3.2 New Hampshire Property Law

Forms of Concurrent Ownership

When two or more people hold title together, NH recognizes three main forms. The exam loves to test the right of survivorship and the four unities.

The four unities required for joint tenancy are T-T-I-P: Time (acquired together), Title (same deed), Interest (equal shares), and Possession (equal right to the whole). Break any unity, and joint tenancy converts to tenancy in common.

Worked example

Three siblings own a cabin as joint tenants with right of survivorship. One sibling sells her one-third interest to a stranger. The unities of time and title are broken for that share, so the stranger now holds a one-third interest as a tenant in common, while the two remaining siblings keep joint tenancy (with survivorship) between themselves.

Deeds and Conveyance

A deed is the written instrument that transfers title. To be valid in NH a deed must be in writing, name a competent grantor and grantee, contain a legal description, include words of conveyance (the granting clause), be signed by the grantor, and be delivered and accepted.

Recording and Notice

Deeds and mortgages are recorded at the County Registry of Deeds for the county where the property sits. Recording provides constructive notice (the world is presumed to know) and establishes priority: generally, first to record has the superior claim. Failing to record leaves a buyer exposed to a later bona-fide purchaser who records first.

Mortgage and Foreclosure Law

For exam purposes, New Hampshire is treated as a title-theory state (some sources call it intermediary): the lender (mortgagee) holds legal title through the security instrument while the borrower (mortgagor) holds equitable title and possession. Legal title clears to the borrower when the loan is paid.

Trap: the prior version of this guide implied a statutory redemption period after sale. New Hampshire has no post-sale redemption right for non-judicial foreclosures.

The Real Estate Transfer Tax (RSA 78-B)

NH imposes a Real Estate Transfer Tax of $0.75 per $100 of consideration (or fraction thereof) on the buyer and $0.75 per $100 on the seller, for a combined $1.50 per $100 ($15 per $1,000). The minimum tax is $20 on each side.

• Example: a $400,000 sale generates $400,000 / 100 = 4,000 units x $0.75 = $3,000 from the buyer and $3,000 from the seller ($6,000 total).
• Administered by the NH Department of Revenue Administration (DRA).

Property Taxation

NH famously has no general income tax and no sales tax, so locally assessed property taxes fund towns, cities, and schools.

1. Assessment — the local assessor sets market value.
2. Rate — the municipality sets the tax (mill) rate.
3. Billing — bills are usually semi-annual.
4. Lien — unpaid taxes become a priority lien that can lead to a tax deed.

Land Use, Zoning, and Environment

Land use is controlled locally: the Planning Board handles master plans and subdivisions, the Zoning Board of Adjustment (ZBA) grants variances and special exceptions, and the building inspector enforces code. Statewide, the Comprehensive Shoreland Protection Act regulates building near protected waters, and the Department of Environmental Services (DES) oversees wetlands, septic approvals, and well-water testing.

Variances vs. Nonconforming Use

A variance is permission from the ZBA to deviate from a zoning rule (e.g., a smaller setback) when strict enforcement causes unnecessary hardship. A special exception is a use the ordinance already allows if stated conditions are met. A legal nonconforming use ("grandfathering") is a use that was lawful before the zoning changed; it may continue but generally cannot be expanded or rebuilt if abandoned.

Encumbrances and Title Issues

Know the difference between liens and other encumbrances, because they affect marketable title:

Common Trap

Do not confuse constructive notice (recording) with actual notice (knowledge a party truly has). A buyer who walks the land and sees a tenant in possession has actual notice of that tenant's rights even if nothing is recorded. Likewise, a quitclaim deed conveys whatever interest the grantor has, which may be nothing if the grantor never held title, so it offers the grantee no protection against prior defects.