Connecticut Real Estate Broker Exam — All Questions
4 questions
Which body issues and disciplines real estate broker licenses in Connecticut?
- a.The Connecticut Association of Realtors
- b.The Connecticut Real Estate Commission within the Department of Consumer Protection✓
- c.The Connecticut Secretary of the State
- d.The Connecticut Banking Department
Real estate licensing in Connecticut is governed by Connecticut General Statutes Chapter 392 and administered by the Connecticut Real Estate Commission, which operates within the Department of Consumer Protection (DCP). The Commission grants, renews, and disciplines broker and salesperson licenses. A trade association such as the Connecticut Association of Realtors is a private membership group with no licensing authority.
A key legal difference between a Connecticut broker license and a salesperson license is that a broker:
- a.May work only for a single client at a time
- b.Is exempt from continuing education
- c.May operate independently, employ salespersons, and hold clients' funds in escrow✓
- d.Cannot list property for sale
A Connecticut broker may operate an independent brokerage, employ and supervise affiliated salespersons and broker-associates, and maintain the escrow/trust accounts that hold client money. A salesperson must always work under a sponsoring broker and cannot independently hold client funds. This added authority is why the broker tier requires prior salesperson experience and additional education.
The Connecticut Real Estate Guaranty Fund is designed primarily to:
- a.Cover the Commission's administrative costs
- b.Reimburse a member of the public who obtains an unpaid court judgment against a licensee for fraud or misrepresentation in a real estate transaction✓
- c.Guarantee mortgage loans for first-time buyers
- d.Pay commissions when a client refuses to pay
The Real Estate Guaranty Fund compensates consumers who win a final court judgment against a licensee based on fraud, misrepresentation, or deceit arising out of a licensed real estate transaction and who cannot otherwise collect. Statutory per-claim and per-licensee caps apply, and a licensee whose conduct triggers a payment can have the license suspended until the fund is repaid. It is not a general operating fund or a mortgage-guarantee program.
A Connecticut broker who wants to open a branch office must generally:
- a.Ensure the branch is properly licensed and supervised in accordance with Commission requirements✓
- b.Obtain approval from the local zoning board only
- c.Register the branch with the county clerk instead of the Commission
- d.Do nothing, because branch offices are unregulated
Connecticut regulates where and how brokerage business is conducted. A broker operating additional offices must see that each location is properly licensed and supervised. The broker remains responsible for the licensed activity, advertising, and recordkeeping conducted at every office, which is one of the supervisory duties tested more heavily at the broker level.