practice 4 test
Of the following, which information should NOT be divulged in the presence of other brokers in the same office? A- A buyer's inability to qualify for a mortgage loan B- A seller couple's decision to file for divorce C- The list price of the property D- That the basement leaks only during heavy rains
A or B
Colorado's designated broker rules do NOT apply to: A- A real estate brokerage firm consisting of only 1 licensed natural person. B- General Partnerships. C- An LLC with only one employing broker and one associate. D- Corporations.
A- A real estate brokerage firm consisting of only 1 licensed natural person.
All "money belonging to others" accepted by a resident or non-resident broker doing business in Colorado shall be deposited in a/an: A- Account(s) separate from other money belonging to the broker or brokerage entity. B- Attorney's trust account. C- Title company's trust account within 24 hours of receipt. D- Brokerage operating account.
A- Account(s) separate from other money belonging to the broker or brokerage entity.
The Contract to Buy and Sell Real Estate provides for conveying personal property by: A- Bill of sale or other applicable legal instrument. B- Outside of the contract. C- Listing in the inclusions section of the deed. D- A bargain and sale deed.
A- Bill of sale or other applicable legal instrument.
Colorado law requires a broker to disclose to any prospective buyer all adverse material facts actually known by such broker. Which of the following is considered an adverse material fact? A- Existing building code violation B- Former methamphetamine lab but successfully remediatedv C- One of the occupants is infected with HIV D- Lack of a dishwasher in the kitchen
A- Existing building code violation
Client confidential information does NOT include: A- Knowledge of latent defects. B- Seller's willingness to accept less than the list price. C- Buyer motives for purchasing. D- Facts that may psychologically stigmatize a property.
A- Knowledge of latent defects.
An employing broker shall provide a "high level of supervision" for: A- Licensees with less than two years' experience. B- Any person with access to trust account(s). C- Unlicensed personal assistants. D- All of the above.
A- Licensees with less than two years' experience.
A brokerage relationship between a buyer and a broker includes: A- Only the buyer and the broker. B- The buyer, the broker and the supervising broker. C- The buyer, the broker and the employing broker. D- Both b. and c. are correct.
A- Only the buyer and the broker.
To what does the phrase "vacated streets and alleys" refer in the Contract to Buy and Sell Real Estate? A- Public byways that are not considered part of the subject property B- A neighborhood that is in a state of decline C- Platting that was never built or that was abandoned, now affixed to the subject property D- Land that the seller must vacate before transferring the subject property
A- Public byways that are not considered part of the subject property
The Seller's Property Disclosure form is completed by the _____ . A- Seller to the best of seller's current actual knowledge. B- Listing Broker in the case of an out-of-state owner not familiar with the property. C- Buyer agent as part of the fiduciary to the buyer. D- All of the Above.
A- Seller to the best of seller's current actual knowledge.
Absent any written disclosure or contract with the public, Colorado law presumes the brokerage relationship with the buyer/seller to be that of a/an _____ . A- Transaction Broker. B- Agent. C- The relationship shown in the firm's office policy. D- Customer.
A- Transaction Broker
The purpose of the "Real Property Transfer Declaration (TD- 1000)" is to: A- assist the county assessor in fair and uniform assessments for all property for property tax purposes. B- Remit the 2% out of state tax withhold to the Colorado Department of Revenue. C- provide sales data to the county treasurer for tax purposes. D- document personal property value to the Colorado Department of Revenue for the collection of state sales and use tax.
A- assist the county assessor in fair and uniform assessments for all property for property tax purposes.
Notification to the Colorado Real Estate Commission of termination of employment between an employing broker and an associate is the responsibility of the: A- both the employing broker and the associate. B- the employing broker alone. C- the terminating associate alone. D- the brokerage firm's registered owner alone.
A- both the employing broker and the associate.
A broker who mixes company money with earnest money deposits in the same bank account is committing an illegal act of: A- commingling. B- conversion. C- double accounting. D- misuse of bank accounts.
A- commingling.
Unlike individual licenses, firm licenses: A- do not have to be renewed. B- must be renewed every year. C- do not require any payment of fees. D- can be issued in the names of multiple persons simultaneously.
A- do not have to be renewed.
Under Colorado law, co-operative sales certificates and shares are: A- exempt from Colorado securities law. B- regulated by Colorado securities law. C- declared to be illegal. D- protected from federal regulation
A- exempt from Colorado securities law.
If an employing broker elects to offer "agency" as the only form of brokerage relationship with the public, a prospective client who inquires about transaction-brokerage status must be: A- given the Commission-approved Definitions of Working Relationships form. B- referred to another brokerage firm. C- accommodated as an exception to the policy. D- referred to the employing broker.
A- given the Commission-approved Definitions of Working Relationships form.
Trust account cash balances must be reconciled to corresponding brokerage liabilities for trust funds: A- monthly, unless no banking activity has occurred. B- daily. C- weekly. D- on any day deposits are made or checks are written.
A- monthly, unless no banking activity has occurred.
The listing period on a commercial property listing agreement: A- must have a definite termination date. B- may be stated as "until sold." C- is not required (space may be left blank). D- is set by state law
A- must have a definite termination date.
