NH Test Part 1 - Real Estate Commission

15. When investigating a complaint how many days notice does the broker receive before a hearing? A. 30 days B. 14 days C. 7 days D. broker is notified by phone immediately

Answer: 14 days. A broker will receive 14 days notice of a hearing

12. The New Hampshire Real Estate Commission consists of: A. 5 members of the state legislature B. 6 public members C. 1 broker, 2 salespersons, 1 lawyer and 1 member of the public D. 2 brokers, 1 salesperson, 1 lawyer and 1 member of the public

Answer: 2 brokers, 1 salesperson, 1 lawyer and 1 member of the public

2. How many days does a licensee have to appeal a decision of the real estate commission? a. 14 days b. 21 business days c. 30 days with verbal notification and response d. 30 days in writing

Answer: 30 days in writing

9. The New Hampshire Real Estate Commission consists of how many members total? A. 12 B. 9 C. 7 D. 5

Answer: 5

1. How much do commissioners get paid per day? a. 50 b. 100 c. 200 d. 300

Answer: 50

13. How long must a commissioner be a resident of the state of New Hampshire? A. 1 year B. 5 years C. 6 years D. 25 year

Answer: 6

7. The New Hampshire Real Estate Commission has the power to revoke a salesperson's license if the salesperson: A. Attempts to represent seller B. Attempts to represent a buyer C. Enters into an independent contractor agreement with a sponsoring broker D. Deposits a buyer's down payment into their personal bank account

Answer: Deposits a buyer's down payment into their personal bank account

6. In the state of New Hampshire, the real estate license law is administered by the: A. New Hampshire Housing Financing Authority B. Secretary of State C. Governor D. New Hampshire Real Estate Commission

Answer: New Hampshire Real Estate Commission

18. The action of the New Hampshire Real Estate Commission stated in an order may be appealed where? A. the State department B. New Hampshire Real Estate Commission Board of Appeals C. District court in the county of which the licensee resides D. Superior Court within 30 days after it issuance

Answer: Superior Court within 30 days after it issuance

3. What can the real estate commission impose for punishment on licensees? a. Revoke license for a period not to exceed 10 years b. Require up to 20 hours of continuing education; $10,000 maximum fine; suspend or revoke the license c. Demote broker license to salesperson license; require up to 40 hours of continuing education; and impose a minimum fine of $2,000 d. Suspend/revoke license; require education; $2,000 per violation

Answer: Suspend/revoke license; require education; $2,000 per violation

5. How are members of the New Hampshire Real Estate Commission selected? A. NH Board of Realtors(r) B. Public election by active state licensees C. By the governor D. Appointed by a council of principal brokers

Answer: The governor selects potential commissioners and their appointment is approved by the Executive Council

4. How many terms can a New Hampshire Real Estate Commissioner serve? A. Two consecutive terms of five years B. One term of 6 years C. Three terms of 3 years contiguously D. Two consecutive terms of 10 years

Answer: Two consecutive terms of five years

8. How many days does a licensee have to respond to a complaint? A. Within 45 days through their attorney B. Within 30 days of receipt of Form 11-A C. 10 days by certified mail D. 14 days or less in writing

Answer: Within 30 days of receipt of Form 11-A

14. When a principal broker has his or her license suspended for two years, what effect does this have on the associate brokers and salespersons affiliated with the principal broker? A. affiliates licenses will be revoked B. affiliated licenses must be return to the New Hampshire Real Estate Commission and will become inactive C. affiliated licenses will also be suspended for a period of two years D. the suspension of the principal broker license has no effect on the affiliates

Answer: affiliated licenses must be return to the New Hampshire Real Estate Commission and will become inactive

21. In New Hampshire, which of the following is legal and not grounds for revoking a broker's license? A. being convicted of obtaining money under false pretenses B. advertising in a newspaper that he or she is a member of a real estate professional association when in fact he or she is not C. depositing money in his or her own personal back account D. agreeing with a seller to accept a listing for more than the broker's usual commission rate

Answer: agreeing with a seller to accept a listing for more than the broker's usual commission rate

11. In New Hampshire, a broker may have his or her license suspended or revoked for all of the following actions except: A. inducing any party into a contract of sale just to break the contract and then substitute a new contract with another principal B. depositing earnest money into the firm's interest bearing escrow account C. guaranteeing future profits or income D. displaying a "For Sale" sign on a property without the owner's consent

