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Agent Thomas is a licensed NH salesperson who has been showing properties to buyer clients without providing the Agency Disclosure Form. His clients have now found a property they want to purchase. The seller's agent contacts the NH Real Estate Commission to report Thomas's failure to disclose. Under RSA 331-A and NHREC regulations, which of the following best describes the potential consequence Thomas faces?

Correct Answer

B) Thomas may face disciplinary action by the NHREC, including license suspension or revocation, for violating the agency disclosure requirement

Under RSA 331-A, failure to comply with the agency disclosure requirements of RSA 331-A:25-b constitutes a violation of NH license law. The NHREC has the authority to impose disciplinary sanctions including reprimand, fines, license suspension, or license revocation. The severity of the sanction depends on the circumstances, but the violation is a serious matter regardless of whether harm resulted.

Answer Options
A
Thomas faces no penalty because the buyers ultimately found a property and no harm occurred
B
Thomas may face disciplinary action by the NHREC, including license suspension or revocation, for violating the agency disclosure requirement
C
Thomas's license is automatically revoked upon the first violation of the agency disclosure requirement
D
Thomas faces only a written warning from the NHREC because the violation was a procedural error, not fraud

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Related Topics & Key Terms

Key Terms:

agency_disclosuredisciplinary_actionnhreclicense_violationrsa_331_a

Related Concepts

An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.

A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.

An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.

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