Free New Hampshire Property Practice Test — LicenseIQ

Question 1

Private restrictions placed in a deed by a developer are called:

Accepted Answer

Deed restrictions (covenants, conditions and restrictions) are private controls enforced by owners or associations, not government. Zoning and building codes are public controls.

Question 2

A quitclaim deed is most often used to:

Accepted Answer

Quitclaim deeds convey whatever interest the grantor may have, without warranties, making them useful for removing clouds or releasing claims.

Question 3

An unrecorded deed is NOT effective against:

Accepted Answer

RSA 477:3-a and 477:7 make unrecorded instruments ineffective against bona fide purchasers for value, but valid against the grantor and heirs.

Question 4

In a mortgage, the borrower who pledges the property as security is the:

Accepted Answer

The mortgagor (borrower) gives the mortgage to the mortgagee (lender) in exchange for the loan.

Question 5

What is New Hampshire's real estate transfer tax rate?

Accepted Answer

RSA 78-B:1 sets $0.75 per $100, and RSA 78-B:4, III applies it to both buyer and seller, for $1.50 per $100 combined.

Question 6

A built-in dishwasher attached to the cabinetry is best classified as:

Accepted Answer

Once personal property is permanently attached to real estate it becomes a fixture and is treated as real property. A trade fixture is installed by a tenant for business use, which is not the case here.

Question 7

The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

Accepted Answer

Adjust the comparable, never the subject. The subject is superior, so add $15,000 to the comp: $315,000.

Question 8

Which statement best describes a New Hampshire licensee's duty regarding hidden property defects?

Accepted Answer

RSA 331-A:25-b, Rea 701.02, and the facilitator statute all say no affirmative duty to investigate, but actual knowledge must be disclosed before a written offer.

Question 9

An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

Accepted Answer

Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.

Question 10

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 11

A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

Accepted Answer

Annual tax = $312,000 x 0.0225 = $7,020; quarterly = $7,020 / 4 = $1,755.

Question 12

Which item would most likely be considered personal property rather than a fixture?

Accepted Answer

Items easily removed without damage, like a plug-in refrigerator, are usually personal property. Carpeting cut to fit, built-ins and HVAC are adapted or attached fixtures.

Question 13

The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

Accepted Answer

Highest and best use is the use producing the greatest value that meets the four tests.

Question 14

A neighbor's new garage extends two feet over the property line. This is an:

Accepted Answer

An encroachment is an improvement that intrudes onto another's land; a survey establishes the boundary.

Question 15

A deed that conveys only whatever interest the grantor has, with no warranties, is a:

Accepted Answer

A quitclaim deed conveys the grantor's interest, if any, with no warranties - often used to clear clouds on title.

Question 16

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 17

A property assessed at $365,000 is taxed at $2.85 per $100 of assessed value. What is the annual tax?

Accepted Answer

$365,000 / 100 = 3,650 units; 3,650 x $2.85 = $10,402.50.

Question 18

The 'bundle of rights' in real property includes all of the following EXCEPT:

Accepted Answer

The bundle includes possession, control, enjoyment, exclusion and disposition - never a guaranteed profit.

Question 19

Which deed language clearly creates a joint tenancy under RSA 477:18?

Accepted Answer

RSA 477:18 recognizes 'as joint tenants with rights of survivorship' or 'as tenants by the entirety' as a clear expression. 'In equal shares' suggests tenancy in common.

Question 20

Which rental is 'nonrestricted' property under RSA 540:1-a?

Accepted Answer

RSA 540:1-a lists owner-occupied buildings of four or fewer units, single-family houses of owners holding no more than three, and certain foreclosed homes.

Question 21

A property sells for $450,000. What is the total transfer tax paid by buyer and seller combined?

Accepted Answer

Each party pays $450,000 x 0.0075 = $3,375; together $6,750. $3,375 is only one party's share.

Question 22

A landlord of restricted property wants to end a 12-month lease at expiration. Under RSA 540:2, II(i), the landlord must give written notice of nonrenewal at least:

Accepted Answer

RSA 540:2, II(i) requires at least 60 days' written notice for leases of 12 months or more, and the action must be filed within 6 months of expiration.

Question 23

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 24

Members of the New Hampshire Real Estate Commission are appointed by:

Accepted Answer

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.

Question 25

A landlord of restricted property may terminate a residential tenancy only for reasons listed in RSA 540:2, II, which include:

Accepted Answer

RSA 540:2, II(e) and V include other good cause such as legitimate business reasons. Terminating without a reason is allowed only for nonrestricted property.

New Hampshire real estate property practice test

1. Private restrictions placed in a deed by a developer are called:

2. A quitclaim deed is most often used to:

3. An unrecorded deed is NOT effective against:

4. In a mortgage, the borrower who pledges the property as security is the:

5. What is New Hampshire's real estate transfer tax rate?

6. A built-in dishwasher attached to the cabinetry is best classified as:

7. The subject property has a garage; a comparable that sold for $300,000 does not. The garage is worth $15,000. The adjusted value of the comparable is:

8. Which statement best describes a New Hampshire licensee's duty regarding hidden property defects?

9. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

10. Which is the most common and desirable way a real estate sales contract terminates?

11. A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

12. Which item would most likely be considered personal property rather than a fixture?

13. The reasonably probable use of a property that is legally permissible, physically possible, financially feasible and maximally productive is its:

14. A neighbor's new garage extends two feet over the property line. This is an:

15. A deed that conveys only whatever interest the grantor has, with no warranties, is a:

16. A real estate licensee who is not an attorney may:

17. A property assessed at $365,000 is taxed at $2.85 per $100 of assessed value. What is the annual tax?

18. The 'bundle of rights' in real property includes all of the following EXCEPT:

19. Which deed language clearly creates a joint tenancy under RSA 477:18?

20. Which rental is 'nonrestricted' property under RSA 540:1-a?

21. A property sells for $450,000. What is the total transfer tax paid by buyer and seller combined?

22. A landlord of restricted property wants to end a 12-month lease at expiration. Under RSA 540:2, II(i), the landlord must give written notice of nonrenewal at least:

23. 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:

24. Members of the New Hampshire Real Estate Commission are appointed by:

25. A landlord of restricted property may terminate a residential tenancy only for reasons listed in RSA 540:2, II, which include:

Sources