NH Real Estate key terms

New Hampshire's Real Estate Practice Act. It sets licensing requirements, defines brokerage relationships such as facilitator and agency, and gives the Real Estate Commission authority to regulate licensees and enforce conduct standards.

The state agency that licenses New Hampshire real estate brokers and salespersons, adopts administrative rules, reviews complaints, holds hearings, and imposes discipline for violations of the license law.

A person licensed by New Hampshire to conduct brokerage, supervise salespersons, and operate a real estate office. A broker may engage in transactions independently and is responsible for office compliance.

A New Hampshire licensee who performs brokerage activities for a supervising broker. A salesperson may not operate independently or accept compensation directly from clients.

A separate bank account a New Hampshire broker uses to hold money belonging to others, such as earnest money deposits, with required records, reconciliation, and restrictions on commingling.

A legal relationship in which a licensee agrees to act for a client and under the client's direction, creating fiduciary duties and the power to represent the client in a transaction.

The person or entity who has an agency relationship with a licensee. A client receives advocacy, confidentiality, and fiduciary duties from the broker or salesperson.

A party in a transaction who is not represented by the licensee. A customer is owed honesty, fairness, and disclosure of material facts, but not fiduciary duties.

A situation in which one licensee represents both buyer and seller, or landlord and tenant, in the same transaction. New Hampshire permits it only with informed written consent from all parties.

A New Hampshire licensee who assists parties with paperwork and transaction steps without representing either side as an agent. The facilitator owes honesty and disclosure but not fiduciary advocacy.

The legal obligations an agent owes a client. They commonly include care, obedience, loyalty, disclosure, accounting for funds, and confidentiality, and they end when the agency relationship ends unless law provides otherwise.

A fiduciary duty that prevents a licensee from revealing a client's private information, such as financial limits or motivation, without permission, except where disclosure is required by law.

Information that could reasonably affect a person's decision to buy, sell, lease, or set a price. A licensee must disclose known material facts honestly to all parties in the transaction.

A New Hampshire disclosure form completed by a residential seller that identifies known defects and conditions in the property before a buyer makes an offer.

A written contract in which a seller engages a broker to market property, defining the agency type, duties, term, and compensation.

A listing agreement in which the seller promises to pay the broker a commission no matter who finds the buyer, including the seller. It gives the broker the broadest compensation protection.

A buyer's deposit showing good faith and commitment. It is held in trust, applied to the purchase price at closing, or released according to the contract if the deal fails.

A contract condition that must be met before a party is bound to close. Common examples are financing, inspection, appraisal, and sale of the buyer's current home.

The written contract between buyer and seller that sets the price, closing date, contingencies, deposit terms, and other conditions for transferring the property.

The most complete real property ownership interest. It lasts indefinitely, can be inherited, and is subject only to government powers and private restrictions such as easements.

An ownership interest that lasts only for the lifetime of a named person. When that life ends, the property passes to a remainderman or back to the grantor.

A right to use another person's land for a particular purpose, such as a driveway or utility line. An easement does not give ownership of the land itself.

Any claim, lien, easement, restriction, or other burden on real property that affects its use, value, or transferability. Encumbrances may be monetary or nonmonetary.

A deed in which the grantor promises that title is good and agrees to defend the grantee against certain claims.

A New Hampshire property tax program that values qualifying open space, farm, and forest land based on its present use rather than potential development, lowering the tax burden.

A written promise by a borrower to repay a debt. It states the principal, interest rate, payment schedule, maturity date, and consequences of default.

A written instrument that gives a lender a lien on real property as security for a loan. The property can be foreclosed if the borrower defaults.

The loan amount divided by the property's sale price or appraised value, shown as a percentage. Lenders use it to measure risk and decide insurance requirements.

A state authority that offers mortgage programs, down payment help, and homebuyer education to make housing more affordable for New Hampshire residents.

A federal form a borrower receives before closing. It itemizes the loan terms, monthly payment, closing costs, and cash needed to close.

Dividing ongoing expenses such as property taxes, rent, or utilities between buyer and seller at closing based on the days each party owns or uses the property.

A state tax on transferring real property, usually calculated at a rate per $100 of price. Buyer and seller typically share it as the contract provides.

A policy that protects an owner or lender against financial loss from title defects that existed before the policy date, subject to listed exceptions.

The most probable price a property should bring in a competitive, open market where buyer and seller are informed, willing, and not under pressure.

An appraisal method that estimates value by comparing the subject property with recent sales of similar properties, then adjusting for differences in features and location.

An appraisal method for income-producing property that converts expected rental income into value, often by dividing income by a capitalization rate.

The legal, physically possible, financially feasible use of a property that produces the greatest value. Appraisers use it to frame the valuation.

A cooperative database where participating brokers share property listings and offers of compensation to other brokers, helping listings reach more buyers.

Laws that prohibit discrimination in selling, renting, or financing housing because of protected characteristics such as race, color, religion, sex, disability, or familial status.

Directing buyers or renters toward or away from neighborhoods based on protected characteristics. Steering violates fair housing laws and is prohibited.