New Hampshire Real Estate Practice Exam.
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1. After a Merrimack seller terminates a listing agreement early, the agent later discovers the seller sold to a buyer the agent had personally introduced during the listing period, just outside a protection-period clause the contract lacked. Without such a clause, the agent's ability to claim a commission is:

• A. Unaffected, because any buyer ever shown the property by that broker owes a lifetime commission obligation
• B. Weakened, because most listing agreements only entitle the broker to commission during the agreement's term absent a holdover/protection clause
• C. Void entirely, because terminated listings can never result in any commission dispute
• D. Automatically guaranteed under an implied one-year protection period in every listing

2. An agent representing a seller in North Conway learns the buyer plans to convert the ski cottage into a short-term rental, information the buyer shared confidentially through their own agent's negotiations. What should the seller's agent do with this fact?

• A. Contact the buyer's agent to demand permission to share it before the closing can proceed
• B. Recognize that this is likely confidential information from the buyer's side that shouldn't be relayed, since it wasn't intended for the seller
• C. Immediately share it with the seller because full disclosure to one's own client is always required regardless of source
• D. Ignore it since it isn't relevant to the transaction

3. 'The house is well-built, but it backs up to the ski resort's snow-making compressor building, and buyers keep mentioning the noise,' an appraiser notes about a Loon-area property. A resulting reduction in value from this off-site nuisance is best classified as:

• A. Physical deterioration
• B. Curable depreciation
• C. Functional obsolescence
• D. External (economic) obsolescence

4. While preparing a listing near Alton Bay, an agent learns the home experienced a fatal accident unrelated to the property's physical condition several years ago. Handling of this type of 'stigmatized property' fact typically depends on:

• A. The listing price of the property
• B. Whether the buyer is represented by an agent at all
• C. State-specific law and practice, since disclosure requirements for events unrelated to physical condition vary by jurisdiction
• D. A universal nationwide rule requiring disclosure of any death regardless of cause or state law

5. Why do most real estate license laws prohibit a licensee from accepting an undisclosed fee from a home inspector for referring clients to that inspector?

• A. Because such referrals are always illegal regardless of disclosure
• B. Because inspectors are never allowed to be paid for their services
• C. Because only attorneys may refer clients to service providers
• D. Because undisclosed referral fees create an undisclosed conflict of interest that can compromise the licensee's duty to the client

6. A rural property near Errol relies on a private well and septic system. During a showing, a buyer asks the agent whether the septic system has ever been inspected. The agent, who has no independent knowledge, should:

• A. State confidently that all septic systems in the area meet current standards
• B. Tell the buyer they don't know and recommend the buyer obtain a professional septic inspection
• C. Assume the seller's disclosure form covers this and decline to discuss it further
• D. Guess based on the home's age to keep the showing moving

7. 'We can't have a flashing strobe alert wired into the hallway for a hard-of-hearing resident, it would clash with the lobby's design,' a condo association manager near Salem tells a resident. Under fair housing law, a housing provider's obligation regarding reasonable modifications generally requires:

• A. Charging the resident a mandatory deposit equal to the full cost of eventual removal in all cases
• B. Requiring the resident to move to a different unit that already has the feature instead
• C. Refusing all modification requests that alter a common area's appearance
• D. Allowing the resident to make the modification at their own expense, absent an undue burden, even if it changes the appearance

8. A mortgage lender processing an application for a buyer purchasing a home near Milford denies the loan and, when asked why, gives a vague, inconsistent explanation that shifts each time the applicant follows up. Under the Equal Credit Opportunity Act, the lender is generally required to:

• A. Explain the denial verbally only, with no written follow-up required
• B. Provide no explanation at all, since lenders have full discretion
• C. Only explain the denial if the applicant threatens legal action
• D. Provide the applicant a specific statement of reasons for the denial upon request

9. Which phrase, if included in a real estate sale listing for a Portsmouth condominium, would most likely violate the Fair Housing Act's advertising rules?

