Free Connecticut Contracts Practice Test — LicenseIQ

Question 1

Since April 1, 2024, which relationship is a Connecticut broker prohibited from offering?

Accepted Answer

§20-325f, as amended by P.A. 23-84, bars brokers from making a unilateral offer of subagency or agreeing to compensate, appoint, or cooperate with a subagent in a sale or purchase.

Question 2

A listing broker's MLS entry offers compensation to cooperating brokers who act as subagents of the seller. Under current Connecticut law this offer is:

Accepted Answer

P.A. 23-84 removed the former written-consent provisions from §20-325f and now prohibits any unilateral offer of subagency or agreement to compensate a subagent. Written seller consent no longer makes it lawful.

Question 3

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 4

A condo seller hand-delivers the resale certificate to the buyer's attorney. For how long after delivery may the buyer void the contract, if the closing has not occurred?

Accepted Answer

§47-270 makes the contract voidable until the earliest of 5 days (excluding weekends and holidays) after delivery, 7 days after certified or registered mailing, or conveyance.

Question 5

A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:

Accepted Answer

The option binds only the optionor. The optionee may exercise or let it lapse (forfeiting the option money).

Question 6

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 7

A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

Accepted Answer

At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.

Question 8

To sue for a commission on a residential listing in Connecticut, which of the following must the listing agreement contain?

Accepted Answer

§20-325a(b) requires, among other things, that the agreement be written, dated, contain names and addresses, state conditions, be signed by broker and owner, and include a statement that the broker may be entitled to lien rights. Automatic renewal is prohibited.

Question 9

A contract that has all legal elements but where one party may cancel is:

Accepted Answer

A voidable contract is valid but one party may rescind it (e.g., a minor, or a party induced by misrepresentation or duress). A void contract lacks an essential element and has no legal effect.

Question 10

An offer or counteroffer becomes a binding contract when:

Accepted Answer

Acceptance must be unconditional and communicated back to the offeror; any change creates a counteroffer instead.

Question 11

A contract signed by a 17-year-old buyer is generally:

Accepted Answer

Contracts with minors are voidable at the minor's option; the adult party remains bound. A contract with someone adjudged insane is void.

Question 12

The statutory Dual Agency Consent Agreement advises both parties to:

Accepted Answer

§20-325g's form advises both parties to seek competent legal and tax advice about the transaction and the documents, including the consent itself.

Question 13

A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?

Accepted Answer

A counteroffer is a rejection and a new offer; the original offer cannot be revived by the buyer.

Question 14

A financing contingency in a purchase agreement protects the:

Accepted Answer

A financing (mortgage) contingency lets the buyer cancel without penalty if unable to secure the specified loan by the deadline.

Question 15

A seller is closing on a contract signed in 1994 for a sale of a two-family home. Is a condition report required?

Accepted Answer

§20-327b exempts transfers under a contract or option entered into before January 1, 1996. Two-family homes are otherwise covered.

Question 16

What must be attached to any written offer or contract to purchase covered residential property?

Accepted Answer

§20-327b requires a copy of the report, with the purchaser's written receipt, to be attached to any written offer, binder, or contract; a copy signed by both parties is attached to the purchase agreement.

Question 17

A contract that is missing an essential element, such as consideration, is:

Accepted Answer

Missing an essential element makes a contract void from the start. A voidable contract appears valid but may be canceled by one party.

Question 18

A lender offers a salesperson $250 for each buyer she refers. Under Connecticut law, accepting is:

Accepted Answer

§20-320a prohibits paid referral of any buyer to an attorney, mortgage broker, or lender. Routing the payment through the broker does not make it lawful.

Question 19

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 20

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 21

In an option to purchase, the seller who grants the option is the ____ and the option holder is the ____.

Accepted Answer

The seller (optionor) gives the option; the buyer (optionee) holds it. Only the optionor is bound during the option period, making it unilateral.

Question 22

A sales contract provides that if the buyer defaults, the seller keeps the earnest money as the full measure of damages. This is a:

Accepted Answer

Liquidated damages are a sum agreed in advance as compensation for breach - often the earnest money deposit.

Question 23

Connecticut requires each written agreement setting a broker's compensation to contain a notice stating that the amount or rate of compensation is:

Accepted Answer

§20-325b requires the notice: 'THE AMOUNT OR RATE OF REAL ESTATE BROKER COMPENSATION IS NOT FIXED BY LAW. IT IS SET BY EACH BROKER INDIVIDUALLY AND MAY BE NEGOTIABLE BETWEEN YOU AND THE BROKER.'

Question 24

The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Accepted Answer

The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Question 25

If the resale certificate is sent by certified mail, the purchaser's right to void the contract lasts until the earlier of conveyance or:

Accepted Answer

§47-270 allows 7 days (excluding weekends and holidays) after mailing by registered or certified mail or with a certificate of mailing, versus 5 days after hand delivery.

Connecticut real estate contracts practice test

1. Since April 1, 2024, which relationship is a Connecticut broker prohibited from offering?

2. A listing broker's MLS entry offers compensation to cooperating brokers who act as subagents of the seller. Under current Connecticut law this offer is:

3. Which is the most common and desirable way a real estate sales contract terminates?

4. A condo seller hand-delivers the resale certificate to the buyer's attorney. For how long after delivery may the buyer void the contract, if the closing has not occurred?

5. A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:

6. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

7. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

8. To sue for a commission on a residential listing in Connecticut, which of the following must the listing agreement contain?

9. A contract that has all legal elements but where one party may cancel is:

10. An offer or counteroffer becomes a binding contract when:

11. A contract signed by a 17-year-old buyer is generally:

12. The statutory Dual Agency Consent Agreement advises both parties to:

13. A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?

14. A financing contingency in a purchase agreement protects the:

15. A seller is closing on a contract signed in 1994 for a sale of a two-family home. Is a condition report required?

16. What must be attached to any written offer or contract to purchase covered residential property?

17. A contract that is missing an essential element, such as consideration, is:

18. A lender offers a salesperson $250 for each buyer she refers. Under Connecticut law, accepting is:

19. A licensee representing the seller who learns the buyer will pay more than the offer must:

20. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

21. In an option to purchase, the seller who grants the option is the and the option holder is the .

22. A sales contract provides that if the buyer defaults, the seller keeps the earnest money as the full measure of damages. This is a:

23. Connecticut requires each written agreement setting a broker's compensation to contain a notice stating that the amount or rate of compensation is:

24. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

25. If the resale certificate is sent by certified mail, the purchaser's right to void the contract lasts until the earlier of conveyance or:

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