Free NH Real Estate Exam Flashcards

A boundary description that starts at a point of beginning, traces courses (compass bearings) and distances from monument to monument, and must close back at the point of beginning. New Hampshire and the rest of New England were never surveyed under the rectangular government survey, so metes and bounds - not township, range and section - is what New Hampshire property is described by.

An appurtenant easement benefits a neighboring parcel, so it requires both a dominant tenement and a servient tenement and it runs with the land to the next owner automatically. An easement in gross belongs to a person or company, such as a utility line, with no dominant tenement, so it does not pass to a buyer of the servient parcel just because the deed is recorded.

Possession, Interest, Time and Title (PITT). All four must exist when the interest is created or the owners hold as tenants in common instead. Joint tenancy carries the right of survivorship, so a deceased joint tenant's share passes to the survivors outside probate. If one joint tenant conveys their share, the unities of time and title break and the new owner takes as a tenant in common with the rest.

A variance is permission from the zoning board of adjustment to deviate from a dimensional requirement, such as a setback or lot size, because strict application would cause unnecessary hardship. A special exception is a use the ordinance already contemplates at that location provided listed conditions are met, so the board is verifying conditions rather than waiving the rule. A variance excuses the rule; a special exception applies it.

Whichever is more restrictive. Zoning cannot override a valid private covenant, and a covenant cannot authorize a use the ordinance forbids. Deed restrictions and subdivision CC and Rs are enforced by the benefited owners or the association through an injunction or a suit in court, not by the municipality, which is why a licensee must read the recorded restrictions and not rely on the zoning map alone.

The comparable, never the subject. If the comparable is better than the subject, subtract; if it is inferior, add (remember CBS: Comparable Better Subtract). The subject's value is the unknown you are solving for, so adjusting it would be circular. Questions that describe an amenity the comparable has and the subject lacks are testing the direction of the adjustment, not the arithmetic.

For new construction and for special-purpose properties such as schools, churches, libraries and fire stations. Cost approach value = land value + reproduction or replacement cost of the improvements - accrued depreciation. Special-purpose properties rarely sell, so there are too few comparables for sales comparison, and they generate no rent, so there is no income stream to capitalize.

Value = Net Operating Income / capitalization rate. NOI is effective gross income minus operating expenses and deliberately excludes debt service, depreciation and income taxes. Because the rate sits in the denominator, a higher cap rate means a lower value: a $60,000 NOI at 8% indicates $750,000, while the same NOI at 10% indicates $600,000.

Under the TILA-RESPA Integrated Disclosure rule the lender must deliver the Loan Estimate within 3 business days of a completed application, and the borrower must receive the Closing Disclosure at least 3 business days before consummation. Only three changes restart the 3-day clock: the APR becomes inaccurate, the loan product changes, or a prepayment penalty is added. Ordinary fee adjustments do not delay the closing.

An alienation (due-on-sale) clause lets the lender demand payment in full when the owner transfers the property, which is what prevents a buyer from simply assuming the seller's loan. An acceleration clause lets the lender call the entire balance due after a default such as missed payments. Alienation is triggered by a transfer; acceleration is triggered by a breach.

One discount point equals 1% of the loan amount, paid at closing to buy down the interest rate. On a $300,000 loan, 2 points cost $6,000. Points are always computed on the loan amount, never on the sale price, which is the trap in questions that give you both a purchase price and a loan-to-value ratio.

Contracts for the sale of an interest in real estate, and leases running longer than one year, must be in writing and signed by the party to be charged in order to be enforceable in court. An oral listing or oral purchase agreement is not automatically void, but neither side can force the other to perform it, so a licensee who works on a handshake has no enforceable claim to a fee.

A void contract never had legal existence, for example one with an illegal purpose. A voidable contract is valid and binding until the injured party elects to rescind it, as with a contract signed by a minor or obtained through fraud or duress. An unenforceable contract is valid between the parties but cannot be enforced by a court, usually because it fails the Statute of Frauds.

A bilateral contract is a promise exchanged for a promise, so both parties are obligated from the moment of signing - a purchase and sale agreement is the standard example. A unilateral contract obligates only one party until the other performs; an option is the classic case, because the optionor must sell if the option is exercised while the optionee is never required to buy.

