CT Real Estate Licensing Practice Exam- Questions & Answers Latest 2026

A buyer enters into a contract but later discovers the seller concealed a material defect. What legal principle best applies? A. Caveat emptor B. Doctrine of estoppel C. Fraudulent misrepresentation ️️ D. Implied warranty Which document is primarily used to disclose a property’s condition to a prospective buyer? A. Deed of trust B. Property disclosure form ️️ C. Mortgage note D. Title policy What is the main purpose of a comparative market analysis (CMA)? A. Determine tax liability B. Estimate property value ️️ C. Establish legal ownership D. Calculate insurance premiums A real estate licensee must place client funds into which account? A. Personal savings account B. Trust/escrow account ️️ C. Business operating account D. Investment portfolio Which term refers to a contract where only one party is obligated to perform? A. Bilateral contract B. Executed contract C. Unilateral contract ️️ D. Voidable contract What type of agency relationship exists when a broker represents both buyer and seller? A. Single agency B. Dual agency ️️ C. Sub-agency D. Designated agency 2 What is the main function of a deed? A. To finance a purchase B. To transfer ownership ️️ C. To insure title D. To appraise property Which clause allows a lender to demand full repayment if the borrower defaults? A. Acceleration clause ️️ B. Escalation clause C. Due-on-sale clause D. Arbitration clause Which is NOT considered real property? A. Land B. Fixtures C. Personal property ️️ D. Buildings A property is being sold “as-is.” What does this imply? A. Seller provides warranty B. Buyer accepts current condition ️️ C. Property has no defects D. Inspection is not allowed Which document provides evidence of ownership? A. Lease agreement B. Deed ️️ C. Appraisal D. Title search What is the purpose of earnest money? A. Pay taxes B. Show buyer’s good faith ️️ C. Cover closing costs D. Pay broker commissions Which professional enforces real estate laws and licensing regulations? A. Appraiser B. Real estate board ️️ C. Mortgage lender D. Title company What type of ownership involves multiple owners with undivided interest? A. Sole ownership B. Joint tenancy ️️ 3 C. Leasehold estate D. Tenancy at sufferance Which method of valuation compares similar properties? A. Cost approach B. Income approach C. Sales comparison approach ️️ D. Replacement approach What is the purpose of title insurance? A. Cover property damage B. Protect against ownership disputes ️️ C. Insure mortgage payments D. Protect against fire Which type of lease requires rent to be paid as a percentage of business revenue? A. Gross lease B. Net lease C. Percentage lease ️️ D. Index lease What is considered a fiduciary duty? A. Obligation to the public B. Legal duty to act in client’s best interest ️️ C. Duty to government D. Duty to competitors What is the purpose of an escrow account? A. Invest client money B. Hold funds until conditions are met ️️ C. Pay taxes D. Pay broker commissions Which of the following best describes appreciation? A. Decrease in value B. Increase in property value ️️ C. Stable value D. Depreciation What does “market value” refer to? A. Purchase price B. Assessed value C. Likely selling price in open market ️️ D. Replacement cost 4 Which clause in a mortgage allows transfer of property without full loan repayment? A. Due-on-sale clause B. Acceleration clause C. Assumability clause ️️ D. Escrow clause What is zoning primarily used for? A. Tax collection B. Land use regulation ️️ C. Property valuation D. Mortgage approval Which term describes property that