The Definitions of Working Relationships form is: A- optional in any given transaction. B- required if a prospect inquires about brokerage relationships not offered by the firm's written office policy. C- used only for "agency" brokerage relationships. D- used only for "transaction-broker" brokerage relationships.
A- optional in any given transaction
A negative balance shown on a property management ledger is a "red flag" most likely indicating: A- real estate commission audit correction. B- commingling of funds by the broker. C- probable bank error. D- an approved short-term loan.
A- real estate commission audit correction.
According to the Closing Instructions that are provided to the title company along with the Contract to Buy and Sell Real Estate, a title insurance company is relieved from any further duty, responsibility or liability in connection with a failed closing: A- returning all documents, monies and things of value to the depositing party. B- destroying all transaction specific documents, monies and things of value. C- storing all documents, monies and things of value in its archive for 7 years. D- returning all documents, monies, and things of value to the listing broker
A- returning all documents, monies and things of value to the depositing party.
A real estate license is required when a party: A- sells new homes as an independent contractor for a homebuilder B- manages an apartment complex on site for a salary C- performs authorized trustee duties D- is an attorney at law representing clients
A- sells new homes as an independent contractor for a homebuilder
The Commission-approved Brokerage Duties Addendum to Property Management Agreement form: A- states the Colorado license law requirements concerning duties and brokerage relationships. B- defines the customary tasks of the property manager. C- replaces the standardized contracts used by large property owners. D- is used only when the property owners do not reside in Colorado.
A- states the Colorado license law requirements concerning duties and brokerage relationships.
Continuing education requirements may be met by Colorado licensees: A- successfully completing the Colorado portion of the broker licensing exam. B- taking 24 hours of coursework by a provider of their own choosing. C- only by taking courses offered via personal in-classroom attendance. D- taking the 8-hour annual Commission Update Course each year.
A- successfully completing the Colorado portion of the broker licensing exam.
Under the Contract to Buy and Sell Real Estate, if the appraisal fails to support the purchase price, the buyer may: A- terminate the contract. B- require the seller to agree to the appraised value as the sale price. C- require the seller to improve the property to secure a higher appraised value. D- demand a more thorough appraisal.
A- terminate the contract.
The "Additional Provisions" section of the Contract to Buy and Sell Real Estate may contain only: A- terms specific to the transaction and agreed upon by the principals. B- standardized broker exculpatory language. C- clauses commonly used in all contracts. D- terms used to change the basic intent of the contract.
A- terms specific to the transaction and agreed upon by the principals.
The license renewal notice for an active, employed broker is mailed to: A- the employing broker at the broker's business address. B- the employing broker at the broker's e-mail address. C- the employing broker at the broker's home address. D- the employed broker at his or her e-mail address.
A- the employing broker at the broker's business address.
The exception to the rule against commingling company funds with trust funds is: A- the minimal funds needed to keep the account operative. B- funds transferred from the business account to replace funds borrowed from the trust account. C- funds held for employed licensees, such as insurance premiums. D- funds withheld from employees' pay checks for tax purposes
A- the minimal funds needed to keep the account operative.
A seller and real estate broker must disclose known previous use of a residential property as a methamphetamine laboratory unless: A- the property was remediated to state standards and other requirements are fulfilled. B- the meth lab use was more than 2 years ago. C- the prospective buyer does not have any minor children. D- the property has been certified as hazard-free by a licensed pharmaceutical firm.
A- the property was remediated to state standards and other requirements are fulfilled.
Payment of a portion of a commission to a broker licensed out-of-state is restricted to: A- transactions actually co-brokered by the Colorado broker and the out-of-state broker. B- transactions in which the seller authorizes the referral. C- transactions in which the out-of-state broker does all the negotiating and contracting. D- brokers who reside in, and maintain an office in, the other jurisdiction.
A- transactions actually co-brokered by the Colorado broker and the out-of-state broker.
For the sale of a property for which a building permit was issued prior to January 1, 1978, unless a "Lead-Based Paint Disclosure - Sales" form is signed by the necessary parties and delivered to the seller before the seller signs the Contract to Buy and Sell, the contract is: A- void. B- rescinded. C- subject to an extended inspection period. D- breached.
A- void.
On the date an applicant has passed both parts of the broker licensing exam, he or she must apply for a license _____ or must retake the exam. A- within 1 year. B- within 6 months. C- within 30 days. D- within 3 months
A- within 1 year.
Under the Colorado Fair Housing Act, how long does an "aggrieved person" have to file a complaint alleging an unfair housing practice with the Colorado Civil Rights Commission? A- 90 days B- 6 months C- 1 year D- 3 years
C- 1 year
The Real Estate Commission may NOT issue a temporary license to prevent hardship to a: A- Partnership. B- Corporation. C- Sole proprietor. D- Limited liability company.
C- Sole proprietor.
If a licensee desires to reinstate an expired real estate broker license 18 months after expiration, the cost of the reinstated license will be: A- the regular license fee plus a 25% penalty. B- the regular fee plus a penalty equal to the regular 3 yr. license renewal fee. C- the regular license fee. D- a license cannot be reinstated that long after expiration.
B- the regular fee plus a penalty equal to the regular 3 yr. license renewal fee.
