CHAPTER Rea 700 CONDUCT OF LICENSEES

PART Rea 701 DISCLOSURE

     Rea 701.01 Brokerage Relationship Disclosure.

    (a)  A licensee shall provide a written brokerage relationship disclosure to the consumer at the time of first business meeting.

    (b)  A licensee showing a property listed with another agency shall disclose their brokerage relationship verbally or in writing to the other party's agent prior to showing the property and in writing on the offer.

    (c)  Licensees shall use the brokerage relationship disclosure form adopted by the New Hampshire real estate commission.

    (d)  The above referenced disclosure form shall not be required to be given to buyer/tenant and seller/landlord or other licensees who attend an open house if the broker or salesperson, by sign, poster, pamphlet or other conspicuous means, discloses the licensee's brokerage relationship with the seller.

    (e)  The above referenced disclosure form in (c) above shall include notice that a licensee acting in the capacity of a facilitator may only perform ministerial acts as defined in RSA 331-A:2, VI-a and is not obligated as an agent to the buyer/tenant and/or seller/landlord, and the fact that this relationship at some future time, but prior to the preparation of an offer, could change to an agency relationship.

    (f)  If a buyer or seller chooses not to enter into a relationship with the licensee and the consumer will not sign a brokerage relationship disclosure form, the licensee shall note that fact on a copy of the disclosure form and shall retain such copy for 3 years.

    (g)  A licensee intending to act in the capacity of a dual agent shall:

      (1)   At the time of first business meeting with a consumer to discuss a specific property, provide a written brokerage relationship disclosure pursuant to Rea 701.01(a);

     (2)   On the listing contract and buyer agency/tenant representation contract, give the client the option to accept or deny a dual agency statement of consent to showings, pursuant to Rea 404.04;

     (3)  Have the informed consent to dual agency agreement signed and reviewed by the buyer/tenant and seller/landlord at the time in which the dual agency occurs, but no later than the preparation of a written offer for sale or lease, pursuant to Rea 404.04; and

    (4)   Indicate in writing on the offer that the broker is acting in the capacity of a dual agent.

   (h)  A licensee intending to act in the capacity of a designated agent shall:

    (1)  At the time of the first business meeting with a consumer provide a written brokerage relationship disclosure, pursuant to Rea 701.01(a);

    (2)  On the listing contract and buyer agency/tenant representation contract, disclose to the client the firm's designated agency policy;

    (3)  On the above contracts there shall be disclosure and consent to all designated agents appointed to the client.  Substitutions of designated agents shall not be made without the informed written consent of the client;

    (4)  When consent to designated agency has been given by the seller/landlord and the buyer/tenant, written notice shall also be provided to the seller/landlord and buyer/tenant that designated agency has occurred with both the seller/landlord and buyer/tenant in the transaction.  This notice shall be provided prior to the execution of the purchase and sale or lease agreement;

     (5)  If the designated seller's agent and the designated buyer's agent in a transaction are affiliated with the same broker and the seller/landlord and the buyer/tenant each have consented to designated agency, a separate consent to dual agency of the appointing agent shall not be required; and

     (6)  If the designated seller or landlord agent is also the designated buyer or tenant agent in the same transaction, the designated agent is a dual agent and a separate informed consent to dual agency shall be required in accordance with RSA 331-A:25-d.

Source. #5077, eff 6-1-91; ss by #5168, eff 6-21-91; ss by #5576, eff 2-11-93; ss by #6738, eff 4-25-98; ss by #7267, eff 5-6-00; ss by #7522, eff 6-28-01; ss by #8835, eff 5-1-07; ss by #9270, eff 1-1-09

    Rea 701.02 Licensee's Duty to a Prospective Buyer. A licensee shall disclose to a prospective buyer/tenant any material physical, regulatory, mechanical or on-site environmental condition affecting the subject property of which the licensee has actual knowledge.  Such disclosure shall occur any time prior to the time the buyer/tenant makes a written offer to purchase or lease the subject property.   This shall not create an affirmative obligation on the part of the licensee to investigate material defects.

Source. #5077, eff 6-1-91; rpld by #5207, eff 8-22-91; ss by #5336, eff 6-1-92; ss and moved by #5576, eff 2-11-93 (from Rea 701.04), EXPIRED: 2-11-99
New. #7164, INTERIM, eff 12-18-99, EXPIRED:
4-16-00
New. #7267, eff 5-6-00, ss by #7522, eff 6-28-01; ss by #9301, eff 10-22-08

    Rea 701.03 Private Water Supply Disclosure.