Answer: depositing earnest money into the firm's interest bearing escrow account

10. The New Hampshire Real Estate Commission has the authority to: A. make and enforce the rules by which all real estate licensees must abide B. compose the examination questions on the state exam C. administers the exams given at the testing sites D. enact the laws which govern real estate licensees

Answer: make and enforce the rules by which all real estate licensees must abide

20. All of the following statements regarding the New Hampshire Real Estate Commission are true except: A. members of the commission are selected by state association of REALTORS(r) B. the commission makes and enforces the rules by which all real estate licensees must abide C. the examinations that must be taken by all applicants for real estate licensing are administered by an independent testing company D. the operation of the commission's activities is administered by an executive director and is part of the Office of Professional Licensure and Certification

Answer: members of the commission are selected by state association of REALTORS(r)

22. Regarding listing agreements in New Hampshire, which of the following could result in the suspension or revocation of a licensee's license to practice real estate? A. a specified commission rate B. no specific termination date C. no broker protection clause D. a specific termination date

Answer: no specific termination date. Having no specific termination date in the listing agreement is prohibited conduct.

19. The New Hampshire Real Estate Commission can undertake investigations of licensees based on all of the following circumstances, except: A. written complaint by customer/consumer B. motion by the members of the New Hampshire Real Estate Commission C. random selection of licensees D. written complaint by a client who feels they were not represented by the licensee

Answer: random selection of licensees

23. For which of the following acts would a licensee be subject to disciplinary action be the New Hampshire Real Estate Commission? A. preserving real estate records for seven years B. representing to any lender an amount in excess of the true and actual sales price C. depositing earnest money into the broker's escrow account D. providing information requested by the commission within 30 days of the request as part of a complaint or audit procedure

Answer: representing to any lender an amount in excess of the true and actual sales price. Representing to any lender an amount in excess of the true and actual sales price is prohibited conduct and mortgage fraud.

24. The New Hampshire Real Estate Commission A. has the authority to audit a broker's escrow accounts with 30 days notice B. may never audit a broker's escrow accounts C. requires the principal broker, upon licensure, to sign a permit allowing the commission to audit the escrow accounts D. may only audit a broker's escrow accounts upon order of the court

Answer: requires the principal broker, upon licensure, to sign a permit allowing the commission to audit the escrow accounts. The New Hampshire Real Estate Commission requires the principal broker, upon licensure, to sign a permit allowing the commission to audit the escrow accounts

17. What branch of the government does the New Hampshire Real Estate Commission report to? A. attorney general B. executive council C. state department D. governor

Answer: state department

16. A licensee concealed pertinent information about the condition of a property for which he was the agent of the seller. Which of the following penalties might be imposed by the New Hampshire Real Estate Commission? A. a fine not to exceed a maximum $10,000 B. suspension or revocation of the agent's license C. a jail sentence not to exceed 364 days D. a fine of $2,000 and 10 days in jail

Answer: suspension or revocation of the agent's license. The commission can impose suspension/revocation/deny renewal of a license; order fines of $2,000 per violation; order continuing education.

25. A salesperson engaged in activities that constitute violations of the New Hampshire Human Rights Act, including blockbusting and discrimination on the basis of disability. The salesperson also cashed a $25,000 earnest money check from a prospective buyer and used the proceeds to buy a new car. The salesperson's employing broker was unaware of all of these activities. What is the impact on the salesperson's broker when the salesperson's violations are brought to the attention of the New Hampshire Real Estate Commission? A. the employing broker will not have his or her license revoked as a result of the salesperson's violations B. the salesperson's employing broker will be required to pay any fine imposed against the salesperson out of his or her own personal funds C. the salesperson's actions are legally the responsibility of the employing broker, who will be subject to the same disciplinary action as the salesperson regardless of whether or not he or she knew the violations had occurred D. the salesperson's employing broker may be held liable by the New Hampshire Real Estate Commission for the actions of the salesperson

Answer: the salesperson's employing broker may be held liable by the New Hampshire Real Estate Commission for the actions of the salesperson. (Based on reasonable supervision, the salesperson's employing broker may be held liable by the New Hampshire Real Estate Commission for the actions of the salesperson.)