Connecticut Real Estate Exam Study Questions
Connecticut Real Estate Commissions primary duties:
1) issue licenses
2) arbitrates disputes between brokers and salespersons
3) investigates and prosecutes complaints against licensees
4) formulate and enforce rules and regulations regarding licensing and conduct of licensing
How is the CT Real Estate Commision made up?
eight members – five in the real estate business (3 brokers and 2 salespersons) and three members of the public (at least 1 member from each congressional district and not more than the bare majority from the same political party)
To be a member of the CT Real Estate Commission you must..
1) electors in the state
2) appointed by the governor
3) take an oath to perform faithfully to prescribed duties
4) may be removed from the office for a cause by the governor after being given an opportunity to be heard
The CT Real Estate Commission chairman must..
be bonded in accordance with the requirements of the state insurance purchasing board.
Are CT Real Estate Commission members paid for their services?
NO, but they are reimbursed for necessary expenses incurred in the performance of their duties
Engaging in the real estate business consists of acting for another for a fee in all of the following activities EXCEPT
A: investing in real estate
B: reselling a mobile home
C: selling real-estate
D: collecting rent for the use of real estate
A: investing in real estate
you are employed by an apartment complex as a residential on-site property custodian. Part of your duties involves negotiating leases for the apartments. In this position you
A) must have a salesperson license
B) must have a brokers license
C) are exempt from the licensing requirements if you reside at the apartment complex
D) are violating the license law
C) are exempt from the licensing requirements if you reside at the apartment complex
The initial salespersons license fee is presently —-, and annual renewals are —-
A) $285/$285
B) $565/$285
C) $285/$75
D) $565/$375
A) $285/$285
Which of the following is EXEMPT from the real estate licensing requirement?
A) attorney at law when serving as legal counsel to a client
B) Appraiser when valuing a client’s property
C) Associations, partnerships, corporations
D) Real property securities dealers
A) attorney at law when serving as legal counsel to a client
Ben broker maintains the website that highlights all of the property listings that he has. Ben knows that the licensing law requires that he include certain information on this website, including the certain information on this website, including the
A) address of all properties listed
B) sellers contact information for all of the properties listed
C) last date when bennshoed any of the properties listed
D) last date when the website property information was updated.
D) last date when the website property information was updated.
Who may receive compensation form the Real Estate Guaranty Fund?
A) A broker who does not receive an earned commision
B) A seller who pays a commission to a broker under false pretenses
C) A buyer who pays a fee to a broker under a buyer agency agreement
D) A cooperating broker who does not receive a commission split
B) A seller who pays a commission to a broker under false pretenses
to change broker affiliation, a salesperson must
Register the change with the commission
A saleswoman regularly communicates with all of her clients and potential claims via email. The licensing law requires that her email contains all of the following EXCEPT
CORRECT ANSWER: her license certificate number
Should include her
1) name and office address
2) the name of the broker she is affiliated with
3) all of the states where she licensed
Duel Agency
1) Both clients must give written formal consent
2) In this situation all salespersons working for the broker are also duel agents
Designated Agency
A process that accommodates an in-house sale in which two different agents are involved. The broker designates one agent to represent the seller and one agent to represent the buyer.
Agency Relationship
Fiduciary relationship (relationship of trust) in which agent acts on behalf of principal
Real Estate Broker
A person licensed to arrange for the purchase and sale of real estate for a fee or commission.
1) lists for sale
2) sells
3) buys
4) exchanges
5) rents or collects rent for the use of
6) resells a mobile home
Real Estate Salesperson
A person employed by a broker to list, negotiate, sell, or lease real property for others.
