Free Connecticut State Law Practice Test — LicenseIQ

Question 1

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?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 2

When an owner dies with no will and no heirs, the property passes to the state through:

Accepted Answer

Escheat transfers ownerless property to the state when there is no will and no heirs.

Question 3

Which person must hold a Connecticut real estate license?

Accepted Answer

Licensure is required for anyone who negotiates a sale for another and for compensation. Owners, fiduciaries such as executors, and attorneys acting as attorneys are exempt under §20-329.

Question 4

On a closing statement, the purchase price is a:

Accepted Answer

The seller receives the price (credit); the buyer owes it (debit).

Question 5

Under §20-329, which task may a broker's unlicensed clerical employee perform?

Accepted Answer

Clerical employees are exempt only if they do not negotiate terms, list property except on behalf of a licensee, sign on the escrow or trust account, or buy, sell, or lease for others for pay. Scheduling and data entry are clerical.

Question 6

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 7

A residence sells for $3,000,000. What is the state conveyance tax?

Accepted Answer

$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.

Question 8

What is the maximum the Connecticut Real Estate Guaranty Fund will pay in connection with any one real estate transaction or claim?

Accepted Answer

§20-324a caps compensation at $25,000 per transaction or claim, regardless of the number of persons harmed. $500,000 is the ceiling on the fund's total balance, not the per-claim cap.

Question 9

Connecticut's real estate conveyance tax applies when the consideration for the conveyance is at least:

Accepted Answer

§12-494 imposes the tax when consideration equals or exceeds $2,000. $800,000 is where the higher residential state rate begins.

Question 10

A parcel of unimproved land sells for $300,000. What is the state conveyance tax?

Accepted Answer

Unimproved land is taxed at 0.75%: $300,000 x 0.0075 = $2,250. $3,750 uses the 1.25% nonresidential rate; $750 uses the municipal 0.25% rate.

Question 11

When do Connecticut real estate salesperson licenses expire?

Accepted Answer

DCP states salesperson licenses expire May 31 of even-numbered years. November 30 of even years is the broker expiration date.

Question 12

Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

Accepted Answer

Dividing territories or customers among competitors eliminates competition and is illegal market allocation.

Question 13

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 14

A written listing omits the seller's mailing address but otherwise complies with §20-325a. Can the broker still recover a commission?

Accepted Answer

§20-325a(d) allows recovery despite noncompliance when the licensee substantially complied and denying recovery would be inequitable. This exception applies only to written agreements.

Question 15

Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

Accepted Answer

Agreeing with competitors to refuse to deal with another business is an illegal group boycott.

Question 16

Which claimant may NOT recover from the Real Estate Guaranty Fund?

Accepted Answer

§20-324e(b)(1) excludes the spouse of the debtor, or that spouse's personal representative. The other claimants describe covered conduct: embezzlement, misrepresentation, and false pretenses.

Question 17

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 18

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 19

A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

Accepted Answer

First $100,000 x 0.005 = $500; remaining $220,000 x 0.015 = $3,300; total = $3,800.

Question 20

A salesperson wants to buy a FSBO home for his own investment. He must:

Accepted Answer

A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.

Question 21

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 22

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 23

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?

Accepted Answer

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.

Question 24

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

Question 25

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Connecticut real estate state law practice test

1. 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?

2. When an owner dies with no will and no heirs, the property passes to the state through:

3. Which person must hold a Connecticut real estate license?

4. On a closing statement, the purchase price is a:

5. Under §20-329, which task may a broker's unlicensed clerical employee perform?

6. A real estate licensee who is not an attorney may:

7. A residence sells for $3,000,000. What is the state conveyance tax?

8. What is the maximum the Connecticut Real Estate Guaranty Fund will pay in connection with any one real estate transaction or claim?

9. Connecticut's real estate conveyance tax applies when the consideration for the conveyance is at least:

10. A parcel of unimproved land sells for $300,000. What is the state conveyance tax?

11. When do Connecticut real estate salesperson licenses expire?

12. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:

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

14. A written listing omits the seller's mailing address but otherwise complies with §20-325a. Can the broker still recover a commission?

15. Two brokers agree not to cooperate with a discount brokerage in order to drive it out of business. This is:

16. Which claimant may NOT recover from the Real Estate Guaranty Fund?

17. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

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

19. A state charges a transfer tax of 0.5% on the first $100,000 of the price and 1.5% on the amount above $100,000. What is the tax on a $320,000 sale?

20. A salesperson wants to buy a FSBO home for his own investment. He must:

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

22. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

23. 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?

24. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

25. A licensee may manage property for an owner for a fee only if there is:

Sources