CT Real Estate cheat sheet

Fiduciary duties commonly summarized as OLD CAR: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care.

Connecticut law requires written brokerage agreements and written agency disclosure; no agency relationship is presumed solely from a consumer's contact with a licensee.

A seller's agent owes loyalty to the seller; a buyer customer is entitled to honest dealing and disclosure of known material facts but not confidentiality or advocacy.

Dual agency exists when one licensee represents both parties in the same transaction; Connecticut allows it only with written informed consent from both clients.

Designated agency permits one brokerage to represent both sides by assigning different licensees to each client; the brokerage must disclose and obtain required consent.

Confidential information learned during the agency relationship may not be disclosed to the opposing party and may remain protected after termination.

A brokerage agreement typically states the term, geographic area, services, and compensation; commission is negotiable, not fixed by law.

A licensee must disclose known material defects and may not conceal them, regardless of which party the licensee represents.

Connecticut statute of frauds: contracts for sale of land and leases exceeding one year must be written and signed by the party to be charged.

Essential elements: competent parties, lawful object, mutual assent through offer and acceptance, and consideration.

Earnest money is a deposit held in escrow; the contract identifies the escrow holder and the conditions for return or forfeiture.

Contingencies create conditions precedent; if a financing, inspection, or appraisal contingency fails, the contract's remedy clause controls.

Time-is-of-the-essence clauses make stated deadlines enforceable; without the clause, courts may allow reasonable delays.

Liquidated damages are enforceable only if reasonable and a genuine attempt to estimate loss; otherwise they are an unenforceable penalty.

The parol evidence rule limits prior oral statements when the written contract is fully integrated, but fraud and ambiguity exceptions exist.

Assignment transfers contract rights; novation substitutes a new party and releases the original party only with all parties' consent.

Fee simple absolute is the most complete ownership estate; a life estate lasts for a measuring life and then passes to a remainder or reversion.

Tenancy in common has no right of survivorship; joint tenancy requires equal interests and includes the right of survivorship.

Connecticut does not recognize community property; spouses can hold title as tenants in common or joint tenants.

An easement appurtenant benefits a dominant parcel and burdens a servient parcel; an easement in gross benefits a person or entity.

A lien is an encumbrance securing debt; property tax liens generally have priority over private liens.

Mechanic's liens secure unpaid labor or materials and may relate back to the beginning of the improvement for priority.

Adverse possession requires open, notorious, hostile, exclusive, and continuous use for the statutory period, generally 15 years in Connecticut.

Restrictive covenants run with land when there is intent, notice, and touch-and-concern; they may be enforced by injunction.

LTV = loan amount divided by the lesser of appraised value or purchase price; a higher LTV increases lender risk.

PITI = principal + interest + property taxes + homeowner's insurance; lenders often also consider HOA dues and other debts.

The housing expense ratio compares monthly PITI to gross monthly income; the total debt ratio includes all recurring debt.

RESPA-TILA requires a Loan Estimate within 3 business days of a complete application and a Closing Disclosure at least 3 business days before closing.

TILA gives a 3-business-day right of rescission for certain refinances and home-equity loans secured by a principal residence.

Sales comparison approach is the primary method for residential appraisal; cost approach suits new or unique buildings; income approach suits income property.

In sales comparison, adjust comparables to the subject: if the comparable is superior, subtract value; if inferior, add value.

VA loans generally allow 0% down; FHA loans require mortgage insurance premiums; conventional PMI typically ends at 78% LTV under federal law.

Connecticut deeds must be in writing, signed by the grantor, attested by two witnesses, and acknowledged before recording in the town clerk's land records.

General warranty deed contains the broadest covenants; special warranty deed limits warranties to defects created by the grantor; quitclaim deed transfers only the grantor's interest.

Recording provides constructive notice; a later recorded interest generally loses to a prior recorded interest under race-notice principles.

Title insurance protects against covered defects; an owner's policy protects the owner, while a lender's policy protects the mortgagee only.

Closing debits and credits are entered on a settlement statement; prorations divide taxes, rent, and similar items by ownership days.

Connecticut imposes a state real estate conveyance tax on the seller, and municipalities may add a local conveyance tax.

Marketable title is title reasonably free from defects that a prudent buyer would object to; insurable title satisfies a title insurer's underwriting standards.

A 1031 exchange defers capital gains when qualifying real property is exchanged for like-kind property within federal deadlines.

The Connecticut Real Estate Commission, within the Department of Consumer Protection, regulates brokerage licensing and discipline.

A salesperson must work under a sponsoring broker; a salesperson may not independently accept commissions or represent clients without broker supervision.

Connecticut requires prelicensing education and a passing examination for licensure; licensees must also satisfy continuing education for renewal.

Advertising must include the licensed brokerage name; blind ads that omit the brokerage are prohibited.

Brokers must maintain trust or escrow accounts for client funds and may not commingle them with personal or operating funds.

Sellers of residential property must provide the Connecticut Residential Property Condition Disclosure Report; it is a disclosure, not a warranty.

Federal law requires lead-based paint disclosure for pre-1978 housing; Connecticut fair housing law adds protected classes beyond federal law, including source of income.

Unlicensed assistants may perform clerical work but may not negotiate, show property, or provide brokerage advice.