1.1 Connecticut Real Estate Commission
Key Takeaways
- The Connecticut Real Estate Commission is created within the Department of Consumer Protection (DCP) under Chapter 392 of the General Statutes.
- The Commission has 8 members appointed by the Governor: 3 licensed brokers, 2 licensed salespersons, and 3 public members.
- No more than a bare majority (5 of 8) may belong to the same political party, and at least one member must come from each congressional district.
- The Commission sets the 60-hour pre-license education requirement and approves schools, courses, and instructors.
- The exam is administered by PSI Services (not Pearson VUE), with online/remote proctored testing available since May 2025.
The Connecticut Real Estate Commission
The Connecticut Real Estate Commission is the state body that licenses and regulates brokers and salespersons. It is created within the Department of Consumer Protection (DCP) rather than operating as a stand-alone agency, so DCP supplies the staff, processes applications, and runs investigations while the Commission sets policy and decides discipline. Its authority comes from Chapter 392 of the Connecticut General Statutes, the Real Estate Brokers and Salespersons Act.
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Commission Composition (Sec. 20-311a)
The Commission has 8 members appointed by the Governor. This is a frequently tested number, and the breakdown is exam gold:
| Member Type | Number | Requirement |
|---|---|---|
| Licensed real estate brokers | 3 | Active CT broker license |
| Licensed real estate salespersons | 2 | Active CT salesperson license |
| Public members | 3 | Not licensed in real estate |
| Total | 8 | All must be electors of the state |
Two political guardrails apply: no more than a bare majority (5 of 8) may belong to the same political party, and at least one member must come from each congressional district. These rules keep the board balanced and geographically representative.
What the Commission Actually Does
The Commission exercises five core powers. Expect questions that ask which body performs a function, or that test the line between the Commission (policy and discipline) and DCP (day-to-day administration).
| Function | What it covers |
|---|---|
| Licensing | Approve, deny, issue, and renew broker/salesperson licenses |
| Education | Set the 60-hour pre-license standard; approve schools, courses, instructors |
| Enforcement | Investigate complaints, audit trust/escrow accounts |
| Discipline | Censure, fine, suspend, or revoke licenses after a hearing |
| Rulemaking | Adopt regulations implementing the License Law (force of law) |
The Real Estate Guaranty Fund
A uniquely Connecticut feature is the Real Estate Guaranty Fund. Licensees pay a small fee into the Fund (commonly $20 at original licensure). A member of the public who obtains a court judgment against a licensee for fraud, misrepresentation, or conversion in a real estate transaction, but cannot collect from the licensee, may petition to recover from the Fund. Statutory caps limit payouts per transaction and per licensee in aggregate, and any payout typically triggers automatic suspension of that licensee until the Fund is repaid with interest.
Reciprocity
Connecticut maintains reciprocity agreements with several states. Reciprocal applicants hold an active out-of-state license and complete a streamlined process rather than the full 60-hour course.
| Common reciprocal states | |
|---|---|
| Alabama, Colorado, Florida | Georgia, Illinois, Indiana |
| Massachusetts, Mississippi, Nebraska | New York, Ohio, Oklahoma, Rhode Island |
| Reciprocity rule | Detail |
|---|---|
| Active out-of-state license | Required and in good standing |
| State law portion | Reciprocal applicants pass the CT state exam portion |
| First-cycle CE | Not exempt — must complete CE in first renewal |
Exam Tip: Commission regulations have the force of law. Memorize the 8-member composition (3 brokers, 2 salespersons, 3 public) and the Guaranty Fund's purpose — both appear regularly. Contact DCP at portal.ct.gov/dcp; licensing runs through the eLicense portal in Hartford.
Who Must Be Licensed (and Who Is Exempt)
The License Law defines a broker as a person who, for a fee, lists, sells, buys, exchanges, rents, or negotiates real estate for others, and a salesperson as one who performs those acts on behalf of a sponsoring broker. The key trigger words are for another and for compensation. Doing these acts for a third party without a license is unlicensed activity and is itself a crime, plus grounds for denying any later application.
Statutory exemptions
Some people perform real-estate-like acts without a license because Chapter 392 exempts them:
| Exempt party | Why exempt |
|---|---|
| Owners dealing with their own property | Acting for themselves, not for another |
| Attorneys performing legal duties incidental to practice | Regulated by the bar, not selling brokerage services |
| Court-appointed receivers, executors, trustees, guardians | Acting under court authority |
| Persons holding a recorded power of attorney for a single transaction | Acting as the principal's legal stand-in |
| Salaried employees managing the owner's own property | No third-party brokerage |
Trap: An unlicensed assistant may handle clerical and marketing-support tasks but may not discuss price, terms, or agency, show property, or negotiate — those are licensed activities.
Disciplinary Authority
After notice and a hearing, the Commission can censure, fine, suspend, or revoke a license. Common grounds include misrepresentation, commingling client funds, acting for more than one party without consent (undisclosed dual agency), guaranteeing future profits, and conviction of a crime relating to honesty or real estate. Penalties are remedial and protective of the public, not merely punitive, and a revoked licensee may face the Guaranty Fund suspension trigger if the misconduct led to a payout.
- Censure / reprimand — formal warning on the record
- Civil penalty (fine) — monetary sanction per violation
- Suspension — time-limited loss of the right to practice
- Revocation — permanent cancellation of the license
The Commission may also deny an original or renewal application for the same grounds, which is why the suitability review in Section 1.2 matters.
How many members serve on the Connecticut Real Estate Commission, and how are they composed?
A buyer wins a fraud judgment against a salesperson but cannot collect because the licensee is insolvent. What Connecticut remedy may help?