CO 48HR Contracts & Regulations Course

Under a Colorado deed of trust, who holds legal title to the property until the loan is paid in full? A. An attorney B. A public trustee C. The Hawkins D. The lender

B. A public trustee

According to national standards for measuring square footage of a dwelling, which space should be included? A. Attached accessory apartment B. Garage C. Unfinished attic D. basement

A. Attached accessory apartment

You represent a tenant as a single agent and are showing her several properties today. Which disclosure would you provide to prospective landlords so they know what relationship exists? A. Brokerage disclosure B. Change of Status C. Definitions of Working D. Relationships Lease

A. Brokerage disclosure

The Colorado Common Interest Ownership Act encompasses which of the following types of properties? A. Condominiums B. Hotels C. Mobile homes D. Retail properties

A. Condominiums

Colorado law requires Dual Status Disclosure forms to be kept for _______ years. A. Five B. Four C. Three D. Two

A. Five

Which of the following is true regarding national standards for measuring square footage? A. They're required. B. They're voluntary but recommended. C. You should measure to the nearest foot. D. You should only include attic square footage if the ceiling height exceeds six feet.

B. They're voluntary but recommended.

Which option best defines prior-appropriation water rights? A. According to need, not greed B. Closest to source, first in right C. First in time, first in right D. Tied to the land itself

C. First in time, first in right

The Listing Contract Amend-Extend allows the client and broker to change the termination date of a listing contract. Without using the "Additional Provisions" section of the contract, what other components of a listing contract can be changed on this agreement? A. Compensation B. Designated agent C. Listing price D. Marketing plan

C. Listing price

What law requires local authorities to publish the whereabouts of registered sex offenders? A. Criminal law B. Fair housing amendment #12 C. Megan's Law D. Sunshine Law

C. Megan's Law

Jim would like to sell his home himself. What is the minimum real estate license he must possess? A. Broker B. Certification C. None D. Sales agent

C. None

The Colorado Real Estate Commission received a complaint from a consumer, claiming that licensee Mina hadn't made sufficient disclosure about a property defect she knew of. After investigation, Mina is informed that there will be a disciplinary hearing. Which of these will occur? A. Mina must inform all her clients from the past year of the hearing date and reason. B. Mina must inform her employing broker of the upcoming hearing. C. The commission will inform Mina's employing broker of the upcoming hearing. D. The commission will notify all Mina's current clients that she's being investigated.

C. The commission will inform Mina's employing broker of the upcoming hearing.

Where are Colorado Real Estate Commission hearings usually held? A. Each region of the state, on a rotating basis B. In the city where the licensee is based C. In the Colorado Supreme Court chambers D. In the county where the commission has its offices

D. In the county where the commission has its offices

Section 11 of the Colorado commercial sales contract, titled__________________, is essential information for commercial property that's being leased but is generally not needed for residential transactions. A. Due Diligence B. Estoppel Statements C. Inclusions and Exclusions D. Possession

B. Estoppel Statements

A buyer who's depending on ______ may be priced out of the market when interest rates rise. A. Creditworthiness B. Obtaining a specific interest rate C. Pre-approval D. Self-employment income

B. Obtaining a specific interest rate

Despite several notifications, Nina has failed to pay her HOA fees month after month. Now the association has started foreclosure action. What type of lien does Nina have against her property? A. Judgment B. Property tax C. Special assessment D. Super

D. Super

Which one of the following could be a clue that a property was formerly a waste disposal site? A. Birds constantly on the property B. Plate covering an oil fill area C. Scorch marks on trees surrounding the area D. Soft spots, mounds, and discolored soil

D. Soft spots, mounds, and discolored soil

A buyer and seller have signed the Colorado Contract to Buy and Sell Real Estate (Residential). After signing, the seller no longer wants to sell the house. The buyer sues the seller to force the sale in accordance with the contract. This is known as _________. A. Contract completion B. Liquidated damages C. Partial performance D. Specific performance

D. Specific performance

If property owners in Colorado fail to pay their state income taxes, which lien might be applied to their property? A. Mechanic's lien B. Property tax C. Special assessment D. State tax

D. State tax

A buyer may terminate a Colorado commercial sales contract based on ________ that the environmental inspection is not satisfactory. A. A Colorado attorney's opinion B. CREC-issued acceptable guidelines C. Results from a second inspection D. The buyer's sole subjective discretion

D. The buyer's sole subjective discretion

Sandra is already representing the landlord when a tenant expresses interest in leasing the property and asks Sandra to represent her, as well. How will Sandra indicate what her working relationship is with the tenant when the two are completing the Colorado Exclusive Tenant Listing Contract? A. Landlord's agent B. Landlord's and Tenant's agent C. Tenant's agent D. Transaction-broker

D. Transaction-broker

Who are the parties to a contract for deed? A. Maker and payee B. Mortgagor and mortgagee C. Trustor, beneficiary, and trustee D. Vendee and vendor

D. Vendee and vendor

What is included in a Phase I Environmental Site Evaluation? A. Access to educational materials regarding common environmental hazards on commercial properties B. Evaluation, testing, and remediation for the presence of hazardous chemicals C. Laboratory testing of soil and water for the presence of toxic chemicals D. Visual inspection and research about hazardous chemicals used on the property

D. Visual inspection and research about hazardous chemicals used on the property

In Colorado, if one party decides to terminate a seller-financed contract based on unsatisfactory financing terms, what must that party deliver to the other? A. 1% of the purchase price B. A notarized termination notice C. The earnest money deposit D. Written notice

D. Written notice

Associate broker Doug's unlicensed assistant, Fred, is the best hiring decision Doug ever made. Doug gets twice as much done with his help. He's so efficient that Doug gets a little careless about supervising his work, and one day it turns out that Fred's been embezzling funds from a brokerage account. Is Doug at fault? A. No, as long as he was unaware of his assistant's actions. B. No, since Doug isn't an employing broker he can't be held responsible for his assistant's actions. C. Yes, Colorado licensees are prohibited from employing unlicensed personal assistants. D. Yes, Doug can be held legally liable for his employee's actions.

D. Yes, Doug can be held legally liable for his employee's actions.

What's the purpose of the Green Disclosure form in Colorado? A. Allows the seller, and the seller's agent, to market the property as a green property B. Discloses that the property has been ENERGY STAR certified C. Discloses the presence of a green belt adjacent to the property D. Identifies the presence or absence of wetlands or endangered animals within a specified proximity of the property

A. Allows the seller, and the seller's agent, to market the property as a green property

Which of the following cases decided by the Colorado Supreme Court led to the adoption and promulgation of CREC rules regarding the use of standard forms? A. Conway-Bogue vs. Denver Bar Association B. Record Abstract & Title CO. vs. Denver Bar Association C. Title Guaranty Co. vs. Conway-Bogue D. Title Guaranty Co. vs. Denver Bar Association

A. Conway-Bogue vs. Denver Bar Association

Which of the following is a requirement when an investor participates in a reverse 1031 exchange? A. Creating an exchange accommodation titleholder (EAT) B. Holding title to both the replacement property and the un-relinquished property simultaneously C. Identifying a replacement property within 180 days D. Involving a qualified intermediary (QI)

A. Creating an exchange accommodation titleholder (EAT)

Which of the following is a common chimney or fireplace problem? A. Creosote B. Damage around the fascia C. Holes in the soffit D. None of these

A. Creosote

In which of these scenarios must the real estate licensee include this notice with the CMA: "This evaluation was prepared by a licensed real estate broker and is not an appraisal. This evaluation cannot be used for the purposes of obtaining financing." A. Dan performs a CMA for the court handling probate proceedings. B. Lisa performs a CMA for her buyer client before making an offer on the property. C. Ralph performs a CMA to suggest a list price range to his seller client. D. Tammy performs a CMA on an investment property for her buyer client.

A. Dan performs a CMA for the court handling probate proceedings.

As of 2021, what's the date by which Colorado real estate brokers must renew their licenses? A. December 31 B. January 1 C. June 30 D. License anniversary date

A. December 31

___________ occurs when a party to a contract is in breach of that contract. A. Default B. Liquidated damages C. Return of earnest money D. Specific performance

A. Default

Denver licensee Angela is meeting with buyers Dean and Samantha Winchester for the first time. Before she forms an agency agreement with them, she must present them with which of the following? A. Definitions of Working Relationships form B. Exclusive Right-to-Buy Listing Contract C. The Contract to Buy and Sell Real Estate (Colorado Foreclosure Protection Act) D. The Contract to Buy and Sell Real Estate (Residential)

A. Definitions of Working Relationships form

Section 2.8, Growing Crops, of the Colorado land sales contract is used to __________________. A. Describe any agreement between the parties regarding disposition of crops currently growing at closing B. Describe the types of crops that have been historically grown on the property during the seller's ownership C. Describe the types of crops that may be grown on the property according to governmental authority D. Describe the types of crops that the buyer plans to grow after closing

A. Describe any agreement between the parties regarding disposition of crops currently growing at closing

You're an associate broker with two current clients. If you have a sudden illness and ask the commission to make your license inactive for a time, which of these is an action your employing broker must take? A. Designate another broker to represent your clients. B. Hold all of your commissions. C. Provide you with copies of all transactional records. D. Return any trust funds for your current transactions.

A. Designate another broker to represent your clients.

A licensee who acts as a single agent or transaction-broker to a transaction as the employing broker directs is a ________________. A. Designated broker B. Directed agent C. Dual agent D. Sub-agent

A. Designated broker

What could a broker do if his landlord client were interested in either finding a tenant to lease his property, or selling it to an interested buyer? A. Document this information in the lease listing contract. B. Handle one or the other and refer the landlord to another broker. C. Sign two contracts to run concurrently. D. Sign two contracts to run contiguously.

A. Document this information in the lease listing contract.

Samantha helped her neighbor sell his home by assisting with negotiations. She received no compensation for her assistance, however. Based on this one transaction, Samantha _______. A. Doesn't need a real estate license B. Must be a lawyer C. Must have a broker license D. Must have at least a sales agent license

A. Doesn't need a real estate license

ADA compliance documents are included in what set of documents pertaining to a commercial sales contract in Colorado? A. Due Diligence B. Earnest Money C. Inspection D. Loan Limitations

A. Due Diligence

Which section of the Colorado commercial sales contract differs most radically from the residential contract? A. Due Diligence B. General Provisions C. Parties and Property D. Purchase Price and Terms

A. Due Diligence

What must sellers provide prospective buyers of homes built prior to 1978, in addition to the federally required disclosure form? A. EPA lead safety pamphlet B. List of reputable home improvement contractors C. Verbal assurance that the home is lead-free before offering it for sale D. Written proof that the home is lead-free

A. EPA lead safety pamphlet

Which statement is true about licensing authorities? A. Each state has its own licensing authority. B. Each state has the exact same requirements for licensure. C. Enforcement is conducted at a national level. D. The National Association of REALTORS® enforces licensing laws nationally.

A. Each state has its own licensing authority.

A portion of Lance's property can be used by the local utility company to maintain its power lines. What is this an example of? A. Easement B. Eminent domain C. Encroachment D. Illegal use

A. Easement

Which is the required working relationship for unlicensed personal assistants? A. Either independent contractor or employee B. Full-time employee C. Independent contractor D. Part-time employee

A. Either independent contractor or employee

Who pays for the Improvement Location Certificate (ILC)? A. Either the buyer or the seller B. The buyer C. The lender D. The seller

A. Either the buyer or the seller

When a developer performs a bulk sale or transfer of a subdivision, it's ______________ under the Subdivision Developer's Act. A. Exempt B. Required to be registered C. Required to be renewed D. Unlawful

A. Exempt

Cameron served as a real estate broker and a mortgage loan originator in the same transaction. How many years must Cameron keep a copy of the Dual Status Disclosure? A. Five B. Four C. Three D. Two

A. Five

How many years is a mortgage loan originator, who also served as a broker in the same transaction, required to keep a copy of the Dual Status Disclosure on file? A. Five B. Four C. Three D. Two

A. Five

What happens when an appraiser determines a property's value to be less than the preapproved loan amount? A. Most buyers will have an appraisal contingency, so they can back out and receive a refund of their earnest money. B. Most sellers will have an appraisal contingency, so the seller can keep the buyer's earnest money. C. The buyer must make up the difference between the appraisal and the purchase price. D. The seller must make up the difference between the appraisal and the purchase price.

A. Most buyers will have an appraisal contingency, so they can back out and receive a refund of their earnest money.

Charles has passed the broker's licensing exam and is ready to submit his license application. He knows he needs an insurance policy, so he contacts his insurance agent and obtains a general liability policy. Will this meet the requirement for licensure? A. No, applicants must obtain a specific type of coverage called errors and omissions. B. No, he's required to obtain a surety bond for a minimum of $1 million. C. Yes, a general liability policy meets the commission's requirements. D. Yes, the commission accepts any insurance coverage the applicant chooses.

A. No, applicants must obtain a specific type of coverage called errors and omissions.

Is there any organizational type that isn't permitted to be licensed as a real estate broker? A. No, because all organizational types are eligible for licenses. B. Yes, corporations can't be licensed. C. Yes, no organization may hold a broker's license. D. Yes, partnerships can't be licensed.

A. No, because all organizational types are eligible for licenses.

When a Colorado licensee has a compensation dispute with an employing broker, what, if anything, is the Colorado Real Estate Commission empowered to do? A. Nothing; this is beyond the scope of the commission's authority. B. The commission can censure the broker or brokerage until the dispute is resolved. C. The commission can hold a hearing to determine how much compensation is owed. D. The commission can suspend or revoke the employing broker's license.

A. Nothing; this is beyond the scope of the commission's authority.

Which stage of an Environmental Site Assessment includes a visual inspection of the property meant to uncover the possible presence of toxic chemicals? A. Phase I B. Phase II C. Phase III D. Phase IV

A. Phase I

If a seller needs to remain in the home for a week after closing and the buyer agrees, what Colorado form accomplishes this? A. Post-Closing Occupancy Agreement B. Seller Rental Agreement C. Short-Term Lease Agreement D. Tenant Rent-Back Contract

A. Post-Closing Occupancy Agreement

Andrea was ready to submit her application for her broker's license, but she wasn't able to complete the process. What required documentation was Andrea missing? A. Proof of errors and omissions insurance B. Proof of good moral character from a professional colleague C. Record of a passing score of 90% on both portions of her licensing exam D. Records of an apprenticeship within the real estate industry

A. Proof of errors and omissions insurance

A seller is selling an agro-tourism business to a buyer. The sale of the 45-acre asparagus farm includes the on-site bed and breakfast. Who should prepare the contract offer? A. The buyer's attorney, who has five years' experience in land/business sales B. The buyer's broker, who has 15 years' experience C. The employing broker with 20 years' experience D. The seller's attorney, who has 25 years' experience in land/business sales

A. The buyer's attorney, who has five years' experience in land/business sales

Which of the following statements about a deed of trust used for a real estate loan in Colorado is true? A. The deed of trust creates a lien against the property. B. The deed of trust isn't commonly used for real estate loans in Colorado. C. The lender holds legal title to the property until the loan has been paid in full. D. There are two parties to a deed of trust agreement in Colorado: the buyer/borrower and the lender.

A. The deed of trust creates a lien against the property.

What's documented in the Exclusive Right-to-Lease Listing Contract as a landlord's disclosure obligation? A. The obligation to disclose any latent material defects B. The obligation to disclose any prior tenants with communicable diseases C. The obligation to disclose any psychological stigma associated with the property D. The obligation to disclose changing neighborhood crime statistics

A. The obligation to disclose any latent material defects

A seller wants to take the dwarf magnolia tree that's planted in the yard of the house she's selling. How should this appear in the Colorado sales contract? A. The tree should be listed under Exclusions. B. The tree should be listed under Inclusions - Attached. C. The tree should be listed under Inclusions - Not Attached. D. The tree should be listed under Other Inclusions.

A. The tree should be listed under Exclusions.

Which of the following sections of the CBS residential reminds the parties that different settlement providers offer various services, costs, and levels of quality? A. "Closing Instructions" B. "Disclosure of Settlement Costs" C. "Off-Record Title" D. "Transfer of Title"

B. "Disclosure of Settlement Costs"

The buyer is offering $300,000, and will be obtaining a new loan for 75% of the purchase price. The buyer is making a 25% down payment with a $3,000 earnest money deposit. There is no other financing involved. The Cash at Closing line will show: A. $70,000.00 B. $72,000.00 C. $75,000.00 D. $78,000.00

B. $72,000.00

Melissa is studying her options for completing continuing education so she can renew her license at the end of the three-year cycle. She's torn between the option to get credit hours and the option to just pass the state portion of the exam (she loves taking tests). Finally, she decides to go for the commission's recommended choice. How many hours of CE will she need to complete? A. 12 B. 24 C. 48 D. 72

B. 24

What does Colorado statute require to be made part of any sales contract involving property that's part of a common interest community? A. A bill of sale from the association to release the common area to the individual B. A bold-faced type disclosure C. An aerial view of the property and its surrounding area D. A waiver of the seller's community ownership rights

B. A bold-faced type disclosure

Which of these actions would NOT lead to disciplinary action from the Colorado Real Estate Commission? A. A broker convinces a consumer to break an existing listing agreement and sign with her instead. B. A broker fails to follow her brokerage's safety policies, which are part of her firm's office policy manual. C. A broker fails to properly handle trust funds from a client. D. A licensee uses discriminatory language in her marketing materials in an effort to target a specific audience.

