Practical Applications
As you complete projects, increase ongoing training, and achieve successes, . 1. Add these to all your marketing items 2. Add these only to newsletters and brochures 3. These should not be noted online unless a confirmation letter accompanies them 4. None of the above
1. Add these to all your marketing items
E&O Insurance must be in place . 1. Before an active license can be issued 2. Within 30 days of licensure 3. For all active licenses 4. For an attorney licensee with professional malpractice insurance.
1. Before an active license can be issued
Finding a company that you like to be associated with _________. 1. Could determine your success or failure 2. Is difficult 3. Is not important 4. Could take many years
1. Could determine your success or failure
An employing broker may . 1. Delegate supervisory authority to other experienced licensees in the office 2. As a favor and at no fee, prepare legal documents for a "For Sale by Owner" 3. Accept a fee from a title insurance company for placing business with them 4. Use trust account funds of others, as long as they are replaced within 30 days
1. Delegate supervisory authority to other experienced licensees in the office
______ inspire you while ________ change your life. 1. Dreams - Goals 2. Goals - Dreams 3. Desires - Clients 4. Clients - Transactions
1. Dreams - Goals
"Niche Marketing" refers to . 1. Finding a special group or market segment to focus marketing efforts on 2. The creation of a business plan 3. Marketing only to a specific class of person
1. Finding a special group or market segment to focus marketing efforts on
Associate brokers are _____. 1. Independent contractors 2. Employees of the managing broker 3. Noncontract persons 4. Employees of the brokerage firm
1. Independent contractors
A major difference of a Comparative Market Analysis and an appraisal performed for a lender is . 1. Lender's appraisals for federally insured financial institutions must be prepared by licensed appraisers while a CMA is prepared by a real estate broker 2. CMAs review the past 12 months while lenders' appraisals go back only 6 months 3. CMAs compare the area's inflation while lenders' appraisals focus on development 4. CMAs have a variable fee schedule while lenders' appraisals have a set fee
1. Lender's appraisals for federally insured financial institutions must be prepared by licensed appraisers while a CMA is prepared by a real estate broker
When preparing a Competitive Market Analysis (CMA), the most likely highest price would be represented by the average . 1. List price of three comparable homes listed but not yet sold 2. Sale price of three comparable homes sold in the last six months 3. Assessed value of three comparable homes 4. Appraised value of homes under contract
1. List price of three comparable homes listed but not yet sold
Concerning measurements of a residential property, a licensee . 1. Must disclose the source of the measurement 2. May use the assessor measurement even if it is apparently wrong 3. Does not need to measure the home if a previous agent had already measured the home 4. Must measure the home to the standards set by the American National Standards Institute
1. Must disclose the source of the measurement
Providing service to your seller does NOT include . 1. Negotiating a contract in your best interest 2. Providing feedback from potential buyers and tenants 3. Creating a specific targeted marketing plan for the property and 4. Maintaining ongoing communication until the property is sold or leased
1. Negotiating a contract in your best interest
When working with a buyer, an agent should _______. 1. Let the lender do his job and stay out of it 2. Make sure the buyer has enough for a down payment and closing costs 3. Tell the buyer to work with the agent's lender only 4. Trust the buyer regarding money to close
2. Make sure the buyer has enough for a down payment and closing costs
Lead is most often found in all the following EXCEPT . 1. Paint 2. Minerals in the ground 3. Water sources caused by old lead pipes 4. Lead solder
2. Minerals in the ground
Three years and eleven months after the closing, the commission contacts Broker Pendleton and requests to audit the transaction file. What must Broker Pendleton do now? 1. After two years, the file was not required to be maintained, but if Pendleton has a copy, it must be produced 2. Pendleton must submit the file for review 3. Pendleton is not required to submit the file because the three year time limit on file retention has passed 4. Only those documents in the file that are not "confidential" in nature should be shared with the commission
2. Pendleton must submit the file for review
A lessor believes the desirability and sales volume of a large retail store will increase dramatically in the next few years. In negotiating a long-term lease for the premises, the lessor would ask for what type of lease? 1. Triple Net Lease 2. Percentage Lease 3. Gross Lease 4. Flat Lease
2. Percentage Lease
Reasonable supervision of licensees with two or more years of experience shall include . 1. Review of documents in preparation of closing 2. Review of all executed contracts in order to maintain assurance of competent preparation 3. Specific training in office policies 4. Assistance in the preparation of contracts
2. Review of all executed contracts in order to maintain assurance of competent preparation
What should you verify before making cold calls to a niche market area or farm? 1. That those being called are not listed on the CAN-SPAM list. 2. That those being called are not listed on the Do Not Call Registry. 3. That the parties are not subject to a listing contract. 4. That the property being contacted is not currently under contract.