• A. "Freshly painted with new flooring throughout"
• B. "Walking distance to the waterfront and shops"
• C. "Ideal for a retired couple, not suited for children"
• D. "Immediate occupancy available"

10. Under New Hampshire licensing eligibility requirements, what is the minimum age an applicant must have reached to be issued a real estate salesperson's license?

• A. 25
• B. 21
• C. 18
• D. 16

11. As part of a New Hampshire salesperson license application, an applicant must submit signed affidavits attesting to their character. How many character references does New Hampshire require for this purpose?

• A. Three
• B. Five
• C. One
• D. Two

12. 'I want to open a second office location under the same firm in Littleton,' a Principal Broker tells a colleague. Under New Hampshire's regulatory structure, this second location would need to be registered as a:

• A. Real Estate Firm Branch
• B. Separate Real Estate Firm entirely unrelated to the first
• C. Real Estate Trade Name only, with no separate registration
• D. Associate Broker location

13. Which of the following license/entity types does the New Hampshire Real Estate Commission regulate, in addition to individual salespersons and brokers?

• A. Home inspectors
• B. Mortgage loan originators
• C. Property insurance adjusters
• D. Real estate firms and their trade names

14. A newly licensed salesperson in Concord wants to advertise listings independently under her own name without her broker's involvement. Under New Hampshire's licensing structure, a salesperson's authority to practice real estate is:

• A. Limited strictly to renting apartments, never sales
• B. Fully independent once licensed, with no supervisory relationship required
• C. Equivalent in every respect to a Principal Broker's authority
• D. Exercised under the supervision of a broker, since the salesperson license is an entry-level license operating within a licensed brokerage

15. 'I let my unlicensed personal assistant negotiate the price directly with a buyer while I was out of town,' a Salesperson tells a colleague about a Rochester listing. This delegation of duties is problematic under license law primarily because:

• A. Negotiating price terms is a licensed activity that an unlicensed assistant may not lawfully perform
• B. Only Principal Brokers, never salespersons, may use assistants at all
• C. Assistants may negotiate freely as long as the salesperson is compensated afterward
• D. Unlicensed assistants may never perform any task connected to a real estate transaction

16. A Managing Broker at a Manchester firm is asked to explain the difference between her role and that of an Associate Broker at the same office. The most accurate distinction is that a Managing Broker typically:

• A. Is regulated by a different state agency entirely
• B. Holds no real estate license at all, only a business permit
• C. Holds supervisory/managerial responsibility over the office's licensees, distinguishing the role from an Associate Broker who does not run the office
• D. Has identical authority to a salesperson with no additional supervisory role

17. To lawfully use a business name other than her own legal name or her firm's registered name when marketing listings in Exeter, a salesperson's firm would need to have that name registered with the state as a:

• A. Real Estate Trade Name
• B. Franchise disclosure filing
• C. Personal license endorsement
• D. Municipal business permit only

18. A cottage listing on Squam Lake advertises 'lake rights to the center of the pond.' Reviewing the deed, the salesperson should recognize that in New Hampshire the bed of a great pond is generally:

• A. Owned jointly by all abutting property owners in equal shares
• B. Held in public trust and not owned by the abutting landowner
• C. Transferred automatically with the first waterfront deed ever recorded
• D. Owned by whichever abutter has the longest shoreline frontage

19. 'Can I put a small dock in front of my cabin on the pond?' a buyer in Wolfeboro asks. The best answer describes this as an exercise of:

• A. An easement in gross granted by the town
• B. A profit a prendre reserved by the original grantor
• C. A license that automatically transfers with any future sale
• D. Riparian/littoral rights incidental to owning the abutting parcel

20. To settle a boundary dispute in Jackson where a stone wall has marked the line between two mountainside lots for over forty years even though it drifts from the recorded survey, a court would most likely apply the doctrine of:

