Free New Hampshire Real Estate Practice Exam

Q1.Under the doctrine of 'time is of the essence,' if a buyer fails to close on the date specified in the purchase contract, which of the following outcomes is most likely?

• A.The seller must provide the buyer a 30-day grace period before declaring a default.
• B.The contract automatically converts to a month-to-month lease agreement.
• C.The seller may declare the buyer in default and pursue available remedies such as retaining the earnest money deposit.
• D.The lender is required to extend the rate lock and closing date at no additional cost.

Q2.Which fact is essential when evaluating whether an unlicensed residential leasing employee fits the one-location exemption?

• A.The employee works at one location during the regular workday
• B.The employee owns a personal vehicle
• C.The property has more than ten units
• D.The employee is paid only in cash

Q3.Under New Hampshire RSA 331-A, which state agency is responsible for licensing and regulating real estate salespersons?

• A.New Hampshire Real Estate Commission (NHREC)
• B.New Hampshire Department of Insurance
• C.New Hampshire Office of Professional Licensure and Certification (OPLC)
• D.New Hampshire Department of Employment Security

Q4.A New Hampshire broker supervises three affiliated licensees, one of whom is accused of steering a minority buyer away from listings in predominantly white neighborhoods. Under the federal Fair Housing Act, which party or parties bear potential liability for this conduct?

• A.Only the affiliated licensee who performed the steering, because the broker had no direct knowledge of the conduct
• B.Both the affiliated licensee and the supervising broker, because brokers can be vicariously liable for the discriminatory acts of their licensees under agency principles
• C.Only the broker, because the licensee acted within the scope of employment and the broker assumed all legal risk at the time of sponsorship
• D.Neither party, because steering is only actionable if the buyer can prove economic damages

Q5.Which reconciling-item record is most complete?

• A.A note saying 'difference'
• B.Date, amount, payee or source, reason, and follow-up status
• C.Only the check number
• D.A verbal explanation from last month

Q6.A landlord tells a prospective tenant who uses a wheelchair that he cannot install a grab bar in the bathroom of the rental unit. Under the Fair Housing Act Amendments of 1988, this landlord's refusal is:

• A.Permissible, because the landlord has the right to maintain the unit's original condition
• B.Permissible, because grab bars are considered structural modifications beyond the tenant's rights
• C.Impermissible, because the landlord must allow reasonable modifications at the tenant's expense
• D.Impermissible, because the landlord must pay for all reasonable modifications for disabled tenants

Q7.During a listing presentation, a seller instructs the broker in writing: 'Do not bring me any offers from buyers who have Section 8 vouchers—I don't want to deal with the inspections.' The broker operates in a jurisdiction where source-of-income is NOT a protected class under state law. Which response reflects the broker's correct legal obligation under federal law?

• A.The broker may honor the instruction because neither the Fair Housing Act nor any federal regulation designates Section 8 voucher status as a protected class.
• B.The broker must refuse the instruction because steering buyers away from the property based on their use of federal housing assistance constitutes discrimination on the basis of race or national origin under a disparate-impact theory cognizable under the Fair Housing Act.
• C.The broker may honor the instruction but must document it in the listing file and disclose it in the MLS to avoid misrepresentation to cooperating agents.
• D.The broker must refuse the instruction solely because RESPA prohibits settlement service providers from conditioning transactions on the source of financing.

Q8.What must the compliance-monitoring system added in R4-28-1103(B) include?

• A.Automatic termination for every mistake.
• B.A progressive disciplinary policy for policy violations that also violate real-estate law or rules.
• C.A public complaint log.
• D.A ban on delegated review.

Q9.Under RSA Chapter 331-A and New Hampshire Real Estate Commission rules governing broker supervision and recordkeeping, which of the following responsibilities belongs SPECIFICALLY to the supervising broker — and cannot be delegated away to a salesperson?

• A.Conducting open houses and scheduling property showings on behalf of clients.
• B.Maintaining trust account records, supervising licensed salespersons, and ensuring that all transaction files are retained for the period required by Commission rules.
• C.Drafting purchase and sale agreements for buyers represented by the brokerage.
• D.Negotiating the terms of a listing agreement with a prospective seller-client.

Q10.The maximum civil penalty for a third or subsequent FHA violation within 7 years is approximately:

• A.$21,663
• B.$54,157
• C.$108,315
• D.$250,000

Q11.A broker gives an associate broker written authority to review specified agreements. What remains true?

• A.The designated broker relinquishes overall responsibility.
• B.The employing broker no longer needs systems.
• C.The delegated task may be performed, but the designated broker may not relinquish overall responsibility.
• D.Only the associate broker can be disciplined.

Q12.A broker assumes commercial general liability automatically covers flood, auto, cyber, and professional mistakes. What is the best response?

• A.The assumption is safe for Arizona brokerages.
• B.Coverage depends on the actual policies; separate policies or endorsements may be needed.
• C.Only professional mistakes require review.
• D.State licensing law supplies missing coverage.

Q13.A broker applying for initial licensure as a managing broker discloses on the application that she was convicted 12 years ago of a non-violent felony involving financial fraud but has fully served her sentence and completed all conditions of parole. Under general broker licensure principles reinforced by federal guidance from HUD and the FHA, how should a state licensing authority properly evaluate this application?

• A.The application must be denied because any felony conviction involving financial fraud constitutes an absolute statutory bar to broker licensure in all states.
• B.The licensing authority must apply an individualized assessment that considers the nature and gravity of the offense, the time elapsed since the offense and completion of sentence, and the nature of the duties associated with the broker license, rather than applying a blanket exclusion.
• C.Because the conviction is more than 10 years old, the licensing authority is federally required to disregard it entirely and treat the applicant as having no criminal history.
• D.The applicant must obtain a federal pardon before any state licensing authority can lawfully consider the application.

Q14.A borrower applies for a conventional mortgage and is denied. Under the Equal Credit Opportunity Act (ECOA) and Regulation B, within how many days must the lender provide the applicant with a notice of adverse action or a statement of reasons for the denial?

• A.30 days from receipt of the completed application
• B.60 days from receipt of the completed application
• C.3 business days from receipt of the completed application
• D.10 business days from receipt of the completed application

Q15.A salesperson is listing a home in New Hampshire that was built in 1978. Under federal law applicable in New Hampshire, what must occur regarding lead-based paint before a buyer can be obligated under the purchase contract?

• A.The seller must provide the buyer with the EPA pamphlet 'Protect Your Family From Lead In Your Home,' disclose known lead hazards, and allow the buyer a 10-day inspection period
• B.The seller must remove all lead-based paint from the home before it can be listed for sale
• C.The buyer must waive the lead-based paint inspection in writing before making an offer
• D.Lead-based paint disclosure is only required if the home was built before 1950