B. A broker fails to follow her brokerage's safety policies, which are part of her firm's office policy manual.

Which of the following documents shows that the lender has verified the income information the buyer provided and has run the buyer's credit? A. A buyer agency agreement B. A pre-approval letter C. A pre-qualification letter D. A signed sales contract

B. A pre-approval letter

What's required in Colorado to legally sell a unit in a housing cooperative? A. A developer's license B. A real estate license C. A securities license D. A stock broker's license

B. A real estate license

Which of the following must appear in a Colorado Exclusive Tenant Listing Contract? A. Additional provisions B. A termination date for the agreement C. Tenant's agreement to extend deadlines that fall on Saturday, Sunday, or holidays D. The addresses of specific properties the tenant is interested in leasing

B. A termination date for the agreement

Which document is used to extend the termination date of listing contracts in Colorado? A. Agreement to Amend/Extend Contract B. Agreement to Amend/Extend Contract with Broker C. Post-Closing Occupancy Agreement D. Residential Addendum

B. Agreement to Amend/Extend Contract with Broker

When a buyer will be assuming the seller's loan, the Colorado commercial sales contract requires which piece of information regarding the existing loan in order to complete Section 4.6, Assumption? A. Amount of current escrow B. Amount of current principal and interest payment C. Length of original loan term D. Original borrower's credit score

B. Amount of current principal and interest payment

What's considered a kickback according to the Real Estate Settlement Procedures Act? A. Any fee paid for actual services rendered B. Any item of value received in return for referring business to a settlement service provider C. Educational material provided without receiving a referral in exchange D. The broker's commission

B. Any item of value received in return for referring business to a settlement service provider

In what way or ways do consumers compensate brokers for their services? A. As a fee for service only B. As a flat fee, fee for service, and/or percentage of sale C. As a flat fee only D. As a percentage of the sales price only

B. As a flat fee, fee for service, and/or percentage of sale

What's the appropriate way to use an addendum? A. Attach to a contract after execution B. Attach to a contract prior to execution C. Execute the addendum form at closing D. Execute the addendum form at the same time as the amendment form

B. Attach to a contract prior to execution

When you are completing Section 2.5.1, Inclusions, of the Colorado Contract to Buy and Sell Real Estate (Land), what is the most important guideline to use? A. Be as general as possible. B. Be as specific as possible. C. List only items that are attached to the land. D. List only items that will be conveyed by bill of sale.

B. Be as specific as possible.

Which item could be ENERGY STAR®-certified? A. Appliances B. Concrete driveway C. Landscaping D. Property grading

A. Appliances

In Colorado, if your property taxes for the year are more than $25 and you elect to pay them in one payment, when is that one payment due? A. April 30 B. August 1 C. February 15 D. June 15

A. April 30

A sod farm is under contract. One of the sod circles is scheduled to be harvested the week after closing. How should the value of this crop be addressed on the Colorado land sales contract? A. As an agreement between buyer and seller regarding growing crops under Section 2 of the contract B. As an inclusion or exclusion under Section 2 of the contract C. As a personal conveyance listed as an inclusion on the contract, but conveyed with a bill of sale D. On the Growing Crops Addendum attached to the contract

A. As an agreement between buyer and seller regarding growing crops under Section 2 of the contract

The fibers of what material are dangerous when inhaled because they can lodge in the lungs and intestines, causing cancer? A. Asbestos B. Lead paint C. Radon D. Silicone

A. Asbestos

A licensee with fewer than two years of experience with a salesperson's license in another state would only be eligible for which Colorado license level? A. Associate broker B. Corporate broker C. Employing broker D. Independent broker

A. Associate broker

Section 4.1 of the Colorado commercial sales contract lists the purchase price and terms. If the buyer will be assuming the seller's loan, which of these amounts will be listed in the Purchase Price and Terms table? A. Assumption Balance B. Current Interest Rate C. Current Principal and Interest D. Payment Loan Transfer Fee

A. Assumption Balance

The buyer clients have agreed to pay the brokerage firm's fee. Which of the following options reflect this agreement in Colorado's Exclusive Right-to-Buy Listing Contract? A. Buyer Will Pay. B. Listing Brokerage Firm or Seller May Pay. Buyer is NOT Obligated to Pay. C. Listing Brokerage Firm or Seller May Pay. D. Buyer IS Obligated to Pay. Not Applicable.

A. Buyer Will Pay.

What's equity skimming? A. Buying a property to take the equity out of it, but not satisfy any debt against it B. Flipping real estate for a profit C. Getting multiple appraisals and selecting the one with the highest value D. Selling for less than is owed to the lender

A. Buying a property to take the equity out of it, but not satisfy any debt against it

Which of the following contracts is used for properties in which the seller is 30 days delinquent or in default on the mortgage and is due equity after the sale? A. CBS Foreclosure Protection Act B. CBS Income-Residential C. CBS Residential D. CBS Short Sale

A. CBS Foreclosure Protection Act

Jan was pre-approved for a mortgage, and as soon as she found her dream home, she ran out and bought a house full of furniture on her credit card. Two weeks later, she found out that her loan had been denied. This is an example of what kind of financing issue? A. Change in financial circumstances B. Creditworthiness C. Financial market change D. Interest rate change

A. Change in financial circumstances

Which act was the first to prohibit any exceptions for discrimination based on race or color? A. Civil Rights Act of 1866 B. Fair Housing Amendments Act of 1988 C. Federal Fair Housing Act of 1968 D. Housing for Older Persons Act of 1995

A. Civil Rights Act of 1866

Which of the following CREC-approved forms is an attachment that's considered part of the Colorado Contract to Buy and Sell Real Estate (Residential), provided it's used in the transaction? A. Closing Statement B. Definitions of Working Relationships C. Seller's Property Disclosure D. Square Footage Disclosure

A. Closing Statement

Jackie and Jake Jakubowski are selling their home in Greeley, Colorado, to Gwen Svenson. The closing is on May 11. Unless it's otherwise specified in their sales contract, prorations will be calculated as of the _____________. A. Closing date (May 11) B. Date Gwen made her offer on the property C. Date the two parties agreed on the offer and signed the contract D. Last day of the month of closing (May 31)

A. Closing date (May 11)

Stella and Diana are part of a successful team at their large brokerage. Their advertisements are great at grabbing attention, which is one of the secrets to their success. However, they're also careful to follow the rules, so which of these words or phrases would they avoid in their team ads? A. Company B. Promise C. Star Team D. Your partner

A. Company

Jordan has just been issued an active broker's license. Is he ready to start practicing as an independent broker in Colorado? A. He sure is! B. No, as a new broker he's required to work under an employing broker for his first two years. C. No, independent brokers are required to complete additional education and pass another exam. D. Yes, as long as he met his pre-licensing education requirement by obtaining a real estate-related degree.

B. No, as a new broker he's required to work under an employing broker for his first two years.

Your buyer client, Marcy, will have to obtain financing to purchase property. What's her first step? A. Complete a loan application B. Obtain a prequalification letter C. Sign a purchase agreement D. Write an offer

B. Obtain a prequalification letter

What's one of the required elements of a valid option contract? A. A range of sale prices for the property from which the optionee can choose B. The amount of consideration the optionee is paying the optionor C. The optionee's promise to buy the property D. The optionor's verbal assurance that the optionor won't sell the property to anyone else during the option period

B. The amount of consideration the optionee is paying the optionor

In the CBS residential contract, which of the following parties is responsible for choosing the title insurance company? A. The buyer B. The buyer or seller C. The lender D. The seller

B. The buyer or seller

Purcell is a company-designated licensed broker. If he leaves the company, or doesn't renew his license, what happens to the company license? A. The company has 30 days to designate another qualified individual. B. The company has 90 days in which to designate another qualified individual. C. The company has one year to designate another qualified individual. D. The company loses its license

B. The company has 90 days in which to designate another qualified individual.

Which of the following statements about Colorado's Exclusive Tenant Listing Contract is true? A. Early termination of the contract is allowed by either party without cause. B. The contract constitutes the entire agreement between the parties. C. The contract doesn't reflect any prior oral or written agreements between the parties. D. The tenant listing contract always creates an agency relationship

B. The contract constitutes the entire agreement between the parties.

A listing agent is planning to split the sale's commission with the agent who brings the buyer to the table. What's required for the listing agent to do this? A. A listing agent can't split the commission with a buyer's agent. B. The listing agent must get written approval from the seller. C. The property must sell for more than the list price. D. The property must sell for more than the owner still owes.

B. The listing agent must get written approval from the seller.

A Colorado licensee cooperated with an out-of-state licensee in a transaction. All activities were performed in Colorado, and all money collected was deposited in an account in the Colorado broker's name. What else is required for compensation to be paid to the out-of-state licensee? A. The Colorado licensee is also licensed in the out-of-state licensee's state. B. The out-of-state licensee lives and has an office outside of Colorado. C. The out-of-state licensee lives in Colorado but has an office outside the state. D. There are no other requirements.

B. The out-of-state licensee lives and has an office outside of Colorado.

Which party to a Colorado land sales contract that includes crops bears the risk for the crops' loss should they be damaged or destroyed during the contract period? A. The buyer, if within two weeks of closing B. The party entitled to the crops as described in Section 2.8, Growing Crops C. The party named under Section 19.6, Risk of Loss - Growing Crops D. The seller, at any time while the property is under contract

B. The party entitled to the crops as described in Section 2.8, Growing Crops

Within the legal document known as the power of attorney, the principal is ____________. A. The person accepting the responsibility for making legal decisions B. The person granting legal rights to another person C. The real estate broker in a transaction D. The witness to the power of attorney

B. The person granting legal rights to another person

What can happen when a seller misleads a buyer or withholds information on the Seller's Property Disclosure form? A. Fines of up to $500 may be assessed. B. The seller could be held liable for misrepresenting the property's condition, and so could the seller's agent if the agent knew of and failed to disclose the information. C. The seller could face prison time, not to exceed three years. D. The seller could lose the house to the state, after which the buyer would have the right of first refusal and prevailing market rates, less 10%.

B. The seller could be held liable for misrepresenting the property's condition, and so could the seller's agent if the agent knew of and failed to disclose the information.

What's the seller's obligation to provide due diligence documents requested by the buyer on a contract? A. The seller must provide all available documents before the Due Diligence Documents Delivery Deadline. B. The seller must provide all the documents before the Due Diligence Documents Delivery Deadline. C. The seller must provide all the documents prior to the scheduled closing date. D. The seller must provide all the documents within 30 days of the request.

B. The seller must provide all the documents before the Due Diligence Documents Delivery Deadline.

Regarding the sales contract form used in Colorado, which of the following statements is true? A. Colorado has one sales contract form that's used for all real estate sales transactions. B. There is no one standard form in Colorado that's used for all sales contracts. C. There is no sales contract form that can be used statewide in Colorado. D. The sales contract in Colorado isn't legally binding.

B. There is no one standard form in Colorado that's used for all sales contracts.

Which statement is true about the retention of publicly available records? A. Only state public records, not county or local records, should be retained. B. There's no need to retain public records in a broker's files. C. They need only be retained for one year after a transaction closes. D. They should also be retained for four years along with a broker's records.

B. There's no need to retain public records in a broker's files.

The Exclusive Right-to-Buy Listing Contract is used for which of the following purposes? A. To describe the different types of brokerage relationships available between licensees and consumers in Colorado B. To establish and outline a brokerage relationship between a broker and buyer C. To establish and outline an agency relationship between a broker and seller D. To make an offer to purchase on a residential property in Colorado

B. To establish and outline a brokerage relationship between a broker and buyer

In the closing provisions of the CBS residential, the buyer and seller agree that they'll cooperate with the closing company to allow it to prepare and deliver the required closing documents to the buyer, seller, and their agents. If there's a loan, to which of the following parties must the lender provide all required loan documents and loan-related financial information, according to the closing provisions section? A. To the buyer B. To the closing company C. To the seller D. To the seller, buyer, and their agents

B. To the closing company

When must the Colorado Change of Status form be completed? A. When a broker changes affiliation from one brokerage firm to another B. When a broker finds herself working with both parties in the same transaction C. When a broker's listing changes from For Sale to Under Contract D. When one of the parties' marital status changes and the agency agreements have to be modified

B. When a broker finds herself working with both parties in the same transaction

When must the Colorado Brokerage Duties Disclosure to Seller form be completed? A. When a broker and a seller have entered into an exclusive right-to-sell listing agreement B. When a broker is assisting a seller in a REO or non-CREC-approved listing agreement C. When a broker meets with a potential buyer for the first time when representing the seller D. When a broker representing the buyer meets with a potential seller for the first time

B. When a broker is assisting a seller in a REO or non-CREC-approved listing agreement

When is a licensee required to use the Change of Status form in Colorado? A. When licensees change affiliation from one brokerage firm to another B. When licensees find themselves working with both parties in the same transaction C. When licensees' listings change from "for sale" to "under contract" D. When one of the parties' marital status changes, and the agency agreements have to be modified

B. When licensees find themselves working with both parties in the same transaction

A real estate license is required ______. A. When performing maintenance work for one property owner B. When performing real estate activities for others, for compensation of any kind C. When performing real estate activities for others, without compensation D. When performing real estate activities for yourself

B. When performing real estate activities for others, for compensation of any kind

Jasmeet, a Colorado real estate professional, is addressing the inclusions and exclusions sections of the sales contract for her clients. As she completes these sections, she needs to _________________________________. A. Be as brief as possible in order to fit everything in to the small space provided B. Be specific, describe the items thoroughly, and leave no room for interpretation C. Describe high-dollar items in detail and be less specific about low-dollar items D. Specify the dollar amounts associated with each included and excluded item

B. Be specific, describe the items thoroughly, and leave no room for interpretation

Mark, who's interested in purchasing some undeveloped property, is meeting with Sadie, a broker with Colorado Mountain Top Realty, to look at a few listings. Mark and Sadie are meeting for the first time and have no established working relationship. Mark is a ___________. A. Buyer's agent B. Customer C. Seller's agent D. Transaction-broker

B. Customer

When is the Colorado land sales contract the most appropriate contract to use? A. When the buildings on the property have been condemned B. When the land is vacant or is used for agricultural purposes C. When the property is larger than five acres D. When there's a commercial business on a property larger than 100 acres

B. When the land is vacant or is used for agricultural purposes

When you're working as a Colorado real estate licensee, you'll avoid discrimination of any sort based on ethical standards set by NAR. But sellers and landlords aren't always so ethical. Which of these prospective buyers for your listing could be protected against discrimination under state law, but not federal law? A. Christina, a woman of Hispanic descent B. Dawn and Rita, a married lesbian couple C. Harvey and Rae, a married couple with six children D. Luke, a combat veteran who lost a leg to injury

B. Dawn and Rita, a married lesbian couple

Which of these individuals is performing an act requiring a real estate license? A. Betty, who's selling her late mother's home as part of the estate liquidation B. Derrick, who accepted a $500 gift certificate from Jill after helping Jill negotiate the sale of her home C. Matt, who's selling his own home as a For Sale by Owner D. Ralph, the owner of Mountain High Apartments, when accepting applications from potential new tenants

B. Derrick, who accepted a $500 gift certificate from Jill after helping Jill negotiate the sale of her home

Helen was the subject of a decision by an administrative law judge for a complaint alleging license law violation. She'd like the commission to review one portion of the official record. What must she file? A. Designated Source Review B. Designation of Record C. Exception of Record D. Official Record Redaction

B. Designation of Record

Sheree's a Colorado broker selling the mountain property her family's kept for years as a vacation spot. Since she's handling the listing herself, which of these actions is Sheree NOT required to take? A. Deposit the earnest money check provided by a buyer in a brokerage trust account. B. Disclose that her family never uses the property because they don't feel safe to them. C. Disclose that she's part owner of the property and is also a real estate licensee. D. Ensure that all contract documents accurately reflect the terms of the transaction.

