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In NH, a broker may have his/her license suspended or revoked for all of the following EXCEPT:

A. inducing any party into a contract of sale just to break the contract and then substitute a new contract with another principal
B. depositing earnest money into the firms interest bearing escrow account
C. guaranteeing future profits or income
D. displaying a "For Sale" sign on a property without the owner's consent

1 Answer

2 votes

Final answer:

In New Hampshire, depositing earnest money into the firm's interest bearing escrow account would not typically result in the suspension or revocation of a broker's license, as it's a standard practice within real estate transactions, assuming compliance with regulations and agreements. Option B is correct.

Step-by-step explanation:

In New Hampshire, a broker's license may be suspended or revoked for various unethical or illegal actions. However, of the options listed, the exception that would not typically result in suspension or revocation of a license is option B. This action is a standard business practice intended to hold earnest money deposits related to real estate transactions, assuming state regulations and client agreements are appropriately adhered to.

Actions A, C, and D are unethical and could potentially lead to a broker's license being suspended or revoked. Specifically, A. 'inducing any party into a contract of sale just to break the contract and then substitute a new contract with another principal' is deceptive and unprofessional conduct, C. 'guaranteeing future profits or income' could be considered as misleading and unfounded claims about an investment, and D. 'displaying a "For Sale" sign on a property without the owner's consent' is a violation of the property owner's rights and unprofessional conduct in the real estate industry.

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