Patricia is a New Hampshire listing agent representing the seller of a 300-acre parcel enrolled in Current Use. The buyer's offer includes a contingency stating that the seller will be responsible for any land use change tax triggered by the sale. The seller asks Patricia whether this is typical. Which response best reflects the legal and practical reality in New Hampshire?
Correct Answer
A) The land use change tax is assessed against the owner at the time of the change, but the parties may contractually agree on who bears the cost
Under RSA Chapter 79-A, the land use change tax is assessed against the current owner of the land at the time the change in use occurs — in most sale scenarios, this is the seller. However, NH law does not prohibit the parties from contractually allocating this tax obligation differently. It is common practice in NH transactions for purchase agreements to specify who is responsible for the land use change tax, and the contingency described is legally permissible and enforceable between the parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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