Key Takeaways
- The NH Real Estate Commission can investigate complaints, conduct hearings, and impose disciplinary actions
- Violations can result in license denial, suspension, revocation, or fines up to $10,000 per violation
- Common violations include misrepresentation, commingling, unlicensed activity, and agency violations
- Practicing without a license is a serious violation that may result in civil and criminal penalties
- Licensees have due process rights including notice and hearing before disciplinary action
License Law Violations & Discipline
The New Hampshire Real Estate Commission has authority to investigate complaints and take disciplinary action against licensees who violate RSA 331-A, the New Hampshire Real Estate Practice Act.
Common Violations
Misrepresentation and Fraud
| Violation | Description |
|---|---|
| Material misrepresentation | False statements about important facts |
| Omission | Failing to disclose known material defects |
| Fraud | Intentional deception for personal gain |
| False advertising | Misleading marketing or claims |
Escrow Account Violations
| Violation | Description |
|---|---|
| Commingling | Mixing client and broker funds |
| Conversion | Using client funds without authorization |
| Failure to deposit | Not depositing funds promptly |
| Poor records | Inadequate documentation |
| Checks against uncollected deposits | Premature disbursement |
Agency and Disclosure Violations
| Violation | Description |
|---|---|
| Failure to disclose | Not providing required disclosures |
| Undisclosed dual agency | Acting for both parties without consent |
| Breach of fiduciary duty | Violating duties to clients |
| Failure to disclose material facts | Not disclosing known defects |
Unlicensed Activity
| Violation | Description |
|---|---|
| Practicing without license | Performing activities requiring a license |
| Practicing on lapsed license | Continuing to work after license expires |
| Paying unlicensed persons | Compensating unlicensed individuals for licensed activities |
Warning: Practicing real estate without a valid license is a serious violation that may result in civil and criminal penalties in New Hampshire.
Disciplinary Process
Investigation
- Complaint filed with Commission (or Commission initiates investigation)
- Investigation conducted by Commission staff
- Evidence gathered (documents, interviews, audits)
- Determination made whether to proceed
Hearing Process
If the Commission proceeds with disciplinary action:
| Step | Description |
|---|---|
| Notice | Licensee notified of charges |
| Hearing | Formal hearing before Commission |
| Evidence | Both sides present evidence |
| Decision | Commission issues written decision |
| Appeal | Licensee may appeal to court |
Due Process Rights
Licensees have the right to:
- Notice of charges
- Hearing before adverse action
- Representation by attorney
- Present evidence and witnesses
- Appeal unfavorable decisions
Disciplinary Actions
The Commission may impose various sanctions:
| Action | Description |
|---|---|
| Denial | Refuse to issue license |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Reprimand | Formal warning |
| Fine | Up to $10,000 per violation |
| Probation | Conditional license with restrictions |
| Education | Required additional training |
Penalty Guidelines
| Violation Severity | Typical Penalty Range |
|---|---|
| Minor violations | Reprimand, required education |
| Moderate violations | Fine, probation |
| Serious violations | Suspension, larger fines |
| Egregious violations | Revocation, maximum fines |
Public Records
| Record Type | Retention |
|---|---|
| Disciplinary documents | 7 years on Commission website |
| License verification | Available online |
| Disciplinary history | Searchable by public |
Recent Enforcement Examples
The Commission regularly takes action against violators, including:
- Settlement agreements for violations
- Emergency suspensions for serious misconduct
- Unlicensed practice enforcement
- Decision and final orders after hearings
Exam Tip: Understanding what constitutes a violation and the potential penalties is important for both the exam and professional practice.
What is the maximum fine the New Hampshire Real Estate Commission can impose per violation?
What rights does a New Hampshire licensee have before the Commission takes disciplinary action?
How long are disciplinary records retained on the Commission website?
Which of the following is NOT a disciplinary action the Commission can impose?
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