2. That those being called are not listed on the Do Not Call Registry.
The financing statement for the sale of this business includes the mineral rights on the property. Thus, . 1. The TD-1000 form must be completed to include all of the minerals listed individually that are found on the property before it can be filed with the clerk and recorder's office. 2. The financing statement must be filed with the clerk and recorder 3. The contract must include a financing statement 4. The financing statement must be filed with the Secretary of State's Office
2. The financing statement must be filed with the clerk and recorder
When the short sale is closed, . 1. The buyer will have negative information added to their credit report 2. The seller may still owe the remaining loan balance to the lender 3. The seller will not have negative loan information added to their credit report 4. The lender will still owe the balance of the loan prior to the release being recorded
2. The seller may still owe the remaining loan balance to the lender
As a seller's agent, if a broker intends to work both sides of a transaction without the buyer being a "customer", what accommodation must be made? 1. The Exclusive Right-to-Sell Listing Contract must have been signed as "Transaction-Broker". 2. The seller must sign a "Change of Status, Transaction-Broker Disclosure" form. 3. The seller and buyer must have signed "Change of Status, Transaction-Broker Disclosure" forms at the time of their respective listings. 4. The seller must have elected to allow the change of status at the time the listing was signed.
2. The seller must sign a "Change of Status, Transaction-Broker Disclosure" form.
A _______ is the arrangement whereby several joint owners have the right to use a property as a vacation home under a written agreement. 1. Cooperative 2. Time-share 3. Condominium 4. Subdivision
2. Time-share
The arrangement between an owner of commercial property and a broker who agrees to procure renters, and collect rents and security deposits, is commonly known as . 1. An escrow agreement 2. A sublease 3. A management agreement 4. A leasehold agreement
3. A management agreement
To be successful in real estate you will need ________. 1. A new car 2. Fancy clothes 3. A set of personal and business goals 4. Many friends
3. A set of personal and business goals
When must a disclosure be given relating to how the broker will work with a potential client? 1. At the time the contract is written. 2. Prior to the time the contract is written. 3. Before a broker receives confidential information from a buyer or tenant about their needs, motivations, or financial qualifications. 4. Before meeting the potential client
3. Before a broker receives confidential information from a buyer or tenant about their needs, motivations, or financial qualifications.
One result of the Seibel Decision is that . 1. Brokers must follow commission rules, unless acting on their own account 2. Brokers may complete (fill in the blank) of any commission approved forms 3. Brokers must follow commission rules, even if acting on their own account 4. Brokers are required to follow commission rules during any agency relationship with a member of the public
3. Brokers must follow commission rules, even if acting on their own account
When must a buyer sign the Lead-Based Paint Disclosure Form? 1. After completion of the risk assessment or after inspection of the property 2. After receiving the pamphlet "Protect Your Family From Lead in Your Home". 3. By the date set forth in the contract. 4. Only if the property was built after January 1, 1978.
