Free New Hampshire Contracts Practice Test — LicenseIQ

Question 1

Earnest money is held in an interest-bearing escrow account and the contract is silent on interest. Who receives the interest?

Accepted Answer

RSA 331-A:13, II gives interest to the depositing party unless the parties agree otherwise in writing.

Question 2

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 3

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 4

A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?

Accepted Answer

A counteroffer is a rejection and a new offer; the original offer cannot be revived by the buyer.

Question 5

When a seller changes a term of the buyer's offer and returns it, this creates a:

Accepted Answer

Altering any term rejects the original offer and creates a counteroffer, which the buyer may accept or reject.

Question 6

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 7

An out-of-state broker may participate in a New Hampshire transaction under a cooperative brokerage agreement only when the property is:

Accepted Answer

RSA 331-A:22-a and Rea 703.01 limit cooperation to commercial transactions; RSA 331-A:2 defines commercial as anything other than one-to-four family dwellings.

Question 8

A contract signed by a 17-year-old buyer is generally:

Accepted Answer

Contracts with minors are voidable at the minor's option; the adult party remains bound. A contract with someone adjudged insane is void.

Question 9

A party making an offer to buy is the ____, and the party receiving it is the ____.

Accepted Answer

The offeror makes the offer; the offeree receives it. When a counteroffer is made, the roles swap.

Question 10

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 11

Unless forwarded to a closing agent, title company, or attorney, escrowed deposits stay in the account until the contract ends by:

Accepted Answer

RSA 331-A:13, IV lists performance, written agreement of all parties, or court order. The broker cannot decide fault and release funds on one party's demand.

Question 12

A listing agreement gives the broker authority to sign the purchase and sale contract on the seller's behalf. Under RSA 331-A:25-g, the agreement is:

Accepted Answer

RSA 331-A:25-g voids listing agreements that let a broker sign sale contracts. The owner, or an attorney-in-fact under a written power of attorney, must sign.

Question 13

A listed property is already under contract when a new offer arrives. The seller's agent must:

Accepted Answer

RSA 331-A:25-b requires presenting all offers in a timely manner, even while under contract.

Question 14

In an option to purchase, the seller who grants the option is the ____ and the option holder is the ____.

Accepted Answer

The seller (optionor) gives the option; the buyer (optionee) holds it. Only the optionor is bound during the option period, making it unilateral.

Question 15

A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

Accepted Answer

LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.

Question 16

After the buyer and seller sign a sales contract but before closing, the contract is:

Accepted Answer

A contract is executory while obligations remain to be performed; it becomes executed when fully performed (at closing).

Question 17

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 18

Which event terminates a listing agreement by operation (force) of law?

Accepted Answer

Agency ends by performance, expiration, mutual agreement, or situationally by force of law (bankruptcy, condemnation), death or incapacity, destruction of the property, or breach.

Question 19

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 20

A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

Accepted Answer

In a net listing the broker's fee is the excess over a set net ($40,000 here). It encourages the broker to underprice and is illegal in many states, including NJ.

Question 21

A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

Accepted Answer

Specific performance compels the breaching party to perform; it is available because land is unique. The buyer could alternatively seek monetary damages.

Question 22

The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Accepted Answer

The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Question 23

Which requirement applies to a cooperative brokerage agreement between a New Hampshire broker and an out-of-state broker?

Accepted Answer

Rea 703.01(d) limits the term to one year, places escrow with the New Hampshire broker, and makes the New Hampshire broker supervise. Commissions are negotiable between the brokers.

Question 24

A buyer representation contract under Rea 404.04 must include, among other things:

Accepted Answer

Rea 404.04(g)-(h) requires a general description, location, and price range plus the other basics, including an expiration date.

Question 25

Which item must a New Hampshire listing contract contain under Rea 404.04?

Accepted Answer

Rea 404.04 requires execution date, property details and asking price, names and addresses, the fee, and the expiration date.

New Hampshire real estate contracts practice test

1. Earnest money is held in an interest-bearing escrow account and the contract is silent on interest. Who receives the interest?

2. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

3. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

4. A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?

5. When a seller changes a term of the buyer's offer and returns it, this creates a:

6. Under a land contract (contract for deed), during the payment period the buyer holds:

7. An out-of-state broker may participate in a New Hampshire transaction under a cooperative brokerage agreement only when the property is:

8. A contract signed by a 17-year-old buyer is generally:

9. A party making an offer to buy is the , and the party receiving it is the .

10. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

11. Unless forwarded to a closing agent, title company, or attorney, escrowed deposits stay in the account until the contract ends by:

12. A listing agreement gives the broker authority to sign the purchase and sale contract on the seller's behalf. Under RSA 331-A:25-g, the agreement is:

13. A listed property is already under contract when a new offer arrives. The seller's agent must:

14. In an option to purchase, the seller who grants the option is the and the option holder is the .

15. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

16. After the buyer and seller sign a sales contract but before closing, the contract is:

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

18. Which event terminates a listing agreement by operation (force) of law?

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

20. A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

21. A seller refuses to close on a valid contract. Because each parcel of real estate is unique, the buyer may sue to force the sale through:

22. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

23. Which requirement applies to a cooperative brokerage agreement between a New Hampshire broker and an out-of-state broker?

24. A buyer representation contract under Rea 404.04 must include, among other things:

25. Which item must a New Hampshire listing contract contain under Rea 404.04?

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