• A. Escheat
• B. Constructive eviction
• C. Boundary by acquiescence (a form of adverse possession)
• D. Eminent domain

21. A ski condominium in Lincoln sits within a declaration that gives each unit owner an undivided interest in the common elements, including the lodge's pool and parking garage. This ownership structure is best classified as:

• A. A cooperative, where owners hold shares in a corporation that owns the building
• B. A leasehold estate subordinate to the developer's fee interest
• C. A condominium, where each owner holds fee title to a unit plus an undivided interest in common areas
• D. A timeshare interest limited to specific calendar weeks

22. Which of these is an example of an encumbrance that runs with the land rather than affecting only a specific person?

• A. A recorded utility easement crossing the rear of a lot near Bretton Woods
• B. A verbal promise from a neighbor not to build a fence
• C. A personal loan the seller took out using the home as informal collateral without recording a lien
• D. A month-to-month tenancy created by an oral agreement

23. 'The town rezoned my street, but my detached garage predates the change and now sits closer to the line than the new setback rule allows,' a Hanover homeowner says. Her garage most likely qualifies as a:

• A. Spot zoning violation
• B. Variance
• C. Legal nonconforming use
• D. Special exception

24. An executor settling a Hanover estate discovers the decedent held only a life estate in the family farmhouse, with the remainder interest deeded years earlier to a niece. When the life tenant dies, the property:

• A. Becomes part of the general probate estate to be distributed per the will
• B. Must be sold and proceeds split among all estate beneficiaries
• C. Reverts to the life tenant's heirs under intestacy rules
• D. Passes automatically to the niece as remainderman, outside the probate estate

25. A seller's agent listing a home in Concord owes which duty that specifically prohibits sharing the seller's confidential negotiating position with the buyer?

• A. Accounting
• B. Obedience
• C. Reasonable care
• D. Confidentiality

26. 'I'll be representing both of you in this sale,' a Nashua broker tells a seller and a prospective buyer for the same ski chalet. For this dual agency to be lawful, the broker generally must first obtain:

• A. Approval from the buyer's lender only
• B. A court order permitting representation of both sides
• C. Nothing, since dual agency is automatically implied once an offer is written
• D. Informed, written consent from both parties

27. 'Both my seller and this buyer are already clients of our firm — can two of you each handle one side?' a training manager at a Dover brokerage asks during a workshop on split representation. For a lawful designated agency arrangement, the firm must:

• A. Assign one licensee to the seller and a different licensee to the buyer within the firm
• B. Refer one client to an outside firm entirely
• C. Have the same salesperson represent both parties directly
• D. Obtain a waiver from the buyer's lender before assigning agents

28. A buyer touring homes near Laconia signs a buyer-agency agreement. Because of this agreement, the agent's duty of loyalty now runs primarily to:

• A. The seller
• B. The buyer
• C. Whichever party pays the commission at closing
• D. The listing broker

29. A salesperson in Keene shows a buyer a property listed by another agent in the same firm without any special designation. Absent a designated-agency or dual-agency arrangement, what is the most accurate description of this situation?

• A. The salesperson automatically becomes a subagent of the buyer with no duties to the seller
• B. No agency relationship exists because the salesperson works for the buyer's employer, not the seller
• C. The firm has created an unintentional single-party agency void of duties to anyone
• D. The firm may be functioning as a dual agent for both parties even without explicit discussion, which risks undisclosed dual agency

30. 'My agent found me this cabin near Sunapee, but I never signed anything,' a buyer says after the deal falls through and the agent claims a commission. This scenario illustrates why written buyer representation agreements matter primarily because:

• A. A buyer cannot legally tour homes without a signed agreement in place
• B. Only written agreements create any fiduciary duty at all
• C. Written agreements clarify the scope of agency, compensation, and duration and reduce disputes over whether representation existed
• D. Verbal agency agreements are always void everywhere for real estate

31. Which element is missing if a signed offer to purchase a home in Durham fails to state a specific dollar purchase price, instead saying only 'a fair price to be determined later'?

