5.2 Advertising & Brokerage Operations Rules

Advertising rules — no blind ads

New Hampshire's administrative Rea rules and RSA 331-A control how licensees advertise. The cornerstone rule, tested constantly, is the ban on the blind ad: every advertisement of property for sale or rent, or of real estate services, must identify the licensee's employing firm and/or principal broker, not merely the salesperson's personal name or phone number.

Key advertising principles:

• Firm identification. Print, radio, TV, signs, and internet/online ads must disclose the brokerage firm. A Facebook post or a personal website is still an "advertisement" and must name the firm.
• No false or misleading claims. A licensee may not misstate price, availability, features, their own experience, or the services offered.
• Authority to advertise. A salesperson advertises under the principal broker's authority; the broker remains responsible for what the team puts out.
• Owner consent. A licensee advertises a specific property only with the owner's authorization (a listing agreement), and must promptly stop when a listing ends.

Why it matters: A "blind ad" hides who is actually behind the listing, which the Commission treats as deceptive. If an exam scenario shows a salesperson running an ad with only their own cell number and no brokerage name, that ad violates NH advertising rules.

Brokerage operations, supervision, and self-dealing

The principal broker's supervisory role

New Hampshire brokerage is organized around the principal broker. Every salesperson and associate broker is affiliated with and supervised by one principal broker at a time. The principal broker:

• Holds and reconciles the escrow/trust account (no salesperson controls escrow);
• Is responsible for the advertising, disclosures, and conduct of affiliated licensees;
• Maintains transaction and trust records the Commission may audit.

Liability flows up the supervisory chain: if an affiliated salesperson mishandles client money or runs an improper ad, the principal broker can be disciplined for failure to supervise. That is why a salesperson cannot, for example, open their own escrow account or hang their license at two firms simultaneously.

Listing pitfalls — net listings

A net listing sets a price the seller will "net," letting the broker keep everything above it as commission. NH practice treats net listings as fraught and disfavored because they invite the agent to under-price the home and pocket the spread, breaching the duty of loyalty. Even where not flatly banned, using a net listing to over-profit at the principal's expense is a disciplinable breach of fiduciary duty. The exam-safe answer: a licensee should not steer a seller into a net listing.

Disclosing your own licensed status

When a licensee buys or sells property for their own account (or for a spouse, family member, or entity they control), New Hampshire requires the licensee to disclose that they hold a real estate license to the other party to the transaction. The duty exists because a licensed person has training and access (MLS data, market knowledge) that the other side may not, and hiding the license can be a deceptive practice.

Exam takeaway: Operations questions reward the answer that protects the consumer and the principal: identify the firm in ads, route money and supervision through the principal broker, avoid net-listing self-dealing, and disclose your license when you are a party.

License affiliation, transfers, and unlicensed assistants

Beyond advertising, the state exam probes how a brokerage is staffed and supervised. Three operational details recur.

One principal broker at a time; transfers

A salesperson or associate broker may be affiliated with only one principal broker at a time. When a licensee changes firms, the license must be transferred — the prior principal broker releases it and the new principal broker takes responsibility going forward. A licensee may not legally practice (show property, write offers, collect commissions) during a gap when the license is not placed with a principal broker. Listings and the listing agreement belong to the brokerage, not the departing salesperson, so a licensee cannot simply take active listings to a new firm without the broker's consent.

Unlicensed assistants — the line they cannot cross

Brokerages employ unlicensed assistants, and the exam tests what they may and may not do. Unlicensed staff may perform ministerial and clerical tasks: scheduling, preparing marketing materials at the licensee's direction, handling keys, and answering factual questions from a script.

They may not perform activities that require a license — negotiating terms, quoting price opinions, soliciting listings, discussing the property's merits to induce a sale, or independently showing property and answering substantive buyer questions. When an exam scenario has an assistant "negotiating the price" or "explaining why the home is a great deal," that crosses into licensed activity and is a violation that the supervising broker is responsible for.

Compensation flows through the broker

Finally, a salesperson is paid by their principal broker, not directly by a buyer, seller, or another brokerage. Commission is earned by the brokerage and split per the firm's agreement with the licensee. A licensee who accepts a commission or referral fee directly from a consumer or an unlicensed person, bypassing the principal broker, commits a violation. The unifying operations principle for the exam: authority, money, and supervision all run through the principal broker.