4.2 License Law Violations & Discipline
Key Takeaways
- The NH Real Estate Commission, under the Office of Professional Licensure and Certification (OPLC), investigates complaints, holds hearings, and imposes discipline for violations of RSA 331-A.
- Disciplinary authority now runs through RSA 310 (the old RSA 331-A:28 penalty section was repealed effective September 1, 2023); the administrative fine cap is $3,000 per offense or $300 per day for continuing offenses, plus up to $10,000 in investigation/prosecution costs.
- Common violations include misrepresentation, commingling/conversion of escrow funds, undisclosed dual agency, failure to disclose material defects, and unlicensed activity.
- Licensees have due-process rights: written notice of charges, an adjudicatory hearing, the right to counsel and to present evidence, and the right to appeal to the courts.
- Practicing real estate without a valid license can trigger civil and criminal penalties, and disciplinary documents remain posted on the Commission/OPLC website for 7 years.
Who Disciplines and Under What Law
The New Hampshire Real Estate Commission regulates brokers and salespersons under RSA 331-A (the New Hampshire Real Estate Practice Act). Since 2018 the Commission operates within the Office of Professional Licensure and Certification (OPLC), which provides shared investigative and hearing staff.
Important update for the current exam: the old penalty section, RSA 331-A:28, was repealed effective September 1, 2023. Disciplinary process and sanctions for OPLC boards now run through RSA 310 (RSA 310:10 Disciplinary Proceedings and RSA 310:12 Sanctions). Older study materials that cite a "$10,000 per violation" fine under 331-A:28 are out of date.
Categories of Prohibited Conduct
Grounds for discipline (drawn from RSA 331-A:26, Prohibited Conduct) fall into recognizable groups:
Misrepresentation and Fraud
| Violation | Description |
|---|---|
| Material misrepresentation | A false statement about an important fact |
| Omission | Failing to disclose a known material defect |
| Fraud | Intentional deception for gain |
| False advertising | Misleading marketing or blind ads |
Escrow Violations
| Violation | Description |
|---|---|
| Commingling | Mixing client and broker funds |
| Conversion | Using client funds without authorization |
| Failure to deposit promptly | Holding earnest money out of escrow |
| Inadequate records | Unreconciled or missing ledgers |
Agency and Unlicensed-Activity Violations
| Violation | Description |
|---|---|
| Undisclosed dual agency | Representing both parties without written consent |
| Breach of fiduciary duty | Violating duties of loyalty, confidentiality, accounting |
| Unlicensed practice | Performing licensed acts without a license or on a lapsed license |
| Paying unlicensed persons | Splitting fees with the unlicensed for brokerage services |
Warning: Practicing real estate without a valid license is not just an administrative matter — it can lead to civil and criminal penalties in New Hampshire.
The Disciplinary Process and Sanctions
How a Case Moves
- Complaint or self-initiation — a consumer, another licensee, or the OPLC files or opens a complaint.
- Investigation — OPLC enforcement staff gather documents, interview witnesses, and may audit escrow accounts.
- Charging decision — if there is cause, the licensee receives written notice of the specific charges.
- Adjudicatory hearing — a formal hearing where both sides present evidence and witnesses.
- Written decision — the board issues findings and any sanction.
- Appeal — the licensee may appeal an adverse decision to the courts (NH Supreme Court review of agency action).
Due-Process Rights (frequently tested)
Before the Commission may take adverse action, a licensee is entitled to:
- Notice of the charges,
- A hearing before an impartial board,
- Representation by an attorney,
- The right to present evidence and cross-examine witnesses, and
- The right to appeal an unfavorable decision.
In cases of imminent danger to public health, safety, or welfare, a board may order an emergency (immediate) suspension pending the hearing — an exception, not the norm.
Sanctions Under RSA 310:12
| Sanction | Description |
|---|---|
| Reprimand | Formal written warning |
| Administrative fine | Up to $3,000 per offense, or $300 per day for a continuing offense, whichever is greater |
| Investigation/prosecution costs | Up to an additional $10,000 may be assessed |
| Probation | License kept with conditions (reporting, education, supervision) |
| Suspension | Temporary loss of the license |
| Revocation | Permanent loss of the license |
| Required education | Mandated additional coursework |
Trap: Do not confuse the $3,000-per-offense fine with the separate $10,000 cost-recovery figure or with the repealed "$10,000 per violation" number. On the exam, the maximum administrative fine per offense is $3,000.
Worked Example
A broker commingles earnest money and ignores two audit requests over 20 days. The board could fine up to $3,000 per offense, or $300/day for the 20-day continuing failure ($6,000) — whichever is greater — add probation requiring monthly escrow reconciliation, and assess investigation costs.
Public Records, Verification, and Exam Strategy
Where Discipline Shows Up
New Hampshire makes disciplinary history public to protect consumers:
| Record | Detail |
|---|---|
| Disciplinary documents | Posted on the Commission/OPLC website for a 7-year period |
| License status | Verifiable through OPLC Online License Verification |
| Board actions page | Settlement agreements, consent orders, suspensions, and final orders are listed publicly |
Typical posted outcomes include settlement (consent) agreements, emergency suspensions for serious misconduct, unlicensed-practice enforcement, and final orders after a hearing.
What the Commission Cannot Do
The Commission's powers are administrative, not criminal. It can deny, condition, suspend, or revoke a license and impose fines, but it cannot imprison anyone. Jail time requires a separate criminal prosecution brought through the court system (for example, for fraud or for practicing without a license).
High-Yield Review List
- Disciplinary authority now flows through RSA 310 (OPLC), not the repealed RSA 331-A:28.
- Maximum administrative fine: $3,000 per offense ($300/day continuing), plus up to $10,000 in costs.
- Sanctions ladder: reprimand → fine/education → probation → suspension → revocation.
- Always present before discipline: notice + hearing + counsel + evidence + appeal.
- Records stay public for 7 years; verify any licensee through OPLC Online License Verification.
- The Commission disciplines; the courts punish criminally.
Exam Tip: When a question offers "imprisonment" or "$10,000 fine per violation" as a Commission penalty, both are distractors — the Commission imposes administrative fines (max $3,000/offense) and cannot jail a licensee.
Under current New Hampshire law (RSA 310:12), what is the maximum administrative fine the Real Estate Commission can impose for a single offense?
Which of the following is NOT a sanction the New Hampshire Real Estate Commission can impose on a licensee?
Before the Commission takes disciplinary action against a licensee, the licensee is generally entitled to which of the following?
How long does the New Hampshire Real Estate Commission keep disciplinary documents posted on its website?