125 Contract And regulation Questions: Flashcards
- In Colorado, the closing statement must be delivered to the respective parties in a real estate transaction:
A. When the deed is transferred
B. 30 days after the closing.
C. 30 days after the Title has been transferred.
D. 60 days after the title has been transferred.
A. When the deed is transferred
Rationale: this is done at the time of closing.
- Which of the following circumstances does not require a broker to have an escrow account?
A. When the broker except earnest money on behalf of the seller.
B. Buyer broker who does not except money.
C. Buyer broker who collects nonrefundable retainer fees and breaches fiduciary duties.
D. A property manager who collects security deposits only.
B. Buyer broker who does not except money.
- To renew a Colorado real estate license, the licensee must:
A. Complete eight hours of continuing education every three years.
B. Complete 16 hours of continuing education every year.
C. Complete 24 hours of continuing education every three years or passing the Colorado portion of the real estate exam.
D. Complete eight hours of continuing education every year for three years.
C. Complete 24 hours of continuing education every three years or passing the Colorado portion of the real estate exam.
5. A broker is found to have violated division of real estate procedures, the division may not: A. Require repayment of damages B. Assess a fine of $2500. C. Suspend her license D. Revoke their license
A. Require repayment of damages
Rationale: the court can only cause repayment of damages. The division of real estate procedures cannot insist on damages
- In order to be named the broker for corporation, which of the following is true?
A. The broker must be an officer and a director of the corporation with voting rights.
B. The broker must have more than one nominal interest in the corporation.
C. The broker must be president of the corporation.
D. The broker must be designated as broker by the corporation.
D. The broker must be designated as broker by the corporation.
- License by, sells or leased real estate, he/she must:
A. Disclose in the contract or in a separate statement written concurrently that he/she is licensed.
B. Disclose and all advertising for the property that he/she is licensed.
C. This calls or early at the time of contracting that he/she is licensed.
D. Notify the Colorado real estate commission upon entering into such a contract.
A. Disclose in the contract or in a separate statement written concurrently that he/she is licensed.
8. Which form has been approved by the commission under rule F. A. Lease B. Deeds C. Construction, installment land D. New homes in warranties
B. Deeds
- Listing based on a “net price” are:
A. More profitable because no minimum is set on the amount of commission collectible.
B. Legal in Colorado as long as the seller agrees.
C. Illegal in Colorado at any time.
D. Permissible with the approval of the commission.
B. Legal in Colorado as long as the seller agrees.
10. A change in the prior appropriation water rights from a lesser agricultural use to a higher residential use may be accomplished by: A. Escheat B. Eminent domain C. Variance D. Condemnation
D. Condemnation
Remember the four uses of condemnation.
- The purpose of commission rule F is:
A. To help brokers conform to the Conway Bogue Realty investment company versus the Denver Bar Association decision.
B. To conform to the UCC regulations
C. To conform to RESPA requirements
D. To standardize forms for attorneys who perform closings.
A. To help brokers conform to the Conway Bogue Realty investment company versus the Denver Bar Association decision.
12. Using Net Operating Income to appraise the property is a function of: A. Substitution B. Capitalization C. Reconciliation D. Comparison
B. Capitalization
- According to the Colorado listing agreements, when does the holdover period end?
A. At the end of the listing date.
B. When the seller list with another broker who then does something that merits a commission.
C. When the seller list with another broker.
D. Upon establishment of a joint tenancy agreement between seller and broker.
B. When the seller list with another broker who then does something that merits a commission.
14. A contract signed by a person under 18 years of age in Colorado is: A. Void B. Voidable C. Valid D. None of the above
B. Voidable
15. A broker working as an agent has no obligation to inform the client concerning: A. Material defect B. Environmental issues C. Lead-based paint when necessary D. Vicarious liability
D. Vicarious liability
16. The procedure which results in a small deviation from zoning requirements is known as a/an: A. Legal nonconforming use B. Variable C. Illegal nonconforming use D. Variance
D. Variance
17. A broker would present a change of status to a buyer: A. At a time of listing B. When change of status occurs C. Within the buy and sell agreement D. Upon delivery of the deed
B. When change of status occurs
- The director of the real estate commission may issue a temporary brokers license to:
A. In the applicant who has passed the brokers exam and his application has not yet been approved.
B. Any corporation or partnership that requests it.
C. A currently Licensed corporation or partnership who’s designated broker leaves, creating a hardship.
D. An applicant who has been previously license in another state.
C. A currently Licensed corporation or partnership who’s designated broker leaves, creating a hardship
- Pursuant to the Colorado real estate commissions policy on rule F, all of the following are true except:
A. Licensees make print within the body of the contract only does provisions for new loan financing provisions applicable to the transaction.
B. Licensees make print within the body of the contract only those provisions for new loan an assumption financing if applicable to the transaction.
C. Licensees may print within the body of the contract only does provisions for owner carry or private third-party financing if applicable to the transaction.
D. Licensees may develop their own financing terms, and pre-print such terms in the body of the contract, as maybe applicable to a transaction.
D. Licensees may develop their own financing terms, and pre-print such terms in the body of the contract, as maybe applicable to a transaction.
- Commingling, One of the reasons for revocation of real estate licenses, would occur when the licensee:
A. Deposits earnest money in the general operating account.
B. Engages in blockbusting.
C. Fails to indicate an agency relationship
D. Uses unlicensed people to solicit business.
A. Deposits earnest money in the general operating account.
- If I Colorado real estate salespersons license is revoked, her employing brokers license may also be:
A. Canceled until I hear and can be held
B. Automatically revoked
C. Automatically suspended
D. Suspended or revoked only after hearing as held.
D. Suspended or revoked only after hearing as held.
- Which of the following would an unlicensed personal assistant permitted to do?
A. Discuss a property and sales price with the potential buyer, etc., When the licensed associate is busy
B. Complete the contract forms after the license associates gets the important things like price and closing date.
C. Complete a comparative market analysis for presentation by an unlicensed assistant.
D. Host an open house while the licensed associate is showing another listing.
D. Host an open house while the licensed associate is showing another listing.
- As the buyers agent is filling out a contract to buy and sell, the agent asked the young married buyers how they want to take title. The buyers are not sure. The buyers agent should:
A. Advise them to take title as joint tenants cents that is appropriate for a married couple.
B. Leave the choice blank sense the title insurance company will know what to do.
C. Leave the choice blank and advise the couple to seek legal counsel and inform the agent of choice later.
D. Explain the differences in various modes and suggest the one that the licensee knows to be correct.
C. Leave the choice blank and advise the couple to seek legal counsel and inform the agent of choice later.
Never suggest on this issue
- A buyers earnest money deposit is placed in the brokers escrow account. The owner gave A counter offer. The buyer has requested the return of her deposit. The seller has requested that the deposit be turned over to him. The broker should do?
A. Give the deposit to the brokers principal
B. Return the deposit to the buyer because no sale has taken place.
C. Place the deposit and an escrow account.
D. File an interpleader action
B. Return the deposit to the buyer because no sale has taken place.
- What legal duties does the seller’s agent owe to and un represented buyer ?
A. Loyalty, Pedelty and disclosure of material facts about the property.
B. No specific duties- agency; duties are to do the principal.
C. Fair and honest dealing and disclosure of material facts about the property.
D. Honest dealing in full disclosure of anything the broker knows about the transaction.
C. Fair and honest dealing and disclosure of material facts about the property.