• A. Acceptance
• B. Legal purpose
• C. Legal capacity
• D. Definite and certain terms (part of mutual assent/consideration)

32. In a broker continuing-education case study built around a Rye home sale, a lender denies the buyer's loan application within the contract's 30-day financing-contingency window despite a complete, good-faith application. What happens to the buyer's earnest money deposit?

• A. The buyer may terminate the contract and receive a refund under the contingency
• B. It is forfeited automatically with no recourse
• C. The seller may still sue for specific performance regardless of the contingency
• D. The buyer loses any refund right because contingencies only protect sellers

33. To convey a probate estate's antique farmhouse near Peterborough after court approval of the sale, an executor most likely signs which type of deed?

• A. An executor's deed, which conveys only the interest the decedent held and typically limits warranties to the executor's own acts
• B. A general warranty deed with full covenants matching what any private seller would give
• C. A sheriff's deed, since court involvement always means a foreclosure-style conveyance
• D. A quitclaim deed used exclusively because probate sales cannot use any other deed type

34. To explain why a purchase contract for a starter home in Newmarket includes an earnest money deposit, a mentor broker tells a new licensee that its primary purpose is to:

• A. Pay the broker's commission in advance
• B. Replace the need for a home inspection
• C. Satisfy state transfer tax obligations
• D. Demonstrate the buyer's good faith and provide a fund that may become liquidated damages if the buyer defaults

35. 'I signed the purchase contract, but now I want someone else to take my place as buyer,' a client tells her agent about a pending deal on a Tilton cabin. Substituting a new buyer with the seller's consent, releasing the original buyer from further obligation, describes a:

• A. Right of first refusal
• B. Rescission
• C. Assignment
• D. Novation

36. Two deeds convey the same Ossipee parcel from a common owner: a deed to buyer one signed first but recorded second, and a deed to buyer two signed later but recorded first, with buyer two unaware of the earlier deed and having paid value. Under a typical race-notice recording principle, priority would most likely favor:

• A. Buyer one, because the first deed signed is presumed valid under the statute of frauds
• B. Buyer two, because they recorded first without notice of the earlier unrecorded conveyance and paid value
• C. Whichever buyer has actual physical possession, regardless of recording
• D. Buyer one, because signing first always controls regardless of recording

37. A seller in Alton backs out of a signed, valid contract to sell a waterfront lot with no legitimate contingency excusing performance. Which remedy allows the buyer to ask a court to force the seller to complete the sale rather than accept money damages?

• A. Liquidated damages
• B. Rescission
• C. Specific performance
• D. Novation

38. To determine which party owes prorated property taxes at closing on a Gilford home sold mid-year, a settlement agent will typically:

• A. Ignore proration since taxes are always paid in full by the seller before listing
• B. Divide the tax year between seller and buyer based on days each owned the property up to and including the closing date
• C. Charge the entire annual tax bill to the buyer regardless of closing date
• D. Assign the tax obligation entirely based on whichever party's lender requires an escrow account

39. A lender's Loan Estimate for a $216,000 refinance on a home in Portsmouth lists a charge of 2.25 discount points. What dollar amount does this points charge represent?

• A. $2,160
• B. $48,600
• C. $4,860
• D. $2,430

40. A buyer purchasing a home in Jackson makes a down payment of $46,500 on a $310,000 purchase price financed entirely through a single first mortgage. What is the resulting loan-to-value ratio, rounded to the nearest whole percent?

• A. 85%
• B. 46%
• C. 100%
• D. 15%

41. Why does a lender still require private mortgage insurance when a homeowner refinances a property near Hollis with less than 20% equity in the home?