B. Disclose that her family never uses the property because they don't feel safe to them.

A land transaction may need to consider which of these factors that wouldn't typically be part of a residential transaction? A. Allowed uses of the property B. Disposition of growing crops C. Structural issues D. Tenant leases

B. Disposition of growing crops

In which section of the Colorado commercial property sales contract would a buyer request documentation pertaining to the property's physical and financial aspects? A. Damage, Liens, and Indemnity B. Due Diligence Documents C. Insurability D. Zoning

B. Due Diligence Documents

Which of the following properties requires a lead disclosure? A. Commercial building built in 1960 B. Duplex built in 1959 C. Duplex built in 1979 D. family home built in 1999

B. Duplex built in 1959

What's the chief function of licensing laws? A. Create career paths for real estate professionals B. Ensure that consumers are protected C. Generate funding for professional education and research D. Grow the economy through a pipeline of professionals

B. Ensure that consumers are protected

In Colorado's Exchange Addendum to the sales contract, the buyer must be identified as the ________________. A. Beneficiary or the grantor B. Exchanging party or the cooperating party C. Licensee or the principal D. Providing party or the accepting party

B. Exchanging party or the cooperating party

Which of the following forms will a Colorado broker and buyer sign to create a legally binding buyer agency relationship? A. Definitions of Working Relationships B. Exclusive Right-to-Buy Listing Contract C. Exclusive Right-to-Sell Listing Contract D. Exclusive Tenant Listing Contract

B. Exclusive Right-to-Buy Listing Contract

What alternative to a formal hearing does CREC offer to licensees who are facing discipline after an investigation? A. Alternative dispute resolution B. Expedited settlement program C. Peer disciplinary review D. Voluntary probation

B. Expedited settlement program

Ned doesn't want the lenders to have his personal information, so he's applying for a home loan under an assumed name. Which type of mortgage fraud scheme is this an example of? A. Equity skimming B. False identity C. Property flipping D. Silent second

B. False identity

In a commercial transaction, the due diligence documents provide the buyer with information about the physical and __________ status of the property. A. Aesthetic B. Financial C. Future D. Political

B. Financial

You're working with one party as an agent. When must you present the Colorado Change of Status form? A. When you change affiliation from one brokerage firm to another B. When you find yourself working with both parties in the same transaction C. When your client's marital status changes and the agency agreement has to be modified D. When your seller client's listing changes from For Sale to Under Contract

B. When you find yourself working with both parties in the same transaction

Which of these statements describes Colorado fair housing law, but not federal fair housing law? A. Advertisements that exclude a protected class are illegal. B. A person renting a room in her home may not reject a potential renter based on race. C. Both residential and commercial property owners must comply with the law. D. Protected classes include race, color, religion, national origin, sex, familial status, and disability.

C. Both residential and commercial property owners must comply with the law.

Which of the following documents allows a licensee to change from a single agent to a transaction-broker? A. Brokerage Disclosure B. Buyer Representation Agreement C. Change of Status D. Definitions of Working Relationships

C. Change of Status

Before applying for a broker's license, all Colorado candidates must ________. A. Apprentice for one year with a broker B. Be at least 21 years old C. Complete 168 hours of pre-licensing education D. Complete a real estate degree

C. Complete 168 hours of pre-licensing education

A Colorado property valued at $300,000 has a total indebtedness of $100,000. The loan is in foreclosure. What form should be used to write an offer on it? A. Contract to Buy and Sell Real Estate (Income - Residential) B. Contract to Buy and Sell Real Estate (Residential) C. Contract to Buy and Sell Real Estate (Residential) (Foreclosure Protection Act) D. Contract to Buy and Sell Real Estate (Residential Short Sale)

C. Contract to Buy and Sell Real Estate (Residential) (Foreclosure Protection Act)

Which of the following forms is merely informational in nature, even though it's required by law? A. Contract to Buy and Sell Real Estate (Income-Residential) B. Contract to Buy and Sell Real Estate (Residential) C. Definitions of Working Relationships D. Exclusive Right-to-Buy Listing Contract

C. Definitions of Working Relationships

Section 2.7.3, Well Rights, of the Colorado land sales contract advises buyers that a Change of Ownership must be recorded with the Department of Natural Resources when the transaction involves a _______ water well. A. Agricultural non-exempt B. Commercial exempt C. Domestic exempt D. Large capacity

C. Domestic exempt

Which of the following statements about the parties' right to cancel an Exclusive Tenant Listing Contract in Colorado is true? A. Both parties are required to provide 10 days' written notice to the other party before terminating the contract. B. Early termination of the agreement is not allowed. C. Either the tenant or the broker can terminate the agreement early if the other party is in default. D. If the tenant terminates the agreement, the tenant must pay the broker half of the commission owed

C. Either the tenant or the broker can terminate the agreement early if the other party is in default.

For which of these associate brokers will employing broker Rachel be required to monitor all transactions from contract to closing? A. Charlotte, who works primarily with commercial transactions and has done so for four years. B. Debbie, who's been with Rachel for one year and has held an active license for three years. C. Ephraim, who's been licensed for six months and is a full-time broker. D. Paul, who's been with Rachel as a part-time broker for six years.

C. Ephraim, who's been licensed for six months and is a full-time broker.

When working with a seller, you signed a listing agreement that ensured you'd receive a commission, provided the property sold during the listing term. What type of listing agreement did you sign? A. Exclusive agency B. Exclusive right to collect commission C. Exclusive right to sell D. Net listing

C. Exclusive right to sell

If a Colorado property has many sustainable and energy efficient features, which of the following should be done to be able to market as a "Green" home on MLS? A. Complete the Green Disclosure form. B. Have a certified energy consultant complete the Seller's Property Disclosure form. C. Have the seller complete the Green Disclosure form. D. Mark the appropriate items when entering the home's data on the MLS and include the phrase "green property" when describing it.

C. Have the seller complete the Green Disclosure form.

Which of the following statements is true about making modifications to a signed Exclusive Tenant Listing Contract? A. An attorney must review and approve any modifications to the contract. B. Modifications aren't allowed. C. Modifications may be made to the contract if they're in writing and signed by all parties. D. Modifications may be made to the contract if they're made within the first 10 days of the contract having been executed.

C. Modifications may be made to the contract if they're in writing and signed by all parties.

Water buildup, ice damming, and a fascia damaged by moisture are common ______ issues. A. Chimney B. Foundation C. Roof D. Window

C. Roof

Rudy was a practicing broker in Colorado for a long time, but his license has been on inactive status for a few years while he pursues some other interests. What's true about Rudy's situation? A. Rudy doesn't need to complete renewal requirements, but must notify CREC by each three-year renewal deadline if he wants to prevent his license from expiring. B. Rudy may only keep his license on inactive status for one three-year renewal period. After that, CREC will deactivate his license. C. Rudy must complete all required actions for renewal every three years, or his license will expire. D. Rudy's inactive license status allows him to maintain his license without any renewal requirements, but he must pay a yearly fee.

C. Rudy must complete all required actions for renewal every three years, or his license will expire.

Seller Skylar agrees to pay $3,000 toward any of buyer Billy's closing costs that Billy's lender allows the seller to pay. This money is known as __________. A. Earnest money B. Good funds C. Seller concession D. Seller financing

C. Seller concession

Which statement is TRUE about disclosing past flooding issues on the Colorado Seller's Property Condition form? A. Flooding issues that have been professionally remediated do not need to be disclosed B. Licensees who are aware of past flooding issues must answer the question truthfully, but sellers needn't address it on the form C. Sellers should disclose past or present flooding issues even if they have been remediated D. Sellers should include it on the form, but if a seller fails to mention it the seller's agent needn't disclose it

C. Sellers should disclose past or present flooding issues even if they have been remediated

Annie, a real estate licensee in Colorado, copied the legal description into the sales contract incorrectly. The mistake wasn't caught until the buyers realized a week after closing that they held title to wrong property. What might happen to Annie as a consequence of her mistake? A. Her real estate license may be suspended for a year. B. Nothing. The transaction has been completed. C. She may be held liable for damages. D. She may be required to pay a fine and serve three months in jail.

C. She may be held liable for damages.

Henry and the tenant have agreed to enter into an agency relationship. Henry has agreed to represent the tenant in any real estate transaction and will treat the landlord as a customer. In the Colorado Exclusive Tenant Listing Contract, what type of working relationship will Henry indicate he has with the buyer? A. Single transaction agent B. Tenant-only broker C. Tenant's agent D. Transaction-broker

C. Tenant's agent

A week before closing, seller learns that the property has a condemnation pending on it. Which of the following is true of this situation? A. The contract is valid and binding on both parties. B. The contract is void. C. The contract is voidable by the buyer. D. The contract is voidable by the seller.

C. The contract is voidable by the buyer.

Who is the beneficiary of a 1031 exchange, as identified in the Exchange Addendum to Contract to Buy and Sell Real Estate (Residential - Income)? A. The buyer B. The cooperating party C. The exchanging party D. The seller

C. The exchanging party

Nina and the seller are completing the Colorado Brokerage Duties Disclosure to Seller. Which of the following statements about the disclosure form is true? A. Signed or unsigned, the form must be kept on file with the broker for at least two years. B. The form is a contract between the brokerage firm and the seller. C. The form is a supplement to the listing agreement. D. The form replaces the listing agreement.

C. The form is a supplement to the listing agreement.

Other than during the transition period, how long is the Colorado real estate broker's license term? A. Five years B. One year C. Three years D. Two years

C. Three years

What is the most common way that asbestos enters the body? A. Asbestos coating in water pipes can contaminate drinking water, which is then ingested. B. Asbestos in paint can be released into the air as the paint peels, which is then inhaled or ingested. C. When asbestos fibers decay or are disturbed, the friable particles can be inhaled. D. When rocks and soil decay, asbestos gas is released, which is then inhaled.

C. When asbestos fibers decay or are disturbed, the friable particles can be inhaled.

In Colorado, when are property owners required to disclose that they live in a special taxing district? A. If the property values at $100,000 or more B. When the assessments owed are more than $25 per $1,000 of property value C. When they are selling or transferring ownership of their property D. When they live in a district of 25,000 residents or more

C. When they are selling or transferring ownership of their property

Samantha is a tenant at the Fir Tree Apartments. One of her friends is looking for a new apartment to rent, so she gives the friend's name to Terry, the licensed broker who's the property manager at Fir Tree. Can Terry pay Samantha a finder's fee? A. No, referral fees paid to an unlicensed individual are never legal in Colorado. B. Only if Terry and Samantha have a contract in place describing allowed actions that earn a referral fee. C. Yes, as long as Samantha has no active involvement in the transaction between her friend and Terry. D. Yes, as long as the payment is no more than $500 or .5% of Terry's compensation from the transaction, whichever is less.

C. Yes, as long as Samantha has no active involvement in the transaction between her friend and Terry.

Broker Dill accidentally let his license expire. Now he needs to figure out what he's supposed to do to reinstate his license. Will the commission rules help him do this? A. No, commission rules are regulations that describe the real estate commission duties, and don't apply to licensing requirements. B. No, commission rules govern the actions of consumers and businesses, not individual licensees. C. Yes, commission rules are written to help licensees interpret and comply with license law. D. Yes, the commission rules will give Dill a list of approved education providers and include links to the application he should complete.

C. Yes, commission rules are written to help licensees interpret and comply with license law.

Jared is looking to purchase property. One of the properties he's interested in was formerly zoned for commercial use. It has a steep drop off at the back of the property, as well as some soft spots and mounds. Does this matter? A. No, Jared can address the cliff by bringing in additional soil. B. No, Jared is going to bulldoze the entire property to flatten it out anyway. C. Yes, these are clues that the property may have been used as a waste disposal site. D. Yes, these are indications of an underground storage tank.

C. Yes, these are clues that the property may have been used as a waste disposal site.

Colorado real estate broker Pauline is completing the Counterproposal form on behalf of her seller client, Leon. Leon only wishes to counter on the closing and possession dates. Because the "Purchase Price and Terms" table won't be updated in the Counterproposal form, Pauline decides to omit it. Is this allowed? A. No. Colorado brokers are prohibited from altering Colorado real estate forms. B. No. While some Colorado forms may be altered by brokers, the Counterproposal form may not be altered by brokers. C. Yes. Because the "Purchase Price and Terms" table doesn't apply to this transaction, it may be omitted. D. Yes. Colorado brokers have the right to alter CREC-approved forms in any way they'd like.

C. Yes. Because the "Purchase Price and Terms" table doesn't apply to this transaction, it may be omitted.

If you're an associate broker in Colorado, and you move to another brokerage, who's responsible for informing the commission that your current association will terminate? A. This is your current employing broker's responsibility B. This is your new employing broker's responsibility C. You and your current employing broker are jointly responsible D. You are solely responsible for notifying the commission

C. You and your current employing broker are jointly responsible

Hernando, a real estate attorney, is preparing an option contract for his client, Wilma. Hernando asks Wilma what she and the seller have agreed upon for the option period. Wilma said the seller was leaving that up to her, and she wanted to get Hernando's opinion. What should Hernando put into the contract for the option period? A. "Indefinite" B. "N/A" C. "Negotiable" D. "Six months"

D. "Six months"

According to Section 2.7.3, Well Rights, of the Colorado land sales contract, which of these land transactions will involve a Change in Ownership form for the well? A. 10 acres with a commercial well B. 10 acres with an unregistered well C. 180 acres with an irrigation well D. Five acres with a domestic well in a subdivision

D. Five acres with a domestic well in a subdivision

Which commission-approved form related to inspection contingencies is an amendment to the sales contract? A. Inspection Amendment B. Inspection Contingency Outcome C. Inspection Objection D. Inspection Resolution

D. Inspection Resolution

Desmond is a buyer's agent. Per the terms of the Colorado Exclusive Right-to-Buy Listing Contract, which of the following duties must Desmond perform in addition to the uniform duties that both buyer's agents and transaction-brokers must perform? A. Disclose adverse material facts to the buyer that are actually known to him B. Keep the buyer fully informed with what's happening with the transaction C. Present all offers to and from the buyer in a timely manner D. Promote the buyer's interest with the utmost good faith, loyalty, and fidelity

D. Promote the buyer's interest with the utmost good faith, loyalty, and fidelity

Which of the following terms refers to the fair share of expenses divided between the buyer and seller as of the closing date? A. Assessments B. Closing costs C. Post-occupancy costs D. Prorations

D. Prorations

Licensee Andrew has entered into a written agency agreement to represent the seller of an REO. What must Andrew do in this situation? A. Complete the Seller's Property Disclosure form on the seller's behalf, since the seller is a bank. B. Notify the foreclosure court of the property's list price. C. Provide potential buyers with a completed Brokerage Duties Disclosure to Buyer form. D. Provide the seller with a completed Brokerage Duties Disclosure to Seller form.

D. Provide the seller with a completed Brokerage Duties Disclosure to Seller form.

Roger has an Exclusive Tenant Listing Contract with his tenant client and the tenant is currently in the process of leasing the premises. Which of the following statements about Roger's ability to receive third-party compensation in connection with the property is true? A. Roger can accept third-party compensation, but only for specific services. B. Roger can receive third-party compensation, but it may not exceed $2,000. C. Roger can't accept any third-party compensation. D. Roger requires the tenant's written consent before he can accept any third-party compensation.

D. Roger requires the tenant's written consent before he can accept any third-party compensation.

Who must fill out the optional Green Disclosure form in order to list a property as a green home on the MLS? A. Buyer B. Certified Home Inspector C. Licensee D. Seller

D. Seller

What's it called when a seller keeps possession of a property even after the closing date and pays a rental fee to the buyer? A. Buyer rent-back B. Early possession C. Pre-closing occupancy D. Seller rent-back

D. Seller rent-back

Which document contains the disclosure of a property's status as part of a common interest community association? A. Estoppel Statement B. Green Disclosure C. Lead Disclosure D. Seller's Property Disclosure

D. Seller's Property Disclosure

If the commission investigates and finds that a formal disciplinary proceeding isn't warranted, what's a possible action? A. Assign ethics-related readings to the licensee B. Fine the licensee to recuperate investigative costs C. Limit the number of transactions a licensee can perform D. Send a letter of admonishment to the licensee

D. Send a letter of admonishment to the licensee

Margo, a real estate licensee in Colorado, is preparing an offer for her buyer client. As she copies the legal description into the sales contract, what should she keep in mind? A. Although she needs to be careful, small errors-such as misplaced punctuation-aren't a concern when copying legal descriptions. B. If she discovers an error or discrepancy in the legal description, she should ignore it. C. If the legal description is lengthy, she should shorten it by abbreviating certain words and omitting unnecessary phrases. D. She shouldn't alter the description without clearance from a surveyor or title attorney.

D. She shouldn't alter the description without clearance from a surveyor or title attorney.

What should the sellers do if they receive an offer and want to accept the offer exactly as it's written? A. Check "countered" and initial it. B. Check "rejected" and initial it. C. Give the buyers their verbal agreement. D. Sign the offer.

D. Sign the offer.

The seller would like to convey a large roll of chicken wire in the sale of his land to a buyer. The buyer has no use for chicken wire, so he doesn't want to take it. How should this be expressed in the initial offer? A. Draw up a separate Exclusions Addendum and list the chicken wire among the other things the buyer doesn't want. B. In the Exclusions section, specifically state that the seller should remove the chicken wire before the closing date. C. In the Inclusions section, specifically state that the chicken wire is not included. D. Simply omit the chicken wire from the list of inclusions.