It terminates it. Any change to the terms is a rejection plus a new offer, and the former offeree becomes the offeror. The original party cannot later accept the offer they countered unless the other side chooses to re-extend it. Offers also end by revocation before acceptance, by lapse of the stated time, by outright rejection, and by the death or incapacity of either party before acceptance.

Liquidated damages means the non-breaching party keeps a pre-agreed sum, usually the earnest money deposit, as the complete remedy for the other side's breach. Specific performance is a court order compelling the breaching party to actually convey the property. Specific performance is available in real estate precisely because every parcel is treated as legally unique, so money damages are considered inadequate.

A condition that must be satisfied or waived before a party is obligated to close, such as financing, inspection, appraisal or the sale of the buyer's current home. If a contingency is not met by its stated deadline, the protected party must act on it to withdraw and recover the deposit - the contract does not dissolve by itself, and a waiver must follow the form the contract requires.

Obedience, Loyalty, Disclosure, Confidentiality, Accounting and Reasonable care. These run to the client only. A customer is owed honesty, fair dealing and disclosure of known material defects, but not loyalty or confidentiality. That difference is why telling a customer what your seller would really accept is a breach, while telling that customer about a known failing septic system is required.

Under an exclusive right to sell, the listing broker earns the fee no matter who produces the buyer, including the seller. Under an exclusive agency, the broker earns the fee unless the seller finds the buyer without assistance. An open listing is non-exclusive: only the broker who is the procuring cause is paid, and the seller owes nothing on a self-sale.

An agency relationship created by a licensee's conduct rather than by any signed agreement - giving advice, advocating a price, or otherwise behaving like the buyer's representative. It is dangerous because it can create an accidental undisclosed dual agency and impose fiduciary duties the licensee never meant to accept, exposing both the licensee and the principal broker to discipline.

By completion of its purpose, expiration of its stated term, mutual agreement, revocation by the principal, renunciation by the agent, death or incapacity of either party, destruction of the property, or bankruptcy. Note the distinction the exam tests: a principal usually has the power to revoke early, but exercising that power can still leave them liable for damages or the agreed fee.

For target housing built before 1978, the seller must disclose known lead-based paint and hazards, hand over any records or reports, provide the EPA pamphlet Protect Your Family From Lead in Your Home, and give the buyer a 10-day opportunity to test, which the buyer may waive in writing. The signed disclosure is attached to the contract, and the agent must retain it for 3 years.

A latent material defect is a hidden physical problem the seller or licensee actually knows about that a reasonable inspection would not reveal - it must be disclosed. A stigma such as a death on the property or a rumored haunting is not a physical defect, and many states expressly relieve licensees of any duty to volunteer it. Disclosing an occupant's illness or disability would separately violate fair housing law.

In a gross lease the tenant pays flat rent and the landlord absorbs the operating expenses, which is the usual residential arrangement. In a net lease the tenant pays rent plus some or all of taxes, insurance and maintenance, with a triple net covering all three. A percentage lease adds a share of the tenant's gross sales above a breakpoint and is standard in retail.

A general warranty deed carries the full covenants - seisin, right to convey, against encumbrances, quiet enjoyment and warranty forever - and warrants against title defects arising at any point in the property's history, including before the grantor owned it. A quitclaim conveys whatever interest the grantor may have with no warranties at all, so it is used to clear a cloud on title, not to sell a home.

Constructive notice is what the public record and open, visible possession give the world: recording a deed charges everyone with notice whether or not they read it. Actual notice is what a person genuinely knows. Recording is not what makes a deed valid between grantor and grantee - an unrecorded deed still transfers title - but it is what protects the grantee's priority against later claimants.

Race and color, religion, national origin, sex, disability and familial status. HUD enforces the sex category to reach sexual orientation and gender identity. Race is the one class with no exemption whatsoever: the Civil Rights Act of 1866 bars racial discrimination in every property transaction, so the Mrs. Murphy and religious-organization exemptions never shelter a racially motivated refusal.

Blockbusting is inducing owners to list or sell by suggesting that members of a protected class are moving into the area. Steering is channeling buyers toward or away from neighborhoods on the basis of a protected class. Redlining is a lender or insurer refusing or repricing service based on the demographics of a location. All three violate the Fair Housing Act even when no consumer is provably harmed.