• A. To protect the borrower against loss of the down payment
• B. To protect the seller against a buyer's failure to close
• C. To protect the title company against recording errors
• D. To protect the lender against loss if the borrower defaults with low equity in the property

42. 'The seller is willing to carry part of the loan himself,' a buyer's agent explains about a sale near Newfound Lake. This arrangement, where the seller extends credit to the buyer and holds a note secured by the property, is known as:

• A. Seller (purchase-money) financing
• B. An assumable FHA loan
• C. A wraparound lease
• D. A blanket mortgage

43. A borrower financing a seasonal rental property in Lincoln chooses a loan with a fixed rate for the first several years followed by a large final payment that pays off the remaining balance in one lump sum. This structure describes a:

• A. Graduated payment mortgage
• B. Reverse mortgage
• C. Balloon mortgage
• D. Fully amortized fixed-rate mortgage

44. 'Why does it feel like I'm barely paying down the balance these first few years?' a homeowner in Bedford asks after reviewing her fully amortizing fixed-rate mortgage statement. Her lender explains that early in the loan, the interest portion of each monthly payment, compared to the principal portion, is:

• A. Higher than the principal portion, gradually shifting over the loan term
• B. Zero, since interest is only charged in the final year
• C. Lower than the principal portion
• D. Always exactly equal to the principal portion

45. To avoid a prepayment penalty when refinancing a mortgage on an investment property in Wolfeboro ahead of schedule, a borrower should primarily:

• A. Assume no such penalty can ever legally exist on any mortgage
• B. Review the original loan documents for any prepayment penalty clause and its terms before paying off the loan early
• C. Wait exactly one calendar year after closing, which universally eliminates all prepayment penalties
• D. Request that the new lender absorb any penalty automatically as part of every refinance

46. A property manager in Somersworth reports that a small apartment building she oversees generates a net operating income of $46,200 per year, and similar local buildings are trading at a 6.6% capitalization rate. Using the income approach, what value does this indicate?

• A. $70,000
• B. $3,049
• C. $7,000,000
• D. $700,000

47. A ski-town duplex near North Woodstock sold for $187,200 and rents for $1,560 per month. What gross rent multiplier does this sale indicate?

• A. 10
• B. 12
• C. 1,200
• D. 120

48. Which appraisal method is a mentor appraiser demonstrating when she values a historic property in Farmington by adjusting recent nearby sale prices for differences in condition and features?

• A. Cost approach
• B. Income approach
• C. Sales comparison approach
• D. Gross rent multiplier approach exclusively

49. To identify the highest and best use of a vacant lot near a busy Conway intersection currently zoned for mixed commercial use, an analyst should evaluate which use is:

• A. Legally permissible, physically possible, financially feasible, and maximally productive
• B. Whatever use the current owner personally prefers regardless of zoning
• C. Identical to the adjacent parcel's use, since uniformity is required by definition
• D. The use that costs the least to develop, regardless of resulting value

50. A comparative market analysis for a seasonal cottage near Ossipee Lake includes a nearby sale that closed at a notably higher price because the buyer significantly overpaid under time pressure to close before ski season rentals began. Before using that sale as a comparable, an agent should most importantly:

• A. Average it equally with all other comparables regardless of the circumstances
• B. Verify whether the sale reflects an arm's-length transaction at market value, and adjust or exclude it if it does not
• C. Ignore all other comparables and rely solely on this one recent sale
• D. Automatically include it at full value since more comparables always improve accuracy

51. A seller in Barrington knows the home's well produced discolored water intermittently last summer but says nothing on the disclosure form because a filter was later installed. What is the best practice for the listing agent upon learning this?

