48-Hour Contracts and Regulations Course

You're working with a buyer, Lucy, as Lucy's transaction-broker. Which action is NOT your obligation in this situation?

"I think you could offer less than the list price, if we also offer some seller-favorable terms. Do you want to start there and see how close we can get to your preferred price and terms?"

Which option defines an acceptable fee according to the Real Estate Settlement Procedures Act?

Any flat fee based on actual services disclosed and performed for a client, regardless of the success of the transaction, with the settlement service provider.

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?

Associate broker

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?

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

Which form documents a foreclosure seller's principal language?

Homeowner Warning Notice

This type of property is considered a subdivision in Colorado when there are 20 or more shares in the corporation.

Housing cooperative

Lola, an Air Force veteran, has applied for a VA loan to finance the purchase of a property. What problems might she encounter in the approval process with this type of loan?

Prohibition against buyer-paid repairs

The Division of Real Estate has responsibility for a number of functions. Which of these activities is NOT one of its responsibilities?

Promulgate rules real estate licensees must follow in their professional practice.

What's codified and often carries the force of law without being a law?

Regulation

Your buyer clients have applied for a mortgage loan. When can they expect to see the Loan Estimate from the lender?

Within three business days after submitting a loan application

Delilah is acting as a real estate broker and a mortgage loan originator in the same transaction. What's the latest point at which she can present the buyer/borrower with the Dual Status Disclosure?

Within three days of receiving the loan application

Edward represented Lawrence as a landlord's agent in leasing out his apartment building. Edward also represented Terry as a tenant's agent when searching for an apartment to rent in another town. Is this permitted?

Yes, Edward can represent Terry as long as Terry isn't interested in leasing from Lawrence's building

If a seller wishes to sell Colorado property for less than what's owed to a lienholder, what form should be used?

Short Sale Addendum

A licensee can't attempt to establish a relationship with a consumer who's under an active exclusive right to buy or sell contract with another licensee. Which rule does this describe?

Sign-crossing

Nell, a licensee, is working with Carl, a seller. Nell has taken her duties seriously and has presented all offers to Carl, kept him fully informed about the transaction, kept his reason for moving confidential, put loyalty to him above all others, and sought a price acceptable to him (among other duties). What's Nell's role in this transaction?

Single agent

At what level does real estate licensing take place?

State

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?

Tenant's agent

What was the outcome in the case of Guaranty Title Co. vs. Denver Bar Association?

The Colorado Supreme Court affirmed that Guaranty Title Co. was in violation of the unlawful practice of law.

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?

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

What's true about alternatives to physical delivery of contract documents and notices?

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

Under Section 3, Dates and Deadlines, of the Colorado commercial sales contract, you see the notation, "Within 3 days of MEC." What does this mean?

The deadline is to be the third day after mutual execution of the contract.

What does Colorado statute require to be made part of any sales contract involving property that's part of a common interest community?

A bold-faced type disclosure

When a buyer has been pre-approved, which of the following is true?

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

A Colorado associate broker's compensation is funneled through the licensee's employing broker. Who may pay the compensation that goes through the employing broker?

A party to the transaction, a third party, or another broker

What type of professional must an investor use to conduct a tax-deferred exchange?

A qualified intermediary

Harvey is an investor who found and closed on an investment property, then decided to sell a property other than the one originally marked for the exchange. What is this an example of?

A reverse tax-deferred exchange

Which document is used to extend the termination date of listing contracts in Colorado?

Agreement to Amend/Extend Contract with Broker

Which of the following scenarios is an example of a designated broker situation?

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.

Broker Charlene is a one-person firm, and she stays very busy. When Frank, a buyer she's representing, says he'd like to offer for a property Charlene has listed for seller Kim, Charlene helps him do so, looking forward to the full commission she'll earn as a result. What's wrong with this picture?

Charlene can't act as an agent for both Frank and Kim, the buyer and seller in the same transaction, since this is illegal in Colorado.

Chris is acting as a transaction-broker for a buyer, and the two of them have an oral agreement. Which of the following statements about this agreement in Colorado is true?

Chris isn't entitled to compensation.

Which of the following tasks can an unlicensed assistant perform?

Collect earnest money and provide a receipt

Rob is a real estate licensee performing an estimate of value. Which entity has jurisdiction over his actions?

Colorado Real Estate Commission

If you're looking for guidance on a particular real estate related law, where would the best place be to look for more information?

Commission rules

Which of the following describes a universal agent?

Conservator

Which of the following scenarios is an example of a dual agent situation?

Debbie, a licensee, represents both Michael, a seller, and John, who wants to buy Michael's property.

Which agency relationship is illegal in Colorado?

Dual agency

Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it's due to his disability. He is protected under what federal law?

Fair Housing Amendments Act of 1988

If network cables and wiring exist on a property, what are they considered?

Fixtures

Which of the following statements about the buyer/tenant representation agreement in Colorado is true?

It is an employment agreement between the buyer/tenant and broker.

What's true about the Exclusive Right-to-Lease Listing Contract in Colorado?

It must have a termination date

Landlord agency is what kind of agency?

Limited

A licensee with a broker's license from another state and more than two years of experience must do what to work as a broker in Colorado?

Pass the state portion of the broker's exam

You're assisting a buyer who's looking at homes outside the city limits. One property on 35 acres notes on the seller disclosures that the water source is a well, and there's an on-site septic system to handle waste water. What else should be disclosed in this case?

Permits for both the well and septic system

Per Colorado's Mortgage Broker Registration Act, mortgage brokers are required to do which of the following?

Post a surety bond

Which of the following states that, in certain cases, oral evidence can be used to support or complete an otherwise incomplete or ambiguous contract?

The parol evidence rule

Although anyone can pay the listing broker's commission, who customarily pays?

The seller

The Raymonds are obtaining a home loan and failed to lock their interest rate. What's the worst thing that could happen if their interest rate rises?

They may no longer qualify for the loan.

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)?

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

How do you create an open listing in Colorado?

Use the Exclusive Right-to-Sell Listing Contract with the Open Listing Addendum.

When must the Colorado Change of Status form be completed?

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