Agency Agreement
the agreement between principal and agent whereby the agent undertakes to act on behalf of the principal
The broker that the salesperson is affiliated with is referred to as..
the sales person’s “designated” or “sponsoring” broker
The “designated” broker is responsible for…
liability incurred by the sales person while performing real estate brokerage activities
Allowed Activities for Unlicensed Assistant
- Answer the phone and forward calls to the licensee**
- record/deposit earnest money and other trust funds**
- Assemble documents for closing**
- Transmit listings and changes to MLS
- Follow up on loan commitments after the contract has been negotiated
- Secure public documents from the town hall (Sewer water taxes…)
Prohibited Activities for Unlicensed Assistant
- Place calls requiring a license (EX) Cold calling, soliciting listings, contacting FSBO’s, extending invitations to open houses**
- Host open houses, home show booths…
- Show property
- Answer questions on consumer listings
When a broker is working with a person but does not represent them..
No agency relationship is created and the person they are working with is referred to as a CUSTOMER
A broker owes what duties to a customer
The broker does not owe the customer fiduciariy duites but must deal with the customer in a honest manner
If the agent is disloyal to the principal:
A. the agency agreement automatically terminates and the principal may rescind the transaction.
B. the principal has the right to collect any actual damages sustained as a result of the agent’s disloyalty.
C. the principal has a right to recover any profits earned as a result of his agent’s disloyal conduct.
D. All the above are correct.
D is correct
To what extent can a broker for the seller work with a non represented potential buyer
The broker will not represent the buyer but can definitely work with the buyer in an effort to sell the sellers house
The licensee may not use confidential information about the person that they represent. This information includes…
- income**
- motivation to sell, rent or purchase**
- previous offers received or made that are not a matter of public record**
- expenses
- Facts concerning the persons assets/liabilities
Agency agreements with the seller are called
Listing agreements
Agency agreements with the buyer are called
Buyer Agency Agreements
Single Agent
Broker only represents one party in the transaction (either the buyer or the seller
Dual Agent
When the agent is representing both principals in a transaction with their informed consent. (Also known as a limited agent.)
For designated agency the buyer and seller must sign the
Dual agency/designated agency notice and consent form
If a unrepresented person REFUSES to sign disclosure form for unrepresented party then…
the agent should note this refusal on the line indicated for the persons signature and attach that to the disclosure.
Subagent
is an agent appointed by another agent with the knowledge and consent of the principal.
Subagency in CT is not permitted without
the written consent of the seller
Consent form must include sub agents..
- name
- license number or agents appointed as subagents
- a statement that the person being represented may be vicariously liable for the acts of the subagent
Limitations on subagency does not apply to…
- leasing transactions
- commercial purchase and sale contracts
Only compensation not allowed in CT
Net amount ( broker retains all funds above a certain net to seller figure as compensation)
An unlicensed personal assistant working for a real estate licensee is allowed to
A) host an open house
B) answer the phone and discuss questions about licensee’s listings
C) write and prepare promotional material
D) show property listed with the licensee
C) write and prepare promotional material
material fact
An important fact that may affect a buyer’s decision to buy or a seller’s decision to sell. Licensees must disclose facts that materially affect the value of residential property.
Non material facts include
- whether the property occupant has had a disease, emergency illness, or health condition
- or the fact that there was death or felony on the property
however a purchaser or tenant can ask for this information in writing if it is important to them
In CT, real estate commission and compensation are..
negotiable between the seller or the buyer and the broker
tenacy in common
Co-ownership with NO rights to survivorship (Most common form of ownership by 2 or more people)
Joint Tenancy
Co-ownership with rights to survivorship (property can be held in equal or unequal shares in CT)
What types of properties are governed by the Common Interest Ownership Act?
A) Condominiums
B) Condominiums and Cooperatives
C) Planned Unit developments (PUD’s)
D) Condominiums, Cooperatives, and Planned Unit Developments (PUD’s)
D) Condominiums, Cooperatives, and Planned Unit Developments (PUD’s)
Which form of ownership is NOT recognized under CT Law?
