Real Estate Brokerage & Agency

Question 1

Brokerage

Answer 1

the business of bringing parties together in a real estate transaction

Question 2

Broker

Answer 2

a person or an entity that is paid a fee to act for another person in the purchase, sale, rental or exchange of real estate

Question 3

Salesperson

Answer 3

type of real estate license in CT; must be affiliated with and supervised by a real estate broker and acts on behalf of a broker

Question 4

Real Estate Agency

Answer 4

the legal representational relationship that a broker has with a client

Question 5

Agency Relationship

Answer 5

the relationship that occurs when a broker represents a person; the broker is the agent and the person represented is the client or principal

Question 6

Fiduciary Relationship

Answer 6

a special position of trust and confidence to a client; a legal obligation to look out for a client’s best interests

Question 7

Fiduciary Duties (COLD-AC)

Answer 7

care, obedience, loyalty, disclosure, accounting and confidentiality

Question 8

Customer

Answer 8

someone the broker is working with but does not represent and does not have an agency relationship with

Question 9

Written Agency Agreement

Answer 9

is required by CT law if the broker wishes to collect payment for services provided

Question 10

Dual Agency

Answer 10

where the broker represents both the buyer and seller; legal in CT as long as both clients give their written informed consent

Question 11

Designated Agency

Answer 11

in a dual agency transaction; the broker has the option of designating one salesperson to specifically represent only one client and another salesperson to the other client. Also requires written informed consent

Question 12

Unrepresented Customers

Answer 12

brokers or salespersons working with an unrepresented customer must clearly disclose to them that they do not represent them but RATHER represent whoever the broker’s client is in the transaction (Real Estate Agency Disclosure Notice Given to Unrepresented Persons)

Question 13

CT Real Estate Commission

Answer 13

Part of the CT Dept of Consumer Protection; the licencing agency for real estate brokers and salespersons

Question 14

State Law Requiring Licensure

Answer 14

Chapter 392 of the CT General Statues

Question 15

Permitted Unlicensed Assistant Activities

Answer 15

answer phones, transmit and make changes in the MLS, follow up on loan commitments, assemble closing documents, secure public documents, have keys made, social media and advertising, record / deposit earnest money, type contract forms etc

Question 16

Nonresident Brokers

Answer 16

brokers licensed in other states who enter into an agency contract for the sale of real property in CT are considered to be unlicensed and would not be entitled to collect a commission or compensation

Question 17

Agency

Answer 17

the legal representational relationship between a broker and a client

Question 18

Listing Agreements

Answer 18

agency agreements with a seller

Question 19

Buyer Agency Agreements

Answer 19

agency agreements with a buyer

Question 20

Standard Agency Agreement

Answer 20

a broker does not have the right to convey the seller client’s property; he or she has only limited authority to act as a special agent to locate a buyer and obtain an offer to purchase the seller’s property

Question 21

Confidential Information

Answer 21

facts concerning a person’s assets; liabilities; income; expenses; motivations to purchase, rent, or sell; and previous offers received or made that are not a matter of public record

Question 22

Co-Brokerage

Answer 22

when a real estate broker who represents a seller allows agents at other brokerage firms to show the seller’s property on behalf of the seller; considered subagency

Question 23

Subagency

Answer 23

in CT, no longer permitted in a cobrokered transaction without the written consent of the seller (or other person being represented)

Question 24

Subagency Limitation

Answer 24

does not apply to leasing transactions or commercial purchase and sale transactions

Question 25

CT Commission Regulations

Answer 25

the only type of compensation NOT allowed in CT is a NET AMOUNT; whereby the broker retains all funds above a certain net to the seller figure as compensation

Question 26

Broker’s Lien

Answer 26

a broker who has performed services relating to residential or commercial real estate has the right to place a lien on the real estate to secure payment of compensation pursuant to Section 20-325a of the CT General Statutes

Question 27

Referral Fees

Answer 27

may be received from other brokers licensed in CT and other states; may NOT be received from an attorney or mortgage broker or lender (unless they hold a real estate license)

Question 28

Real Estate & Mortgage Broker

Answer 28

broker’s fee must be for negotiating or arranging for a mortgage loan for the buyer and not for the referral of the buyer to a mortgage lender; must be fully disclosed

Question 29

Record Retention

Answer 29

must be kept for seven years; offers & counteroffers, contracts, leases, agency agreements and disclosures, escrow and trust account checks and bank statements

Question 30

CT Uniform Electronic Transaction Act (CUETA)

Answer 30

authorizes the use of electronic records and signatures, but does not require its use