A Colorado tenant has a 3-year lease in a unit. After 6 months, the roof starts to leak, and the tenant can't get the landlord to fix the leak. The tenant may move out without penalty under the concept of: A- covenant of quiet enjoyment. B- warranty of habitability. C- rent control. D- breach of an express covenant
B- warranty of habitability.
Which of the following statements about licenses is FALSE? A- Associate brokers must be licensed under the licensed brokerage, not under a trade name. B- Every licensed broker in Colorado must maintain a public brokerage practice. C- The commission may refuse to issue a license if the name on the license is similar to that of one that has been revoked. D- A broker must be sole owner of his or her brokerage to be licensed as an individual proprietorship.
B - Every licensed broker in Colorado must maintain a public brokerage practice.
Under the Contract to Buy and Sell Real Estate, how many possible deadlines are there that must be met or deleted from the contract? A- Forty-three: from inspection to possession B- Thirty-two: from alternative earnest money to acceptance of possession C- Twenty-four: from appraisal to due diligence objection.. D- Twenty-Five: from title to closing date.
B - Thirty-two: from alternative earnest money to acceptance of possession
If a transaction fails to close because of a title defect, _____ . A- the seller owes the broker a commission. B- no commission is earned. C- the seller must use the earnest money deposit to correct the defect. D- the broker may retain part of the earnest money as commission earned.
B - no commission is earned.
Under a Colorado Contract to Buy and Sell Real Estate, when there is arbitration or litigation related to the contract after the closing date, the responsibility for paying the costs and attorney fees depends on: A- the amount of the costs and fees. B- which party prevails. C- the cause of the arbitration or litigation. D- the time that has elapsed since the date of closing
B - which party prevails
Under an Exclusive Right-to-Sell Listing Contract, if a seller is contacted directly by a prospective buyer or buyer's agent, the seller is obligated to: A- schedule a showing, but not discuss any confidential information. B- refer the buyer or agent to the listing broker. C- immediately avoid any form of communication with prospective buyer or agent. D- answer questions as thoroughly as possible and report the contact to the listing broker.
B- refer the buyer or agent to the listing broker.
When a broker transfers his or her license to another brokerage firm, any current listing agreements: A- go with the departing broker to the new firm. B- remain with the original brokerage firm. C- are terminated. D- remain with the original brokerage or go with the departing broker to the new firm as determined by the seller.
B- remain with the original brokerage firm.
Colorado Real Estate Commission Rule E-35 requires disclosure of existing brokerage relationships before: A- responding to general factual questions concerning the property. B- scheduling or holding an open house. C- qualifying a prospect. D- meeting with a prospect.
B- scheduling or holding an open house.
The Contract to Buy and Sell Real Estate provides for agreement allowing signatures to be evidenced by electronic delivery. Original signatures: A- are no longer required. B- shall be provided upon request of any party. C- shall be provided to the other party within 72 hours of contract acceptance. D- are required on all documents retained by the broker for later inspection by the Colorado Real Estate Commission.
B- shall be provided upon request of any party.
Under Colorado license law, confidential client information is considered to be known by: A- the employing broker. B- the designated broker. C- the "firm" in any lawsuit in court. D- selected individual broker associates in the same firm
B- the designated broker.
The Colorado Foreclosure Protection Act generally applies to a sale transaction only if: A- the buyer will reside in the property. B- the property is residential. C- the property is not in default. D- the buyer is a broker.
B- the property is residential.
According to the Contract to Buy and Sell Real Estate, personal property is conveyed by the: A- financing statement. B- bill of sale or other applicable legal instrument. C- deed of trust. D- chattels security agreement.
B- bill of sale or other applicable legal instrument.
Electronic advertising of a property for sale must clearly and unmistakably include the: A- individual listing broker's telephone number. B- brokerage firm's name as registered with the commission. C- listing price of the property. D- contact information for both the individual broker and the Webmaster.
B- brokerage firm's name as registered with the commission
The term "subdivision" includes: A- twenty or more memberships in a campground. B- converting an existing structure into a common interest community of twenty or more residential units. C- sale of twenty or more residential units by public officials in the conduct of their duties. D- bulk sales and transfers of twenty or more lots between developers.
B- converting an existing structure into a common interest community of twenty or more residential units.
According to Colorado's landlord-tenant law, a warrant of habitability: A- exists only on new construction for up to one year. B- exists on rental property unless any reason for being unfit for habitation is caused by the tenant. C- does not exist. D- does not exist unless it the reason for being unfit gives immediate proximate cause for vacating the premises.
B- exists on rental property unless any reason for being unfit for habitation is caused by the tenant.
An applicant for an initial broker license: A- must apply for renewal within two years from the date of issue. B- must first be issued an active license before requesting inactive status. C- must post a security bond in lieu of having an employing broker. D- may apply for an inactive license.
B- must first be issued an active license before requesting inactive status.
A licensee may meet the continuing education requirement for each 3-year license renewal by: A- using the waiver for work performed in lieu of continuing education. B- passing the Colorado portion of the broker licensing exam. C- completing the annual Commission Update Course twice during the prior 3 year license period. D- purchasing supplemental C-E errors and omissions insurance.
