2.1 Brokerage Relationship Disclosure
Key Takeaways
- New Hampshire requires the Brokerage Relationship Disclosure Form at the first business meeting where confidential information might be exchanged, governed by Rea 701.01.
- NH recognizes five relationship categories: seller agent, buyer agent, disclosed dual agent, designated agent, and facilitator (non-agent).
- A disclosed dual agent needs informed written consent from both parties and may not advocate for one client over the other or disclose confidential information.
- A facilitator performs ministerial acts (showing, conveying offers) but owes no agency loyalty, advice, or advocacy to any party.
- The state exam state portion is 40 questions (pass at 28/40, 70%); agency and disclosure rules are among the most heavily tested topics.
The Brokerage Relationship Disclosure Form
Every New Hampshire licensee must give consumers the Brokerage Relationship Disclosure Form published by the New Hampshire Real Estate Commission. The legal source is administrative rule Rea 701.01. The form is informational only: signing it does not create an agency relationship or a contract. Its job is to explain who the licensee may represent before the consumer reveals motivation, price flexibility, or financial details.
When the form must be delivered
The trigger is the first business meeting at which confidential information might reasonably be exchanged about a specific property or the consumer's real estate needs. Memorize the trigger as "before confidential information," not "at closing" and not "within X days."
| Situation | Provide the form when |
|---|---|
| Listing appointment | At the first substantive meeting with the seller |
| Buyer phone inquiry that turns to needs/finances | Before discussing those needs |
| Open house | Before any substantive conversation about the buyer's situation |
| Showing a property | At the first personal meeting about it |
Exam trap: Casual contact at an open house ("How many bedrooms?") does not trigger the form. The duty arises when the conversation moves to confidential matters such as how much the buyer can afford or why the seller is moving.
The five brokerage relationships
The single most common error on the state portion is forgetting that New Hampshire defines five relationships, not three. The form lists each one with its duties.
1. Seller agent
Acts for the seller or landlord and owes that client undivided loyalty, obedience, confidentiality, reasonable care, disclosure, and accounting (the OLD-CAR fiduciary duties).
2. Buyer agent
Acts for the buyer or tenant with the same fiduciary duties owed to that client.
3. Disclosed dual agent
Acts for both sides in the same transaction with the knowledge and written consent of all parties.
4. Designated agent
The principal broker designates an individual licensee to represent one party at full client-level service, even when another licensee in the same firm represents the other party. This keeps both consumers in single-agency service and avoids firm-wide dual agency.
5. Facilitator
A non-agent who assists parties with ministerial acts (showing property, preparing and conveying offers, providing public information) without advocating for anyone.
| Relationship | Owes fiduciary loyalty? | Can give advice on price/terms? |
|---|---|---|
| Seller agent | Yes, to seller | Yes, to the seller |
| Buyer agent | Yes, to buyer | Yes, to the buyer |
| Disclosed dual agent | To both, but limited | No, to neither |
| Designated agent | Yes, to the designated client | Yes, to that client |
| Facilitator | No | No advocacy; facts only |
Worked example: A buyer walks into ABC Realty's listing. The principal broker designates Agent Lee for the buyer and Agent Ruiz for the seller. Because two different licensees are designated, each acts as a single agent and full dual agency is avoided. If instead one licensee represented both, that would be disclosed dual agency requiring written consent.
Disclosed dual agency: the strict limits
Dual agency is heavily tested because it asks consumers to give up part of the service they would normally receive. New Hampshire permits it only when the licensee:
- Fully discloses the dual role and its limitations to both parties.
- Obtains informed written consent from both the buyer/tenant and the seller/landlord before acting.
- Treats both clients honestly and accounts for all funds.
The defining limit: a disclosed dual agent cannot advocate for one client over the other. Practically, that means the agent cannot tell the buyer to offer less, cannot tell the seller to hold out for more, and cannot reveal one client's confidential information (motivation, walk-away price, or top offer) to the other.
| A dual agent CAN | A dual agent CANNOT |
|---|---|
| Present every offer promptly | Recommend a price or term to accept or reject |
| Provide neutral factual information | Disclose one party's confidential information |
| Prepare standard forms and timelines | Negotiate on behalf of one party against the other |
| Maintain confidentiality equally | Advise on negotiating strategy for either side |
Common confusion: Disclosed dual agency is not the same as being a facilitator. A facilitator never had an agency relationship to limit; a dual agent represents both and must stay neutral. A transaction "broker"/facilitator model is the New Hampshire non-agent option.
Company policy on agency
Every New Hampshire brokerage must adopt and maintain a written company policy describing which relationships the firm offers, how it handles dual agency and designated agency, and how it trains licensees. The principal broker is responsible for ensuring affiliated licensees follow that policy and deliver the disclosure on time.
| Policy element | Why it matters on the exam |
|---|---|
| Relationships offered | A firm may decline to practice dual agency entirely |
| Designated agency procedure | Defines who designates and how confidentiality is walled off |
| Disclosure delivery timing | Tied directly to Rea 701.01's first-meeting trigger |
| Supervision | Principal broker is accountable for licensee conduct |
Exam logistics tie-in
The New Hampshire salesperson exam (administered by PSI) totals 120 scored questions: an 80-question national portion and a 40-question state portion, with 150 minutes for the national section and 90 minutes for the state section. You must pass each part separately at 70% (56/80 national; 28/40 state). Agency and disclosure questions appear in both portions, so know the OLD-CAR duties for the national side and the five NH relationships plus Rea 701.01 timing for the state side.
Which brokerage relationship type does New Hampshire define as a non-agent who may show property and convey offers but owes no loyalty or advocacy to any party?
When must a New Hampshire licensee provide the Brokerage Relationship Disclosure Form under Rea 701.01?
What is the defining limitation placed on a disclosed dual agent in New Hampshire?
A principal broker assigns one licensee to represent the buyer and a different licensee in the same firm to represent the seller. What relationship structure is this?