D. Simply omit the chicken wire from the list of inclusions.

Janet's been a real estate broker for 12 years, but circumstances currently prevent her from continuing to work. She expects to return to real estate eventually, but in the meantime, she asks the real estate commission to make her license inactive. Which of these actions will she need to take as a result? A. Advertise only those properties she currently has listed and not under contract, until the listing terminates. B. Allow her current real estate advertisements to continue for 30 days, at which time all advertising must cease. C. Include a notice of "broker inactivity" in all her real estate advertisements. D. Stop all her real estate advertising immediately.

D. Stop all her real estate advertising immediately.

Angela lives in a subdivision in Colorado that has a very active HOA. Angela pays her property taxes faithfully twice a year but she's behind on her loan payment and HOA assessment fees. If the bank were to foreclose on Angela's property, which of the following liens would have the highest priority? A. Association lien B. Deed of trust/first mortgage C. Real estate tax liens D. Super liens

D. Super liens

Mike's tenant clients have agreed to pay the brokerage firm's fee. Which of the following options will Mike select in Colorado's Exclusive Tenant Listing Contract to reflect this agreement? A. Listing Brokerage Firm, Landlord, or Sublandlord May Pay. Tenant is NOT Obligated to Pay. B. Listing Brokerage Firm, Landlord, or Sublandlord May Pay. Tenant IS Obligated to Pay. C. Not Applicable. D. Tenant Will Pay.

D. Tenant Will Pay.

In order for a contract to be enforceable, Colorado's statute of frauds requires the following elements: signatures, consideration, identities of the parties, subject matter, and __________________________. A. Addenda B. Omissions and deletions C. Rules and regulations D. Terms and conditions

D. Terms and conditions

If a broker commits a crime or violates real estate license law, who has the authority to revoke the broker's license? A. An administrative law judge B. The broker's client C. The broker's employing broker D. The Colorado Real Estate Commission

D. The Colorado Real Estate Commission

Connie and her husband Danny are buying property in a rural part of the state. Because they have applied for a loan to finance the purchase, the lender required them to have an ILC done, which they did. Now the lender wants a full survey done. Why? A. After they applied for the loan, Connie and Danny purchased a new vehicle on credit. B. Full surveys are required when a mortgage loan is involved. C. It's standard practice for lenders to require both. D. The ILC revealed potential issues with the property boundaries or encroachments.

D. The ILC revealed potential issues with the property boundaries or encroachments.

What relationship must a broker in Colorado have with a client in order to complete approved legal forms related to a real estate transaction? A. The broker must also be the client's attorney. B. The broker must be immediate family. C. The broker must represent the client without any brokerage firm supervision. D. The broker or broker's firm must be directly connected as the broker of the transaction.

D. The broker or broker's firm must be directly connected as the broker of the transaction.

Ray has an Exclusive Right-to-Buy Listing Contract with his buyer client and the buyer is currently in the process of purchasing a property. Which of the following statements about Ray's ability to receive third-party compensation in connection with the property is true? A. Ray can accept third-party compensation for specific services. B. Ray can receive third-party compensation, provided it doesn't exceed $5,000. C. Ray can't accept third-party compensation. D. The buyer's written consent is required before third-party compensation may be accepted.

D. The buyer's written consent is required before third-party compensation may be accepted.

Everly has presented the Colorado Change of Status form to the landlord and the tenant, and the landlord and tenant have signed the disclosure. Based on this information, which of the following statements is true? A. Everly must be an agent for one of the parties and a transaction-broker for the other. B. Everly's brokerage firm will designate two brokers to take her place in the transaction. C. Going forward, Everly must act as a transaction broker for any other transactions involving this landlord or this tenant. D. The change of agency relationship between Everly and the landlord and tenant is for this transaction only.

D. The change of agency relationship between Everly and the landlord and tenant is for this transaction only.

Who determines if the Division of Real Estate has jurisdiction over a submitted complaint? A. An administrative law judge B. An investigative supervisor C. The Division of Real Estate director D. The investigative staff

D. The investigative staff

A licensee is having a conflict with her broker for arguing against working with a long-time client who has been practicing subtle forms of housing discrimination. Which of the following statements is true about this situation? A. The brokerage isn't liable for any discriminatory actions in housing practiced by its client. B. The licensee could be subject to penalties from the licensing board. C. The licensee is overreacting, since fair housing law covers only blatant forms of discrimination. D. The licensee may face consequences for her actions, but she's doing the right thing.

D. The licensee may face consequences for her actions, but she's doing the right thing.

Liam is the broker in an Exclusive Tenant Listing Contract, and Evelyn is the tenant. Who has the right to cancel the agreement before the contract end date? A. Evelyn, but not Liam B. Liam, but not Evelyn C. The defaulting party D. The non-defaulting party

D. The non-defaulting party

Which of the following statements about mortgage brokers and registration requirements in Colorado is true? A. If they are registered in another state, they don't have to register in Colorado. B. They must remain with the same lending institution for five years. C. They must re-register every year. D. They must submit to a criminal background check.

D. They must submit to a criminal background check.

Margo has been designated by her brokerage firm to assist in the sale of property that's based on a non-CREC-approved listing agreement. Margo will perform uniform duties only for the seller. When Margo and the seller complete the Colorado Brokerage Duties Disclosure to Seller form, how will Margo indicate her working relationship with the seller? A. Buyer's agent B. Independent contractor C. Seller's agent D. Transaction-broker

D. Transaction-broker

Miguel, a broker with Colorado Front Range Realty, is assisting a buyer, Tom, in a real estate transaction to purchase property in Fort Collins. Although the two have a signed agency agreement, Miguel can't advocate or negotiate on Tom's behalf. Miguel is a ___________. A. Buyer's agent B. Customer C. Seller's agent D. Transaction-broker

D. Transaction-broker

What disclosures must be made by the seller concerning the plumbing system on the Seller's Property Disclosure form? A. Last date of water quality test and system inspection B. Number of toilets on the property C. Presence of hair traps in all bathroom drains D. Type of piping, sewage pumps, water filters, or plumbing issues

D. Type of piping, sewage pumps, water filters, or plumbing issues

The Colorado Real Estate Commission requires all licensed brokers to ______. A. Develop brokerage-specific sales contracts and other common forms B. Disclose to clients that standard forms are not reviewed by an attorney C. Use a commission-approved attorney to review contracts D. Use commission-approved forms

D. Use commission-approved forms

If disciplinary actions are levied against a licensee, what's one alternative to an administrative hearing? A. Giving public apologies B. Paying legal fees and fines C. Performing community service D. Using the expedited settlement program

D. Using the expedited settlement program

What type of lien does a contract for deed security instrument provide to the seller? A. Judgment lien B. Mortgage lien C. Vendee's lien D. Vendor's lien

D. Vendor's lien

Joan has found an interested buyer for her client's forested, 15-acre, unimproved property nestled deep in the mountains. Which of the following factors should Joan be well-versed in to properly represent the property for her client? A. Home upgrades, landscaping, and curb appeal B. Office building tenant leases C. Residential property management D. Water and mineral rights, hunting leases, and timber production

D. Water and mineral rights, hunting leases, and timber production

If a property has a well as its potable water source, what must be included with the Source of Water Addendum? A. A history of all well testing done during time seller owned property B. Copy of latest water quality test results C. Copy of well permit D. Well permit number

D. Well permit number

Which of the following is a true statement regarding amendments and addenda? A. They don't carry the same legal weight as the sales contract itself. B. They must be completed by an attorney. C. They remain separate from the contract, but equally binding. D. When signed by the parties, they become part of the sales contract.

D. When signed by the parties, they become part of the sales contract.

The Licensee Buy-Out Addendum gives a seller additional rights in a transaction because ________. A. The licensee has a fiduciary duty to make the transaction as profitable as possible B. The licensee is usually offering a below-market price on the property C. The seller is essentially paying the buyer a commission to purchase the property D. When the buyer is also the listing agent, there's a conflict of interest

D. When the buyer is also the listing agent, there's a conflict of interest

When is an administrative fee acceptable, according to RESPA? A. When it is a required service offered by an affiliated business. B. When it is split with the settlement service provider. C. When it is undisclosed. D. When you are the only one receiving the fee and have actually performed some service in addition to the one provided by the SSP.

D. When you are the only one receiving the fee and have actually performed some service in addition to the one provided by the SSP.

Missing, cracked, or displaced roof shingles can indicate ______ damage. A. Electrical B. Fire C. Water D. Wind

D. Wind

Your buyer clients have applied for a mortgage loan. When can they expect to see the Loan Estimate from the lender? A. Five business days prior to closing B. Immediately after the seller accepts their offer C. Once the loan application has been approved D. Within three business days after submitting a loan application

D. Within three business days after submitting a loan application

What information must be disclosed about the windows by the seller on the Seller's Property Disclosure form? A. Date of installation B. Last time they were serviced C. Single- or double-paned D. Working order of windows

D. Working order of windows

Paul and Blake are touring an open house when they notice that the glass on the sliding patio door is very foggy. Is this a concern, and if so, why? A. No, this is not a concern, as it only indicates poor cleaning habits. B. No, this is not a concern as it's common in cold climates. C. Yes, this could be a sign of fire damage. D. Yes, this is a sign of a leaky seal which reduces efficiency.

D. Yes, this is a sign of a leaky seal which reduces efficiency.

You've been a licensed real estate salesperson in another state for a little more than a year. How many hours of education must you complete to be eligible for Colorado licensure? A. 120 B. 168 C. 72 D. 84

A. 120

In Colorado, brokers who supervise other brokers are called ________. A. Employing brokers B. Firm brokers C. Managing brokers D. Sponsoring brokers

A. Employing brokers

Hannah's license renewal date is just a few months away. How many hours of continuing education does Hannah need to document? A. 12 B. 15 C. 24 D. 30

C. 24

Tameka is interested in getting her Colorado real estate broker's license. Which of the following is a requirement? A. Age 21 or older B. Credit score above 750 C. Criminal history check D. Real estate experience

C. Criminal history check

What's codified and often carries the force of law without being a law? A. Bill B. Position statement C. Regulation D. Statute

C. Regulation

The Colorado Real Estate Commission doesn't have any legal standing to intervene in ________. A. Complaints against licensees B. License law violations C. License renewals D. Payment disputes between brokers

D. Payment disputes between brokers

The Colorado Real Estate Commission prohibits referral fees to and from settlement service providers. If the transaction involves federal mortgage loans, which federal law also governs referral fees? A. Consumer Protection Act B. Equal Credit Opportunity Act C. RELRA D. RESPA

D. RESPA

Raoul, a Colorado broker, gets a call from his friend Sasha in Florida. Sasha tells him her cousin Dominic is moving his family to Colorado and is looking for a home to buy in Raoul's area, so she's given Dominic Raoul's name. A few months later, Raoul sends Sasha a commission after they close on Dominic's new house. Under what circumstances would this be legal? A. Colorado law makes this illegal under any circumstances. B. Sasha and Raoul had a referral agreement in place. C. Sasha did nothing more than provide Raoul with Dominic's name. D. Sasha is a licensed broker in Florida and maintains an office there

D. Sasha is a licensed broker in Florida and maintains an office there

What's the minimum age to be licensed as a real estate broker in Colorado? A. 15 B. 18 C. 21 D. 25

B. 18

Louellen is about to take out a mortgage loan from her credit union. The contract includes the following information: Louellen is offering her house for consideration and that the credit union is offering $350,000; Louellen will pay the loan back over a certain number of months at a certain rate; and Louellen's signature, along with that of a credit union representative. What, if anything, is this contract missing in order for it to be legally binding, according to the statute of frauds? A. Louellen's credit history needs to be included. B. Nothing is missing. C. The condition and size of the house needs to be included. D. The credit union's physical address needs to be included.

B. Nothing is missing.

The Colorado Real Estate Commission investigates possible violations of license law in order to ______. A. Protect the interests of the state B. Protect the public C. Protect the real estate industry D. Protect the rights of licensees

B. Protect the public

The directives of the Colorado Real Estate Commission are carried out by ________. A. An administrative law judge B. Chief commission clerk C. The Division of Real Estate director D. The Secretary of Commerce

C. The Division of Real Estate director

What form is used to extend the closing date on an existing contract to purchase a Colorado home? A. Agreement to Amend/Extend Contract B. Agreement to Amend/Extend Contract with Broker C. Counterproposal D. Inspection Resolution

A. Agreement to Amend/Extend Contract

A buyer is planning to take over the sellers' existing mortgage and payments. Which of the following sections of the Colorado Contract to Buy and Sell Real Estate (Residential) must be completed, based on this? A. "Assumption" B. "New Loan" C. "Private Financing" D. "Seller Financing"

A. "Assumption"

Myrtle is newly licensed and is eager to be the best broker ever. She knows she's supposed to renew her license every three years, and that she has to complete a certain amount of continuing education. She's a little confused about that part and asks her employing broker what she should do. What should her employing broker tell her? A. "You can choose from four options, but doing the Annual Commission Update course plus 12 hours of electives is the preferred one." B. "You can do four hours annually, which meets the requirement with only 12 hours of CE each cycle." C. "You can retake any of the pre-licensing courses over again, as long as you've got at least 24 hours of CE at the end of the three-year cycle." D. "You can take the 24-hour Broker Reactivation course every year, or you can retake and pass the state portion of the licensing exam."

A. "You can choose from four options, but doing the Annual Commission Update course plus 12 hours of electives is the preferred one."

Under Section _______ of the Internal Revenue Code, an investor in real property can sell that property, reinvest the proceeds in a "like-kind" property, and defer paying capital gains taxes. A. 1031 B. 1040 C. 180 D. 360

A. 1031

In a Colorado CBS residential contract, a "day" is said to end at __________. A. 11:59 p.m., Mountain Time B. 9:00 p.m., Mountain Time C. Midnight, Eastern Time D. Midnight, Mountain Time

A. 11:59 p.m., Mountain Time

Hiram plans to do a 1031 tax-deferred exchange. He just sold his property. How many days does he have to close on a new property? A. 180 B. 30 C. 45 D. 60

A. 180

A request by a licensee to review an initial administrative law judge decision must be made within what time period? A. 20 days B. Five business days C. One month D. Two weeks

A. 20 days

Which of these properties that would use the Colorado land sales contract would be least likely to require Section 10.6, Due Diligence? A. 640 acres of vacant land in an area zoned for agriculture B. A 1,000-acre working cattle ranch C. A 15-acre organic farm D. A 200-acre property with a boarding business and haying operation

A. 640 acres of vacant land in an area zoned for agriculture

Celeste and Conrad have been pre-approved for a mortgage. Which of the following is true? A. A change in finances may prevent them from obtaining a loan. B. A change in finances will not prevent them from obtaining a loan. C. The interest rate is locked in. D. Their loan is guaranteed.

A. A change in finances may prevent them from obtaining a loan.

Your buyers step outside to view the backyard of a property they're touring, but then they can't get the back door closed again. You recognize that this could be a symptom of ____, and realize that if they are interested in this property, they will want to discuss this issue with a home inspector. A. A foundation problem B. An HVAC problem C. Constant freezing and thawing D. Poor general maintenance on the home

A. A foundation problem

In which of the following Colorado properties would a seller be required to install a carbon monoxide detector? A. A house with an attached garage B. A house with an electric heater and electric appliances C. A house with no fireplace D. A house with solar panels

A. A house with an attached garage

Loans on unimproved land usually have a higher interest rate. What else is true? A. A larger down payment is usually required. B. They are easier to obtain. C. They are made for shorter periods of time. D. They involve less risk.

A. A larger down payment is usually required.

In Colorado, what's the effect of a special district tax on property owners within the district? A. A lien is placed against their property and remains in place until it's repaid. B. Property owners must increase their homeowners' insurance. C. The property owners can't take advantage of the additional services until they pay the tax. D. The special district tax reduces their property taxes.

A. A lien is placed against their property and remains in place until it's repaid.

An amendment to a contract is defined as which of the following? A. A modification B. An addition C. A new contract D. A provision

A. A modification

Cynthia loves her apartment and would like to have the option to buy it once her lease is up. Who's the best person to help Cynthia prepare a lease option? A. A real estate attorney B. A real estate investor C. A real estate licensee D. Her landlord

A. A real estate attorney

What type of land survey provides the greatest level of detail and is commonly ordered in commercial property transactions? A. ALTA/ACSM B. Boundary C. ILC D. Improvement

A. ALTA/ACSM

Section 9, New ILC, New Survey, of the Colorado commercial sales contract allows the buyer to specify which survey type the buyer would like. For commercial transactions, how will you most likely see this blank completed? A. ALTA/ACSM Survey B. Boundary survey C. Commercial survey D. Improvement survey

A. ALTA/ACSM Survey

What's a key difference between a contract addendum form and an amendment form? A. Addenda supplement the contract information and are attached prior to contract execution. B. Contract addenda are attached after a contract is executed to modify the terms of the original contract. C. Contract addenda are mandatory, while amendments are not. D. Contract addenda don't require the parties' signatures.