• A. Advise the seller that disclosure is optional if a fix was applied
• B. Advise the seller to disclose the known material fact, since past well issues can affect a buyer's decision even after a fix
• C. Disclose the issue directly to the buyer without informing the seller first
• D. Say nothing, since a filter was installed and resolved the issue

52. 'I'll just write the ad to say the unit sleeps eight, even though it's really more like four comfortably,' a listing agent jokes about a Waterville Valley rental condo. Advertising the unit this way primarily risks:

• A. Only a civil dispute between the guests and the property owner, never involving the agent
• B. Nothing, since advertising exaggeration is expected and never regulated
• C. Violating rules against false or misleading advertising, regardless of the agent's intent as a joke
• D. A violation only if a written contract is signed based on the ad

53. To comply with general ethical standards around dual compensation, an agent who receives a referral fee from a moving company for every client sent their way should:

• A. Keep the arrangement private since referral fees are a normal part of doing business
• B. Only disclose the arrangement if the client specifically asks about it
• C. Disclose the referral arrangement to the client before recommending the mover
• D. Route the fee through the brokerage's escrow account to make it exempt from disclosure

54. An agent representing a buyer for a seasonal rental property near Bretton Woods notices visible mold in the basement during a walkthrough but the buyer seems eager to close quickly. The agent's ethical obligation in this situation is to:

• A. Only mention it if the buyer's inspector happens to ask directly
• B. Wait until after closing to mention it informally
• C. Say nothing because pointing out flaws could jeopardize the transaction
• D. Point out the visible condition to the buyer regardless of the buyer's eagerness to close

55. 'I don't want a family with little kids tearing up my unit,' a landlord tells his new property manager while reviewing applicants for a rental in Windham. Under the federal Fair Housing Act, which of the following is a protected class the landlord may not use as a basis to reject an application?

• A. Inability to provide proof of income
• B. A documented history of unpaid utility bills
• C. Credit score below a stated minimum
• D. Familial status, such as having young children

56. An agent working in a racially diverse Nashua neighborhood consistently shows white buyers only listings in one part of town and steers buyers of other races toward a different part of town, regardless of stated preferences. This practice is known as:

• A. Steering
• B. Blockbusting
• C. Restrictive covenanting
• D. Redlining

57. To comply with the Real Estate Settlement Procedures Act when referring a Rochester buyer to an affiliated title company owned partly by the brokerage, an agent should:

• A. Accept an undisclosed fee from the title company for every referral made
• B. Avoid referring to any affiliated company under any circumstances, even with disclosure
• C. Disclose the affiliated business relationship and confirm the buyer isn't required to use that company
• D. Require the buyer to use the affiliated company exclusively as a condition of representation

58. To identify who ultimately bears accountability for a brokerage's trust account holding a buyer's earnest money in a Concord transaction, a salesperson should understand that responsibility for proper handling of client funds generally rests with:

• A. The buyer's lender exclusively
• B. The salesperson who wrote the offer, with no broker involvement
• C. The broker/firm responsible for maintaining the trust or escrow account in compliance with license law
• D. The title company handling the closing, regardless of who is holding the deposit

59. A Principal Broker in Berlin learns that a salesperson affiliated with the firm has been depositing client earnest money into the same account used for the firm's operating expenses. This practice, known as commingling, is generally treated under real estate license law as:

• A. An acceptable shortcut as long as the money is eventually accounted for
• B. Irrelevant to license law and governed solely by banking regulations
• C. A serious violation, since client funds must be kept separate from the broker's own operating funds
• D. Permitted only if the client verbally agrees in advance

60. Which of the following best describes the role of the New Hampshire Real Estate Commission, operating under the Office of Professional Licensure and Certification?

• A. It represents buyers in disputed transactions
• B. It negotiates commission rates on behalf of all licensees
• C. It functions solely as a trade association for brokers
• D. It develops and enforces licensing, ethical, and educational standards for salespersons and brokers

61. A salesperson in Salem discovers that a client believes an unrelated business the salesperson also owns will get preferential treatment during the transaction. Under general license law conduct standards, the salesperson's obligation regarding this kind of personal interest is to:

• A. Only disclose if directly and explicitly asked by the client
• B. Say nothing since personal business interests are always irrelevant to real estate transactions
• C. Disclose the personal/financial interest to the client so it doesn't create an undisclosed conflict
• D. Resign from the transaction immediately in every such case with no other option