Unit 10 ~ Connecticut Real Estate License Law

Who may receive compensation from the Real Estate Guaranty Fund?

A seller who pays a commission to a broker under false pretenses. A person may recover compensation from the Guaranty Fund if they are aggrieved by the following actions of a licensed real estate broker, salesperson, or unlicensed employee of a broker; the embezzlement of money or property; obtaining money or property from persons by false pretenses, trickery, or forgery; or fraud, misrepresentation, or deceit by or on the part of the licensed broker, salesperson, or unlicensed employee of the broker. The person must first sue the licensee in court and obtain a money judgement; if the licensee does not pay the money judgement , the person can seek funds from the Fund.

Which of the following is exempt from the real estate licensing requirement?

Attorney-at-law when serving as legal counsel to a client

A saleswoman regularly communicates with all of her clients and potential clients via email. The licensing law requires that her email contain all of the following EXCEPT

C. EXCEPT Her license certificate number. All electronic communication, including email and bulletin board postings, must contain the licensee's name and office address, the name of the real estate broker with whom the licensee is affiliated, and all states where the licensee is licensed, unless a buyer, in the process of making an offer, requests such information in accordance with CGS 20-320cc-20-329gg.

All listings in Connecticut must include all of the following EXCEPT

EXCEPT certificate of title insurance. listings must include written confirmation, date of expiration, and signatures of owners and brokers

"Engaging in the real estate business" consists of acting for another and for a fee in all of the following activities EXCEPT

EXCEPT investing in real estate

After moving to Connecticut, Alan applies for a real estate salesperson's license. The Commission discovers from his application the he was refused a license in his former state because he was not yet 18 years old. Alan is now 18 and possesses all the other qualifications. How long from the date of the earlier refusal must Alan wait to be issued a Connecticut license?

He must wait one year.

Ben Broker maintains a website that highlights all of the property listing that he has. Ben knows that the licensing law requires that he include certain information on this website, including the

Internet advertising, which includes websites, must include, on every page of the site, the licensee's name and office address, the name of the real estate broker with whom the licensee is affiliated, all states where the licensee is licensed, and the last date when the site property information has been updated.

Ben Broker has entered into an agency agreement to sell Sallie Seller's property. A salesperson affiliated with another broker introduces a buyer to the property, and that buyer actually purchases it. Ben would like to share some of this commission earned from Sallie with the salesperson. Can he do so?

No, a real estate broker cannot compensate another broker's salesperson directly. In a transaction where there are two brokerage firms involved, all compensation must be paid to the real estate broker of the cooperating agency; it cannot be paid directly to another broker's salesperson.

You are employed by an apartment complex as a residential on-site property custodian. Part of your duties involves negotiating leases for the apartments. In this position you

are exempt from the licensing requirements if you reside at the apartment complex

Applicants who fail a license examination

are notified of the results at the examination site

Applicants for any real estate license in Connecticut must

be completed before taking the written exam

If a broker tells a lender that the sales price on a property is something above its actual sales price, the

broker can lose his or her license and be fined and imprisoned. The licensing laws require that licenses accurately represent the sales price of a property.

A Commission has the power to revoke a salesperson's license, if the salesperson

deposits a buyer's down payment in his own bank account. Salespersons must give their designated broker all deposits, and brokers must then place these deposits in an escrow account. Neither a salesperson nor a broker can commingle client funds with their own personal funds.

The primary responsibilities of an office manager for a local real estate firm including coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager

does not need a real estate license for this job

A person must be licensed as a real estate broker or salesperson if that person is

engagin in the real estate business

All real estate salespersons' licenses

expire annually on May 31.

Ben Broker wishes to include information about other property listed with another broker on his website. To do so, Ben must

get the permission of the other broker. To advertise the property of another broker on a website or elsewhere, Ben must get the permission of the other broker. Also, the listing information cannot be changed in any way without the permission of the other broker, and Ben must update the other broker's property information every 72 hours.

Ben Broker has entered into an agency agreement to sell Sallie Seller's property. Sallie meets Betty, another broker, at a church event . Betty tells Sallie that she could do a much better job advertising Sallie's property and suggest that Sallie terminate her agreement with Ben and enter in a listing agreement with her. Betty's action amounts to

interfering with an agency relationship, which violates the licensing law.

A nonresident license applicant must file with the Commission a(n)

irrevocable consent of suit. All nonresident applicants must file an irrevocable consent to suit with the Commission which enables persons to sue them in Connecticut

the maximum compensation that will be paid from the Real Estate Guaranty Fund for any single transaction

is $25,000

A licensee represents a seller in the sale of the seller's house. The licensee is aware that the seller's husband had bee murdered in the house, but the seller has instructed the licensee not to disclose this fact because she is fearful that people may not want to buy a house where someone recently was killed. In this case, the licensee

is not required to disclose the murder because it is not a material fact. Licensees have a duty to disclose material facts in a transaction. Theoretically, a murder would be considered a material fact because it could affect a potential buyer's decision to purchase the property. However, by state law, death or felony on the property, as well as a property occupant's disease, is not legally considered a material fact and is not required to be disclosed to potential purchasers, unless a buyer, in the process of making an offer, requests such information in accordance with CGS 2-320cc-20-329gg.

Ben Broker has entered into an agency agreement with Sallie Seller. Such an agency agreement imposes a duty on Ben to

make a diligent effort to sell the property

A licensee represents a seller in the sale of the seller's house. The licensee is aware that the seller's basement periodically floods, but the seller has instructed the licensee not to disclose this fact to potential purchasers. In this case, the licensee

must disclose the flooding because it it a material fact. Licensees have a duty to disclose material facts in a transaction. While the licensee representing the seller owes a fiduciary duty to the seller, the licensee still must disclose material facts to potential buyers. Basement flooding would be considered a material fact because it could affect a potential buyer's decision to purchase the property.

In addition to a course in real estate principles and practices, a broker applicant must also take courses in

real estate brokerage principles and practices and legal compliance

Kathleen accompanies a young couple during an open house on a property listed with her agency. The couple is so impressed with the house and Kathleen's response to their questions that they decide to make an offer. Before the offer is presented to the principal, they as Kathleen's personal opinion as to whether they should require that the seller give them a warranty deed or a quitclaim deed at the closing. Kathleen should

refer the couple to an attorney for legal advice

To change broker affiliation, a salesperson must

register to change with the Commission

The real estate license law is administered by the

the Real Estate Commission

Ben Broker has entered into an agency agreement with Sallie Seller and has ben marketing her property. Several potential buyers are interested in the property, and he has appointments to show the property throughout the next week. The first buyer he shows the property to make and immediate offer. Ben does not tell Sallie about the offer right away, thinking that additional offers may come in over the next few days, and he will present them all to her at the end of the week. Ben has

violated the licensing law because he not submit the offer received to Sallie as quickly as possible. A licensee who receives and offer on behalf of a client must submit the offer to the client as quickly as possible. In making a decision to hold offers without being instructed to do so by Sallie, Ben has violated the licensing law.