Connecticut Agency Law: What Every Real Estate Exam Candidate Must Know
Connecticut agency law guide for real estate exam prep — covering buyer agency, dual agency, and disclosure requirements under CT law.
Agency law is one of the most tested topics on the Connecticut real estate exam — both in the national section (which covers general agency principles) and the state section (which tests Connecticut-specific agency rules). Here's what you need to know.
What Is Agency?
Agency is a legal relationship in which one party (the agent) acts on behalf of another (the principal). In real estate, the broker is the legal agent. A salesperson licensed under the broker acts as a subagent of the broker — the broker remains responsible for the salesperson's conduct.
Types of Agency in Connecticut
Seller's Agency (Listing Agency) The listing broker represents the seller. Fiduciary duties run to the seller: loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care. The listing agent cannot disclose the seller's minimum acceptable price or motivation to sell.
Buyer's Agency Connecticut uses a written buyer agency agreement to formally establish buyer representation. The buyer's agent owes fiduciary duties to the buyer — including the duty to disclose material information that benefits the buyer and to negotiate in the buyer's best interest.
Dual Agency Occurs when the same broker represents both buyer and seller in the same transaction. In Connecticut, dual agency is legal only with the informed written consent of both parties. A dual agent cannot fully advocate for either party — the duty of loyalty is reduced to a duty of impartiality.
Designated Agency Connecticut permits designated agency, where a broker designates different licensees within the same firm to represent the buyer and seller separately. Each designated agent owes full fiduciary duties to their respective client.
Transactional Agency / Facilitator A real estate licensee acting as a facilitator (transaction broker) helps both parties without representing either. This is a non-agency relationship and carries no fiduciary duties — only a duty of fair dealing.
Agency Disclosure Requirements
Connecticut law requires disclosure of agency status at the first substantive contact with a consumer. The disclosure must be made in writing.
Key rule: A buyer who is shown a property by the listing agent must be told that the listing agent represents the seller — not the buyer.
The Buyer Agency Agreement
Connecticut strongly favors written buyer representation agreements. The agreement specifies: - The property or type of property being sought - The term of the agreement - The compensation arrangement - The scope of the buyer's agent's duties
Without a written agreement, the buyer's agent may not be entitled to compensation from the buyer — and the agency relationship may not be legally enforceable.
Fiduciary Duties — Know These Cold
Use the acronym OLD CAR:
- Obedience — follow lawful client instructions
- Loyalty — put client's interests first
- Disclosure — disclose all material facts
- Confidentiality — don't reveal client's private information
- Accounting — account for all money and property
- Reasonable care — use professional skill and diligence
Common Exam Traps
- A subagent of the seller owes fiduciary duties to the seller — even if the subagent has ongoing contact with the buyer
- Dual agency requires written consent — not just verbal acknowledgment
- Designated agents within the same firm are NOT dual agents — they are separate representatives
Practice Connecticut agency scenarios at [CARealestate.com/states/connecticut](https://carealestate.com/states/connecticut).
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