CT Real Estate Licensing Practice Exam QUESTIONS AND
ASNWERS YEAR 2025.
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. - ✅✅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. - ✅✅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. - ✅✅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. - ✅✅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. - ✅✅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
1. actual notice.
2. prescriptive notice.
3. constructive notice.
4. exculpatory notice. - ✅✅3. constructive notice.
Even with title insurance, the policyholder may still suffer losses arising from
1. forged documents.
2. incompetent grantors.
3. defects found in recorded public records.
4. land use change due to zoning ordinances. - ✅✅4. land use change due to zoning
ordinances.
Under the common law of agency, licensees owe the broker with whom they are
associated all of the following duties EXCEPT
1. loyalty.
2. competence.
3. indemnification.
4. full disclosure. - ✅✅3. indemnification.
To be valid, every deed must
1. contain a warranty.
2. include granting language.
3. be executed by the grantor.
4. be signed by the grantee if there are covenants. - ✅✅3. be executed by the
grantor.
An example of a contract terminated due to inability to perform would be one in which
the
1. purchaser had suffered financial reverses so that she could not make payment as
required by the contract.
, 2. seller had died after the contract became binding but before the closing.
3. seller had contracted for sale of the entire property without the knowledge or consent
of the other joint tenant.
4. property had been severely damaged by fire after the contract became binding but
before the closing. - ✅✅3. seller had contracted for sale of the entire property without
the knowledge or consent of the other joint tenant.
What is the duration of a home warranty's coverage?
1. the expected life of the purchaser
2. the expected life of the product or system covered
3. as disclosed in the contract that offers the warranty
4. a minimum of 5 years or the duration of the purchaser's ownership, whichever is
shorter - ✅✅3. as disclosed in the contract that offers the warranty
A home buyer is obtaining a fully amortized loan in the amount of $140,000. The
savings and loan will give him the loan for 15 years at 5% or for 30 years at 6%. To the
nearest dollar, what is the difference between the monthly payments for these two
loans? (BE SURE TO USE THE AMORTIZATION TABLE.)
1. $74
2. $87
3. $267
4. $342 - ✅✅3. $267
Failure of a real estate agent to comply with Fair Housing practices is punishable by:
1. license revocation only.
2. criminal prosecution only.
3. license revocation and criminal prosecution.
4. probation. - ✅✅3. license revocation and criminal prosecution.
The Department of Housing and Urban Development estimates that most private homes
built before 1978 contain potentially dangerous levels of lead. Because of this, some
Federal agencies, such as FHA,
1. will no longer lend or guarantee loans on these older properties.
2. require evidence of testing for and disclosure of any type of lead contamination
before they will lend or guarantee loans on such properties.
3. require funds to be escrowed for lead abatement as a condition of lending or
guaranteeing loans on such properties.
4. require the buyer to acknowledge disclosure of the presence of any known lead paint.
- ✅✅4. require the buyer to acknowledge disclosure of the presence of any known
lead paint.
State laws differ on whether a buyer is entitled to know about:
ASNWERS YEAR 2025.
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. - ✅✅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. - ✅✅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. - ✅✅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. - ✅✅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. - ✅✅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
1. actual notice.
2. prescriptive notice.
3. constructive notice.
4. exculpatory notice. - ✅✅3. constructive notice.
Even with title insurance, the policyholder may still suffer losses arising from
1. forged documents.
2. incompetent grantors.
3. defects found in recorded public records.
4. land use change due to zoning ordinances. - ✅✅4. land use change due to zoning
ordinances.
Under the common law of agency, licensees owe the broker with whom they are
associated all of the following duties EXCEPT
1. loyalty.
2. competence.
3. indemnification.
4. full disclosure. - ✅✅3. indemnification.
To be valid, every deed must
1. contain a warranty.
2. include granting language.
3. be executed by the grantor.
4. be signed by the grantee if there are covenants. - ✅✅3. be executed by the
grantor.
An example of a contract terminated due to inability to perform would be one in which
the
1. purchaser had suffered financial reverses so that she could not make payment as
required by the contract.
, 2. seller had died after the contract became binding but before the closing.
3. seller had contracted for sale of the entire property without the knowledge or consent
of the other joint tenant.
4. property had been severely damaged by fire after the contract became binding but
before the closing. - ✅✅3. seller had contracted for sale of the entire property without
the knowledge or consent of the other joint tenant.
What is the duration of a home warranty's coverage?
1. the expected life of the purchaser
2. the expected life of the product or system covered
3. as disclosed in the contract that offers the warranty
4. a minimum of 5 years or the duration of the purchaser's ownership, whichever is
shorter - ✅✅3. as disclosed in the contract that offers the warranty
A home buyer is obtaining a fully amortized loan in the amount of $140,000. The
savings and loan will give him the loan for 15 years at 5% or for 30 years at 6%. To the
nearest dollar, what is the difference between the monthly payments for these two
loans? (BE SURE TO USE THE AMORTIZATION TABLE.)
1. $74
2. $87
3. $267
4. $342 - ✅✅3. $267
Failure of a real estate agent to comply with Fair Housing practices is punishable by:
1. license revocation only.
2. criminal prosecution only.
3. license revocation and criminal prosecution.
4. probation. - ✅✅3. license revocation and criminal prosecution.
The Department of Housing and Urban Development estimates that most private homes
built before 1978 contain potentially dangerous levels of lead. Because of this, some
Federal agencies, such as FHA,
1. will no longer lend or guarantee loans on these older properties.
2. require evidence of testing for and disclosure of any type of lead contamination
before they will lend or guarantee loans on such properties.
3. require funds to be escrowed for lead abatement as a condition of lending or
guaranteeing loans on such properties.
4. require the buyer to acknowledge disclosure of the presence of any known lead paint.
- ✅✅4. require the buyer to acknowledge disclosure of the presence of any known
lead paint.
State laws differ on whether a buyer is entitled to know about:
