Free New Hampshire Real Estate Practice Exam

Q1.A buyer is purchasing a home built in 1977 in New Hampshire. Under applicable federal and state law, which of the following disclosure requirements applies to this transaction?

• A.No lead-based paint disclosure is required because the federal Lead-Based Paint Disclosure rule only applies to housing built before 1978, and this home was built in 1977
• B.The seller must provide the EPA-approved lead-based paint disclosure form and the pamphlet 'Protect Your Family From Lead in Your Home,' and the buyer has a 10-day opportunity to conduct a lead-based paint inspection
• C.Lead-based paint disclosure is required only if the seller has actual knowledge of lead paint, not merely because of the age of the home
• D.New Hampshire has its own independent lead-paint disclosure form that supersedes the federal requirement and must be provided at closing

Q2.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

Q3.The safety clause in a listing agreement protects the broker's commission for a period after expiration. What must the broker typically have done to invoke it?

• A.Introduced or shown the property to the buyer who ultimately purchases it after the listing expired
• B.Submitted the listing to MLS within the required timeframe
• C.Obtained a written backup offer from another buyer
• D.Reduced the commission rate at the seller's request

Q4.A property manager collects security deposits from tenants and places them in an interest-bearing account. Which federal consumer protection principle would be most relevant if the manager fails to properly account for these funds?

• A.Fiduciary duty and trust fund handling principles
• B.Truth in Lending Act disclosure requirements
• C.RESPA anti-kickback provisions
• D.Equal Credit Opportunity Act protections

Q5.Under the Truth in Lending Act (TILA) and Regulation Z, a broker who advertises a specific interest rate for a mortgage product in a printed flyer must include certain additional credit terms if that rate is stated. Which of the following advertising scenarios triggers the full suite of Regulation Z 'trigger terms' requiring complete APR and credit term disclosure?

• A.An advertisement stating only 'Low rates available — call for details' with no specific rate, payment amount, or credit terms.
• B.An advertisement stating 'Financing available through our preferred lender' without specifying any rate, payment amount, down payment, or loan term.
• C.An advertisement stating '30-year fixed mortgage at 6.5% — only $2,100/month' for a specific listed property.
• D.An advertisement stating 'Ask about our competitive APR' without specifying the actual APR percentage.

Q6.A New Hampshire broker acting as a designated agent for the buyer in a transaction also has another affiliated salesperson designated to represent the seller within the same firm. Under RSA 331-A:25-d and the required NH designated agency disclosure, which statement BEST describes the broker's continuing duty in this scenario?

• A.The broker becomes a dual agent for both parties and must obtain written dual-agency consent from both buyer and seller before the transaction can proceed.
• B.The broker acts as a non-agent intermediary and owes no fiduciary duties to either party once the designated agency arrangement is established.
• C.The broker must ensure both parties have received and acknowledged the written designated agency disclosure, that the designated agents maintain separate confidentiality, and that the broker refrains from sharing confidential information between the designated agents.
• D.The broker must withdraw from the transaction entirely and refer both parties to outside brokerages to avoid any conflict of interest.

Q7.Which of the following advertising practices would most likely violate the Fair Housing Act?

• A.Advertising 'wheelchair accessible apartment'
• B.Stating 'no pets allowed'
• C.Advertising 'perfect for Christian families'
• D.Specifying 'non-smoking building'

Q8.Under RSA Chapter 331-A, which of the following individuals is EXEMPT from the New Hampshire real estate licensing requirement when selling real property?

• A.A property manager who negotiates residential leases on behalf of multiple landlord clients for compensation.
• B.A licensed New Hampshire attorney who sells real property on behalf of a client as an incidental part of the attorney's professional duties.
• C.A salaried employee of a real estate brokerage who regularly shows listed properties to prospective buyers.
• D.An unlicensed individual who advertises and negotiates the sale of a neighbor's property for a referral fee.

Q9.A property management company discovers that a rental property was built in 1975 and contains lead-based paint. Under EPA regulations, what disclosure requirement must be met before executing a lease agreement?

• A.Give tenants the EPA pamphlet 'Protect Your Family From Lead In Your Home' and allow a 10-day period to conduct lead inspection
• B.Provide tenants with a lead inspection report conducted within the past 12 months
• C.Immediately remediate all lead hazards before any tenant occupancy
• D.Post visible warnings about lead paint in common areas only

Q10.Under New Hampshire RSA 331-A, a listing agreement for the sale of residential real estate must be:

• A.Oral or written, at the discretion of the seller.
• B.In writing and must contain a definite expiration date.
• C.In writing but may have an automatic renewal clause replacing a fixed expiration date.
• D.Filed with the New Hampshire Real Estate Commission before marketing begins.

Q11.In New Hampshire, 'disclosed dual agency' under RSA Chapter 331-A occurs when:

• A.Two separate brokerages each represent one party in the same transaction
• B.One licensee or brokerage represents both the buyer and the seller in the same transaction with informed written consent from both parties
• C.A licensee discloses to the seller that a buyer is also working with another agent
• D.A broker assigns different salespersons to represent the buyer and seller within the same firm without any special consent

Q12.CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) primarily addresses which environmental concern in real estate?

• A.Noise pollution from airports
• B.Energy efficiency standards
• C.Hazardous waste contamination and cleanup
• D.Water conservation requirements

Q13.When must a New Hampshire licensee first present the brokerage relationship disclosure form to a prospective buyer?

• A.At the time the buyer signs a purchase and sale agreement
• B.At the first personal meeting with the prospective buyer to discuss a specific property
• C.Only after the buyer agrees to sign a buyer agency agreement
• D.Within 24 hours of showing the buyer any property

Q14.A New Hampshire salesperson receives an earnest money deposit from a buyer. According to RSA 331-A and New Hampshire Real Estate Commission rules, how must this deposit be handled?

• A.The salesperson may hold the funds personally until closing if the buyer requests it.
• B.The funds must be deposited into the salesperson's personal savings account for safekeeping.
• C.The funds must be promptly delivered to the salesperson's supervising broker for deposit into the broker's escrow account.
• D.The funds may be held by the salesperson for up to 30 days before being delivered to the broker.

Q15.Under New Hampshire Real Estate Commission rules, which of the following best describes the commingling prohibition applicable to licensed brokers?

• A.Brokers may deposit client escrow funds into their operating account as long as they keep accurate ledger records.
• B.Brokers may briefly combine escrow funds with personal funds to cover a temporary shortfall, provided they replenish within 10 days.
• C.Brokers must keep client trust funds in a separate escrow account completely distinct from personal and business operating funds.
• D.Commingling is only prohibited when the combined amount exceeds the broker's monthly operating expenses.