Free New Hampshire Real Estate Practice Exam

Q1.Under the Truth-in-Lending Act (TILA), the Annual Percentage Rate (APR) must include which of the following costs?

• A.Interest rate and loan origination fees
• B.Property taxes and homeowners insurance only
• C.Appraisal fees and title insurance
• D.Recording fees and transfer taxes

Q2.Under New Hampshire Commission Rule Rea 701 and RSA 331-A:25-a, a licensed broker who is also the qualifying broker for a real estate firm is held to what standard regarding a salesperson's failure to disclose a known material defect to a buyer?

• A.The broker has no personal liability because the duty to disclose material defects rests solely with the salesperson who conducted the showing and negotiated the contract.
• B.The broker may be subject to disciplinary action only if the Commission can prove the broker had actual knowledge of the defect at the time of the transaction.
• C.The broker may face disciplinary action for failure to adequately supervise the salesperson, even if the broker lacked personal knowledge of the specific defect, if the Commission finds the broker's supervisory systems were insufficient to prevent the violation.
• D.The broker's liability is limited to a formal written reprimand because the actual misrepresentation was committed by the salesperson, not the broker.

Q3.A broker operates as a mortgage loan originator (MLO) for a federally related mortgage loan in addition to acting as the seller's listing broker on the same transaction. Under RESPA Section 8, which of the following statements is most accurate regarding the broker's dual role?

• A.The dual role is permissible without any disclosure because RESPA Section 8 only prohibits kickbacks paid between third-party settlement service providers.
• B.The dual role is permissible only if the broker provides an Affiliated Business Arrangement (AfBA) disclosure, the referral is not conditioned on use of the MLO services, and the MLO compensation is for actual services rendered.
• C.The dual role is always prohibited under RESPA because a listing broker has a per se conflict of interest that cannot be cured by disclosure.
• D.RESPA exempts broker-owned mortgage companies from the Section 8 prohibition so long as the broker is licensed in both capacities.

Q4.A real estate agent represents a buyer who is purchasing a property that was previously used as a gas station. Under CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act), who could potentially be held liable for environmental cleanup costs?

• A.Only the current property owner
• B.The current owner, past owners, operators, and parties who arranged for disposal of hazardous substances
• C.Only the party that originally caused the contamination
• D.Only parties who knowingly caused environmental damage

Q5.Under the statute of frauds, which of the following real estate contracts MUST be in writing to be enforceable?

• A.A contract for the sale of real property
• B.An oral agreement to show a property to a buyer
• C.A verbal agreement between neighbors to share a driveway
• D.A property management discussion about maintenance schedules

Q6.Which agent behavior constitutes illegal steering under the Fair Housing Act?

• A.Directing a buyer of a specific ethnicity toward or away from neighborhoods based on the racial composition of those areas
• B.Showing a buyer properties only within their stated price range
• C.Declining to show properties that do not meet the buyer's stated school district preference
• D.Recommending neighborhoods based on the buyer's commute requirements

Q7.Under the rules of the New Hampshire Real Estate Commission adopted pursuant to RSA Chapter 331-A, a real estate salesperson license in New Hampshire must be renewed:

• A.Annually on the salesperson's birthday
• B.Every two years on a schedule established by the New Hampshire Real Estate Commission
• C.Every three years, with continuing education hours spread equally across each year
• D.Every four years, coinciding with the national PSI re-examination cycle

Q8.What is required for a valid deed to transfer title?

• A.Recording in public records
• B.Notarization only
• C.Payment of transfer taxes
• D.Delivery and acceptance

Q9.A buyer is using FHA financing. Which statement correctly describes an important FHA-specific requirement that can affect the purchase contract?

• A.FHA loans do not require an appraisal; conventional loans always do
• B.FHA loans have no loan limits; conventional loans are capped
• C.FHA loans consistently close faster than conventional loans
• D.FHA loans require the property to meet HUD minimum property standards, which may require seller repairs before closing

Q10.Under the Truth-in-Lending Act (TILA), which of the following loan types is generally exempt from disclosure requirements?

• A.Residential mortgage loans
• B.Home equity lines of credit
• C.Consumer credit transactions
• D.Commercial loans over $25,000

Q11.A mortgage broker refers buyers exclusively to Fidelity Title Company in exchange for a monthly 'marketing service fee' paid by Fidelity. The real estate broker whose agents routinely recommend this mortgage broker is aware of the arrangement. Under RESPA Section 8, which party faces PRIMARY statutory liability, and what is the correct characterization of the fee?

• A.Only the mortgage broker faces liability; the real estate broker is insulated because the referral occurs outside the real estate brokerage agreement.
• B.Both the mortgage broker and Fidelity Title face liability for the illegal kickback; the real estate broker faces secondary supervisory liability if the broker knew of and facilitated the arrangement through agent recommendations.
• C.The fee is permissible as a marketing service agreement (MSA) under RESPA Section 8(c)(2) as long as Fidelity provides genuine marketing services valued at the fee amount.
• D.RESPA Section 8 applies only to lenders and title companies; mortgage brokers and real estate brokers are exempt from its anti-kickback provisions.

Q12.Which federal law requires lenders to provide borrowers with a Loan Estimate within 3 business days of receiving a completed mortgage loan application?

• A.The Fair Housing Act
• B.The Equal Credit Opportunity Act (ECOA)
• C.The Real Estate Settlement Procedures Act (RESPA)
• D.The Community Reinvestment Act (CRA)

Q13.A New Hampshire salesperson receives an earnest money deposit from a buyer. According to New Hampshire Real Estate Commission rules, who is responsible for ensuring the deposit is placed into a proper escrow or trust account, and by when must this generally occur?

• A.The salesperson must deposit the funds personally into the firm's trust account within 24 hours
• B.The supervising broker is responsible and must deposit the funds within a reasonable time, typically no later than the next banking day after receipt
• C.The salesperson must forward the funds to the listing broker, who then has three business days to deposit them
• D.Either party to the transaction may hold the funds in a personal account until closing

Q14.Under the Real Estate Settlement Procedures Act (RESPA), which of the following is prohibited?

• A.A lender requiring that borrowers establish an escrow account for taxes and insurance
• B.A title company providing a closing disclosure to the buyer three days before settlement
• C.A mortgage broker receiving an undisclosed kickback from a title company for referring business
• D.A real estate agent recommending a specific home inspector to a buyer

Q15.In New Hampshire, which of the following best describes the legal duty a buyer's agent owes to the seller under RSA 331-A:25-b regarding agency disclosure?

• A.The buyer's agent owes the seller full fiduciary duties, including loyalty and confidentiality.
• B.The buyer's agent owes the seller honesty, good faith, and disclosure of material facts about the property's condition.
• C.The buyer's agent has no obligations to the seller whatsoever.
• D.The buyer's agent owes the seller the same duties as a subagent of the seller.