A) Tenancy in Common
B) Joint Tenancy with survivorship rights
C) Condominium
D) Tenancy by the entirety
D) Tenancy by the entirety (Usually used in marriages) (Not used in CT) (Considered Tenancy in common)
CT Law will allow the partition of concurrent ownership in real estate
A) when it is voluntary
B) When it is involuntary
C) Voluntary and Involuntary
D) Only on the death of the tenant in common
C) Voluntary and Involuntary
The maximum fee that can be charged for Condominium resale documents is
A) $75
B) $125
C) $180
D) $225
B) $125
In accordance with the electronic signature act what document legally cant be signed electronically?
Deeds, leases (closings can be electronic)
The conveyance tax levied by the state on the seller of the property is based on the
A) selling price
B) earnest money
C) amount of the mortgage
D) time of the purchase
A) selling price
In CT, the real property tax is essentially a (n)
A) ad hoc tax
B) ad valorem tax
C) state tax
D) title lien
B) ad valorem tax (based on value)
The CT statute of frauds requires that, in order to be enforceable, all contracts for the sale of real-estate must be
A) in writing
B) on the correct legal form
C) signed by both parties’ attorneys
D) witnessed and notarized
A) in writing
Listing and buyer brokerage contracts are considered to be
A) bilateral contracts
B) implied contracts
C) parol contracts
D) unilateral contracts
A) bilateral contracts
A purchase and sale contract signed by both the seller and the buyer
A) is legally binding on the parties
B) is no effect until endorsed by an attorney
C) transfers the real estate identified in the contract
D) must also be signed by the real estate broker involved in the transaction
A) is legally binding on the parties
Property condition disclosure reports must be delivered to the buyer
A) prior to the buyer’s making a written offer
B) at the time the buyer makes a written offer
C) prior to the buyer’s signing a purchase and sale contract
D) at the time of the home inspection
A) prior to the buyer’s making a written offer
A lease must be in writing if it is in a period in excess of
A) 60 days
B) 90 days
C) six months
D) one year
D) one year
All funds received by a broker on behalf of his or her client must be deposited in escrow or trust account within three
A) days of receiving the deposit
B) days of obtaining all signatures
C) banking days of receiving all signatures
D) working days of receiving all signatures
C) banking days of receiving all signatures
To be valid a deed must contain all of the following EXCEPT
A) the signature of the grantor
B) the signature of the grantee
C) the signature of the witness
D) an acknowledgement
B) the signature of the grantee
Lead inspections are required under which three circumstances
1) When child (under 6 y/o) has been diagnosed with an elevated blood lead level, that child’s dwelling must be inspected
2) If the child with the elevated blood lead level lives in a multifamily building, other dwelling units must be inspected
3) all day care centers must be inspected prior to licensure and relicensure
If lead inspection comes back positive for elevated lead levels will the seller have to pay to get it removed?
Yes
CT licensing law recognizes following listing agreements:
A) Exclusive right to sell, Exclusive agency, open listings
B) Exclusive right to sell, Exclusive agency, open listings, MLS
C) Exclusive right to sell, Exclusive agency, open listings, net listing
D) Exclusive right to sell, Exclusive agency, open listings, Net listing, MLS
A) Exclusive right to sell, Exclusive agency, open listings
Resale documents must be furnished to the buyer or his or her attorney before the closing or transfer of possession. The buyers right to cancel a purchase contract is how many days after the resale documents have been hand delivered?
A) 10 business days
B) 15 business days
C) 5 business days
D) 14 business days
C) 5 business days
Sellers can obtain condominium resale disclosure documents from
A) the secretary if states office
B) the property manager
C) the association
D) the CT Real Estate Commission
C) the association
Questions about boundaries in CT are resolved by
A) The superior court
B) The superior court witht he appointment of a committee
C) The superior court, a committee, and possible a land surveyor
D) a committee
C) The superior court, a committee, and possible a land surveyor
Real property taxes are ad valorem taxes levied by
A) the federal government
B) the state
C) local municipalities
D) the assessor
C) local municipalities
The state requires the values placed on all properties be based on their
A) assessed value
B) intrinsic value
C) ad valorem value
D) Market value
D) Market value
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