New Hampshire Contracts
Practice Questions & Answers (2026)

Contract law questions on the New Hampshire real estate exam test both general contract principles and New Hampshire-specific transaction requirements. The New Hampshire Real Estate Commission tests how New Hampshire contract law applies to purchase agreements, counteroffers, contingencies, and earnest money disputes. Pay close attention to offer and acceptance mechanics, how counteroffers extinguish prior offers, and the specific timelines under New Hampshire law for earnest money handling and contingency resolution. These are areas where candidates who studied nationally often apply the right concept but the wrong NH-specific timeframe or rule.

Practice Questions

New Hampshire Contracts — Practice Questions & Answers

134 questions on Contracts from the New Hampshire real estate question bank. First 10 are free — sign up to unlock all 134.

Q1. New Hampshire uses a 'Purchase and Sale Agreement' as the primary real estate contract. For it to be valid, consideration must be:

A.Cash only
B.Something of value exchanged between the parties
C.At least 1% of the purchase price
D.Approved by both parties' attorneys

Explanation

Consideration is anything of value (money, services, a promise to act or refrain from acting) exchanged between parties. In a real estate purchase, the consideration is the purchase price and the seller's obligation to convey title.

Q2. In New Hampshire, an offer to purchase becomes a binding contract when:

A.The buyer signs the offer
B.The seller verbally agrees to the terms
C.The seller signs the offer and acceptance is communicated to the buyer
D.The earnest money is deposited in escrow

Explanation

A binding contract requires both offer and acceptance. In New Hampshire, the contract is formed when the seller signs (or signs a counteroffer that is then accepted) and notice of acceptance is communicated to the offeror.

Q3. The New Hampshire Property Condition Disclosure statement must be provided to:

A.Only buyers who request it
B.Buyers of residential properties prior to entering into a purchase agreement
C.Only buyers using a government-backed loan
D.Buyers at the closing table before signing the deed

Explanation

New Hampshire law requires sellers of residential property to provide buyers with a Property Condition Disclosure statement before the buyer enters into a purchase and sale agreement.

Q4. A buyer in New Hampshire inserts a home inspection contingency into the purchase agreement. This allows the buyer to:

A.Renegotiate the price regardless of inspection findings
B.Cancel the contract or negotiate repairs if the inspection reveals unsatisfactory conditions
C.Receive a full refund of the down payment for any reason
D.Delay closing indefinitely pending inspections

Explanation

A home inspection contingency gives the buyer the right to cancel or renegotiate based on the inspection results. The specific remedies depend on the contract language.

Q5. Which of the following would make a real estate contract voidable in New Hampshire?

A.One party is a licensed real estate agent
B.One party was a minor at the time of signing
C.The property is in a flood zone
D.The contract was signed on a Sunday

Explanation

A contract signed by a minor is voidable (not void) — the minor may disaffirm the contract upon reaching majority, but the other party cannot disaffirm based solely on the other's minority.

Q6. What is the purpose of an 'earnest money' deposit in a New Hampshire purchase and sale agreement?

A.It pays for the home inspection
B.It demonstrates the buyer's good faith and is applied toward the purchase price at closing
C.It is the broker's commission paid in advance
D.It funds the title insurance premium

Explanation

Earnest money is a good-faith deposit that demonstrates the buyer's serious intent to purchase. It is held in escrow and typically applied to the buyer's down payment or closing costs at closing.

Q7. Under the statute of frauds in New Hampshire, real estate contracts must be:

A.Notarized to be enforceable
B.In writing and signed by the party to be charged
C.Witnessed by two disinterested parties
D.Recorded in the county registry

Explanation

The statute of frauds requires real estate contracts to be in writing and signed by the party against whom enforcement is sought. Oral real estate contracts are generally unenforceable.

Q8. A counteroffer in a real estate transaction legally:

A.Accepts the original offer with minor modifications
B.Rejects the original offer and creates a new offer
C.Extends the acceptance deadline of the original offer
D.Binds the original offeror to new terms

Explanation

A counteroffer constitutes a rejection of the original offer and simultaneously creates a new offer. The original offeror becomes the offeree and is free to accept, reject, or counter again.

Q9. In a New Hampshire real estate listing agreement, the 'protection period' clause protects the broker by:

A.Preventing the seller from listing with another broker
B.Entitling the broker to a commission if the seller sells to a buyer the broker introduced during the listing period
C.Requiring the buyer to use the same broker for future purchases
D.Limiting the seller's ability to reduce the asking price

Explanation

A protection (carryover or safety) clause entitles the listing broker to a commission for a specified period after the listing expires if the property is sold to a buyer who was introduced or shown the property during the listing term.

Q10. Which of the following is an example of an executory contract?

A.A deed that has been delivered and accepted
B.A purchase and sale agreement where closing has not yet occurred
C.A lease that has expired
D.A mortgage that has been paid in full

Explanation

An executory contract is one in which obligations remain to be performed by one or both parties. A signed purchase agreement where closing has not yet taken place is executory — the buyer must pay, the seller must convey.

Q11. A New Hampshire buyer includes a financing contingency in their offer. If the buyer cannot secure financing, the contingency allows them to:

A.Sue the seller for breach of contract
B.Cancel the contract and recover their earnest money
🔒

124 more Contracts questions

Create a free account to unlock all 134 New Hampshire Contracts questions with full explanations.

Free account · No credit card · Instant access to 25 questions

Ready to take the full exam? Start free.

25 free questions · No signup · Instant access to all New Hampshire topics