B- passing the Colorado portion of the broker licensing exam
Which of the following cases is one where the broker has NOT earned a commission, according to the Exclusive Right to Sell contract? A- A buyer makes a full-price offer. The seller rejects the offer. B- A person with whom the broker negotiated during the listing period, but whose name was not submitted to the seller, buys the property during the holding period. C- A broker other than the listing broker finds a ready, willing and able buyer during the listing period. D- Another brokerage firm, acting under an exclusive agreement entered into during the holdover period, effects a sale, but the "Shall owe a commission" box was checked on the original exclusive agreement.
B- A person with whom the broker negotiated during the listing period, but whose name was not submitted to the seller, buys the property during the holding period.
The receipt portion of the "Closing Instructions and Earnest Money Receipt" form is intended for the: A- Broker to receipt for earnest money from the buyer. B- Closing entity to receipt for the earnest money from the broker. C- Seller to acknowledge receipt of earnest money to be held by the broker. D- Closing entity to receipt for its closing fees.
B- Closing entity to receipt for the earnest money from the broker.
A broker using a franchise or trade name owned by another on "for sale" signs on specific property must include the: A- Listing broker's name and telephone number. B- Employing broker's name as registered with the Commission. C- Brokerage firm name in larger print than the listing broker's name. D- Brokerage firm's address.
B- Employing broker's name as registered with the Commission.
What type of deed is specified in the Transfer of Title section of the Contract to Buy and Sell Real Estate? A- Master Deed B- General Warranty C- Bargain and Sale D- Good and sufficient
B- General Warranty
Which of the following is an example of the high level of supervision (not the "reasonable" level exercised with experienced licensees) employing brokers are required to exercise over licensees with under two years of experience? A- Maintaining written office policies B- Monitoring transactions from listing to closing C- Reviewing transaction files D- Reviewing executed contracts
B- Monitoring transactions from listing to closing
According to the Contract to Buy and Sell Real Estate, if a survey is required by the lender, it is paid for by the _____ . A- Lender. B- Party (ies) named in the contract. C- Seller. D- Buyer.
B- Party (ies) named in the contract.
The employing broker shall create an Office Policy and Procedure Manual which contains: A- Lists of areas the company will list and sell in. B- Procedures for handling brokerage relationships, broker designation and property management. C- None of these. D- A and B only.
B- Procedures for handling brokerage relationships, broker designation and property management.
To properly counter a buyer's offer, a seller will: A- Sign the original offer and counter proposal. B- Sign the counter proposal only. C- Mark and initial the counter proposal changes on the original offer. D- Prepare a new Contract to Buy and Sell Real Estate for the buyer's signature.
B- Sign the counter proposal only.
A company manages 10 single-family units that are currently leased. The firm also holds 10 security deposits and 3 earnest money deposits. What is the minimum number of trust accounts required? A- One B- Three C- Thirteen D- Twenty-three
B- Three
When a broker is acting as a buyer agent, the buyer is _____ . A- Vicariously liable for the acts of the broker. B- Vicariously liable only for the acts of the broker that buyer approved, directed or ratified. C- Liable for acts of the broker only in an agency brokerage relationship. D- Protected from liability for the actions of the broker/agent.
B- Vicariously liable only for the acts of the broker that buyer approved, directed or ratified.
The Commission-approved Exclusive Right to Sell Listing Agreement contains all of the following EXCEPT: A- inclusions and exclusions. B- a section requiring entry into the MLS. C- seller's name, property address and legal description. D- price and terms.
B- a section requiring entry into the MLS.
If a client requires a precise measurement, a licensee should: A- perform the measurement as accurately as possible. B- advise the client to have an independent measurement done by an appraiser. C- advise the client to perform the measurement him- or herself. D- inform the client that his estimate is as good as an appraiser's measurement
B- advise the client to have an independent measurement done by an appraiser.
The seller's property disclosure form: A- guarantees the accuracy of the information disclosed. B- advises the buyer to inspect the property. C- establishes whether an item is included or excluded from the sale. D- makes a property survey unnecessary.
B- advises the buyer to inspect the property.
The Colorado Real Estate Commission requires subdivision registration for all of the following EXCEPT: A- residential time-shares. B- residential apartment-to-condominium conversions. C- bulk land sales between developers. D- properties subdivided into 20 or more residential lots.
C - bulk land sales between developers.
If the Colorado Real Estate Commission takes disciplinary action that is confirmed by an administrative law judge in a public hearing, a broker has how many days to file written objections to that disciplinary action before it becomes final? A- 10 days B- 20 days C- 30 days D- 60 days
C- 30 days
How many escrow accounts is a Colorado broker allowed to maintain? A- A number equal to the number of property ledgers maintained B- One C- An unlimited number D- As many as there are clients needing money to be held
C- An unlimited number
The Contract to Buy and Sell Real Estate states that earnest money is held on behalf of: A- Buyer B- Seller C- Buyer and seller D- Broker
C- Buyer and seller
Which of the following is NOT required by Colorado subdivision law? A- Real property that is divided into 20 or more interests must be registered. B- Developers must hold developer certification before selling their lots. C- Commercial and industrial property, as well as residential, must be registered. D- A five day cancellation period is required after the execution of any contract
C- Commercial and industrial property, as well as residential, must be registered.
A title company charge for legal document preparation is the responsibility of the: A- Seller. B- Buyer. C- Employing Broker. D- Party named in the Closing Instructions.