3. By the date set forth in the contract.
A form of sales tax, payable on the transfer of furniture equipment, would be . 1. Property Tax 2. Transfer Tax 3. Colorado Use Tax 4. State Income Tax
3. Colorado Use Tax
CAM stands for . 1. Commercial Agreement Management Fee 2. Commercial Area Management 3. Common Area Maintenance Fees 4. Colorado Arena Management
3. Common Area Maintenance Fees
A conference-style interaction with a customer, where there is an exchange of ideas, might be called . 1. Presenting 2. Mirrored 3. Consulting 4. Relevant Appeal
3. Consulting
A month-to-month tenancy on a residential property would MOST LIKELY be a___________. 1. Net lease 2. PITI lease 3. Gross lease 4. Percentage lease
3. Gross lease
If a transaction fails and earnest money is unclaimed, . 1. It shall be returned to the buyer 2. The seller may retain it as "unclaimed" 3. It should be turned over to the Colorado State Treasurer after five years 4. It must be interpleaded to the court
3. It should be turned over to the Colorado State Treasurer after five years
A close friend ______ use you as a real estate agent. 1. Will always 2. Will not 3. Might not 4. Has to
3. Might not
When making a presentation to an owner/seller of commercial real estate you will need to 1. Evaluate the marketability and potential sales or lease price of a property or business 2. Handle objections the owner will raise during your presentation and your analysis of the property 3. Stage the property so it is ready to view 4. Both 1 and 2 are correct
4. Both 1 and 2 are correct
When listing a property, you should list it for _________. 1. The price the seller suggests 2. The home's likely market value 3. A price that will most effectively bring in offers at (or above) market value 4. Both 2 and 3
4. Both 2 and 3
The holdover period applies to . 1. Sellers whose names are delivered to the broker prior to the end of the listing period 2. Any buyers who viewed your listed property prior to the end of the listing period 3. Any buyer or seller that was contacted during the listing period 4. Buyers whose names have been submitted to the seller prior to the end of the listing period
4. Buyers whose names have been submitted to the seller prior to the end of the listing period
Establishing a business relationship creates an exception to the . 1. CAN-SPAM Act 2. Brokerage disclosure to a buyer 3. Mail Standards Act 4. Do Not Call Registry and the Junk Fax Prevention Act
4. Do Not Call Registry and the Junk Fax Prevention Act
Declan wants to sell his book of business to you, but wants his unlicensed friend Alicia to handle the paperwork since she is a paralegal. What would make this a business opportunity sale that would require a real estate broker's license? 1. If Alicia also owned a part of the business. 2. If you purchase the business using a loan or financing. 3. If the business was declared a business opportunity. 4. If Declan also sold land as part of the business.
4. If Declan also sold land as part of the business.
The following are true regarding emailed newsletters, EXCEPT . 1. It can be quite effective 2. It is best if one screen is used only 3. It should be sent consistently 4. It is ineffective and if it is used, and it should be used only once
4. It is ineffective and if it is used, and it should be used only once
Broker Elise is buying a new home, she . 1. May choose to disclose she is licensed at any time prior to the closing 2. Must disclose, either verbally or in writing, she is a licensed real estate broker 3. Is not required to give notice she is a broker 4. Must give written notice she is licensed
4. Must give written notice she is licensed
The brokerage relationship established between the seller and the designated broker extends to . 1. The employing broker 2. The firm 3. Other brokers employed by the broker 4. No one but the designated broker
4. No one but the designated broker
High density rules restricting oil and gas development would apply . 1. In all urban areas 2. Only in areas where the rules are approved by the municipality 3. On lots that are larger than two acres 4. On lots that are smaller than two acres
4. On lots that are smaller than two acres
Presenting refers to what style of presentation? 1. Conference 2. Consultative 3. Relevant appeal 4. Performance
4. Performance
An agent with less than two years experience can expect the employing broker to . 1. Be or assign a mentor 2. Provide training within weekly sales meetings 3. Co-Sign all contracts 4. Personally, or through an assigned experienced licensee, attend closings or be available for assistance
4. Personally, or through an assigned experienced licensee, attend closings or be available for assistance
Responsibilities of a commercial realtor or broker include . 1. Loan underwriting 2. A buyer's creditworthiness 3. Title searches 4. Property leasing, sales, and marketing
4. Property leasing, sales, and marketing
When working with a buyer, an agent should NOT ask if ______ is an important factor in the buyer's decision to buy. 1. Square footage 2. Price 3. Location 4. Racial composition
4. Racial composition
The definition of time share includes all the following except_______. 1. Interval estate 2. Vested future interest 3. Estate for years 4. Subdivision
4. Subdivision
Once the title company is selected by the parties to the contract, . 1. The title company will prepare the contract for sale 2. The IRS shall be notified of the selection 3. The broker is no longer responsible for the accuracy of the closing statements 4. The broker is still responsible for accuracy of the closing statements
4. The broker is still responsible for accuracy of the closing statements
When interviewing brokerage firms it's important that you review all of the following EXCEPT . 1. A set of procedures that are used throughout the brokerage 2. The employment agreement 3. The company office policy 4. The list of hot leads the company will provide you on your first day
4. The list of hot leads the company will provide you on your first day
Once a customer starts a relationship with you as a transaction-broker, . 1. You must always be a transaction-broker during the life of the agreement. 2. They can change the relationship to a client type if they change their mind, even if you have any other agreements in place that contradict the change. 3. The rules and law are silent on this issue. 4. They can change the relationship to a client type if they change their mind, as long as you do not have any other agreements in place that contradict the change.
