Class Questions and answers
Which of the following are excluded from the definition of "foreclosure consultant"? A- A person who gets a fee for hindering foreclosure sales on behalf of clients B- A person who gets a fee for negotiating an extension to the terms of a loan on behalf of a defaulting mortgagee C- A person who gets a fee for obtaining the waiver of an acceleration clause D- A person closing a RESPA loan in the normal course of the person's business
D- A person closing a RESPA loan in the normal course of the person's business
What does "grandfathering" mean? A- It is a restriction placed on residential development B- It is a portion of the zoning code that prohibits the construction of apartments within dwelling units C- It is an action taken by the local zoning board to control a public hearing D- It refers to a non-conforming use
D- It refers to a non-conforming use
What makes a durable POA "durable"? A- It is executed in black ink B- It is effective for a period of 50 years C- It cannot be modified D- The POA remains effective even if the principal later becomes disabled or incompetent
D- The POA remains effective even if the principal later becomes disabled or incompetent
Which of the following is not true about POA's in Colorado? A- They can be used in banking transactions B- They can be used in insurance transactions C- They can be used in business transactions D- They can only be exercised in Colorado if executed in Colorado
D- They can only be exercised in Colorado if executed in Colorado
What must a developer obtain prior to commencing construction? A- A certificate of occupancy B- A building permit C- An environmental impact statement D- A special permit
B- A building permit
What is "standing"? A- It is the City's right to bring a code enforcement action B- It is a person's right to bring a lawsuit C- It is a building code reference to the height of a building D- It is a term used to refer to the introduction of competent evidence
B- It is a person's right to bring a lawsuit
Bill and Mary purchase a home in a deed restricted community. The City's zoning code permits them to erect a satellite dish but the deed restrictions do not. What will happen if they erect a satellite dish? A- Nothing, the City's zoning code overrides the deed restrictions B- Nothing, if no one in the community objects C- They will be issued a citation and fined by the community association D- They will be issued a code enforcement citation by the City
B- Nothing, if no one in the community objects
Bob Broker represents the seller in a transaction. Bob gets a buyer on the hook and as an inducement, offers the buyer a rebate on Bob's commission. Is Bob in violation of a Commission Rule? A- No, because Bob is allowed to rebate part of his commission to a buyer B- Yes, because Bob did not get the seller's consent first C- Yes, because Bob cannot rebate his commission to a buyer when he represents a seller D- No, because the rebate is not any of the seller's business
B- Yes, because Bob did not get the seller's consent first
What is the fine for violation of the Foreclosure Protection Act? A- up to $10,000 B- up to $25,000 C- up to $5,000 D- up to $100,000
B- up to $25,000
Which of the following can an agent granted a POA not do with respect to real estate under a statutory POA? A- Sell property B- Apply for rezoning C- Earn a commission D- Mortgage the property
C- Earn a commission
Which of the following is a true statement? A- In Colorado, only the statutory Power of Attorney form can be used B- A limitation on the powers given in the statutory Power of Attorney negates the POA C- If the statutory form POA is used, a third party may rely upon the acts of the agent without liability to the principal D- Colorado has eliminated nonstatutory POA's
C- If the statutory form POA is used, a third party may rely upon the acts of the agent without liability to the principal
What gives local government the right to zone property? A- The Constitution of the United States B- The Supreme Court decided it C- The police power afforded by the 14th amendment D- The State Legislature
C- The police power afforded by the 14th amendment
Which of the following would you not likely see in a commercial zoning regulation? A- Building height B- Buffer requirements C- Units per acre D- Setback requirements
C- Units per acre
What is the key issue when determining whether a real estate sales person for a homebuilder needs a license? A- The person's college degree B- The person's years of experience C- Whether the person is salaried D- Whether the homebuilder is registered with the State
C- Whether the person is salaried
Jim Smith does not have a real estate license. He contacted his broker friend, George Brown, and gave him the names of a co-worker who wants to list his home, and his next door neighbor, who may be interested in the buying the co-worker's home. Can Broker George Brown give Smith a referral fee? A- No, because Smith isn't a broker B- No, because Smith didn't bring the buyer and seller together C- Yes, because Smith didn't negotiate the deal between the co-worker and his neighbor D- No, because a broker cannot give an unlicensed person any compensation
