New Hampshire Practice TestEscrow & Title

New Hampshire Escrow & Title
Practice Questions & Answers (2026)

Escrow, title, and closing questions on the New Hampshire exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. New Hampshire requires a licensed attorney to conduct real estate closings — unlike escrow states — which shapes how these questions are framed on the NH exam. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under New Hampshire practice.

Practice Questions

New Hampshire Escrow & Title — Practice Questions & Answers

122 questions on Escrow & Title from the New Hampshire real estate question bank. First 10 are free — sign up to unlock all 122.

Q1. In New Hampshire, a quitclaim deed:

A.Provides the greatest buyer protection with broad warranties
B.Transfers whatever interest the grantor has with no warranties
C.Is used only for court-ordered property transfers
D.Requires a title search before it can be used

Explanation

A quitclaim deed conveys whatever interest the grantor has in the property without any warranties. It is often used between family members or to clear title clouds, since it offers no guarantee of clear title.

Q2. The chain of title refers to:

A.The order of priority among lien holders
B.The chronological history of ownership of a property from its origin to the present
C.The sequence of events required to close a real estate transaction
D.The legal description used to identify a property

Explanation

The chain of title is the historical sequence of recorded transfers of ownership for a property. A clear, unbroken chain demonstrates that the current owner has good title.

Q3. In New Hampshire, who typically conducts the real estate closing?

A.The listing real estate agent
B.An attorney or title company
C.The buyer's lender
D.The NH Real Estate Commission

Explanation

New Hampshire is an attorney-state for real estate closings. Attorneys or title companies typically handle the closing, reviewing documents and ensuring that title transfers properly.

Q4. Priority of liens on a property is generally determined by:

A.The amount of the lien
B.The order in which liens were recorded
C.The type of lien (mortgage, tax, mechanic's)
D.The lender's preference

Explanation

Lien priority is typically determined by the order of recording — 'first in time, first in right.' Exceptions include property tax liens, which often have super-priority regardless of recording date.

Q5. In New Hampshire, a warranty deed (general warranty deed) provides buyers with:

A.No protection against title defects
B.Covenants that protect against title defects arising from the current grantor only
C.The broadest title protection, with covenants covering the entire chain of title
D.Protection only against defects arising during the seller's ownership

Explanation

A general warranty deed provides the most comprehensive title protection — the grantor warrants title against all defects and encumbrances, regardless of when they arose in the chain of title.

Q6. A special warranty deed differs from a general warranty deed in that:

A.It provides no warranties at all
B.The grantor only warrants title against defects arising during their ownership
C.It must be notarized by a New Hampshire attorney
D.It can only be used for commercial property

Explanation

A special warranty deed limits the grantor's warranty to the period of their own ownership — they do not warrant against defects that may have arisen before they took title.

Q7. Title insurance in New Hampshire is issued to protect against:

A.Future changes in property value
B.Unknown defects and encumbrances in the title that were not discovered before closing
C.Physical damage to the property
D.Future zoning changes affecting the property

Explanation

Title insurance protects the insured against financial losses arising from title defects, liens, or encumbrances that existed but were not discovered during the title search prior to closing.

Q8. What is the purpose of recording a deed in the New Hampshire county registry of deeds?

A.To make the deed legally valid between the parties
B.To provide constructive notice of ownership to the world
C.To transfer legal title to the buyer
D.To calculate the transfer tax owed

Explanation

Recording a deed provides constructive notice to third parties of the ownership transfer. The deed is legally valid between the parties when delivered and accepted — recording protects against subsequent claims.

Q9. An 'abstract of title' in New Hampshire is:

A.A summary of the title insurance policy
B.A condensed history of all recorded documents affecting title to a property
C.A legal opinion confirming clear title
D.A survey showing boundary lines

Explanation

An abstract of title is a historical summary of all recorded instruments (deeds, mortgages, liens, court judgments) affecting the title to a property, used by an attorney to render a title opinion.

Q10. A lis pendens recorded against a New Hampshire property provides notice that:

A.The property has been sold and is pending closing
B.A lawsuit has been filed involving the property
C.The property is under a mechanic's lien
D.The property taxes are delinquent

Explanation

A lis pendens ('suit pending') is a recorded notice that a legal action has been filed which may affect the title to the property. It warns potential buyers and lenders that the title is in dispute.

Q11. In New Hampshire, earnest money deposited with a broker must be:

A.Deposited in the broker's operating account within 5 days
B.Held in a separate trust or escrow account
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