C- Employing Broker.
A broker may negotiate the terms upon which to take a future listing, or even take a listing to become effective upon expiration of an existing exclusive listing provided the broker: A- Contacts the seller who agrees to future dealings. B- Contacts the current listing broker and requests permission to seek the seller's future business. C- Is contacted by the current owner. D- Confirms the lack of any potential conflict with the firm's attorney.
C- Is contacted by the current owner.
When a dispute arises over the earnest money and absent any mutual instructions from the principals, the earnest money holder shall: A- Employ a mutually acceptable arbitrator. B- Return the money in a manner deemed fair to the parties. C- Not be required to take any action. D- Interplead the money to the county court.
C- Not be required to take any action.
Which of the following is NOT covered under the Colorado Fair Housing Act? A- Sex B- Handicap C- Occupation D- Sexual orientation
C- Occupation
The Exclusive Right-to-Sell Listing contract authorizes the Broker to do the following: A- Present only a reasonable offer to the sellers. B- May obligate the broker to seek additional offers to purchase once property is subject to a contract for sale. C- Seller consents to broker sharing confidential information with the supervising broker for proper employing broker supervision. D- May not have other listing agreements with other sellers.
C- Seller consents to broker sharing confidential information with the supervising broker for proper employing broker supervision.
The Contract to Buy and Sell Real Estate places the responsibility to furnish common interest community governing documents to the buyer on the: A- listing broker. B- buyer broker. C- Seller. D- Homeowner's association
C- Seller.
In Colorado, a deed of trust held by a public trustee is foreclosed according to which of the following guidelines? A- The trustee must seek a court order for the sale. B- The trustee must record the notice of foreclosure within 1 day of receiving the notice. C- The lender must seek to cure the default. D- The trustee must publish the "combined" foreclosure notice once per week for 5 weeks
C- The lender must seek to cure the default.
A listing broker is responsible for: A- measuring the square footage of all residential listings taken. B- comparing any personally measured square footage with a second source. C- accurately representing whatever source of square footage is used. D- using the square footage provided by the County Assessor's office.
C- accurately representing whatever source of square footage is used
In Colorado, the following are all violations of the Colorado License Law EXCEPT: A- failure to account for or remit trust funds. B- receiving any secret compensation. C- acting for more than one party with the full knowledge of all parties. D- failure to provide a closing statement.
C- acting for more than one party with the full knowledge of all parties
When a real estate company is sold, merged, or goes out of business: A- all listings are automatically transferred to the new company. B- the current firm must release all current listings and contracts. C- all interested parties must be notified and permission granted to transfer any existing listings and escrow funds. D- earnest money should be released back to buyers.
C- all interested parties must be notified and permission granted to transfer any existing listings and escrow funds.
The Commission-approved Listing Firm's Well Checklist is intended to: A- disclose well inspection data to a prospective buyer. B- warrant the seller's representations about the water supply. C- assist the listing broker and seller in gathering data about a property's well. D- verify the county's well inspection records.
C- assist the listing broker and seller in gathering data about a property's well.
The Commission-approved "Change of Status" form is used and signed: A- concurrently with each listing agreement taken as agent. B- concurrently with each listing agreement taken as transaction-broker. C- at the time a brokerage relationship changes from agency to transaction-broker. D- at the time the brokerage relationship changes from designated broker to transaction broker.
C- at the time a brokerage relationship changes from agency to transaction-broker.
The Contract to Buy and Sell Real Estate allows the buyer to terminate the contract without penalty by: A- stating that the financing is unsatisfactory. B- claiming that the inspection was biased. C- deciding, for any reason, to back out. D- stating that the price and terms are unsatisfactory.
C- deciding, for any reason, to back out.
A licensee may accept a commission or fee from: A- a cooperating broker. B- a title insurance company. C- his/her employing broker. D- a home warranty provider.
C- his/her employing broker.
If a Contract to Buy and Sell Real Estate terminates according to its terms without dispute between the parties, earnest money is: A- split between the parties. B- held until both parties sign a release. C- immediately returned to the buyer. D- held until the seller signs a release.
C- immediately returned to the buyer.
The buyer's signature on the Seller's Property Disclosure (Residential) form: A- allows the broker to affirm the seller's report of the property condition. B- may be a suitable alternative to a property inspection. C- indicates the buyer's receipt of the information. D- warrants the information provided.
C- indicates the buyer's receipt of the information.
An applicant who has been convicted of or plead nolo contendere to a misdemeanor or felony or any like municipal code violation, among other charges, must file complete documentation of the offense if it occurred within the: A- last year. B- last 5 years. C- last ten years. D- State of Colorado at any time.
C- last ten years.
Licensees are specifically prohibited from charging a separate fee for: A- recording. B- loan document preparation. C- legal document preparation. D- good faith estimate preparation.
C- legal document preparation.
A check received as earnest money: A- must be in the form of "good funds." B- may not be a business check. C- must be identified as a check in the Contract to Buy and Sell Real Estate. D- may be held in the broker's safe for safe keeping.
C- must be identified as a check in the Contract to Buy and Sell Real Estate
After a foreclosure sale, a Colorado homeowner has _____ . A- 110 days to redeem the property. B- 230 days to redeem the property. C- no right to redeem the property. D- the right to request a redemption period.
