1. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):
Answer & explanation
Answer: D. In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.
2. Which combination correctly describes the licensee members of the Connecticut Real Estate Commission?
Answer & explanation
Answer: A. §20-311a seats three licensed brokers and two licensed salespersons, plus three public members. Reversing the numbers (two brokers, three salespersons) is the common slip.
3. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:
Answer & explanation
Answer: B. In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)
4. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?
Answer & explanation
Answer: C. Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.
5. A lender approves a $276,000 loan and the buyer wants to keep an 80% LTV. What is the maximum purchase price?
Answer & explanation
Answer: A. Purchase price = loan / LTV = $276,000 / 0.80 = $345,000. ($220,800 wrongly multiplies by 0.80.)
6. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?
Answer & explanation
Answer: D. $20,000 x 0.50 = $10,000 to the buyer's broker.
7. Who appoints the members of the Connecticut Real Estate Commission?
Answer & explanation
Answer: C. §20-311a provides that the Governor appoints all members and may remove a member for cause after notice and hearing. The Commissioner of Consumer Protection heads the department that supports the Commission but does not appoint it.
8. The Commission finds that a person collected fees for negotiating apartment rentals without a license. What is the maximum civil fine the Commission may impose per violation?
Answer & explanation
Answer: A. §20-312(d) lets the Commission fine an unlicensed person up to $5,000 per violation, including for leasing or rental activity (raised from $1,000 by P.A. 23-84). $1,000 is the maximum criminal fine under §20-325, a different penalty track.
9. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?
Answer & explanation
Answer: B. Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.
10. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?
Answer & explanation
Answer: D. Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.
11. A rectangular lot is 100 ft by 150 ft. How many square feet is it?
Answer & explanation
Answer: C. Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)
12. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?
Answer & explanation
Answer: A. At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.
13. Where and how must the §20-325b commission notice appear in a listing agreement?
Answer & explanation
Answer: C. §20-325b requires the notice in at least 10-point boldface (or a manner that stands out significantly) immediately preceding any provision about compensation.
14. One discount point equals what percentage of the loan amount?
Answer & explanation
Answer: B. One point = 1% of the loan amount (not the purchase price), paid to lower the interest rate.
15. Annual taxes are $3,650. Using a 365-day year, what is the daily proration amount?
Answer & explanation
Answer: D. $3,650 / 365 = $10 per day. (The course's default convention is a 360-day year; this question specifies 365.)
16. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?
Answer & explanation
Answer: A. Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)
17. A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?
Answer & explanation
Answer: A. Points = cost / loan = $3,150 / $210,000 = 0.015 = 1.5 points (1 point = 1% of the loan).
18. A residence sells for $3,000,000. What is the state conveyance tax?
Answer & explanation
Answer: B. $800,000 x 0.0075 = $6,000; $1,700,000 x 0.0125 = $21,250; $500,000 x 0.0225 = $11,250; total $38,500. Taxing the full $3,000,000 at 2.25% would give $67,500; $27,250 forgets the top bracket.
19. What is the maximum fine the Commission or department may impose on a licensee per violation under §20-320?
Answer & explanation
Answer: D. §20-320 authorizes a fine up to $5,000 per violation, in addition to or instead of suspension or revocation. $25,000 is the Guaranty Fund per-claim cap.
20. How many members serve on the Connecticut Real Estate Commission?
Answer & explanation
Answer: C. Under §20-311a the Governor appoints eight members: three brokers, two salespersons, and three public members. Seven is a tempting guess if you forget one of the categories; count 3 + 2 + 3 = 8.
21. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?
Answer & explanation
Answer: A. Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.
22. To sue for a commission on a residential listing in Connecticut, which of the following must the listing agreement contain?
Answer & explanation
Answer: B. §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.
23. A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?
Answer & explanation
Answer: B. Loan = $300,000 - $60,000 = $240,000; $240,000 / $300,000 = 80% LTV. (20% is the down payment percentage.)
24. A town assesses real property at 70% of fair market value. A home's market value is $400,000 and the mill rate is 32.5. What is the annual property tax?
Answer & explanation
Answer: A. Assessed value = $400,000 x 0.70 = $280,000. Tax = $280,000 x 32.5 / 1,000 = $9,100. Applying the mill rate to market value gives $13,000; dividing by 10,000 instead of 1,000 gives $910.
25. A property's assessed value is $210,000 and the mill rate is 28 mills. What is the annual tax?
Answer & explanation
Answer: A. Tax = $210,000 x 28 / 1,000 = $5,880. The assessed value is already given, so do not multiply by 70% again ($4,116 is that error).
Sources
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