1. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?
Answer & explanation
Answer: C. Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.
2. An investor buys a rental house for $350,000; the land is valued at $75,000. Using straight-line depreciation over 27.5 years, the annual depreciation deduction is:
Answer & explanation
Answer: C. Only the building depreciates: $350,000 - $75,000 = $275,000; $275,000 / 27.5 = $10,000. Using the full price gives $12,727 (wrong).
3. Which combination correctly describes the seats on the New Hampshire Real Estate Commission?
Answer & explanation
Answer: A. RSA 331-A:5, II sets two brokers, one salesperson, one lawyer, and one public member. The lawyer seat is the one test-takers forget, which makes the 'two salespersons' option tempting.
4. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):
Answer & explanation
Answer: D. 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.
5. A commission member's term is ____ years, and a member may serve no more than ____ consecutive full terms.
Answer & explanation
Answer: C. RSA 331-A:5, V sets five-year terms and a limit of two consecutive full terms. 'Five; three' gets the term right but the limit wrong.
6. When competing brokerages agree to charge the same commission rate, they commit:
Answer & explanation
Answer: D. Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.
7. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?
Answer & explanation
Answer: D. $20,000 x 0.50 = $10,000 to the buyer's broker.
8. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)
9. 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?
Answer & explanation
Answer: B. 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.
10. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?
Answer & explanation
Answer: B. Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.
11. A rectangular lot is 100 ft by 150 ft. How many square feet is it?
Answer & explanation
Answer: C. Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)
12. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):
Answer & explanation
Answer: B. 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.)
13. An 8-unit building rents for $1,100 per unit per month with 5% vacancy. Annual operating expenses are $28,320 (excluding debt service). At an 8% capitalization rate, what is the value?
Answer & explanation
Answer: D. PGI = 8 x $1,100 x 12 = $105,600; less 5% vacancy = $100,320; NOI = $100,320 - $28,320 = $72,000; value = $72,000 / 0.08 = $900,000.
14. A studio rents for $85 per month. What is the largest security deposit the landlord may collect?
Answer & explanation
Answer: A. The cap is the greater of one month's rent ($85) or $100, so $100. $170 assumes a two-month rule that does not exist.
15. An appointing agent appoints one designated agent for the seller and another for the buyer in the same transaction. The appointing agent becomes:
Answer & explanation
Answer: A. RSA 331-A:25-e, VI makes the appointing agent a neutral dual agent in that situation.
16. One discount point equals what percentage of the loan amount?
Answer & explanation
Answer: B. One point = 1% of the loan amount (not the purchase price), paid to lower the interest rate.
17. A borrower pays $4,500 for 1.5 discount points. What is the loan amount?
Answer & explanation
Answer: C. Loan = cost of points / points as a percentage = $4,500 / 0.015 = $300,000.
18. A house with only one bathroom and very small closets in a market expecting more suffers from:
Answer & explanation
Answer: C. Functional obsolescence is outdated design or layout inside the property. External obsolescence comes from outside the property and is usually incurable.
19. A salesperson leaves her principal broker. Within what time must the principal broker notify the commission in writing?
Answer & explanation
Answer: A. Rea 404.02(c) requires written notice within five business days. Ten days is the deadline for a licensee to report an address or name change.
20. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?
Answer & explanation
Answer: B. Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.
21. Which person is eligible to be appointed as the commission's public member?
Answer & explanation
Answer: A. RSA 331-A:5, IV bars anyone who was ever in the profession, the spouse of such a person, and anyone with a material financial interest in real estate services in the five years before appointment. The retired broker is tempting, but having ever been in the profession disqualifies.
22. A home sells for $360,000. How much transfer tax does the seller pay?
Answer & explanation
Answer: D. $360,000 / 100 x $0.75 = $2,700 for the seller (and $2,700 for the buyer). $5,400 is the combined total.
23. Members of the New Hampshire Real Estate Commission are appointed by:
Answer & explanation
Answer: A. RSA 331-A:5, III gives appointment power to the governor with council approval. The OPLC houses the commission administratively but does not appoint its members.
24. A licensee who is convicted of a reportable crime must report it to the commission within:
Answer & explanation
Answer: B. RSA 331-A:26, XXXVII makes failing to report certain convictions within 30 days prohibited conduct. Waiting until renewal is the tempting but wrong choice.
25. According to RSA 331-A:1, the main reason New Hampshire regulates real estate brokers and salespersons is to:
Answer & explanation
Answer: C. RSA 331-A:1 ties regulation to minimum standards and public confidence. Promoting the industry sounds plausible but the statute's focus is protecting the public, and commissions are negotiable rather than set by the state.
Sources
Source verification pending. Confirm current requirements with your state regulator.