Connecticut Real Estate Salesperson Exam — All Questions

Under Connecticut law, when must a licensee present the required agency disclosure notice to an unrepresented consumer?

• a.Only at closing
• b.At the beginning of the first personal meeting concerning the consumer's real estate needs, before confidential information is shared✓
• c.Only after a purchase offer is accepted
• d.Never, because Connecticut does not require agency disclosure

Connecticut requires licensees to present the agency disclosure notice at the beginning of the first personal meeting about a consumer's real estate needs or concerning a specific property, before confidential information is exchanged, so the consumer understands the representation options.

In Connecticut, when a brokerage represents both the buyer and the seller, the broker may assign different affiliated licensees to represent each party. This arrangement is called:

• a.Subagency
• b.Open agency
• c.Designated agency✓
• d.Vicarious agency

Connecticut permits designated agency, in which a broker whose firm represents both parties assigns (designates) different affiliated licensees to represent the buyer and the seller separately. Connecticut also allows dual agency with the informed written consent of both parties. Both arrangements require proper disclosure and consent.

Not later than the first personal meeting with a prospective party, a Connecticut licensee must disclose in writing:

• a.The commission rate the licensee's brokerage firm normally charges sellers
• b.The names of every other client the licensee is representing at that time
• c.The types of agency relationships available to that prospective party✓
• d.The licensee's most recent continuing education completion certificate

Public Act 23-84 rewrote the disclosure rule effective April 1, 2024: not later than the first personal meeting the licensee must disclose in writing the types of agency relationships available to the prospective party. The disclosure may be delivered electronically. Cite: Conn. Gen. Stat. Sec. 20-325d(b)(1)(A).

The written agency disclosure a Connecticut licensee gives at the first personal meeting must also warn the prospective party:

• a.That any offer made without an attorney's review is voidable for three days
• b.That the licensee will report the conversation to the supervising broker
• c.That the licensee's fee is set by the multiple listing service in the region
• d.Not to share confidential information before a representation agreement✓

The same written disclosure must tell the prospective party not to share confidential information with the licensee until the party has entered into a written representation agreement with that licensee. Cite: Conn. Gen. Stat. Sec. 20-325d(b)(1)(B).

In a Connecticut residential transaction, what else must the licensee provide the prospective party by that first personal meeting?

• a.Information on housing discrimination and federal and state fair housing laws✓
• b.A copy of the seller's most recent municipal property tax bill for the property
• c.A written estimate of the buyer's closing costs and the conveyance tax due
• d.A list of mortgage lenders the brokerage firm has approved for the buyer

For residential real estate transactions the licensee must also provide information on housing discrimination, including a description of federal and state fair housing laws, the protected classes, where to get more information and what resources exist. Cite: Conn. Gen. Stat. Sec. 20-325d(b)(2).

Connecticut's rule on subagency in the sale or purchase of real property is that a broker:

• a.May offer subagency through the multiple listing service with written consent
• b.May not offer subagency or affiliate with a subagent for a sale or purchase✓
• c.May appoint a subagent only if the seller signs a dual agency consent form
• d.May offer subagency only in commercial transactions over one million dollars

Connecticut flatly bars broker subagency: no broker may make a unilateral offer of subagency or agree to compensate, appoint, employ, cooperate with or otherwise affiliate with a subagent for the sale or purchase of real property. Cite: Conn. Gen. Stat. Sec. 20-325f.

In Connecticut, executing the statutory dual agency consent agreement before signing any purchase, sale or lease contract creates:

• a.A rebuttable presumption that the brokerage firm acted without any conflict
• b.An automatic right for either party to cancel the transaction within a week
• c.A requirement that the brokerage firm refund half of its earned commission
• d.A conclusive presumption that the person consented to the dual agency✓

Where a person executes the written consent in the statutory form before executing any contract or agreement for the purchase, sale or lease of real estate, there is a conclusive presumption that the person gave informed consent to the dual agency. Cite: Conn. Gen. Stat. Sec. 20-325g.

When a Connecticut broker appoints a designated seller agent and a designated buyer agent in the same transaction, those two individuals:

• a.Are not deemed dual agents, though their brokerage firm may be one✓
• b.Are each automatically dual agents and must obtain dual agency consent
• c.Must both be licensed brokers rather than salespersons or associate brokers
• d.Must be employed by two different brokerage firms in the same county

On appointment, the duties owed the seller or the buyer become the primary responsibility of the individual designated, and that individual is not deemed a dual agent. Only an individual designated to represent both the seller and the buyer in the same transaction is a dual agent. Cite: Conn. Gen. Stat. Sec. 20-325i.

Under Connecticut's designated agency statute, an appointment of a designated buyer or seller agent:

• a.Lasts for the entire time the client's representation agreement is in force
• b.Applies to every property the brokerage firm lists during the appointment
• c.May be made with regard to a particular transaction only✓
• d.Must be renewed in writing by the client every ninety days

The statute expressly limits the designation: it may be made with regard to a particular transaction only. The commissioner prescribes the notice given to the consumer on appointment and the written consent signed by all parties. Cite: Conn. Gen. Stat. Secs. 20-325i and 20-325j.

A Connecticut brokerage firm acting as a dual agent may NOT tell the buyer that:

• a.The property has a known structural defect the seller disclosed to the firm
• b.The seller will accept less than the listed price, absent written instruction✓
• c.Other properties in the multiple listing service recently sold for less money
• d.The seller has received and rejected two written offers in the past month

The dual agency consent agreement forbids the firm from telling a buyer that the seller will accept less than the asking or listed price unless the seller instructs otherwise in writing, while known material property defects must still be disclosed. Cite: Conn. Gen. Stat. Sec. 20-325g(3)(A) and (3)(B)(i).

Connecticut's ban on using or revealing a client's confidential information gives way in which situation?

• a.When another licensee in the same firm asks for it to prepare a market study
• b.When the information would help the licensee close the transaction faster
• c.When more than one year has passed since the agency relationship ended
• d.When disclosure is required by legal process or to prevent a crime✓

The prohibition yields only where disclosure is required by legal process, is necessary to defend the licensee against allegations of wrongful or negligent conduct, or is necessary to prevent the commission of a crime. Cite: Conn. Gen. Stat. Sec. 20-325h.