CT REAL ESTATE LICENSING
PRACTICE EXAM QUESTIONS AND
ANSWERS WITH CORRECT SOLUTIONS
100% CORRECT!!!
Q1: A couple listed their property with a real estate broker. Two months
later, they found their own buyer and successfully sold the home without the
broker's involvement. They were not required to pay the broker a
commission. What type of listing did they most likely have?
A:
✔ 1. An exclusive agency listing – This arrangement allows the seller to avoid
paying a commission if they personally find the buyer, despite having a listing
agreement with a broker.
Q2: A contract requires the seller to transfer ownership of a property to the
buyer if the buyer pays $22,000 by December 31st. What type of agreement is
this?
A:
✔ 2. An option contract – This is a unilateral agreement where the seller agrees to
sell under specific terms, but the buyer is not obligated to purchase unless they
choose to within the given time.
A mentally disabled person who has been declared incompetent by a judge wishes
to enter into a contract. Under what conditions can such a person do so?
1. The person must obtain prior written approval by a licensed psychiatrist or
psychologist.
2. The person must be capable of understanding the transaction.
3. The person appointed by the court to act for the disabled person must contract
on his or her behalf.
4. The person may enter a contract under any conditions, because the law prohibits
discrimination against persons with disabilities. - ANSWER✔✔3. The person
,appointed by the court to act for the disabled person must contract on his or her
behalf.
In helping a buyer to select a lender, if the buyer believes he has good credit and
his income is documentable as a salary and by tax returns, the licensee might
recommend a mortgage banker, instead of a mortgage broker, for all of the
following reasons EXCEPT:
1. closing costs may be lower.
2. loan originator has knowledge of the underwriter's policies.
3. more variety of loan programs available.
4. originator and lender are part of same company. - ANSWER✔✔3. more variety
of loan programs available.
Without checking the facts, a broker who is the seller's agent tells a buyer that the
property taxes in a particular neighborhood are among the lowest in the area. The
buyer relies on the broker's statement and makes an offer on a house in the
neighborhood. Before closing, it is determined that the taxes are actually among
the highest in the area. The buyer could seek to rescind the contract on the basis of:
1. puffing.
2. misrepresentation.
3. lack of care and diligence.
4. nothing; property taxes are a matter of public record and it was the buyer's
responsibility to check them. - ANSWER✔✔2. misrepresentation.
An agency relationship between a property owner and a property manager is
usually created by:
, 1. a management agreement.
2. payment of a management fee.
3. an exclusive agency agreement.
4. an independent contractor agreement. - ANSWER✔✔1. a management
agreement
Earnest money should be deposited into a trust account
1. in a timely manner, according to state laws.
2. upon removal of all contingencies.
3. at the broker's discretion.
4. according to MLS rules. - ANSWER✔✔1. in a timely manner, according to
state laws.
A lender will make an 80% loan-to-value loan on a property that is appraised for
$72,250 and sells for $73,500. If the buyer has saved $14,450 for a down payment,
how much more (if any) will he need in order to make the down payment required
under the terms of this loan?
1. He has $1,000 more than he needs for the down payment.
2. He has exactly the amount needed for the down payment.
3. He needs an additional $250 in order to make the down payment.
4. He needs an additional $1,250 in order to make the down payment. -
ANSWER✔✔4. He needs an additional $1,250 in order to make the down
payment.
A judgment has been properly recorded. Any subsequent purchasers, whether they
have actually examined the record or not, have been given
PRACTICE EXAM QUESTIONS AND
ANSWERS WITH CORRECT SOLUTIONS
100% CORRECT!!!
Q1: A couple listed their property with a real estate broker. Two months
later, they found their own buyer and successfully sold the home without the
broker's involvement. They were not required to pay the broker a
commission. What type of listing did they most likely have?
A:
✔ 1. An exclusive agency listing – This arrangement allows the seller to avoid
paying a commission if they personally find the buyer, despite having a listing
agreement with a broker.
Q2: A contract requires the seller to transfer ownership of a property to the
buyer if the buyer pays $22,000 by December 31st. What type of agreement is
this?
A:
✔ 2. An option contract – This is a unilateral agreement where the seller agrees to
sell under specific terms, but the buyer is not obligated to purchase unless they
choose to within the given time.
A mentally disabled person who has been declared incompetent by a judge wishes
to enter into a contract. Under what conditions can such a person do so?
1. The person must obtain prior written approval by a licensed psychiatrist or
psychologist.
2. The person must be capable of understanding the transaction.
3. The person appointed by the court to act for the disabled person must contract
on his or her behalf.
4. The person may enter a contract under any conditions, because the law prohibits
discrimination against persons with disabilities. - ANSWER✔✔3. The person
,appointed by the court to act for the disabled person must contract on his or her
behalf.
In helping a buyer to select a lender, if the buyer believes he has good credit and
his income is documentable as a salary and by tax returns, the licensee might
recommend a mortgage banker, instead of a mortgage broker, for all of the
following reasons EXCEPT:
1. closing costs may be lower.
2. loan originator has knowledge of the underwriter's policies.
3. more variety of loan programs available.
4. originator and lender are part of same company. - ANSWER✔✔3. more variety
of loan programs available.
Without checking the facts, a broker who is the seller's agent tells a buyer that the
property taxes in a particular neighborhood are among the lowest in the area. The
buyer relies on the broker's statement and makes an offer on a house in the
neighborhood. Before closing, it is determined that the taxes are actually among
the highest in the area. The buyer could seek to rescind the contract on the basis of:
1. puffing.
2. misrepresentation.
3. lack of care and diligence.
4. nothing; property taxes are a matter of public record and it was the buyer's
responsibility to check them. - ANSWER✔✔2. misrepresentation.
An agency relationship between a property owner and a property manager is
usually created by:
, 1. a management agreement.
2. payment of a management fee.
3. an exclusive agency agreement.
4. an independent contractor agreement. - ANSWER✔✔1. a management
agreement
Earnest money should be deposited into a trust account
1. in a timely manner, according to state laws.
2. upon removal of all contingencies.
3. at the broker's discretion.
4. according to MLS rules. - ANSWER✔✔1. in a timely manner, according to
state laws.
A lender will make an 80% loan-to-value loan on a property that is appraised for
$72,250 and sells for $73,500. If the buyer has saved $14,450 for a down payment,
how much more (if any) will he need in order to make the down payment required
under the terms of this loan?
1. He has $1,000 more than he needs for the down payment.
2. He has exactly the amount needed for the down payment.
3. He needs an additional $250 in order to make the down payment.
4. He needs an additional $1,250 in order to make the down payment. -
ANSWER✔✔4. He needs an additional $1,250 in order to make the down
payment.
A judgment has been properly recorded. Any subsequent purchasers, whether they
have actually examined the record or not, have been given
