NH Real Estate flashcards
NH Real Estate · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- NH real estate license law
- RSA 331-A is New Hampshire's statute governing real estate licensure and practice, administered by the Real Estate Commission within the Office of Professional Licensure and Certification.
- Salesperson employment requirement
- A New Hampshire salesperson must be affiliated with and supervised by a licensed broker; compensation for brokerage services is paid through that employing broker.
- Trust account commingling
- Using a brokerage trust or escrow account for personal or operating funds; prohibited because client funds such as earnest money must be kept separate.
- Unlicensed brokerage activity
- Performing licensed acts, such as negotiating a sale price for compensation, without a valid New Hampshire license; subject to discipline and possible criminal penalty.
- Dual agency
- A situation where one licensee or firm represents both buyer and seller in the same transaction; New Hampshire requires informed written consent from both parties.
- Buyer agency
- A written relationship in which the licensee represents the buyer, owes the buyer fiduciary duties, and treats the seller as a customer.
- Customer in real estate
- A party to a transaction who is not represented by the licensee; the licensee owes honesty and fairness but not full fiduciary loyalty.
- Agency termination
- An agency relationship may end by expiration, completion, mutual agreement, revocation, death, incapacity, or bankruptcy of a party, subject to contract terms.
- Fiduciary duty of loyalty
- A licensee must place the principal's interests above the licensee's own and avoid undisclosed conflicts, self-dealing, or gaining secret profit from the relationship.
- Material defect disclosure
- A known fact that would significantly affect a reasonable buyer's decision or value must be disclosed; active concealment or misrepresentation can create liability.
- Confidentiality in agency
- An agent may not reveal the principal's confidential information, such as motivation or finances, without consent, except when required by law.
- Accounting duty
- An agent must promptly account for and safeguard the principal's money, documents, and property, including earnest money held in trust.
- Statute of frauds
- A legal rule requiring real estate contracts to be in writing and signed by the party to be charged to be enforceable.
- Earnest money
- A deposit by the buyer showing good faith and consideration; it is held in trust and may be forfeited or refunded according to contract terms.
- Contingency clause
- A contract condition that must be satisfied for the transaction to proceed, such as financing, inspection, appraisal, or sale of another home.
- Option contract
- A unilateral agreement granting the optionee the right, but not the obligation, to buy property within a stated period on specified terms.
- Fee simple absolute
- The most complete freehold estate; the owner holds title indefinitely with broad rights to use, sell, and devise the property.
- Joint tenancy
- Co-ownership with undivided equal interests and right of survivorship, meaning a deceased joint tenant's share passes to the surviving tenants.
- Easement appurtenant
- An easement that benefits a dominant parcel and burdens a servient parcel; it runs with the land when the property is transferred.
- Adverse possession
- A method of acquiring title by open, notorious, continuous, hostile possession of another's land for the statutory period, generally 20 years in New Hampshire.
- Loan-to-value ratio
- Loan amount divided by the property's appraised value or purchase price, whichever is lower; used by lenders to assess mortgage risk.
- PITI payment
- A monthly housing payment including principal, interest, property taxes, and homeowners insurance; often used in mortgage qualification.
- NH transfer tax
- New Hampshire's real estate transfer tax is $1.50 per $1,000 of consideration, generally split equally between buyer and seller, with exemptions for certain transfers.
- Closing disclosure timing
- Federal TRID rules generally require the Closing Disclosure to be delivered to the borrower at least three business days before consummation of the loan.
- Sales comparison approach
- A valuation method that estimates value by analyzing recent sales of similar properties and adjusting for differences from the subject property.
- Capitalization rate
- A rate used in the income approach; value equals net operating income divided by the capitalization rate.
- Highest and best use
- The legally permissible, physically possible, financially feasible, and maximally productive use of a property that produces the highest value.
- Gross rent multiplier
- A quick income-property metric calculated as sale price divided by gross monthly rent; lower multipliers generally suggest higher relative income.
- Exclusive right to sell
- A listing agreement under which the broker earns commission regardless of who procures the buyer, including the seller, during the listing period.
- Open listing
- A non-exclusive listing allowing the seller to use multiple brokers and pay only the broker who procures the buyer; the seller may also sell directly.
- Blind advertising
- Advertising a property without identifying the licensee's brokerage firm; prohibited because ads must disclose the responsible broker or firm.
- Referral fee to unlicensed person
- Paying compensation for a real estate referral to someone who is not licensed; generally prohibited because it constitutes unlicensed brokerage activity.