Free New Hampshire State Law Practice Test — LicenseIQ

Question 1

Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Accepted Answer

Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.

Question 2

To pass the New Hampshire state portion of the salesperson exam, a candidate must earn at least:

Accepted Answer

The PSI bulletin sets the state passing score at 28 points out of 40 (70 percent), and both portions must be passed. 30 is a guess based on 75 percent.

Question 3

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

Question 4

A licensee renews four months after the license expired. Besides the renewal fee and normal CE, what is required?

Accepted Answer

Rea 401.02(a) requires 9 extra CE hours for renewal within 6 months after expiration. The 40-hour course applies to renewals 6 to 12 months late.

Question 5

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 6

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 7

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?

Accepted Answer

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.

Question 8

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 9

A consumer reads the Brokerage Relationship Disclosure Form but refuses to sign it. The licensee should:

Accepted Answer

Rea 701.01(f) requires keeping a declined form for three years. The licensee may continue working with the consumer.

Question 10

A licensee who is convicted of a reportable crime must report it to the commission within:

Accepted Answer

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.

Question 11

A salesperson leaves her principal broker. Within what time must the principal broker notify the commission in writing?

Accepted Answer

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.

Question 12

Which person is eligible to be appointed as the commission's public member?

Accepted Answer

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.

Question 13

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 14

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 15

An aggrieved person must file a housing discrimination complaint with the New Hampshire Commission for Human Rights within:

Accepted Answer

RSA 354-A:21, III sets 180 days. One year is the HUD deadline under federal law, and three years is the outer limit for a civil action.

Question 16

On a closing statement, the purchase price is a:

Accepted Answer

The seller receives the price (credit); the buyer owes it (debit).

Question 17

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 18

Which person may perform real estate activities without a New Hampshire license?

Accepted Answer

RSA 331-A:4, VI exempts executors, administrators, trustees, and similar fiduciaries. An inactive licensee may not do brokerage, including referrals for compensation, under RSA 331-A:12-b.

Question 19

In New Hampshire, which licensees must maintain a surety bond of at least $25,000?

Accepted Answer

RSA 331-A:14 requires the bond for principal and managing broker licenses. New Hampshire uses this bond rather than a recovery fund, so 'every licensee' is wrong.

Question 20

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 21

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?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 22

Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

Accepted Answer

Dividing territories or customers among competitors eliminates competition and is illegal market allocation.

Question 23

A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

Accepted Answer

First $100,000 x 0.005 = $500; remaining $220,000 x 0.015 = $3,300; total = $3,800.

Question 24

Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

Accepted Answer

Agreeing with competitors to refuse to deal with another business is an illegal group boycott.

Question 25

A salesperson receives an earnest money check from a buyer. The salesperson should:

Accepted Answer

The broker manages the trust account; licensees must promptly deliver trust funds to the broker.

New Hampshire real estate state law practice test

1. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

2. To pass the New Hampshire state portion of the salesperson exam, a candidate must earn at least:

3. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

4. A licensee renews four months after the license expired. Besides the renewal fee and normal CE, what is required?

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

6. A home sells for $400,000 with a 5% total commission. What is the total commission?

7. 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?

8. A licensee representing the seller who learns the buyer will pay more than the offer must:

9. A consumer reads the Brokerage Relationship Disclosure Form but refuses to sign it. The licensee should:

10. A licensee who is convicted of a reportable crime must report it to the commission within:

11. A salesperson leaves her principal broker. Within what time must the principal broker notify the commission in writing?

12. Which person is eligible to be appointed as the commission's public member?

13. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

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

15. An aggrieved person must file a housing discrimination complaint with the New Hampshire Commission for Human Rights within:

16. On a closing statement, the purchase price is a:

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

18. Which person may perform real estate activities without a New Hampshire license?

19. In New Hampshire, which licensees must maintain a surety bond of at least $25,000?

20. When competing brokerages agree to charge the same commission rate, they commit:

21. 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?

22. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

23. A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

24. Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

25. A salesperson receives an earnest money check from a buyer. The salesperson should:

Sources