A. Addenda supplement the contract information and are attached prior to contract execution.

Shawna is broker Beverly's unlicensed assistant. Beverly has a long list of "to do" items, and she assigns some of them to Shawna. Which of these tasks is Shawna NOT allowed to perform? A. Advise one of Beverly's buyer clients regarding recommended terms for a counteroffer, which Shawna will deliver to the seller. B. Collect tax records and copies of deeds for two new listings Beverly has. C. Conduct a showing for one of Beverly's listings with permission from the seller. D. Schedule installation of a new water heater for a property Beverly manages.

A. Advise one of Beverly's buyer clients regarding recommended terms for a counteroffer, which Shawna will deliver to the seller.

Which party is qualified to advise a buyer about seller-financed transactions in Colorado, without possessing a Colorado mortgage loan originator license? A. Attorney B. Closing agent C. Employing broker with more than 10 years' experience D. Seller's broker

A. Attorney

What's the best advice when challenging an appraisal? A. Be specific and concise about why the value opinion is different in your mind. B. Blame it on the appraiser. C. Don't bother asking the appraiser to explain why certain adjustments were made or not made. D. Suggest a minimum value for the appraiser to meet.

A. Be specific and concise about why the value opinion is different in your mind.

Why should buyers ask sellers of older homes whether they've replaced the wiring system? A. Because out-of-date electrical wiring can cause a wide a variety of problems. B. Because the buyer will be required to update the wiring if it's more than 10 years old. C. Because the seller will be required to update the wiring if it's more than 10 years old. D. Buyers shouldn't ask about the wiring.

A. Because out-of-date electrical wiring can cause a wide a variety of problems.

Madison is making an offer on a home in Littleton, and is using the Colorado Contract to Buy and Sell Real Estate (Residential). Which of the following should be written into the contract to describe the property? A. Both its legal description and its mailing address B. Only its legal description C. Only its mailing address D. Only its ZIP Code

A. Both its legal description and its mailing address

Which of the following enables listing contract cancellation in Colorado? A. Broker default B. Change of heart C. Low offers D. Personality conflict

A. Broker default

What commission-approved form would you use to disclose your agency relationship with an owner who wants to find tenants? A. Brokerage Duties Addendum to Property Management Agreement B. Colorado Rental Agreement C. Exclusive Right-to-Buy Listing Contract D. Exclusive Right-to-Sell Listing Contract

A. Brokerage Duties Addendum to Property Management Agreement

Per the Exclusive Tenant Listing Contract, which of the following statements about the cost of services or products obtained from outside sources is true? A. Brokers aren't allowed to order services or products unless the tenant agrees to pay for them promptly when due. B. Brokers or brokerage firms are obligated to advance funds to tenants for services or products. C. The landlord must cover the cost of any services or products ordered by the tenant. D. The tenant is responsible for ordering the services or products but, the cost is split evenly between the tenant and the landlord.

A. Brokers aren't allowed to order services or products unless the tenant agrees to pay for them promptly when due.

Which of the following scenarios is an example of a designated broker situation? A. Burke, an employing broker, asks Beth, a licensee who works in his firm, to act as a single agent for Jarod, who wants to sell his house. B. Debbie, a licensee, represents both Michael, a seller, and John, who wants to buy Michael's property. C. Jeff is purchasing his first home and has enlisted Laura as his buyer's agent. D. Niles, a licensee, is working under Mindy, a seller's agent from another firm, and also acting as an agent to the seller.

A. Burke, an employing broker, asks Beth, a licensee who works in his firm, to act as a single agent for Jarod, who wants to sell his house.

What does the public trustee in a deed of trust agreement in Colorado do once the loan has been paid in full? A. Manage the release of the deed of trust B. Oversee the judicial foreclosure proceeding C. Publish a public notice of lien removal on the property D. Transfer title to the lender

A. Manage the release of the deed of trust

Colorado brokerage records should be retained for how long? A. Four years B. One year C. Seven years D. Three years

A. Four years

Freddy is representing Noah, a seller, as a single agent. What took place to create this relationship? A. Freddy and Noah signed an express written agreement. B. Freddy and Noah verbally agreed to an agency relationship. C. Freddy performed actions only an agent would perform. D. The commission assigned Freddy to work with Noah.

A. Freddy and Noah signed an express written agreement.

A Colorado buyer is taking out an FHA loan to purchase a house. What's the key consideration for determining the settlement date? A. How long the lender needs to complete the loan process B. The date the buyer prefers C. The date the original contract was written D. The date the sellers prefer

A. How long the lender needs to complete the loan process

A seller and broker have signed an Exclusive Brokerage Listing Addendum. When would the broker be owed commission? A. If any broker secures the buyer B. If anyone secures the buyer C. If the seller, another broker, or a listing broker secures the buyer D. If the seller secures the buyer

A. If any broker secures the buyer

Julie has been pre-approved for a mortgage at a 4% interest rate. At this interest rate, she can just afford the $250,000 home in her budget. Which of the following is true? A. If interest rates rise, she may be priced out of the market. B. Julie can't really afford a mortgage. C. Julie isn't creditworthy. D. Julie's pre-approval is dependent on her interest rate.

A. If interest rates rise, she may be priced out of the market.

What's the purpose of performing an ADA evaluation in the purchase of a commercial property in Colorado? A. It alerts the buyer to any aspects of the property that aren't in keeping with ADA requirements. B. It provides a breakdown of the cost it will take to bring a property up to ADA standards. C. It provides liability insurance in case the buyer is sued for lack of ADA-mandated accessibility. D. It releases the buyer from the requirement to make ADA-mandated modifications to the property.

A. It alerts the buyer to any aspects of the property that aren't in keeping with ADA requirements.

When it comes to inclusions, how does the Colorado land sales contract differ from the residential contract? A. It doesn't list specific inclusions. B. Its list of inclusions is much longer than the residential contract's. C. Listed inclusions are limited to farm equipment and fencing. D. There is no Inclusions section, since the contract is only used for land.

A. It doesn't list specific inclusions.

Nancy is in the market for some unimproved land. She's concerned that she doesn't know enough about the risks involved, and how to interpret all of the information. If she is your client, what should you tell her? A. It would be wise to consult a real estate attorney before making a purchasing decision. B. She shouldn't worry, because you are very experienced in this area of real estate. C. You can provide all of the advice she will need. D. You will investigate and make sure she has the information she needs.

A. It would be wise to consult a real estate attorney before making a purchasing decision.

What's true about equity skimming in Colorado? A. It's a felony B. It's a misdemeanor C. It's an ethical violation D. It's legal

A. It's a felony

What's true about undisclosed dual agency? A. It's a violation of license law. B. It's legal if your broker allows it. C. It's only a problem if you don't disclose to the buyer. D. It's only a problem if you don't disclose to the seller.

A. It's a violation of license law.

Unlicensed consumers in Colorado may only perform real estate activities in certain situations. In which of these scenarios would the consumer need a real estate license? A. Jessie is searching for a new home for a friend moving into town. Jessie will be compensated 2% of the sale price for her time and effort. B. Mickey is selling his own home and isn't using the services of a listing agent. C. Peter is helping his sister, Kristen, find a new apartment. He will not be compensated in any way. D. Ronald is acting as executor of his uncle's estate, which includes selling the property his uncle owned.

A. Jessie is searching for a new home for a friend moving into town. Jessie will be compensated 2% of the sale price for her time and effort.

Recently, Kaylee had to present her buyer client with the Colorado Change of Status form. What prompted Kaylee to do this? A. Kaylee found herself representing both parties in the same transaction. B. Kaylee had changed affiliation from one brokerage firm to another. C. Kaylee's buyer client had recently married, and the agency agreement had to be modified. D. Kaylee's client had received a counter-offer from the seller.

A. Kaylee found herself representing both parties in the same transaction.

Rachel's looking for a roommate to share her Fort Collins home. She'd like to rent to a single woman with a young child, just like she is, since she feels it would be an efficient arrangement. What's true about this situation? A. Rachel may select a roommate based on her preference for a single woman with a young child, but she may not advertise for a tenant that way. B. Rachel will be guilty of housing discrimination based on familial status. C. Rachel will be guilty of housing discrimination based on marital status, which is a protected class under federal and state law. D. This would be acceptable based on the Mrs. Murphy exemption under federal law, but it's illegal under the Colorado Fair Housing Act.

A. Rachel may select a roommate based on her preference for a single woman with a young child, but she may not advertise for a tenant that way.

Frieda received a notice from the Colorado Real Estate Commission that a complaint had been filed against her. After reading the complaint, Frieda could see it was baseless, so she didn't take the matter too seriously. She filed the notice away, figuring she'd give someone a call and get the matter straightened out when she had some free time. What could happen to Frieda? A. She could face disciplinary action from the commission. B. She may be found guilty of a misdemeanor. C. She may receive a call from an investigator at the Division of Real Estate. D. The matter may be referred to a civil court, rather than being investigated by the Division of Real Estate.

A. She could face disciplinary action from the commission.

The Hamiltons own property in Colorado, and their property tax bill is more than $25. Based on this information, which of the following statements is true? A. The Hamiltons can pay their property taxes in one payment or split the amount equally between two payments. B. The Hamiltons must pay their property taxes in one payment by June 15. C. The Hamiltons must pay their property taxes in three equal payments. D. The Hamiltons must pay their property taxes in two payments: one on February 15 and one on August 1.

A. The Hamiltons can pay their property taxes in one payment or split the amount equally between two payments.

Who must sign the Listing Contract Amend-Extend form? A. The broker and the client B. The buyer and seller C. The seller D. The seller and broker

A. The broker and the client

What's true about alternatives to physical delivery of contract documents and notices? A. The brokerage may provide documents electronically, via email, link, or facsimile. B. The broker decides how documents will be delivered. C. The law prohibits electronic document delivery. D. The tenant decides how documents will be delivered.

A. The brokerage may provide documents electronically, via email, link, or facsimile.

Who must complete the Well Change of Owner Name/Mailing Address form? A. The buyer B. The buyer's agent C. The seller D. The seller's agent

A. The buyer

Who's protected by a financing contingency in a sales agreement? A. The buyer B. The listing agent C. The loan officer D. The seller

A. The buyer

A buyer and seller enter into a CBS residential for the sale of a property subject to the leadbased paint disclosure. What happens if the disclosure is not received by the deadline? A. The buyer may terminate the contract B. The contract can be terminated by either party. C. The contract is void. D. The deadline for the buyer's objection is extended.

A. The buyer may terminate the contract

A Colorado buyer reviews the seller's counteroffer and agrees provided the closing date is changed. What is the BEST course of action to respond? A. The buyer's agent should complete a new CBS that reflects the seller's counterproposal but changes the closing date to reflect buyer's proposed date. B. The buyer's agent should verbally ask the seller's agent to send over a new CBS. C. The buyer should return the Counterproposal form back to the seller and ask them to complete a new Counterproposal with the closing change. D. The buyer should sign the seller's Counterproposal form and include a separate signed amendment with the change to the closing date.

A. The buyer's agent should complete a new CBS that reflects the seller's counterproposal but changes the closing date to reflect buyer's proposed date.

A broker is representing a buyer with the purchase of a 640-acre dairy farm. Which party should prepare the purchase contract for this transaction? A. The buyer's attorney B. The buyer's broker C. The seller's accountant D. The seller's broker

A. The buyer's attorney

Which of these situations would require Thelma, a licensee, to attach the Licensee Buy-Out Addendum to the purchase contract? A. Thelma agrees to buy a seller's property to facilitate the seller's purchasing another property that will earn Thelma a commission. B. Thelma is acting as the buyer's agent, and the seller in the transaction is also a real estate licensee. C. Thelma is purchasing a property for her personal use, and is acting as her own agent in the transaction. D. Thelma is the listing agent for a property. The buyer she finds is also a real estate licensee who's purchasing the property for personal use.

A. Thelma agrees to buy a seller's property to facilitate the seller's purchasing another property that will earn Thelma a commission.

You're measuring the square footage of a single-family home you've just built. What national requirements apply to your measurements? A. There are no national requirements. B. You must measure from the inside out. C. You must measure from the outside in. D. You must measure from the top down.

A. There are no national requirements.

Licensee Nick's been fighting a former client's complaint against him. The investigation into the matter indicated that Nick's actions were a serious violation of license law. What's the most likely way the commission will handle Nick's case? A. They'll hold a hearing on the matter before an administrative law judge. B. They'll refer the case to a criminal court for a decision. C. They'll require Nick's employing broker to take disciplinary action. D. They'll send him a letter of admonishment.

A. They'll hold a hearing on the matter before an administrative law judge.

What's the correct way to use an amendment to a contract? A. To change the original contract's terms B. To create a binding agreement between two parties C. To learn more about the HOA requirements placed upon the property owner D. To make an addition to an existing contract

A. To change the original contract's terms

How does an investor purchasing a commercial property typically use the appraisal? A. To determine the property's income-producing potential B. To evaluate the insurability of the structures C. To qualify for a tax deduction D. To support the value of the property when obtaining a conventional loan

A. To determine the property's income-producing potential

When would you use the Brokerage Duties Addendum to Property Management Agreement form in Colorado? A. To disclose the agency relationship established in a non-CREC property management contract B. To establish a property management contract C. To modify the Exclusive Right-to-Lease Listing Contract D. To modify the Exclusive Right-to-Sell Listing Contract

A. To disclose the agency relationship established in a non-CREC property management contract

Why is a Notice of Cancellation submitted along with an offer to purchase a Colorado property that is in foreclosure? A. To give notice of the seller's right to cancel the purchase contract. B. To give notice that the homeowner may stop the foreclosure. C. To give notice that the loan will be paid in full when the transaction closes. D. To protect the broker and brokerage from liability if the buyer changes his mind.

A. To give notice of the seller's right to cancel the purchase contract.

What's the purpose of an amendment to a listing contract? A. To modify a contract's information, terms, commission, or exclusions after it's been executed B. To modify and define the terms of the contract before it's signed C. C. To modify the broker's duties to the seller D. To notify the buyer or seller of changes to the contract

A. To modify a contract's information, terms, commission, or exclusions after it's been executed

The Colorado Common Interest Ownership Act allows a homeowners' association to place a lien on a property for what reason? A. Unpaid dues and assessments B. Unpaid homeowners' insurance C. Unpaid mortgage D. Unpaid property taxes

A. Unpaid dues and assessments

Buyers send the Colorado Agreement to Amend/Extend Contract to the seller. What must happen for modifications to the contract to be effective? A. Both the buyers and seller must sign the form. B. Both the buyers and seller must sign the form, and the buyers must receive notice of the seller's acceptance. C. The buyers, seller, and their respective agents must sign the form. D. The buyers, seller, and their respective agents must sign the form, and the change must be okayed by the buyers' lender (if applicable).

B. Both the buyers and seller must sign the form, and the buyers must receive notice of the seller's acceptance.

If a Colorado licensee enters into an agreement to purchase a client's property using the Licensee Buy-Out Addendum, which statement is true? A. By signing and attaching the Licensee Buy-Out Addendum to the Contract to Buy and Sell, the licensee agrees to hold the property for at least one year before reselling it. B. By using the Licensee Buy-Out Agreement agrees to forgo commission if the licensee closes on the purchase.e. C. The Contract to Buy and Sell, with Licensee Buy-Out Addendum attached, obligates the client to sell to the licensee. D. The licensee must offer the client at least the list price for the property.

B. By using the Licensee Buy-Out Agreement agrees to forgo commission if the licensee closes on the purchase.e.

Which of the CBS contracts is used for income-producing properties? A. CBS foreclosure B. CBS income-residential C. CBS rentals D. CBS residential

B. CBS income-residential

If you're looking for guidance on a particular real estate related law, where would the best place be to look for more information? A. Broker blogs B. Commission rules C. State congressional records D. The annotated statutes

B. Commission rules

Bart is a Colorado broker who allowed his license to expire. Six months later, he realizes he misses being a broker, and he'd like to have his license back. How can he get the commission to reinstate his license? A. Complete the reinstatement form describing his reasons for wanting his expired license to be reinstated. B. Complete the required CE, apply for reinstatement, and pay a reinstatement fee in addition to the regular renewal fee. C. Since it's been more than 31 days since expiration, he must complete the entire prelicensing process again. D. Take 15 hours of reinstatement licensing courses and pass the state portion of the real estate exam.

B. Complete the required CE, apply for reinstatement, and pay a reinstatement fee in addition to the regular renewal fee.

The Uniform Electronic Transactions Act applies only to transactions in which each party has agreed to ______________. A. All terms of the transaction B. Conduct the transaction electronically C. Conduct the transaction on paper D. Send email

B. Conduct the transaction electronically

Don and Becky realized too late that the contract they signed for the sale of their home didn't include any language about a rent-back if the home they're building isn't ready in time. What can their listing agent do? A. Create a contract addendum with the required language. B. Create a contract amendment with the required language. C. Create a counter-offer to present to the buyers. D. Terminate the contract on Becky and Don's behalf.

