Practice of real estate

8. 8. A New Hampshire buyer offers noncash earnest money. When must that fact be communicated in writing to the owner?

   • AOnly when the deed is recorded
   • BOnly if the buyer later defaults
   • CAfter closing if the owner asks
   • DBefore the owner accepts the purchase offercorrect

   Why: RSA 331-A:26(XI) requires written disclosure of noncash earnest money before owner acceptance. The receipt must also show it with the owner's written acknowledgment.

   Practice of real estate

9. 9. The same New Hampshire designated agent will represent both sides. What additional consent is required?

   • AOnly a signed mortgage application
   • BNo consent because the agent is already designated
   • CSeparate informed consent to dual agencycorrect
   • DOnly the earlier choice of a designated agent

   Why: RSA 331-A:25-e(VII)(c) requires separate informed dual-agency consent when the same designated agent represents both sides. Designation alone is insufficient.

   Agency

10. 10. Does the New Hampshire seller-agent material-condition disclosure provision itself require an affirmative investigation for hidden defects?

    • AYes, it requires soil testing before any offer.
    • BNo, because an agent may always conceal known defects.
    • CNo, that provision creates no affirmative investigation duty.correct
    • DYes, it requires a structural inspection of every listing.

    Why: RSA 331-A:25-b expressly says the provision does not create an affirmative duty to investigate material defects. That limitation does not excuse withholding actually known material conditions.

    Property disclosures