New Hampshire Agency Law Guide for the Real Estate Exam
Understand New Hampshire agency law — buyer agency requirements, fiduciary duties, disclosed dual agency, and what the exam tests — before sitting for your PSI exam.
New Hampshire Agency Law Guide
Agency law is one of the most heavily tested topics on the New Hampshire real estate exam. Both the national and state-specific sections include agency questions. Understanding how NH law structures agent-client relationships is essential to passing.
The Agency Relationship
In New Hampshire, an agency relationship is created when a broker (or licensed salesperson working under a broker) agrees to represent a client. The client is called the principal. The agent owes the principal fiduciary duties.
The six fiduciary duties — often remembered with the acronym CAROLD — are:
- Confidentiality
- Accounting
- Reasonable care and diligence
- Obedience
- Loyalty
- Disclosure
All six duties are owed to the principal. Non-clients (customers) receive only honest and fair dealing.
Written Buyer Agency Agreements in New Hampshire
New Hampshire law requires that a buyer agency agreement be in writing before an agent can represent a buyer. This is a key distinction from some states that allow oral buyer agency. On the exam, if you see a question about when a buyer agency relationship is officially established in NH, the answer is when the written agreement is signed.
Types of Agency Relationships
Seller's Agent (Listing Agent): Represents the seller. Owes full fiduciary duties to the seller. The buyer is treated as a customer.
Buyer's Agent: Represents the buyer. Owes full fiduciary duties to the buyer. The seller is treated as a customer.
Disclosed Dual Agent: Represents both buyer and seller in the same transaction, with written informed consent from both parties. In dual agency, the agent cannot fully advocate for either side — loyalty and some disclosure duties are limited.
Transaction Broker / Facilitator: Some states allow a non-agency facilitator role. Be aware of how NH handles this on exam day — NH does permit disclosed dual agency but you should know the difference between dual agency and a mere facilitator.
Subagency
Historically, all agents in a transaction were subagents of the seller. Modern agency law has largely eliminated automatic subagency. In NH, subagency must be expressly agreed to. A buyer's agent who shows a listing-office property is NOT automatically a subagent of the seller.
Agency Disclosure Requirements
New Hampshire requires agents to disclose who they represent at the first substantive contact with a consumer. This means before you show a property or discuss price, you must clarify your role.
Key Exam Takeaways
- Written buyer agency agreement is required in NH before representing a buyer
- Fiduciary duties run to the client (principal), not the customer
- Dual agency requires written informed consent from both parties
- Disclosure of agency must occur at first substantive contact
- NH is NOT a community property state — do not confuse with western states
For a full overview of New Hampshire licensing and exam requirements, visit [CARealestate.com/states/new-hampshire](https://carealestate.com/states/new-hampshire).
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