B. Create a contract amendment with the required language.

The information contained within the Seller's Property Disclosure form should reflect the seller's ___________. A. Constructive knowledge B. Current, actual knowledge C. Inspection report D. knowledge

B. Current, actual knowledge

You're discussing the rules promulgated by the Colorado Real Estate Commission with a group of licensees from various brokerages. Each broker seems to have a different opinion about the rules. Who do you think is correct? A. Danielle says, "We only need these rules if we don't have an employing broker. Employed brokers follow their office policy, which can be different than the rules." B. Greg says, "These are regulations that support and help us interpret what the license law says, and we're required to abide by them." C. Ruby says, "These are the laws that every real estate broker in the United States is required to follow." D. Seth says, "These are the ethical guidelines the commission would like us to follow."

B. Greg says, "These are regulations that support and help us interpret what the license law says, and we're required to abide by them."

Hayden is assisting a buyer as a transaction-broker when he comes into contact with a potential seller. Hayden presents the seller with the Colorado Brokerage Disclosure to Seller form, and together, they complete the form, sign, and date it. Which of the following statements about Hayden's working relationship with the seller is true? A. Hayden and the seller have entered into a listing agreement. B. Hayden isn't the seller's agent. C. The seller is Hayden's client. D. The seller is liable for Hayden's acts or omissions.

B. Hayden isn't the seller's agent.

How does a Colorado seller counter the price and closing date offered by the buyer? A. He should make his desired changes to the price and closing date on the contract, initial and date the changes, and sign the form to make it a complete agreement. B. He shouldn't sign the offer, but should write up the new terms he wants to include on a Counterproposal form and sign that instead. C. He should sign the offer and return it to the buyer with a signed counter offer. D. He should sign the offer, since he doesn't want to reject the buyer, but tell the buyer's agent to expect a counterproposal.

B. He shouldn't sign the offer, but should write up the new terms he wants to include on a Counterproposal form and sign that instead.

Which of the following terms is used to describe a review of the assumed boundaries of a property and the location of any improvements on the property in relation to its boundaries? A. Boundary survey B. ILC C. Improvement survey D. Land survey plat

B. ILC

Paulo signed an open listing agreement with Debbie, his real estate agent. Which of the following statements is true? A. Debbie will receive her commission regardless of who brings the buyer to the property. B. If Paulo finds a buyer on his own, he doesn't owe anyone a commission. C. Paulo may not have more than one open listing D. Paulo won't owe a commission if he finds the buyer, but the buyer will have to pay the commission.

B. If Paulo finds a buyer on his own, he doesn't owe anyone a commission.

What should brokerages do to help protect confidential information? A. Ensure each licensee has individual copy and fax machines B. Implement procedures to protect private and confidential information C. Install soundproofing in private offices D. Require licensees to use lines in the office, rather than their cell phones

B. Implement procedures to protect private and confidential information

Which of the following benefits does a 1031 exchange provide to investors? A. Avoiding taxes permanently B. Increased funds to purchase a higher-value property C. Increased property value D. Recapturing 100% of the depreciated value

B. Increased funds to purchase a higher-value property

Why should a buyer obtain an interest rate lock during the loan approval process? A. It locks the buyer's credit rating, allowing the buyer to incur new debt prior to loan funding. B. It prevents the interest rate from rising beyond the buyer's affordability. C. It's required by law. D. It's required by the Consumer Financial Protection Bureau.

B. It prevents the interest rate from rising beyond the buyer's affordability.

Which of the following best explains how the statute of frauds protects consumers? A. It doesn't allow people to own land unless they can afford it. B. It provides requirements that contracts have to meet to be legally enforceable. C. It puts a limit on how much interest financial institutions can charge. D. It states that all real property sales must involve lawyers.

B. It provides requirements that contracts have to meet to be legally enforceable.

Which government agency is one of the primary enforcers of green regulations on a national scale? A. The Commission on Environmental Quality B. The Environmental Protection Agency C. The National Security Agency D. The U.S. Department of Energy

B. The Environmental Protection Agency

You've been working with Terry McGill as a transaction-broker. She's looking for a fixer-upper home to buy, renovate, and flip. You locate some suitable properties for her, and when she decides to make an offer on one, you assist her with the transaction. A few months later, Terry asks you to be her agent in the sale of the property. What's true about your relationship with Terry? A. Acting as a transaction-broker and a single agent for the same consumer is a violation of laws controlling brokerage relationships. B. It's perfectly acceptable to sign a listing agreement with Terry to sell this property. Her request shows that she appreciates your skill. C. Since you were a transaction-broker for Terry with this property previously, you may NOT act as her seller's agent in this situation. D. Your employing broker must designate another agent to list this property for Terry, although you could act as her agent in another purchase.

B. It's perfectly acceptable to sign a listing agreement with Terry to sell this property. Her request shows that she appreciates your skill.

What's the most important reason to provide prospective clients with the Definitions of Working Relationships form? A. It's a good practice. B. It's required by law. C. Providing this form ensures that a prospective client can't sue you. D. The Colorado Real Estate Commission suggests you do so.

B. It's required by law.

What's true regarding a Colorado listing agent's compensation? A. It's based on the amount of time the listing agent put into marketing and closing. B. It's usually dependent on the sales price and agreement with the brokerage. C. The listing agent is paid directly by the buyer. D. The listing agent receives a standard 3% of the sales price.

B. It's usually dependent on the sales price and agreement with the brokerage.

In a residential sale, what should the seller disclose about the electrical system? A. Date of installation and name of electrician who installed it B. Knowledge of any defects in the system C. Last system inspection and knowledge of any defects D. Quality of materials used during construction

B. Knowledge of any defects in the system

A licensee who's been threatened with violence after refusing to violate fair housing law should report the threat to _______. A. HUD B. Law enforcement officials C. The mayor D. The National Fair Housing Alliance

B. Law enforcement officials

Which commission-approved form would you use if you wanted to make changes to the listing contract? A. Agreement to Amend/Extend Contract B. Listing Contract Amend-Extend C. Post-Closing Occupancy Agreement D. Residential Addendum

B. Listing Contract Amend-Extend

How would you use the Agreement to Amend/Extend Contract form to delete a date-related provision from the original executed sales contract? A. Add an attachment to the amendment indicating which provisions should be deleted. B. Mark that item in the "Deleted" column of the amendment. C. On the amendment, strike through each provision you want to delete from the original sales contract. D. On the amendment, write "DEL" in the margin beside each provision you want to delete from the original sales contract.

B. Mark that item in the "Deleted" column of the amendment.

Which of these situations does the Americans with Disabilities Act address? A. Marcus, a property manager, routinely dismisses rental applications from families with children under the age of 18. B. Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs. C. Metro Agents hired an interpreter to assist Spanish-speaking clients with the real estate process. D. The Golden Gate senior housing center has no exercise or activity center for its residents.

B. Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs.

Jana passed her broker licensing exam in Colorado. She'd planned to immediately submit her application for her broker's license, but she was in a car accident that upset all her plans. Now it's six months later. Will Jana have to retake her exam, or worse, retake her entire prelicensing course? A. Jana will need to retake the licensing exam, but won't need to retake her pre-licensing education, which is good for one year. B. No, Jana has up to one year after passing her broker's exam to submit her license application. C. No, since Jana completed all the requirements prior to her license application, she can apply at any time without having to retake the exam or any of her pre-licensing education. D. Yes, since Jana didn't submit her application within 30 days of passing the exam, she'll have to retake all her education and pass the exam again.

B. No, Jana has up to one year after passing her broker's exam to submit her license application.

The buyers and sellers sign their purchase contract. Under the terms of the contract, either party can provide written notice to terminate to the other party within the contracted deadline. Two days after that deadline passes, the buyers decide to back out of the contract. Which of the following applies here? A. As long as the buyers send written notice of termination to the sellers at least 48 hours before closing, the buyers won't be in default of the contract. B. Once the buyers missed the contracted deadline to terminate, they, in effect, waived their right to terminate. If the buyers terminated at this point, they'd be in default of the contract. C. Technically, the buyers should have sent their written notice of termination to the seller sooner, but nobody really pays attention to contracted deadlines, so the buyers shouldn't have any problems. D. The purchase contract is automatically terminated, and no one is considered in breach of the contract.

B. Once the buyers missed the contracted deadline to terminate, they, in effect, waived their right to terminate. If the buyers terminated at this point, they'd be in default of the contract.

What type of broker compensation is acceptable in Colorado? Select the most complete correct answer. A. Flat fee, percentage of sales price, or equity ownership B. Percentage, flat amount, or retainer fees C. Percentage of sales price or flat fee, or equity ownership D. Retainer fees or percentage of sales price

B. Percentage, flat amount, or retainer fees

In Colorado, if you're faced with copying a lengthy legal description into a sales contract, what can you do? A. Alter the description but check with the seller first B. Photocopy it, label it, attach it to the sales contract, and reference the attachment in the legal description of the contract C. Reference the number of the recorded document where the legal description can be found D. Shorten it by abbreviating certain words and phrases

B. Photocopy it, label it, attach it to the sales contract, and reference the attachment in the legal description of the contract

What type of water rights does Colorado utilize? A. Post-appropriation B. Prior-appropriation C. Prior-riparian D. Riparian

B. Prior-appropriation

Homes that are built to green or ENERGY STAR® standards are more comfortable due to their construction. Which characteristic of green homes does this describe? A. Affordability B. Quality C. Responsibility D. Trustworthiness

B. Quality

What notification does the Licensee Buy-Out Addendum provide to the seller? A. That the licensee may use the commission earned from the sale as part of the purchase price B. That the seller has the right to cancel the contract C. That the seller will have access to commission rebates when the buyer is a licensee D. That transactions with licensees may lead to greater seller profit

B. That the seller has the right to cancel the contract

In order to execute a Counterproposal, what must the parties sign? A. Both the original sales contract and the Counterproposal form B. The Counterproposal form C. The original Contract to Buy and Sell Real Estate D. The Price Change Amendment

B. The Counterproposal form

Your seller client Sandy is astonished when you ask her to complete a seller's property disclosure to identify her property's defects up front to prospective buyers. "Why would I do that?" she sputters. "I want them to buy it, THEN find out about its defects, after it's too late!" What's the best way to respond to Sandy? A. "If you prefer, I can complete the form for you. Or we can simply mark every item as 'unknown' to avoid liability." B. "I'm sorry, but I won't be able to represent you if you behave unethically. Refusing to complete property disclosures is dishonest." C. "In Colorado, sellers are legally required to disclose all latent defects to prospective buyers." D. "Okay, it's your call. As your agent, I'm obligated to let you know that it's an option for you."

C. "In Colorado, sellers are legally required to disclose all latent defects to prospective buyers."

Per Colorado's Exclusive Tenant Contract, which course of action are the parties to the agreement required to pursue first if there is a dispute over the terms of the contract? A. Arbitration B. Litigation C. Mediation D. Termination

C. Mediation

You're representing Edna, a widow whose home is facing foreclosure and who is being forced to sell. You receive an extremely low offer from an investor, but of course you present it to Edna. The investor's agent has used the CBS (Colorado Foreclosure Protection Act) form and has also attached the Homeowner Warning Notice. How do you explain the purpose of the notice to Edna? A. "The notice is a warning to you that, if you don't agree to the purchase terms, you'll lose your home in the foreclosure sale. It explains the value of a homeowner in your position selling to an equity purchaser, even if the price is low." B. "This is a notice for sellers who don't speak English as their first language. Since you do, we can ignore this form." C. "This notice is designed to protect sellers in your position, who may be persuaded to agree to a contract that's not in their best interests. It ensures that sellers fully understand their right to cancel by putting the notice in their primary language" D. "This notice warns you that you have three days in which to respond to the buyer's offer, or the foreclosure sale will go forward and you'll have to accept whatever price the property sells for at auction."

C. "This notice is designed to protect sellers in your position, who may be persuaded to agree to a contract that's not in their best interests. It ensures that sellers fully understand their right to cancel by putting the notice in their primary language"

Your buyer clients, the Normans, are waiting for the Closing Disclosure from their lender. How many days prior to closing can the Normans expect to receive the document? A. A minimum of five business days B. A minimum of four business days C. A minimum of three business days D. A minimum of two business days

C. A minimum of three business days

Which of the following statements best describes the three-property rule as it relates to taxdeferred exchanges? A. An investor can exchange no more than three properties per exchange. B. An investor can exchange no more than three properties per year. C. An investor can identify up to three replacement properties and not encounter a restriction as to fair market value as long as debt load requirement is met. D. An investor must own at least three properties to qualify for a tax-deferred exchange.

C. An investor can identify up to three replacement properties and not encounter a restriction as to fair market value as long as debt load requirement is met.

Which of the following is an example of a reverse exchange? A. A homeowner finds and closes on a house and then decides to sell their existing home. B. A homeowner sells a property and then finds and closes on a new property. C. An investor finds and closes on an investment property and then decides to immediately sell another investment property. D. An investor sells a property and then finds and closes on another investment property.

C. An investor finds and closes on an investment property and then decides to immediately sell another investment property.

Section 11 of the Colorado commercial sales contract describes the buyer's right to review tenant estoppel statements. For which of these properties is this section of the contract most necessary? A. Any commercial property B. Any property where the buyer intends to cancel existing leases C. Any property where the existing tenants will remain after closing D. Any residential property

C. Any property where the existing tenants will remain after closing

You're working with a seller who owes more on his mortgage than what the home is worth. He's having a discussion with his lender about a possible short sale. What do you need to do in this situation? A. Attach an Additional Provisions form to the listing contract. B. Attach an Open Listing Addendum to the listing contract. C. Attach a Short Sale Addendum to the listing contract. D. Notify the seller's lender with the Short Sale Notice form.

C. Attach a Short Sale Addendum to the listing contract.

Jake is an employing broker who needs to hire some new licensees. Jake isn't very keen on the supervisory duties that accompany his role, so he'd like to hire people that will require the least amount of supervision possible. Which of these would be the best choice for Jake? A. He should hire experienced licensees as employees because CREC rules apply only to licensees working as independent contractors. B. He should hire experienced licensees as independent contractors, because he's prohibited from supervising that type of worker. C. He should hire experienced licensees because his supervisory responsibilities are "reasonable" rather than "high" whether they're classified as independent contractors or employees. D. He should hire unlicensed personnel who can perform activities requiring a license as long as they're supervised by an associate broker.

C. He should hire experienced licensees because his supervisory responsibilities are "reasonable" rather than "high" whether they're classified as independent contractors or employees.

Which form documents a foreclosure seller's principal language? A. Equity Skimming Warning B. Foreclosure Addendum C. Homeowner Warning Notice D. Notice of Cancellation

C. Homeowner Warning Notice

The purpose of the Colorado Common Interest Ownership Act was to facilitate more effective what? A. Advertising and marketing B. Homeowner rights C. Homeowners associations D. Sales and leasing

C. Homeowners associations

In which of the following cases would you choose "New Loan" in the Colorado Contract to Buy and Sell Real Estate (Residential)? A. If the buyer is assuming the seller's loan B. If the buyer is getting a $5,000 seller concession C. If the buyer is obtaining an FHA loan D. If the seller is financing the buyer's purchase of the property

C. If the buyer is obtaining an FHA loan

Which type of survey would provide the most detailed information in the purchase of a 40-acre tract of land that includes a lodge and horse barn in the Colorado mountains? A. Boundary B. ILC C. Improvement D. Purchase survey

C. Improvement

Where are underground storage tanks primarily found? A. In newer homes B. In newer industrial sites C. In older homes and former industrial sites D. In parks and golf courses

C. In older homes and former industrial sites

When Marcy toured her new client's house, she noticed paint peeling off of the shutters. When she asked the seller if the house was painted with lead-based paint, he replied, "I'm not sure ... I inherited the house from my dad, who built it in the '50s." What is Marcy required to do? A. Based on the build date, she should assume the property has lead-based paint and advise the seller that it must be remediated before listing the property. B. Have the seller test for lead-based paint. C. Inform the seller that he needs to complete the lead-based paint disclosure form and provide potential buyers with the EPA pamphlet regarding lead hazards. D. Take a sample of the peeling paint with her, have it tested, and have the seller reimburse her for the testing cost at settlement.

C. Inform the seller that he needs to complete the lead-based paint disclosure form and provide potential buyers with the EPA pamphlet regarding lead hazards.

Which of the following forms does the buyer use to inform the seller that the property is unsatisfactory after an inspection? A. Agreement to Amend/Extend Contract B. Counterproposal C. Inspection Objection Notice D. Inspection Resolution

C. Inspection Objection Notice

How does title insurance affect the lender? A. It protects the lender against any future default in the buyer's payment. B. It protects the lender against unexpected increases in loan costs. C. It protects the lender from loss due to defective titles. D. It protects the lender from the property value decreasing due to market fluctuations or property damage.

C. It protects the lender from loss due to defective titles.

Why would you not be able to accept tickets in exchange for referring business to a settlement service provider? A. All exchanges for referral business must be done with cash. B. If the tickets cost more than $150, you can't accept them. C. It would be considered a kickback. D. Tickets can't be evenly split between you and the service provider, so they can't be accepted.