C- no right to redeem the property
Prior to engaging in any brokerage activities, a broker intending to act as an agent for a seller must _____ . A- explain the brokerage's fee structure to the seller. B- establish an escrow account for funds into and out of the transaction. C- obtain a written employment agreement naming both seller and broker. D- inspect the property for any latent deficiencies.
C- obtain a written employment agreement naming both seller and broker.
If the seller ignores the buyers' request for repairs in the "Notice to Correct," the buyers may still purchase the property if they withdraw the "Notice to Correct:" A- three days after the "Inspection Objection Deadline." B- two days after the "Governing Documents & Title Inspection Deadline." C- on or before the end of the "Inspection Resolution Deadline" D- the buyer does not have the option of waiving the "Notice to Correct."
C- on or before the end of the "Inspection Resolution Deadline"
A Colorado real estate broker license may be revoked by: A- the Commission's Chief of Enforcement. B- any court upon a guilty finding of a felony count. C- only a majority vote of the appointed Commissioners. D- the Director of the Real Estate Commission
C- only a majority vote of the appointed Commissioners.
When brokering properties for a lending institution or government agency that uses its own listing contracts, a Colorado licensee must _____ . A- have the client sign a backup listing contract that complies with Colorado standards. B- refuse to sign the listing form and proceed without a signed contract. C- prepare and provide an addendum disclosing brokerage duties to the seller. D- decline to use the agency's listing contract and refuse the assignment.
C- prepare and provide an addendum disclosing brokerage duties to the seller.
The Commission-approved Earnest Money Receipt form is: A- required before disbursing any earnest money in a failed transaction. B- unnecessary in most transactions because it is duplicated in the Contract to Buy and Sell Real Estate. C- required when a broker transfers earnest money to a new earnest money holder. D- given to the seller in lieu of the actual earnest money.
C- required when a broker transfers earnest money to a new earnest money holder.
Under Colorado case law, title insurance companies that prepare legal documents in connection with providing closing services are acting as: A- their own legal counsel. B- legal counsel chosen by the seller and buyer. C- scriveners of the broker. D- independent contractors.
C- scriveners of the broker.
The Commission has the power to: A- enforce the Colorado Code of Ethics. B- incarcerate licensees who violate the broker section of the license law. C- subpoena witnesses to attend hearings. D- issue restraining orders against licensees.
C- subpoena witnesses to attend hearings.
The Contract to Buy and Sell Real Estate requires the buyer to: A- tender the earnest money deposit along with the contract unless an alternative earnest money deadline has been agreed upon. B- provide a copy of an earnest money check or promissory note along with the contract. C- tender the earnest money deposit within three days of signing the contract. D- tender the earnest money deposit and wait for the check to clear before submitting the contract to the seller.
C- tender the earnest money deposit within three days of signing the contract.
The following statements concerning the Seller's Property Disclosure (Residential) are all true EXCEPT: A- the form is not intended as a substitute for an inspection. B- the seller's indication that an item is "working" is not a warranty of future operability. C- the broker should complete the form for the seller so that it will be done correctly. D- the seller's signature certifies that the information is correct according to the "seller's current actual knowledge."
C- the broker should complete the form for the seller so that it will be done correctly.
Broker A may demand a referral fee of Broker B for helping in a transaction if: A- Broker A assisted at the closing. B- Broker A introduced a buyer to the seller. C- the brokers had a referral or cooperative brokerage agreement prior to the closing. D- the brokers have traded commission splits in the past
C- the brokers had a referral or cooperative brokerage agreement prior to the closing.
The Agreement to Amend/Extend Contract if used with the Contract to Buy and Sell Real Estate must be signed by: A- the buyer only. B- the seller only. C- the buyer and seller. D- the buyer, seller and broker.
C- the buyer and seller.
Under the Exclusive Right-to-Buy Contract, the buyer may choose to have the buyer agent paid by any of the following EXCEPT: A- the buyer. B- the seller. C- the listing brokerage firm. D- the lender if the broker referred the buyer to that lender
D- the lender if the broker referred the buyer to that lender
Unless otherwise specified in the lease, the Landlord Tenant Act requires a landlord to return a tenant's security deposit within ____ of the termination of a lease. A- One week B- 10 days C- 21 days D- One month
D - One month (30 days)
Which of the following information can a buyer agent reveal without violating fiduciary loyalty to the buyer? A- The buyer's willingness to pay more than the price being offered B- The buyer's motivation for choosing a particular property C- The buyer's place of employment and annual income D- The buyer's failure to qualify for financing on a previous purchase offer
D - The buyer's failure to qualify for financing on a previous purchase offer
If a seller fails to deliver possession of a property that is the subject of a Contract to Buy and Sell Real Estate at the possession date and time, _____ . A- the contract is terminated. B- the buyer can force entry. C- the possession date must be amended. D- the seller is subject to eviction and a specified payment penalty per day.
D- the seller is subject to eviction and a specified payment penalty per day.
The Exclusive Right-to-Buy contract provides for payment of the brokerage firm's fee by optional instruction for the: A- Broker to request payment from the listing brokerage firm with the buyer obligated to pay any difference between that amount and the total fee. B- Broker to request payment from the seller with the buyer NOT obligated to pay any part of the fee. C- Buyer to pay the entire fee. D- All of the above.