    (a)  A licensee, when listing property for sale, purchase or exchange which is served by a private water supply and is used or proposed to be used for a one to 4 family dwelling, shall ask the seller for at least the following information:

         (1) Type of system;

         (2) Location;

         (3) Malfunctions;

        (4) Date of installation;

        (5) Date of most recent water test; and

        (6) Whether the seller has experienced a problem such as an unsatisfactory water test or a water test with notations.

    (b) Such information and any other information pertinent to the private water supply shall be conveyed, in writing, to a buyer prior to or during the preparation of an offer.  The fact that information regarding the private water supply is not available shall also be conveyed, in writing, when such is the case.

Source. #5077, eff 6-1-91; rpld by #5208, eff 8-22-91; ss by #5337, eff 6-1-92; ss and moved by #5576, eff 2-11-93 (from Rea 701.05), EXPIRED: 2-11-99
New. #7164, INTERIM, eff 12-18-99, EXPIRED:
4-16-00
New. #7267, eff 5-6-00, EXPIRED: 5-6-08
  New. #9202, INTERIM, eff 7-16-08; ss by #9301, eff 10-22-08

    Rea 701.04 Insulation Disclosure.

    (a)  A licensee, when listing property for sale, purchase or exchange which is used or proposed to be used for a one to 4 family dwelling, shall ask the seller for at least the following information:

          (1) Type of insulation; and

          (2) Location of insulation.

    (b)  Such information and any other information pertinent to the insulation shall be conveyed, in writing, to a buyer prior to or during the preparation of an offer.  The fact that information pertinent to the insulation is not available shall be conveyed, in writing, when such is the case.

Source. #5077, eff 6-1-91; rpld by #5168, eff 6-21-91; ss by #5338, eff 6-1-92; ss and moved by #5576, eff 2-11-93 (from Rea 701.06), EXPIRED: 2-11-99
New. #7164, INTERIM, eff 12-18-99, EXPIRED: 4-16-00
New. #7267, eff 5-6-00, EXPIRED: 5-6-08
  New. #9202, INTERIM, eff 7-16-08; ss by #9301,
eff 10-22-08

    Rea 701.05 Sewage Disposal System Disclosure.

    (a) A licensee, when listing property for sale, purchase or exchange which is served by a private sewage disposal system and is used or proposed to be used for a one to 4 family dwelling, shall ask the seller for at least the following information:

         (1) Location of system;

         (2) Malfunctions;

         (3) Date of most recent servicing; and

         (4) Name of contractor or person who services the system.

    (b) Such information and any other information pertinent to the sewage disposal system shall be conveyed, in writing, to a buyer prior to or during preparation of an offer. The fact that information regarding the sewage disposal system is not available shall also be conveyed, in writing, when such is the case.

Source. #5077, eff 6-1-91; rpld by #5208, eff 8-22-91; ss by #5339, eff 6-1-92; ss and moved by #5576, eff 2-11-93 (from Rea 701.07),
EXPIRED: 2-11-99
New. #7164, INTERIM, eff 12-18-99, EXPIRED: 4-16-00
New. #7267, eff 5-6-00, EXPIRED: 5-6-08
  New. #9202, INTERIM, eff 7-16-08; ss by #9301, eff 10-22-08

PART Rea 702 HANDLING OF FUNDS

    Rea 702.01 Trust Accounts.

    (a) Every resident and non-resident principal broker who in the course of her or his real estate business in the State of New Hampshire receives, accepts and holds any monies on behalf of any principal, client or other person shall at all times maintain a separate escrow or real estate trust account, distinct from her or his own account, in a financial institution of her or his choice located in this state, for the deposit of all such monies so received by the licensee, pursuant to RSA 331-A:13.

   (b) Upon acceptance and execution of a contract, all earnest money deposited and down payments received by a principal broker as escrow agent in a real estate transaction shall be promptly deposited in her or his separate escrow or real estate trust account, pursuant to RSA 331-A:13, when at that time the principal broker shall be responsible to make full accounting thereof to the signatories to the contract.

Source. #5076, eff 2-21-91 (from Rea 404.03); ss by #5576, eff 2-11-93, EXPIRED: 2-11-99
New. #7164, INTERIM, eff 12-18-99, EXPIRED: 4-16-00
New. #7267, eff 5-6-00; ss by #7522, eff 6-28-01; ss by #8835, eff 5-1-07

    Rea 702.02 Funds Received.  All monies received by a salesperson or an associate broker in connection with a real estate transaction in which she/he is engaged on behalf of her or his managing or principal broker, shall be immediately delivered to her or his managing or principal broker.