C. It would be considered a kickback.

JJ is the broker in charge of supervising all the licensed activities at Really Real Realty, Inc. He oversees a dozen associate brokers, which keeps him busy, but not so busy that he can't represent his own clients. He continues to practice and earns plenty of commissions. What's true about JJ's real estate practice? A. Any commissions JJ earns must be submitted to another designated broker at the company. B. JJ is acting illegally, because the designated broker for an organization isn't allowed to continue practicing real estate. C. JJ may not work as an independent broker; his business may only be conducted as part of Really Real Realty, Inc. D. JJ's earnings don't need to go into the company accounts, but he can elect to work in the firm's name.

C. JJ may not work as an independent broker; his business may only be conducted as part of Really Real Realty, Inc.

Joshua, a Colorado licensee, presents the Brokerage Disclosure to Landlord form to Bill, the person he's meeting with. What's the relationship between Joshua and Bill? A. Joshua and Bill are preparing to enter into an agency relationship with Joshua as landlord Bill's broker. B. Joshua is interested in representing Bill, a landlord, as his property manager. C. Joshua represents a tenant interested in renting from Bill, who's a landlord. D. Joshua represents Bill, a landlord, and is disclosing the legal limits of his relationship with potential tenants.

C. Joshua represents a tenant interested in renting from Bill, who's a landlord.

A Colorado seller is including a freestanding refrigerator in the sale. What must he include in the disclosures? A. Any warranties supplied by the manufacturer or purchased by the seller B. Date of purchase of the appliance C. Knowledge of any defects D. Serial number and original purchase price

C. Knowledge of any defects

Kristy is licensed as a real estate broker and a mortgage loan originator in Colorado. She's the buyer's agent in a transaction in which the buyer/borrower must apply for a loan, and has asked Kristy for her help as a mortgage loan originator. Which of the following statements about this situation is true? A. It's illegal for Kristy to represent this buyer. She must remove herself from the transaction. B. Kristi must present the buyer/borrower with a Change of Status form. C. Kristy must present the buyer/borrower with the Colorado Dual Status Disclosure form. D. The buyer/borrower must use Kristy as the mortgage broker in the transaction.

C. Kristy must present the buyer/borrower with the Colorado Dual Status Disclosure form.

Hunting and gaming leases, timber production, crops, and the potential for development are all factors that must be considered in a __________ transaction. A. Commercial B. Industrial C. Land D. Residential

C. Land

Which type of real estate transaction may have a residence, leases, and the disposition of growing crops to consider? A. Commercial B. Industrial C. Land D. Residential

C. Land

Federal law requires disclosures about what potential hazard in residential properties built prior to 1978? A. Arsenic B. Asbestos C. Lead D. Radiation

C. Lead

Which party, other than the buyer and seller, must agree to a loan assumption? A. Buyer's broker B. Closing agent C. Lender D. Seller's broker

C. Lender

Which of the following transactions demonstrates designated agency? A. Benny, a licensee from New Days Realty, represents seller Carmine. Bert, a licensee from Expertise Realty, represents Cassandra, the buyer. B. Benny, a licensee, represents seller Carmine and buyer Cassandra. C. Licensee Benny represents seller Carmine, and licensee Boyd represents buyer Cassandra. D. They both work for New Days Realty. The seller, Carmine, is represented by licensee Benny. The buyer, Cassandra, is unrepresented.

C. Licensee Benny represents seller Carmine, and licensee Boyd represents buyer Cassandra.

The Colorado Real Estate Commission is NOT required to investigate which of these situations? A. It comes to CREC's attention that Don is practicing real estate without a license. B. Licensee Darma submits a complaint against her employing broker to CREC, claiming he isn't available to help when she needs it, resulting in a "sale fail" for her client. C. Licensee Mark believes licensee Ben is marketing property unethically, and submits his complaint to the Colorado Association of REALTORS®. D. Mercy submits a complaint to CREC about licensee Fred, claiming he didn't disclose a personal interest in the property she purchased.

C. Licensee Mark believes licensee Ben is marketing property unethically, and submits his complaint to the Colorado Association of REALTORS®.

Your buyer client wants to know what he's likely to owe at settlement. Which of the following documents do you explain will provide him with an estimate? A. Closing Disclosure B. HUD-1 statement C. Loan Estimate D. Mortgage Servicing Transfer Disclosure

C. Loan Estimate

Real estate brokers should act with honesty and integrity toward all consumers, but which of the following would a leasing agent owe only to a property owner whom the broker represents? A. Accountability B. Good faith C. Loyalty D. Proper disclosures

C. Loyalty

Which of the following scenarios best describes a net listing? A. Carmel is selling her condo for $280,000 and is offering 6% commission to the listing broker. B. Jason is listing his duplex for $400,000 but reserves the right to find his own buyer and not have to pay a listing commission. C. Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount. D. Ralph is selling his townhome for $225,000 and is paying a brokerage fee of $25,000.

C. Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount.

For which of the following properties would the Colorado Contract to Buy and Sell Real Estate (Land) be the best contract choice? A. Home on three acres in a subdivision B. Industrial building on a 4.7-acre lot C. Market farm on five acres D. Medical care complex covering 10 acres

C. Market farm on five acres

Jameson has signed a purchase contract to buy Frederich's home. When Frederich defaults on the contract, the parties are obligated, under the terms of the CBS residential, to first pursue a non-legal remedy. What's this remedy called? A. Lawsuit for breach of contract B. Liquidated damages C. Mediation D. Specific performance

C. Mediation

George has been practicing as a real estate broker in California for the last 15 years. He decides to move his family to Colorado. Since he has so much experience already, can he automatically be licensed as an employing broker in Colorado? A. No, but he can automatically obtain an independent broker's license. B. No, he'll need to complete the same process and requirements as any other candidate for initial licensure in Colorado. C. No, he'll need to take a 24-hour brokerage administration course and pass the state portion of the licensing exam. D. Yes; his California broker's license automatically qualifies him for licensure as an employing broker in Colorado.

C. No, he'll need to take a 24-hour brokerage administration course and pass the state portion of the licensing exam.

Marcia's had her license suspended. Dan's had his license revoked. Paula's license is on inactive status. Which licensee is allowed to practice real estate at this time? A. All these licensees may continue to practice until the three-year licensing period is complete. B. Marcia and Paula may, but Dan may not. C. None of these three may practice at this time. D. Paula may, but Marcia and Dan may not.

C. None of these three may practice at this time.

Which agency is charged with enforcing fair housing laws and holding all parties accountable for compliance with these laws and regulations? A. Office of Civil Rights B. Office of Equal Credit Opportunity C. Office of Fair Housing and Equal Opportunity D. Office of Housing and Community Development

C. Office of Fair Housing and Equal Opportunity

What's true about cooperating broker compensation and an Open Listing Addendum? A. Cooperating brokers are very poorly compensated under the terms of an Open Listing Addendum. B. Cooperating brokers are very well compensated under the terms of an Open Listing Addendum. C. Only the broker who finds a buyer or tenant is compensated under an Open Listing Addendum, so there's no "cooperating" broker. D. The client can opt not to include cooperating brokers on an Open Listing Addendum.

C. Only the broker who finds a buyer or tenant is compensated under an Open Listing Addendum, so there's no "cooperating" broker.

Who can enforce an option contract? A. Either the optionor or the optionee B. Only the court C. Only the optionee D. Only the optionor

C. Only the optionee

A/an_______ contract is an offer to purchase a specific piece of real estate, but without the obligation to buy it. A. Buyer agency B. Listing C. Option D. Sales

C. Option

Margo is the potential buyer of the property in an option contract. Margo is the ______. A. Optee B. Opter C. Optionee D. Optionor

C. Optionee

Which of the following is a violation of Colorado license law? A. Accepting a commission from an employing broker B. Accepting a referral fee from a licensed broker in another jurisdiction C. Paying a commission to an unlicensed person D. Paying a referral fee to a licensed broker in another jurisdiction

C. Paying a commission to an unlicensed person

The historical case of Conway-Bogue affected the way in which real estate brokers in Colorado could _______________________________. A. Obtain a real estate license B. Pay commission checks C. Prepare legal documents D. Show homes for sale

C. Prepare legal documents

In Colorado, when the seller is providing financing, which financing documents must be delivered prior to the seller financing deadline? A. Credit report and pay stubs B. Novation and release of liability C. Promissory note and deed of trust D. Seller Financing Addendum

C. Promissory note and deed of trust

Which of these transactions involves an equity purchaser, as defined by the Colorado Foreclosure Protection Act? A. Courtney buys a home from Joey who stopped making his mortgage payments. Courtney intends to make the house her primary residence. B. Daryn buys a home that needs work, lives in it while he renovates, and then sells it for a profit. C. Reba purchases the Samsons' home prior to foreclosure. Reba intends to use the property for rental income rather than live in it herself. D. Vera buys a home from a seller facing foreclosure. Since the homeowner is upside down on the mortgage, it's a short sale.

C. Reba purchases the Samsons' home prior to foreclosure. Reba intends to use the property for rental income rather than live in it herself.

Which of these property owners is eligible to take advantage of a 1031 tax-deferred exchange? A. Ann owns a single-family home, but rents it out to a coworker while she's on a two-year military tour. B. Chanel sells an investment property. A year later, she finds an almost identical investment property to purchase, and does so. C. Reggie sells an apartment complex and purchases a new complex a month later in a different part of the city. D. Sigmund sells his single-family home and purchases a new home for his family to reside in.

C. Reggie sells an apartment complex and purchases a new complex a month later in a different part of the city.

If a buyer is assuming a seller's loan, the seller will most likely want to sign a(n) _____________ with the lender. A. Approval of new borrower B. Mortgage release C. Release of liability D. Underwriting agreement

C. Release of liability

Buyer Summer has a new loan application deadline of November 17, per the CBS residential contract she signed. However, after reviewing the various loan options, she can't find any that meet her requirements for payments, terms, and conditions, so she decides to cancel the contract. If Summer wants to get her earnest money back, which of the following must she do? A. She has two options: Either cancel payment on the earnest money check if it hasn't been cashed yet, or have her attorney notify the seller on or before the settlement date that she's terminating the contract. B. She must notify the seller in writing on or before the loan approval deadline that she wasn't approved for a loan, and therefore is terminating the purchase contract. C. She must notify the seller in writing on or before the new loan termination deadline that she wasn't able to find a loan to meet her requirements, and because of that, she's terminating the purchase contract. D. She must notify the seller in writing on or before the settlement date that she's terminating the purchase contract because she's changed her mind about the property.

C. She must notify the seller in writing on or before the new loan termination deadline that she wasn't able to find a loan to meet her requirements, and because of that, she's terminating the purchase contract.

Niko has decided a career in real estate is just what she wants, so she's preparing herself to take the licensing exam and get her broker's license. She knows there's a bunch of education involved, but what other detail must she take care of when submitting an application for a broker's license? A. She must pass her 21st birthday. B. She must provide the Colorado Real Estate Commission with three professional references, not from family or relatives. C. She must submit her fingerprints to the Colorado Bureau of Investigation for a criminal background check. D. She must take an oath of honesty and integrity

C. She must submit her fingerprints to the Colorado Bureau of Investigation for a criminal background check.

Georgia is a licensed real estate salesperson from Maryland. She's moving to Colorado and wants to obtain her Colorado real estate license. What process will she follow for licensure? A. She has no education or exam requirements and can apply for a reciprocal license, which the commission issues based on her current license level. B. She'll follow the same process as any other candidate for initial licensure in Colorado. C. She'll have reduced education requirements but must still pass the licensing exam before applying for her Colorado license. D. She must complete all the Colorado pre-licensing education requirements but doesn't have to sit for the exam before applying for a broker's license.

C. She'll have reduced education requirements but must still pass the licensing exam before applying for her Colorado license.

Dean was very motivated to sell his house and was excited when he got an offer. When he realized the buyer couldn't qualify for the purchase price, he decided to accept a second mortgage without mentioning it to his lender and reduce the sales price accordingly. Which type of mortgage fraud scheme is this an example of? A. Inflated appraisal B. Property flipping C. Silent second D. Straw buyers

C. Silent second

Molly's an individual broker at a one-person firm who's currently working with five sellers and several buyer clients. She receives an offer for one of her listings from a buyer who's working with another agent. She presents the offer to her seller, and they discuss the benefits and drawbacks of the offer. Based on Molly's actions, what's her role in this situation? A. Designated agent B. Dual agent C. Single agent D. Transaction-broker

C. Single agent

In Colorado, for how many years do judgment liens stay attached to real property? A. Eight B. Four C. Six D. Two

C. Six

Which of these could be signs of flood damage? A. Hot and cold rooms in the house B. Misaligned doors C. Soft or uneven floors D. Windows that won't open

C. Soft or uneven floors

Ronnie is the buyer in a real estate transaction. What does the title advisory section of CREC's Contract to Buy and Sell Real Estate (Residential) tell her about title insurance? A. It insures and protects the buyer against everything. B. Not all buyers qualify for title insurance. C. Some items may be excepted, excluded from, or not covered in the title insurance policy. D. Title insurance is not available for property in which the surface rights are held separately from the mineral rights.

C. Some items may be excepted, excluded from, or not covered in the title insurance policy.

Which of the following liens results from the government placing a levy against real property to help fund the cost of a specific improvement? A. Judgment B. Property tax C. Special assessment D. State tax

C. Special assessment

A licensee who works under another agent in a transaction with the client's permission is called a __________. A. Designated agent B. Double agent C. Sub-agent D. Transaction-broker

C. Sub-agent

Which of the following statements about the holdover period in the Colorado's Exclusive Rightto-Buy Listing Contract is true? A. The buyer is required to pay the compensation amount stated in the original agency agreement even if no property is purchased. B. The holdover period extends the agency agreement by the number of days specified and guarantees the broker a percentage of the brokerage fee. C. The holdover period protects a broker's right to compensation for property presented to, but not purchased by, a buyer until after the term of the agency agreement. D. The number of days in the holdover period can't exceed 30.

C. The holdover period protects a broker's right to compensation for property presented to, but not purchased by, a buyer until after the term of the agency agreement.

Stan is a home inspector who's evaluating a home for potential buyers. He pointed out that neither of the two bathrooms had vent fans installed. Why is this a potential problem that will be noted on the inspection report? A. Bathroom fans can mitigate lead paint particles. B. Bathroom fans vent radon to the exterior of the home. C. The lack of air circulation in a moist room can lead to mold growth. D. Unseemly smells located that close to the kitchen are a problem.

C. The lack of air circulation in a moist room can lead to mold growth.

The CBS residential calls for closing on October 3. The buyers agree to allow the sellers to remain in possession of the property until October 15. Which of the following is true of this situation? A. Post-closing occupancy by sellers isn't permitted in Colorado residential sales. B. The parties need to complete and sign a post-closing occupancy agreement, and the buyers will pay daily "rent" to the sellers. C. The parties need to complete and sign a post-closing occupancy agreement, and the sellers will pay daily "rent" to the buyers. D. The parties need to each bring in their attorneys to draw up a short-term rental agreement to allow the sellers to remain in the property past the closing date.

C. The parties need to complete and sign a post-closing occupancy agreement, and the sellers will pay daily "rent" to the buyers.

In a 1031 exchange, there are rules governed by Section 1031 of the Internal Revenue Code. The rules include _______. A. The basis of the original property is cancelled. B. The new property must be lower value than the relinquished property. C. The property in an exchange must be like-kind. D. The replacement property has to come with less debt load.

C. The property in an exchange must be like-kind.

In the case of Conway-Bogue Realty Investment Co. vs. Denver Bar Association, what charges did the Colorado Supreme Court consider? A. Investing in bank-owned properties, which was a conflict of interest B. The brokers' use of standard and approved real estate forms C. The real estate investment firm's unlawful practice of law D. The violation of the firm's client's best interest

C. The real estate investment firm's unlawful practice of law

Which timing method of a 1031 property exchange requires an exchange accommodation titleholder (EAT)? A. The delayed exchange B. The replacement exchange C. The reverse exchange D. The simultaneous exchange

C. The reverse exchange

If there's no potable water source on a property, which of the following is true? A. The buyer must do a well feasibility test prior to closing. B. The seller can't lawfully sell the property. C. The seller must disclose that fact on an addendum. D. The seller must provide a credit to the buyer.

C. The seller must disclose that fact on an addendum.

Which of the following best describes a net listing? A. The seller and agent agree to split the profit from the proceeds of the sale. B. The seller reserves the right to sell the property and not have to pay a commission. C. The seller specifies a desired price for the property and agrees to pay the broker any amount received that's more than that price. D. The seller works with many agents, and only the agent who procures the buyer is owed a commission.

C. The seller specifies a desired price for the property and agrees to pay the broker any amount received that's more than that price.