The Sherman Act prohibits price fixing (competing brokers agreeing on commission rates), market allocation (splitting territories or property types), group boycotts (agreeing to shun a competitor) and tying (conditioning one service on the purchase of another). Commission rates are always negotiable between broker and client, so saying the standard rate in this area is X invites a price-fixing claim.

Most salespersons are engaged as independent contractors, which for federal tax purposes requires that they be licensed, be paid substantially by commission rather than hours worked, and sign a written agreement stating they will not be treated as employees. The status changes tax withholding and benefits only - it never reduces the principal broker's legal duty to reasonably supervise everything the licensee does.

Memorize 43,560 square feet per acre and 5,280 feet per mile. A 200-foot by 300-foot lot is 60,000 square feet, which is 60,000 / 43,560 = 1.38 acres. Compute the area first and convert second, and watch for problems that quote one dimension in feet and another in rods, yards or acres in the same question.

Total commission = sale price x rate. On a $340,000 sale at 5%, the total is $17,000. A 50/50 co-brokerage split gives each firm $8,500, and a salesperson on a 60/40 split with their own firm nets $5,100 of that. Work the chain in order - price, total, firm share, licensee share - because questions usually ask for the last figure, not the first.

Prorations divide a shared item such as property taxes, fuel oil, rent or condominium fees between seller and buyer at closing. Find the daily rate by dividing the annual amount by 365, or by 360 if the problem specifies a banker's year, then multiply by each party's days of ownership. Read the question for who is charged with the day of closing: that convention is set by the contract, not by statute.

Five members appointed by the Governor with the approval of the Council: two licensed real estate brokers, one licensed salesperson, one lawyer, and one public member with no professional or financial interest in real estate. Terms run 5 years, no one may serve more than two consecutive full terms, and members must have been New Hampshire residents for at least 6 years before appointment (RSA 331-A:5). The Commission sits administratively within the Office of Professional Licensure and Certification.

40 hours of accredited pre-licensing education, of which at least 32 hours must be classroom attendance and no more than 8 hours may be distance education, begun and completed within 6 months before the examination date (RSA 331-A:10, I(b); Rea 301.03). A candidate who studied the national material elsewhere may combine 34 hours of accredited out-of-state national coursework with at least 6 hours of New Hampshire-accredited state material. Passing a portion without having satisfied the education requirement forces a retake of the entire examination.

15 hours within the 2-year license period for an active renewal: a 3-hour Commission-accredited core course plus 12 elective hours (RSA 331-A:25; Rea 403.01). A licensee renewing on inactive status needs only the 3-hour core course, and must complete the full 15 hours to move back to active status. A salesperson renewing for the first time must use the Commission's designated post-licensing courses to satisfy the 12 elective hours rather than electives of their own choosing.

Private water supply, private sewage disposal system, and insulation (Rea 701.03, 701.04, 701.05; RSA 477:4-d). On any listing of a one-to-four family dwelling the licensee must request the details from the seller - system type, location, malfunctions, date of installation, date and servicer of the last service, date and results of the most recent water test - and convey them to the buyer in writing before or during preparation of the offer. If the information is not available, that fact itself must be disclosed in writing; saying nothing is the violation. RSA 477:4-d also requires disclosure of whether the property lies in a federally designated flood hazard zone.

In a separate escrow or real estate trust account, distinct from the broker's own account, at an insured financial institution located within New Hampshire (RSA 331-A:13; Rea 702.01). Earnest money and down payments are deposited promptly once the purchase contract has been accepted and executed. A salesperson or associate broker who receives funds must immediately deliver them to their managing or principal broker (Rea 702.02) - they never hold or deposit client money themselves. The broker may add only enough personal funds to cover service charges or a required minimum balance.

If a principal broker is still holding escrowed funds more than 90 days after the closing date without a resolution, the broker may notify the parties by certified mail that they have 60 days to perform, agree in writing on how the money is to be disbursed, or commence litigation (RSA 331-A:13). This sequence is the exam answer to how a New Hampshire broker gets out of the middle of a disputed deposit - the broker may never simply decide who is right and release the money.

Any advertisement of property for others must prominently include the name of the brokerage firm the licensee is associated with, or the name of that licensee's principal broker (Rea 404.05(b); RSA 331-A:16, IV). A licensee may not word an advertisement so that the offer to sell, purchase, exchange or lease appears to be made by a principal - the so-called blind ad. The rule reaches signs, print, websites and social media posts equally.