D- All of the above.
Under the Colorado Foreclosure Protection Act, _____ . A- The Act applies when the property is residential. B- The loan secured by the property is at least 30 days delinquent or in default. C- The property is the seller's primary residence. D- All of the above.
D- All of the above.
Water in Colorado is: A- Not an appurtenance. B- Right must be specifically mentioned in deed. C- In form of water rights appropriated by the courts. D- All of the above.
D- All of the above.
Which of the following, if any, is exempt from the Colorado Real Estate License Law? A- An option dealers B- A person offering only leasing services C- An out-of-state broker acting without a co-broker in Colorado D- An entity or person acting on its own behalf as a principal
D- An entity or person acting on its own behalf as a principal
A listing broker may claim a commission under the holdover provisions of the Contract to Buy and Sell Real Estate within how many days after the listing expires? A- 30 days B- 60 days C- 90 days D- As negotiated in the contract
D- As negotiated in the contract
After investigating a complaint and holding a hearing, the Colorado Real Estate Commission may NOT: A- Impose an administrative fine of up to $2,500.00 for each separate offense. B- Censure a licensee. C- Temporarily suspend or permanently revoke a license. D- Assess actual damages.
D- Assess actual damages.
The Colorado commission-approved Earnest Money Release Form: A- Is mandatory. B- Allows for a division of money between seller and buyer. C- Details the property, names of buyer and seller, date of contract. D- B and C only.
D- B and C only.
According to real estate commission rule, earnest money must be deposited within 3 business days after _____ . A- the check clears. B- the seller releases the funds. C- the broker receives the funds. D- the broker receives notice of contract acceptance.
D- the broker receives notice of contract acceptance.
In the Exclusive Right-to-Sell Listing Contract, a licensee is working with a buyer as a transaction broker unless: A- the buyer is not represented by anyone else. B- the licensee is designated by the employing broker to work as the buyer's agent. C- the buyer verbally agrees to be represented by the licensee. D- the buyer agency box is checked.
D- the buyer agency box is checked.
Which of the following is NOT considered "Good Funds"? A- Cash. B- Electronically transferred funds. C- A certified check. D- A broker's trust account check.
D- A broker's trust account check.
Which of the following types of property is covered by the Colorado Subdivision law? A- A commercial office divided into suites B- A build-to-suit sale that includes the cost of a planned building C- 20 adjoining lots under the supervision of a municipal planning authority D- A building divided into 20 cooperative units
D- A building divided into 20 cooperative units
To begin the foreclosure process: A- Public trustee shall record a notice within 10 days. B- Public trustee will mail the "combined notice" to everyone on lender's mailing list. C- Public trustee must publish the notice in a general circulation newspaper once per week for 5 weeks. D- All of the above.
D- All of the above
Colorado Fair Housing Law protects three additional protected classes in addition to those protected by Federal Law, including: A- Marital status. B- Sexual orientation. C- Economically disadvantaged citizens. D- A and B only.
D- A and B only.
Which of the following statements about the Commission-approved Lead-Based Paint Disclosure (Sales) form is FALSE? A- It is to be attached to the Contract to Buy and Sell Real Estate when applicable. B- It must be prepared and presented before an offer to purchase is presented. C- Absence of the buyer's signed acknowledgement can void the contract. D- It applies to all properties without exception.
D- It applies to all properties without exception.
The Commission-approved Seller's Property Disclosure form: A- Is mandatory in every transaction. B- Applies only to commercial properties. C- Must be verified by the listing broker. D- None of the above.
D- None of the above.
According to Commission Rule F, brokers printing commission-approved Contracts to Buy and Sell Real Estate may do all of the following EXCEPT: A- Add their firm name, address, phone, and Company logo identifying data. B- Enlarge or reduce blank spaces to a size that is convenient to the broker. C- Add pre-printed provisions within the body of the form. D- Replace the lead-based paint paragraph with the words "omitted."
D- Replace the lead-based paint paragraph with the words "omitted."
A buyer would be LEAST likely to rely on square footage measurement provided by the _____ . A- Prior appraiser. B- Builder's plans. C- County Assessor. D- Seller.
D- Seller.
According to the Exclusive Right-to-Sell Listing Contract, a designated broker may share a seller's confidential information with: A- Any other brokers within the same brokerage firm. B- A supervising broker. C- A broker with more than two years' experience. D- The supervising broker when the listing Contract is signed by the Seller.
D- The supervising broker when the listing Contract is signed by the Seller.
What is the purpose of the "Source of Water" addendum to the Contract to Buy and Sell Real Estate? A- To enable the buyer to assess the long-term prospects for water availability on the property B- To disclose the production rate of any wells on the property C- To disclose the mineral content of water on the property D- To specify the water rights being conveyed with the property
D- To specify the water rights being conveyed with the property
The Exclusive Right-to-Sell Contract includes: A- a clause allowing the owner to sell the property without owing the broker a commission. B- an automatic power of attorney for the broker to sign for the seller. C- compensation to be paid to brokers outside the brokerage firm. D- an agreement to provide a commitment for a mortgagee's title insurance
D- an agreement to provide a commitment for a mortgagee's title insurance
In the standard Contract to Buy and Sell Real Estate in Colorado, an item will be included in the purchase price as a fixture if it is: A- heavy and difficult to remove. B- an amenity that was described in the advertisements. C- on the premises on the date of the transfer. D- attached to the property on the date of the contract
D- attached to the property on the date of the contract
Credit union trust accounts are suitable for: A- earnest money deposits. B- security deposits. C- rental receipts. D- brokerage operating account funds.