4. They can change the relationship to a client type if they change their mind, as long as you do not have any other agreements in place that contradict the change.
A small brokerage company has five earnest money deposits. They are managing eight single-family residential units, which are all leased at this time. They have receipted for eight security deposits. What is the minimum number of trust accounts that must be maintained? 1. One 2. Twenty-one 3. Two 4. Three
4. Three
Ann needs to vacate her unit due to a job change that will require her to move to the Western Slope.Ann . 1. Must receive permission from her landlord in order to sublet her unit 2. Will automatically forfeit her entire deposit if she moves 3. Will be requested by the landlord or owner a verification of the job change before allowing Ann to vacate the unit 4. Unless the lease states otherwise, may sublet her unit
4. Unless the lease states otherwise, may sublet her unit
If a Lead-Based Paint Disclosure (Sales) Form is not signed by the seller and required real estate licensees prior to accepting an offer on a residential dwelling for which a building permit was issued prior to January 1, 1978, the contract is . 1. Voidable by the seller 2. Valid unless challenged 3. Lacking and possibly amended or extended 4. Valid, the LBP disclosure must be signed by the date set forth in the contract
4. Valid, the LBP disclosure must be signed by the date set forth in the contract
At what time can a licensed broker commingle tenant security deposits and sales escrow account? 1. When the brokerage only manages one apartment complex of fifteen units or less. 2. When the brokerage maintains only one unit that can be either a multi-family or residential unit. 3. Never is this allowed in the practice of real estate. 4. When the brokerage maintains less than seven single family residential units.
4. When the brokerage maintains less than seven single family residential units.
When can a managing broker deposit into the "sales escrow" security deposits received from rental property that is managed by the broker? 1. Never, security deposits must have their own identifying trust or escrow account. 2. When the brokerage manages less than nine residential units. 3. Only when the brokerage is renting properties that are listed for sale. 4. When the brokerage manages less than seven residential units.
4. When the brokerage manages less than seven residential units.
Which of the following statements regarding the office policy is INCORRECT? 1. The policy manual controls your working relationship with the public and sets the tone for your working relationship with your broker associates. Policies should be reviewed semiannually to make sure they conform to current real estate law. 2. The policy manual controls your working relationship with the public and sets the tone for your working relationship with your broker associates. 3. Policies should be reviewed semiannually to make sure they conform to current real estate law. 4. Office Policies may be the most important documents that you create as an employing broker. 5. Office Policies should be updated every year.
