Free New Hampshire Agency Practice Test — LicenseIQ

Question 1

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 2

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 3

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 4

The client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 5

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 6

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 7

In New Hampshire, an agency relationship arises from:

Accepted Answer

RSA 331-A:2 defines agency as a fiduciary relationship arising from a brokerage agreement. The disclosure form is a disclosure, not a contract.

Question 8

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 9

A seller agent learns that the seller will accept $20,000 less than list price. The agent may reveal this to a buyer:

Accepted Answer

Confidential information may be disclosed only with written consent, if it becomes public, to defend the licensee, or when law requires.

Question 10

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 11

Which must a seller's agent disclose to the seller under RSA 331-A:25-b?

Accepted Answer

RSA 331-A:25-b requires disclosing potential seller liability for the acts of the principal broker and subagents. The buyer's maximum is not the seller agent's to obtain or share.

Question 12

An appointing agent appoints one designated agent for the seller and another for the buyer in the same transaction. The appointing agent becomes:

Accepted Answer

RSA 331-A:25-e, VI makes the appointing agent a neutral dual agent in that situation.

Question 13

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 14

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 15

A disclosed dual agent knows from a prior listing that the buyer once sold a home under financial pressure. The agent:

Accepted Answer

RSA 331-A:25-d requires the dual agent to keep confidential information private, including information from prior agreements.

Question 16

A buyer asks the listing agent directly whether a suicide occurred in the home, and the agent knows one did. Under RSA 477:4-e:

Accepted Answer

Disclosure at the buyer's request is required when the agent knows, and the statute shields the disclosure from liability.

Question 17

A buyer offers a promissory note as earnest money. The listing agent may accept it only if:

Accepted Answer

RSA 331-A:26, XI prohibits accepting non-cash earnest money without written disclosure to the owner.

Question 18

When must a disclosed dual agent obtain written consent from all parties?

Accepted Answer

RSA 331-A:25-d, I and Rea 701.01(g) require consent no later than preparing the written offer.

Question 19

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 20

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 21

Written notice of designated agency must be given to the parties:

Accepted Answer

RSA 331-A:25-e, VII(a) and Rea 701.01(h) require notice before the P&S or lease is signed.

Question 22

A seller's agent may provide a buyer customer with which kind of help without creating agency?

Accepted Answer

RSA 331-A:25-b, II allows ministerial acts with written disclosure. Advice on price would be advocacy for the buyer.

Question 23

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 24

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 25

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

New Hampshire real estate agency practice test

1. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

2. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

3. An agency relationship can be terminated by all of the following EXCEPT:

4. The client a broker represents is the:

5. Which fiduciary duty continues even after the agency relationship has ended?

6. Which statement about dual agency is correct?

7. In New Hampshire, an agency relationship arises from:

8. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

9. A seller agent learns that the seller will accept $20,000 less than list price. The agent may reveal this to a buyer:

10. Which of the following is a fiduciary duty an agent owes the principal?

11. Which must a seller's agent disclose to the seller under RSA 331-A:25-b?

12. An appointing agent appoints one designated agent for the seller and another for the buyer in the same transaction. The appointing agent becomes:

13. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

14. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

15. A disclosed dual agent knows from a prior listing that the buyer once sold a home under financial pressure. The agent:

16. A buyer asks the listing agent directly whether a suicide occurred in the home, and the agent knows one did. Under RSA 477:4-e:

17. A buyer offers a promissory note as earnest money. The listing agent may accept it only if:

18. When must a disclosed dual agent obtain written consent from all parties?

19. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

20. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

21. Written notice of designated agency must be given to the parties:

22. A seller's agent may provide a buyer customer with which kind of help without creating agency?

23. The best way to create an agency relationship is a(n):

24. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

25. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Sources