3 years. Failing to keep records of escrow and trust accounts for 3 years, and, for a principal broker, failing to preserve records of a real estate transaction for 3 years following its consummation, are each listed as prohibited conduct under RSA 331-A:26, XVIII and XIX. The same 3-year period applies to a brokerage relationship disclosure form that a consumer declined to sign, which the licensee annotates and retains (Rea 701.01(f)).

At the time of the first business meeting with the consumer, before any discussion of confidential information - not at the offer stage (Rea 701.01(a)). The licensee must use the Commission-adopted Brokerage Relationship Disclosure Form. It is a disclosure, not a contract, so signing it creates no agency relationship. If the consumer refuses to sign, the licensee notes that fact on a copy and keeps it for 3 years. A licensee showing another firm's listing must additionally disclose their relationship to the other party's agent before the showing and in writing on the offer.

A facilitator assists one or more parties without representing or advocating for anyone (RSA 331-A:2; RSA 331-A:25-f). They must treat all prospective sellers, landlords, buyers and tenants honestly, present all offers and agreements in a timely manner, and reveal any material physical, regulatory, mechanical or on-site environmental condition they actually know of before an offer is made, though they need not search for defects. The most-missed point: a facilitator owes NO duty of confidentiality to either side unless the parties agree otherwise.

The appointing agent - the principal or managing broker who made the appointments - becomes a dual agent for that transaction and must remain neutral, while each designated agent keeps full agency duties to their own client and may not share that client's information with the appointing agent or with other affiliated licensees (RSA 331-A:25-e). Written consent is required at the beginning of the relationship, and a signed brokerage agreement explaining designated agency creates a presumption of consent. Designating an agent does not limit the appointing agent's or principal broker's liability for that agent's breach of duty.

Written informed consent from all parties must be obtained at the time the dual agency arises and no later than the preparation of a written offer for sale or lease (RSA 331-A:25-d; RSA 331-A:26, XII). The dual agent must also indicate in writing on the offer that they are acting as a dual agent (Rea 701.01(g)). Consent gathered after the offer has been written is too late and is prohibited conduct no matter how even-handedly the licensee behaved.

It must be in writing and signed by all parties, and must state the date of execution, the names and addresses of the parties, the property (or the description, location and price range sought for a buyer contract), the professional fee as a dollar amount or percentage, and the date the contract expires (Rea 404.04). Any extension must be agreed in writing by all parties, so there is no automatic renewal. Net listings - where the fee is the difference between the selling price and a minimum acceptable price - are prohibited.

RSA 354-A:8 makes it unlawful to discriminate in housing because of age, sex, gender identity, race, creed, color, marital status, familial status, physical or mental disability, sexual orientation or national origin. Compared with the seven federal classes, New Hampshire expressly adds age, marital status, sexual orientation and gender identity, and uses creed where federal law says religion. Conduct that squeaks past a federal exemption can still be a New Hampshire civil rights violation.

RSA 78-B imposes the tax on BOTH the buyer and the seller at $0.75 per $100 of the price or consideration, so the combined burden is 1.5%. Each party owes a minimum of $20 when the consideration is $4,000 or less. The tax is paid by purchasing stamps from the register of deeds in the county where the property is located, and the stamps are affixed to the deed when it is recorded. On a $400,000 sale each side owes $3,000, for $6,000 in total.

The Shoreland Water Quality Protection Act (RSA 483-B) regulates the 250 feet inland from the reference line of public waters: lakes, ponds and impoundments greater than 10 acres, year-round flowing waters of fourth order or higher, designated rivers, and tidal waters. Inside that zone the first 50 feet is the waterfront buffer, with the strictest vegetation and construction limits, and the woodland buffer extends to 150 feet. Certain designated river segments of third order or lower carry a 50-foot protected shoreland instead.

Radon, arsenic, lead paint in structures built before 1978, PFAS, and flood risk. Before a purchase and sale contract is executed for property that includes a building, the seller or the seller's agent must give the buyer these written notifications and the buyer signs to acknowledge receipt. Arsenic and PFAS in well water are New Hampshire additions that national prep material generally omits. Failing to give the notice does not by itself create seller liability and does not affect the validity of the title transfer.