5. Office Policies should be updated every year.
If you know your buyer's lender, _______ about your closing. 1. You will worry less 2. You will worry more 3. There is no need to worry 4. You are assured
1. You will worry less
Every active real estate licensee must maintain error and omissions insurance EXCEPT . 1. Licensees who conduct fewer than five transactions per year 2. An attorney licensee who maintains professional malpractice insurance 3. A licensee who has been claim free for three years 4. Licensees who are self-insured by paying into the recovery fund
2. An attorney licensee who maintains professional malpractice insurance
"Floor time" is . 1. A waste of time 2. Answering incoming calls from possible buyers/sellers 3. Keeping the shop clean 4. Common in small companies
2. Answering incoming calls from possible buyers/sellers
To find prospects and develop a clientele, all the following applies EXCEPT . 1. Talking about real estate 2. Being reserved—people will respect you and want to work with you 3. Telling people what you do 4. Beginning to speak to a few people and you will now have drawn a crowd
2. Being reserved—people will respect you and want to work with you
New agents ________. 1. Need little contact with other licensees 2. Benefit from contact with other licensees 3. Need a lot of alone time 4. Work best in small groups
2. Benefit from contact with other licensees
Earning a designation, such as the GRI (Graduate REALTOR® Institute) designation, . 1. Is only worthwhile for full-time brokers 2. Can be valuable for both marketing and ongoing competence purposes 3. Is only valuable in marketing 4. Is only valuable to create competency
2. Can be valuable for both marketing and ongoing competence purposes
The threshold rule _______. 1. Means that showing a property always entitles the broker to get paid 2. Is one determining factor in procuring cause 3. Is not applicable to commercial properties 4. Is only applicable to residential properties
2. Is one determining factor in procuring cause
A seller's ______ will help show how much they will receive at closing with a particular sales price. 1. Proceed spreadsheet 2. HUD-1 3. Disbursement sheet 4. Loan Estimate
1. Proceed spreadsheet
The Code of Ethics is one of the requirements of being a ______. 1. Realtor 2. Licensee 3. Broker 4. Agent
1. Realtor
What is NOT an acceptable form of square footage disclosure? 1. Seller measurements 2. Prior appraisal 3. Building plans 4. Assessor's office
1. Seller measurements
Increasing your ________ should be an ongoing goal that pays off in your real estate business over time. 1. Sphere of influence 2. Contact information 3. Business cards 4. Office hours
1. Sphere of influence
In the Exclusive Right-to-Sell Listing Contract, all of the following would be considered a material fact to be disclosed to a buyer, EXCEPT . 1. That the home has not been tested for radon 2. That the house has lead paint 3. That the neighbor next door has an easement to cross the property 4. That the roof leaked two years ago, but has been repaired
1. That the home has not been tested for radon
To complete a short sale, . 1. The broker shall include signed short sale addenda and required CREC forms 2. The seller shall give the broker notice of the required forms needing to be signed 3. The buyer must agree to accept the lenders standard addendum to a short sale 4. The CREC must be notified through the signing and delivery of the Short Sale Addendum (form SS45-20)
1. The broker shall include signed short sale addenda and required CREC forms
The seller wants to remain in the property for two months after closing; . 1. The broker should recommend a lease be signed between the buyer and seller 2. The title company shall prepare a lease for use by the buyer and seller 3. The closing must be delayed to allow for the occupancy 4. The "Escrow" (or funds at the title company) must be held until the property is vacated
1. The broker should recommend a lease be signed between the buyer and seller
A settlement statement for _______ must be included in the closed transaction file. 1. The party represented or assisted 2. All parties to the transaction 3. The broker 4. The lender
1. The party represented or assisted
An important consideration in brokering a business opportunity would be . 1. The value of stock or inventory 2. The cost of the broker's services as an average over the last year 3. The value of the non-transferable property 4. Personal financial information of the seller, which should always be delivered for review to the purchase
1. The value of stock or inventory
When you plan a brochure, it's not a good idea to . 1. Use a high school year book picture or glamour-shot photo 2. Have a professional photographer take a picture of you to use in all of your marketing materials 3. Use the standard 8½ x11" with a tri-fold, which will easily fit into a business-size envelope 4. Create your brochure on your website then print it
1. Use a high school year book picture or glamour-shot photo
Your clients' children who _______ do not have to be in a "child seat" while you show property, if the parents don't care. 1. Weigh more than 40 lbs. 2. Are over 6 months 3. Are more than one year 4. Do not want to be