The cost of most commercial properties is higher than for most residential properties, which affects ____________. A. The broker's ability to negotiate a fair price B. The number of disclosures the seller must make C. The size of the down payment and the loan D. The title company's ability to provide title insurance

C. The size of the down payment and the loan

Why are galvanized pipes a problem in older homes? A. They are not a problem. B. They are out of date and can lead to a variety of electrical problems. C. They can rust and cause leaks and low water pressure. D. They indicate the heating and cooling system(s) are outdated.

C. They can rust and cause leaks and low water pressure.

Your buyer client has reviewed the Counterproposal form you received from the seller's agent and is ready to agree to the modified terms. What action will you take? A. Since your client already signed the original CBS, you'll have her initial the seller's Counterproposal to indicate acceptance of the amendments. B. You'll complete a new CBS that reflects all the terms of the original CBS and the seller's Counterproposal, have your client review and sign, then send it to the seller's agent. C. You'll ensure your client understands how the Counterproposal modifies the terms of the original CBS and creates a complete contract before having your client sign the Counterproposal form. D. You'll notify the seller's agent that the modified terms are agreeable to your client so a new CBS can be created for signature by all parties.

C. You'll ensure your client understands how the Counterproposal modifies the terms of the original CBS and creates a complete contract before having your client sign the Counterproposal form.

A friend of yours, Richie, approaches you and says, "You know all about real estate now, don't you? My wife and I applied for a rental unit last week, and I think we were rejected because we're a mixed-race couple. What do you think we should do about it?" How do you respond? A. "Did you contact the police? I'm pretty sure they can arrest the owner or the property manager for discrimination." B. "Don't worry about it. Some people are just jerks. I'll help you and your wife find a great apartment." C. "You should contact the Colorado Real Estate Commission and make a complaint against the property owner." D. "You should make a complaint of discrimination against the owner or the person who treated you that way. File it with the Colorado Civil Rights Division."

D. "You should make a complaint of discrimination against the owner or the person who treated you that way. File it with the Colorado Civil Rights Division."

A finance rate that exceeds ___________________ is illegal in Colorado. A. 15% B. 21% C. 36% D. 45%

D. 45%

Which of the following situations is permitted in Colorado? A. A licensee acts as a single agent for both the buyer and seller in the same transaction. B. A licensee acts as a single agent for the buyer and transaction-broker for the seller in the same transaction. C. A licensee acts as a single agent for the seller and transaction-broker for the buyer in the same transaction. D. A licensee acts as a transaction-broker for both the buyer and seller in the same transaction.

D. A licensee acts as a transaction-broker for both the buyer and seller in the same transaction.

Which of these people is exempt from the Subdivision Developer's Act and not required to be registered with the Colorado Real Estate Commission? A. A Colorado developer whose business is in Colorado, and who's selling property in Texas B. A developer selling interests in a converted property with 23 lofts C. A developer selling stock certificates as proprietary leases in a housing cooperative with 40 units D. A public official performing official duties of the office and selling 25 units in a condominium property

D. A public official performing official duties of the office and selling 25 units in a condominium property

Which of the following results in an improvement location certificate (ILC)? A. A home inspection B. An appraisal C. An improvement survey D. A spot survey

D. A spot survey

Which of the following is used to establish the broker/buyer-tenant relationship in Colorado? A. A face-to-face meeting between the broker and the buyer-tenant B. A signed Definitions of Working Relationships form C. A verbal agreement between the broker and the buyer-tenant D. A written and signed buyer-tenant contract

D. A written and signed buyer-tenant contract

Which of the following best describes a general agent? A. An agent acting as facilitator to a party B. An agent unrelated to the real estate transaction C. An agent with limited authority to act on behalf of a client D. An agent with the broad responsibility to handle all details related to a specific piece of property

D. An agent with the broad responsibility to handle all details related to a specific piece of property

Marty, a broker, wants to submit a formal disagreement with a disciplinary action, but he's not asking for a review of the decision. What should he submit? A. A designation of record B. A disapproval C. An appeal D. An exception

D. An exception

According to Section 9 of the Colorado land sales contract, what alternative document may qualify as a new ILC or survey? A. A full warranty deed B. A limited warranty deed C. An attorney's waiver D. An updated existing ILC or survey

D. An updated existing ILC or survey

In the Colorado Contract to Buy and Sell Real Estate (Residential), the person making the offer must indicate whether the Closing Instructions form is being executed with the contract. Which entity has approved the Closing Instructions form for usage with Colorado Contract to Buy and Sell Real Estate (Residential) form? A. Colorado Association of REALTORS® B. Colorado Board of Mortgage Loan Originators C. Colorado Board of Real Estate Appraisers D. Colorado Real Estate Commission

D. Colorado Real Estate Commission

What do licensees have to do after obtaining errors and omissions coverage? A. Add the policy number to their broker advertising. B. Arrange for automatic renewal of coverage. C. Display their coverage certificates at their brokerage office. D. File proof of coverage with the Real Estate Division.

D. File proof of coverage with the Real Estate Division.

Which statement about lead-related health problems is true? A. Lead can be traced to senioritis. B. Lead causes blindness upon contact with the eyes. C. Lead is associated with coronary heart disease. D. Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.

D. Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.

Emma is about to order a radon test for a premises that her tenant client is interested in leasing. Per the Exclusive Tenant Listing Contract, which of the following must Emma do before ordering the test? A. Arrange for her brokerage firm to advance the necessary funds to the tenant. B. Ask the tenant to pay for the test in advance with a certified check. C. Make arrangements to be present at the time the test is installed. D. Make sure the tenant agrees to pay for the cost of the radon test promptly when due.

D. Make sure the tenant agrees to pay for the cost of the radon test promptly when due.

Which of the following is NOT considered an activity requiring a real estate license? A. Albert conducts weekly real estate auctions, and makes a good living at it. B. For a nominal fee, Tess shows a home for rent to a prospective tenant on behalf of the home's owner. C. Joan negotiates a lease on a new location for her place of work on behalf of her employer. D. Nick purchases a fixer-upper using a loan from his parents, puts some sweat-equity into it, and flips it.

D. Nick purchases a fixer-upper using a loan from his parents, puts some sweat-equity into it, and flips it.

Which of the following statements about owner's extended coverage (OEC) in Colorado is true? A. According to the terms of the Colorado Contract to Buy and Sell Real Estate (Residential), it's illegal to offer OEC in Colorado. B. It must be added to the title commitment under the terms of the Colorado Contract to Buy and Sell Real Estate (Residential). C. OEC can only be added to the title commitment if the buyer pays for it. D. OEC may or may not be added to the title commitment under the terms of the Colorado Contract to Buy and Sell Real Estate (Residential).

D. OEC may or may not be added to the title commitment under the terms of the Colorado Contract to Buy and Sell Real Estate (Residential).

What's a noxious weed? A. One that gives off an unpleasant odor B. One that grows across property boundaries C. One that's difficult to control D. One that's invasive or not native

D. One that's invasive or not native

Grant owns a property that's subject to an option contract. Grant is the ______. A. Optee B. Opter C. Optionee D. Optionor

D. Optionor

Chevy is an optionee. What's his sole responsibility? A. Exercise the option. B. Make an offer. C. Make monthly payments. D. Pay the option fee.

D. Pay the option fee.

Which of the following statements about Colorado's regulatory oversight of mortgage loan originators is true? A. Because of its strict regulatory oversight of mortgage loan originators, Colorado had very few foreclosures in 2007. B. Colorado has one law pertaining to mortgage loan originators, and that is the Mortgage Broker Registration Act. C. Colorado one was of the first states to have regulatory oversight of mortgage loan originators. D. Prior to 2006, Colorado essentially had no regulatory oversight of mortgage loan originators.

D. Prior to 2006, Colorado essentially had no regulatory oversight of mortgage loan originators.

Happy Home Realty, Inc. is a newly licensed organizational broker in Colorado. The corporation is headed by Neil, Carey, and Randa. Neil and Randa are both licensed brokers with years of real estate experience, but Carey is a business administrator. Which of these is one of the requirements Happy Home Realty had to meet in order to become licensed? A. All company officers (Neil, Carey, and Randa) must be licensed brokers. B. All of the organization's licensed activities must be supervised by Neil or Randa, since they're both licensed and both officers of the corporation. C. Carey is designated as the sole escrow fund holder for the company. D. The officers of the company designated Randa as their qualified active broker.

D. The officers of the company designated Randa as their qualified active broker.

For which of the following property conditions would a buyer request the seller to deliver contracts relating to the property's operation, maintenance, and management under Section 10.6.1.1 of the Colorado commercial sales contract? A. The distribution business currently operated on the premises is being sold with the real estate. B. The property has current tenants with leases that will extend beyond the closing date. C. The property has recently completed renovations and repairs. D. The property uses a commercial service company to perform ongoing repairs and maintenance for the HVAC system.

D. The property uses a commercial service company to perform ongoing repairs and maintenance for the HVAC system.

In their Colorado sales contract, a buyer and seller agree that if possession is not given on the closing date, the seller will pay a daily fee of $90 until the seller delivers possession of the property. What other consequences could the seller face under the terms of this contract? A. The buyer could cancel the sales contract. B. The buyer could sue the seller for specific performance and receive a refund of his earnest money. C. The seller could be forced to refund the buyer's earnest money. D. The seller is subject to eviction.

D. The seller is subject to eviction.

Who is responsible for finding out if a loan is assumable in the sale of industrial property? A. The buyer's agent when the buyer asks B. The buyer's agent, when the buyer client first expresses interest in the property C. The buyer, upon making an offer D. The seller's agent when the property is listed

D. The seller's agent when the property is listed

What happens if a Colorado property's air conditioning fails ten days before closing? A. The buyer must bring suit if the seller refuses to repair/replace B. The buyers are responsible for repair/replacement C. The parties must negotiate how the failure will be handled D. The sellers are responsible for repair/replacement

D. The sellers are responsible for repair/replacement

Broker Katie has just met Rhonda, who's asking her about renting a unit in landlord Jan's building. Katie presents her with a completed Brokerage Disclosure to Tenant form and asks her to sign it. What information is NOT disclosed to Rhonda on this form? A. That the disclosure form isn't a contract B. The possible working relationships between Katie and Jan or Rhonda C. The tasks Katie intends to perform for Rhonda, who is Katie's customer D. The uniform and additional duties Katie performs as Jan's representative

D. The uniform and additional duties Katie performs as Jan's representative

What must be disclosed about a property's potable water in Colorado? A. Average temperature fluctuation B. Its pH level C. The specific gravity allotted to it D. The water source and type of rights

D. The water source and type of rights

What are the main ways that license laws ensure consumer protection? A. They define standards, develop education standards, and create recurring revenue. B. They establish requirements, assess fees, and build education. C. They establish requirements, assess fees, and create recurring revenue. D. They establish requirements, define activities, and set standards.

D. They establish requirements, define activities, and set standards.

Reginald is an employed broker who works at ABC Realty. He agrees to represent his cousin Jill, who's looking to buy her first home. Reginald knows Jill's scrimped and saved for a long time to afford her home, so he gives her part of the commission he's earned after the transaction closes, as a house-warming gift. What's true about this situation? A. Reginald can't legally give Jill part of his commission because she's unlicensed. B. Reginald has put Jill in a difficult position as the seller now has a legal right to demand that money back, since it didn't go to a licensee. C. Reginald is allowed to give Jill part of his commission as long as the money flows directly from his broker to Jill, and not through Reginald. D. This is allowed as long as Reginald has disclosed the gift, which would be considered a rebate, to the other parties in the transaction.

D. This is allowed as long as Reginald has disclosed the gift, which would be considered a rebate, to the other parties in the transaction.

An expired license can be reinstated as long as the license is expired for no longer than ________. A. Five years B. One year C. Six months D. Three years

D. Three years

What type of properties are considered subdivisions in Colorado? A. A neighborhood with 10 or more houses B. Condominiums with eight or more units C. Housing cooperatives with 15 or more proprietary leases D. Timeshares with 28 interests

D. Timeshares with 28 interests

What services did the companies of Guaranty Title Co. and Abstract Record & Title Co. provide to members of the public? A. Legal services explaining real estate contracts B. Real estate brokerage services C. Real estate listing services D. Title, escrow, and closing services

D. Title, escrow, and closing services

Arnie is a licensee in Colorado. He wasn't as meticulous as he should have been when identifying inclusions and exclusions for his buyer clients. As a result, the sellers removed items that the buyers thought had been included in the purchase. Based on this situation, which of the following statements is true? A. Nothing can be done now that the transaction has been completed. B. The buyers can ask the sellers to reimburse them for the items that were taken. C. The sellers have 30 days to return the items. D. To avoid a lawsuit, Arnie needs to make this right with his clients.

D. To avoid a lawsuit, Arnie needs to make this right with his clients.

What's the purpose of an estoppel statement? A. To disclose the energy-efficient appliances being sold with the property B. To disclose the known or unknown presence of lead in a property built before 1978 C. To disclose the structural and physical condition of the property D. To disclose the terms and conditions of any lease agreements being transferred with the property

D. To disclose the terms and conditions of any lease agreements being transferred with the property

What's the purpose of the Short Sale Addendum? A. To discourage buyers with a loan contingency from making an offer. B. To enable the seller to avoid paying a commission to the listing agent. C. To facilitate a speedy transaction. D. To notify potential buyers that the sale of the property is contingent upon the lienholder's consent and approval.

D. To notify potential buyers that the sale of the property is contingent upon the lienholder's consent and approval.

What is the primary reason that the Due Diligence section of Colorado's non-residential sales contracts includes items and requirements that aren't part of the residential contract? A. To implement legally required safeguards for tenants of the commercial building B. To prevent illegal use of a property after the transaction closes C. To protect the buyer from purchasing a property with structural defects D. To protect the buyer's right to evaluate the property's income potential

D. To protect the buyer's right to evaluate the property's income potential

While an office building is under contract, the seller wants to add a new tenant. What is the buyer's responsibility in this situation, according to the Colorado Contract to Buy and Sell Real Estate (Commercial)? A. To allow this or any other modification to existing lease agreements, as long as the seller informs the buyer in writing of the change(s) B. To modify the offer to buy with an adjustment that accounts for the modified tenant base for the property C. To negotiate with the new tenant so that the terms of the lease will be agreeable to the buyer as the new property owner D. To review the seller's request and agree to it in a timely manner, if it's reasonable

D. To review the seller's request and agree to it in a timely manner, if it's reasonable

Tianna is acting as buyer Zack's agent. When she arranges to bring Zack to view a property he's interested in, she needs to disclose her relationship with him. To whom must she make this disclosure, and how does she make it? A. To other buyer clients she works with, using the Brokerage Disclosure to Buyer form B. To other buyers interested in the property, using the Brokerage Disclosure to Buyer form C. To the property seller and the seller's agent, using the Working Relationships Disclosure form D. To the property seller or the seller's agent, using the Brokerage Disclosure to Seller form

D. To the property seller or the seller's agent, using the Brokerage Disclosure to Seller form

In the "in-company transactions" section of the listing contract, sellers can decide between having the broker treat the buyer as a customer or having the broker act as a ___________. A. Buyer's agent B. Designated agent C. Dual agent D. Transaction-broker

D. Transaction-broker

Josephine presented the Change of Status form to the seller and buyer. Both the seller and buyer signed the disclosure. Now that the disclosure has been given, what's Josephine's working relationship with the buyer? A. Buyer's agent B. Independent contractor C. Seller's agent D. Transaction-broker

D. Transaction-broker

You've been working with a couple, the Bensons, as a transaction-broker. They're looking for a home to purchase. They decide to make an offer on a home listed by another broker at your firm. Is it legal for you to continue acting as their transaction-broker now? A. No, because in Colorado, it's illegal for the opposing parties in a single transaction to be represented by two licensees from the same firm, since it creates dual agency. B. No. The seller's broker must obtain the seller's consent to change the relationship to a transaction-broker, which creates a permitted brokerage relationship since both brokers in the transaction are from the same firm. C. Yes, you and the seller's agent are both designated brokers. Because you're both from the same firm, your employing broker is considered a dual agent. D. Yes, you're the designated broker for the Bensons, and the other licensee at your firm is the designated broker for the seller. This is legal, and there's no dual agency.

D. Yes, you're the designated broker for the Bensons, and the other licensee at your firm is the designated broker for the seller. This is legal, and there's no dual agency.

Buyer Peter is eager to make an offer on the two-story home you just showed him, but you're concerned about the back bedroom, since it looks like a relatively recent addition. When Peter asks you why it's an issue, how do you respond? A. It doesn't fit aesthetically with the rest of the house. B. The extra bedroom is inconsistent with the rest of the neighborhood, reducing its value. C. You're certain it's not built to code, so Peter shouldn't make an offer on the property. D. You recommend that Peter check on the permits for it, so that he doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code.

D. You recommend that Peter check on the permits for it, so that he doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code.

In the state of Colorado, if a sales contract isn't _____________ by the seller, it's considered void. A. enforced B. initialed C. negotiated D. signed

D. signed