New Hampshire State Real Estate Practice Exam

When a sole proprietor’s license is suspended, it typically has a direct impact on the licenses of their associates. In New Hampshire, when a sole proprietorship license is suspended, the associates working under that license are also affected. This is because associates are usually licensed under the same entity, and if that entity's license is not in good standing, the affiliates' ability to practice is compromised.

The correct answer reflects the requirement that if the sole proprietorship’s license is suspended, the licenses of the affiliates must be returned. This process ensures that no one continues to operate or perform real estate transactions under a suspended license, maintaining regulatory compliance and consumer protection in the real estate market.

Understanding this mechanism helps reinforce the importance of maintaining active and valid licenses not just for the primary licensee, but for all associates in a real estate practice. It underscores the interdependence of licenses in practice ownership structures.