CT Real Estate flashcards
CT Real Estate · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Fiduciary duty of loyalty
- A broker must place the client's interests above the licensee's own and must not secretly profit from the transaction or disclose confidential client information.
- Dual agency
- A single licensee represents both buyer and seller in the same transaction; Connecticut permits it only with the informed written consent of both clients.
- Designated agency
- One brokerage assigns different licensees to represent buyer and seller separately, allowing in-house transactions while each client receives loyalty from a designated agent.
- Material fact disclosure
- A licensee must disclose known facts that could affect a reasonable buyer's decision, such as structural defects, but not speculative or confidential information protected by agency.
- Customer versus client
- A client has an agency relationship and receives fiduciary duties; a customer receives honesty and fair dealing but not loyalty, confidentiality, or advocacy.
- Commission negotiability
- Real estate commissions are set by agreement between broker and client, not by law or a standard rate, and must be stated in the brokerage agreement.
- Statute of frauds
- Connecticut requires real estate sale contracts and leases longer than one year to be in writing and signed by the party to be charged.
- Earnest money
- A deposit by the buyer showing good faith; it is typically held in escrow and may be applied to the purchase price or forfeited per contract terms.
- Contingency clause
- A contract condition such as financing, inspection, or appraisal that must be satisfied; if it fails, the specified party may cancel and recover deposits.
- Time is of the essence
- A contract clause making deadlines enforceable; failure to perform by the stated date can be treated as a material breach.
- Liquidated damages
- A contract provision setting a reasonable predetermined amount for breach, such as forfeited earnest money; courts enforce it only if not an unlawful penalty.
- Parol evidence rule
- A rule barring admission of prior or contemporaneous oral statements to contradict a fully integrated written contract, though it may allow evidence of ambiguity or fraud.
- Tenancy in common
- Co-ownership with separate undivided interests; each owner may sell or devise their share, and there is no right of survivorship.
- Joint tenancy
- Co-ownership with equal undivided interests and the right of survivorship, so a deceased owner's share passes automatically to the surviving joint tenants.
- Easement appurtenant
- A right to use a neighboring parcel that benefits the dominant estate and burdens the servient estate; it transfers with the benefited property.
- Adverse possession
- Acquiring title by open, notorious, hostile, and continuous possession for the statutory period, which in Connecticut is generally fifteen years.
- Mechanic's lien
- A statutory lien securing payment for labor or materials that improve real property; priority can relate back to the start of work.
- Loan-to-value ratio
- The loan amount divided by the property's appraised value or purchase price, whichever is lower; higher LTV generally means greater lender risk.
- PITI
- The four components of a typical monthly housing payment: principal, interest, property taxes, and homeowner's insurance.
- Sales comparison approach
- An appraisal method estimating value by analyzing recent sales of similar properties and adjusting for differences such as size, condition, and location.
- Loan Estimate
- A RESPA-TILA disclosure giving estimated loan terms and closing costs; lenders must deliver it within three business days after a complete application.
- Right of rescission
- A borrower's three-business-day right to cancel certain refinances or home-equity loans secured by a principal residence, under federal truth-in-lending law.
- General warranty deed
- A deed with broad covenants, including seisin, right to convey, quiet enjoyment, and warranty against all prior title defects.
- Quitclaim deed
- A deed transferring whatever interest the grantor may have without warranties; it offers no guarantee that title is valid or marketable.
- Constructive notice
- Legal notice imputed to the world by properly recording a document in the town land records, regardless of actual knowledge.
- Title insurance
- A one-time policy protecting against covered title defects; an owner's policy protects the buyer, while a lender's policy protects only the mortgagee.
- Proration
- Dividing expenses such as taxes or rent between buyer and seller at closing based on the number of days each party owns the property.
- Connecticut Real Estate Commission
- The state regulatory body within the Department of Consumer Protection that licenses brokers and salespersons and enforces real estate statutes and regulations.
- Salesperson sponsorship
- A Connecticut salesperson must be associated with and supervised by a licensed broker; a salesperson cannot conduct brokerage independently.
- Property condition disclosure
- Connecticut sellers of residential property must provide a written condition report disclosing known defects; it is not a warranty of the property's condition.
- Commingling
- Illegally mixing client or transaction funds with the broker's personal or business funds; Connecticut requires separate escrow or trust accounts.
- Blind advertising
- Advertising property without the licensed brokerage name; Connecticut requires ads to identify the brokerage, not just the individual agent.