1. Weigh more than 40 lbs.
Errors and Omissions (E&O) Insurance must be purchased through . 1. The Colorado Division of Insurance 2. Any E&O carrier licensed to sell policies in Colorado 3. The group E&O carrier with whom the Real Estate Commission contracts, or any carrier who meets the minimum requirements established by the Commission 4. Only the group E&O carrier with whom the Real Estate Commission contracts
3. The group E&O carrier with whom the Real Estate Commission contracts, or any carrier who meets the minimum requirements established by the Commission
A short sale may not be possible IF, . 1. The buyer is not pre-qualified by the lender 2. The seller is not pre-qualified by the lender 3. The lender will not accept less than the current amount due on the loan 4. There are remaining tax liabilities owed by either of the parties to the transaction
3. The lender will not accept less than the current amount due on the loan
Broker Robin measures a new listing, prior to putting it into a local MLS. What must occur regarding the square footage of the new listing? 1. The square footage Robin determines must be verified with the local assessor. 2. The seller must verify the square footage prior to entry into the MLS. 3. The methodology or manner used to measure must be disclosed. 4. The square footage Robin determines must be verified through any other source, such as an appraisal.
3. The methodology or manner used to measure must be disclosed.
When REALTORS® prepare opinions of real property value or price, other than in pursuit of a listing or to assist a potential purchaser in formulating a purchase offer, such opinions shall include all of the following EXCEPT . 1. The defined value or price 2. Date prepared 3. The opinion is considered an appraisal 4. Identification of the subject property
3. The opinion is considered an appraisal
The licensee's main communication tool is _________. 1. A personal brochure 2. A mailer 3. The phone 4. Lunch date
3. The phone
You are analyzing a retail property with multiple tenants. While reviewing the leases, you determine that the tenants are responsible for the reimbursement of their pro-rata share of operating expenses. Which type of lease is this? 1. Gross Lease 2. Percentage Lease 3. Triple Net Lease 4. Modified Gross Lease
3. Triple Net Lease
A good business plan include all of the following EXCEPT . 1. A marketing plan 2. Services you provide 3. Your vacation plans 4. Budget and funding
3. Your vacation plans
Working in the Commercial field requires all of the following EXCEPT . 1. A detailed property analysis 2. Utilization of various additional methods of researching property types, and even possibly lease information, from multiple sources 3. Similar tools and proficiencies as a residential broker 4. A commercial real estate license
4. A commercial real estate license
Prospecting can involve . 1. Picking specific neighborhoods to mail information 2. Farming 3. Calling your sphere 4. All of the above
4. All of the above
wants to know what their property is worth to a buyer and what is possible for the highest sales price or lease price in the current market. 1. An industrial property owner 2. A commercial property owner 3. A residential property owner 4. Any property owner
4. Any property owner
Independent contractor tax deductions . 1. Are the same as a small business deductions 2. Can include just about any expense that is incurred in the conduct of your business 3. May be lavish, if that's your taste 4. Both #1 and #2 are correct
4. Both #1 and #2 are correct
If a broker is not experienced in farm and ranch properties and he or she has been asked to list one, he or she should . 1. Never take the listing 2. Seek the assistance of another real estate licensee who does have the necessary experience 3. Refer the listing to another more experienced broker 4. Both #2 and #3 are correct
4. Both #2 and #3 are correct
Which of the following is true regarding prospecting? 1. Prospecting is not worth the time spent, it will not pay off for your business. 2. Prospecting has its benefits, including the ability to work with a better grade of client. 3. Someone who has been referred is more likely to have greater respect for your services and abilities. 4. Both #2 and #3 are correct.
4. Both #2 and #3 are correct.
Which of the following listing contracts allows the seller to sell the home without having to pay the broker? 1. Exclusive Brokerage (Agency) Listing Addendum 2. Exclusive Right-to-Sell 3. Open Listing addendum 4. Both (1) & (3)
4. Both (1) & (3)