D- brokerage operating account funds.
Under the Commission-approved Exclusive Right to Sell contract, the seller promises to: A- pay the broker a commission even if no buyer is procured. B- accept any reasonable offer. C- pay a commission to any cooperating brokers who bring in qualified buyers. D- conduct all sale-related negotiations through the broker.
D- conduct all sale-related negotiations through the broker.
The additional duties of a seller's agent over and above those uniform duties required of a transaction broker include all of the following EXCEPT: A- promoting the interests of the seller with the utmost good faith, loyalty and fidelity. B- seeking a price and term as spelled out in the listing contract. C- presenting all offers to the seller in a timely manner. D- counseling the seller as to any known material benefits or risks.
D- counseling the seller as to any known material benefits or risks.
The penalty for a landlord who fails to return a security deposit with an accounting for amounts withheld within the allowed time limit is: A- suspension of the right to lease to a new tenant for six months. B- double the amount of the amount wrongfully withheld. C- punitive damages in an amount determined by the court. D- forfeiture of any claim on the deposit and possibly triple the amount wrongfully withheld.
D- forfeiture of any claim on the deposit and possibly triple the amount wrongfully withheld.
Every resident Colorado real estate broker must maintain an office open to the public, EXCEPT for: A- independent brokers. B- dual-residency brokers. C- franchised brokers. D- inactive brokers.
D- inactive brokers.
A listing to sell a property secured by an employed broker is _____ . A- the personal property of the employed broker. B- owned jointly by the employing and employed brokers. C- is transferred with the employed broker to any new brokerage firm. D- is the property of the seller and listing brokerage firm.
D- is the property of the seller and listing brokerage firm.
The Contract to Buy and Sell Real Estate allows the buyer to do a walk-through of the property: A- with three days' notice at any time before the inspection deadline. B- without notice 24 hours before closing. C- without notice at any time. D- prior to closing with reasonable notice.
D- prior to closing with reasonable notice.
The reasonable level of supervision an employing broker is expected to exercise over experienced licensees includes: A- tracking the licensee's working hours to insure productivity. B- preparing contracts for the licensee. C- monitoring transactions from contract to closing. D- reviewing executed contracts.
D- reviewing executed contracts.
Under the Contract to Buy and Sell Real Estate, a document sent by the seller to the buyer is deemed effective when: A- physically received by the buyer. B- placed in a mail box. C- postmarked. D- signed by the seller.
D- signed by the seller.
When a promissory note is received as earnest money, the seller must be informed by identifying the note in the contract and _____ . A- attaching a "Disclosure of Promissory Note" to the contract. B- recording the note in the county office. C- giving the seller a post-dated check drawn on the buyer's account. D- stating the due date in the contract or attaching a copy of the note
D- stating the due date in the contract or attaching a copy of the note
The Commission-approved Inspection Notice provides for all of the following EXCEPT: A- the buyer's right to terminate the contract. B- the buyer's right to request correction of unsatisfactory physical property conditions. C- the seller's right to reject the buyer's requests for repairs. D- the seller's right to modify the inspection resolution deadline
D- the seller's right to modify the inspection resolution deadline
When an employed broker signs a settlement statement, _____ . A- the statement is invalidated. B- the employing broker is relieved of any supervisory responsibility. C- the employing broker must be present at the closing. D- the statement must be delivered to the employing broker immediately after closing.
D- the statement must be delivered to the employing broker immediately after closing.
A broker is required to maintain copies of all of the following documents EXCEPT: A- employment agreements. B- sales contracts. C- commission agreements. D- title commitments.
D- title commitments.
"Additional Provisions" in the Commission- approved Contract to Buy and Sell Real Estate is for: A- items requiring broker disclosure. B- any change in the commission due to the brokerage firm. C- disclaimers or exculpatory language by the brokerage firm. D- transaction specific items negotiated by or instructed by the parties.
D- transaction specific items negotiated by or instructed by the parties.
Absent a written Commission-approved employment agreement with the "Agent" box checked, Colorado real estate license law presumes a licensee is acting in a transaction as a _____ . A- designated agent. B- single agent. C- sub-agent. D- transaction-broker.
D- transaction-broker.
The Colorado Real Estate Commission has the power to investigate the real estate activities of any licensee: A- only in conjunction with the attorney general's office. B- only if a complaint is filed by another broker. C- only if a complaint is filed by a member of the public. D- upon its own motion.
D- upon its own motion.
The Colorado Contract to Buy and Sell Real Estate provides for a "walk-through" of the property prior to closing for the purpose of: A- identifying any last minute seller repair items. B- confirming square footage measurement. C- verifying that the property is in move-in condition. D- verifying that the property and inclusions comply with the contract.
D- verifying that the property and inclusions comply with the contract.