C- Yes, because Smith didn't negotiate the deal between the co-worker and his neighbor
Must a broker escrow funds taken in under a short term occupancy agreement? A- No, because the funds are being held for a short period B- No because the money isn't really rent C- Yes, because it is money of other people D- No, because the Commission has exempted the activity
C- Yes, because it is money of other people
A developer owns 100 acres of land. He will devote 25% to parks and 15% to roads. He will allot 1/2 acre per lot. How many lots can he sell? A- 35 B- 70 C- 39 D- 120
D- 120
The interest on an escrow account goes to whom? A- To the buyer if the transaction is terminated prior to the end of the inspection period B- To the seller if the contract is terminated prior to the inspection period C- To the buyer if the contract is terminated after the inspection period D- To the seller if the seller defaults
A- To the buyer if the transaction is terminated prior to the end of the inspection period
Which of the following is not a zoning category? A- Variance B- Industrial C- Commercial D- Residential
A- Variance
In the City of Wheat Ridge case, why did the court uphold the zoning board's decision? A- The zoning board's decision was based on competent evidence B- The defendant did not produce evidence that created a reasonable doubt C- The court has a right to deny a rezoning for any reason it wants to D- A court cannot reverse a zoning board's decision
A- The zoning board's decision was based on competent evidence
Which of the following documents does the broker not need to retain in the file? A- A copy of the deed B- Settlement statement C- Purchase and sale contract D- Lead Paint Disclosure
A- A copy of the deed
The Colorado Foreclosure Protection Act governs the activities of whom? A- Foreclosure consultants B- Borrowers in default C- Debt relief advisors D- Lenders
A- Foreclosure consultants
Under what circumstances can a broker charge a fee for closing a transaction? A- If the fee is tied to the closing services and not to the preparation of legal documents B- Never C- If the charges are reasonable D- If the broker is an employing broker
A- If the fee is tied to the closing services and not to the preparation of legal documents
What is the advantage of a Planned Unit Development? A- It allows a developer to modify the standard zoning code restrictions to cluster housing and create open space B- It costs less to develop C- It is easier to get approved D- It does not require a plat
A- It allows a developer to modify the standard zoning code restrictions to cluster housing and create open space
Which of the following activities is a personal assistant not allowed to do? A- Negotiate a contract B- Distribute preprinted information at an open house C- Do research D- Provide access to a property
A- Negotiate a contract
Tom Smith isn't a licensed broker. He calls up Joe Jones, a friend who is a broker and gives him the name of Smith's cousin, who wants to sell his house and the name of his minister, who may want to buy it. Can Smith get share in Joe's commission? A- No, because Smith isn't a broker B- No, because Smith didn't bring the buyer and seller together C- Yes, because brokers can rebate part of their commissions to non-brokers if the non-broker aids in the procurement of the sale D- No, because Smith didn't have a listing agreement with his cousin.
A- No, because Smith isn't a broker
A foreclosure consulting contract must contain which of the following addendums? A- Notice of Cancellation B- A recitation of the Fair Housing Act policy C- A recitation of the preamble to the Foreclosure Protection Act D- An indemnification provision
A- Notice of Cancellation
Which of the following is not required when executing a statutory POA? A- The signatures must be witnessed B- The wording of the form must conform to the statutory form C- The signature of the principal needs to be acknowledged D- The form must be properly completed
A- The signatures must be witnessed
Broker Bob has been watching a property for three months and knows the listing is about to expire. Bob has a buyer for the property and calls up the owner of the property to see if he can list the property once the existing listing expires. Is Bob in violation of Rule E-13? A- No, because the listing is for the future B- Yes, because Bob spoke directly with the owner without talking to the current listing broker C- No, because the owner was not going to renew the listing D- Yes, because Bob contacted the owner directly before the listing expired
D- Yes, because Bob contacted the owner directly before the listing expired
Complete the following sentence: a foreclosure consulting contract must_______________. A- be in writing B- be presented to the client at least 24 hours prior to the time the client executes it C- acknowledged by a notary D- all of the above
D- all of the above -be in writing -be presented to the client at least 24 hours prior to the time the client executes it -acknowledged by a notary