 

Source. #5076, eff 2-21-91 (from Rea 404.03); ss by #5576, eff 2-11-93, EXPIRED: 2-11-99
New. #7164, INTERIM, eff 12-18-99, EXPIRED: 4-16-00
New. #7267, eff 5-6-00 (formerly Rea 702.03);
ss by #7522, eff 6-28-01; ss by #9301, eff 10-22-08

     Rea 702.03 REPEALED

 

Source. #5076, eff 2-21-91 (from Rea 404.03); ss by #5576, eff 2-11-93, EXPIRED: 2-11-99
New. #7164, INTERIM, eff 12-18-99, EXPIRED: 4-16-00
New. #7267, eff 5-6-00 (formerly Rea 702.04), EXPIRED: 5-6-08
  New. #9202, INTERIM, eff 7-16-08; ss by #9301, eff 10-22-08; rpld by #10150, eff 6-20-12

PART Rea 703 CONDUCTING BUSINESS IN NEW HAMPSHIRE WITH BROKERS LICENSED IN ANOTHER JURISDICTION.

    Rea 703.01  Cooperating Agreements.

    (a)  A licensed New Hampshire broker may cooperate with a non-New Hampshire broker on properties located in this state, except as stated in 703.01(b), provided that both brokers agree in writing to all of the terms expressed in a cooperating agreement prior to the commencement of any brokerage activity.

    (b)  A New Hampshire broker shall not enter into a cooperating agreement with a non-New Hampshire broker to list, offer, attempt, or agree to list real estate in this state, pursuant to RSA 331-A:22-a.

    (c)  To comply with (a) above, New Hampshire brokers shall obtain from the commission, a Cooperating Agreement with a Non-New Hampshire Broker Form.

    (d)  The New Hampshire broker shall complete the Cooperating Agreement Form, by supplying the following:

         (1)  Date the agreement was entered into by the parties;

         (2)  Date the agreement will expire;

         (3)  Name, telephone numbers and address of the buyer(s) or tenant client(s);

         (4)  Location and/or legal description of the properties, when applicable;

         (5)  A statement which requires the parties to agree to the type of business the agreement covers;

         (6)  A statement that both the New Hampshire broker and the non-New Hampshire broker agree that all negotiations, including the showing of the property shall be handled under the direct supervision of the New Hampshire broker, with the New Hampshire broker recognizing her or his responsibility under RSA 331-A;

         (7)  A statement that by signing the cooperating agreement, the non-New Hampshire broker is:

              (a) Agreeing to abide by New Hampshire law, and the rules of the commission; and

              (b)  Is formally granting an irrevocable consent and power providing that legal actions can be commenced against said broker in the proper  court of any county of this state in which a cause of action does arise or in which the plaintiff resides by service of process or pleading authorized by the laws of this state on a member of the commission or its executive director, the consent or power stipulating that such service of process or pleading shall be taken in all courts to be valid and binding as if personal service had been made upon the nonresident in this state;

         (8)  A statement requiring the New Hampshire broker to accept the responsibility for determining that the non-New Hampshire broker is licensed as a broker in another state and agreeing to notify the New Hampshire real estate commission immediately if the non-New Hampshire broker violates any part of the cooperating agreement;

         (9)  The commissions or other compensation, stated as a dollar amount, percentage, or other specific consideration;

         (10)  A statement that if any earnest monies or deposits are received, accepted, or held in accordance with Rea 702.01, the same shall be placed in the escrow account of the New Hampshire broker;

         (11)  The name, address, and witnessed signature of the New Hampshire broker; and

         (12)  The name, address and witnessed signature of the non-New Hampshire broker.

    (e)  The commissions or other compensations resulting from the purchase, rent, lease, of the property and which are earned during the period the agreement is in force shall be divided between the New Hampshire broker and the non-New Hampshire broker on a negotiable basis;

   (f)  The parties shall execute 2 completed original cooperating agreements.  The New Hampshire broker and the non-New Hampshire broker shall each receive one of these originals.

 

Source. #7267, eff 5-6-00;
ss by #7522, eff 6-28-01; ss by #8835, eff 5-1-07
Latest Update 06/25/12