125 Contract And regulation Questions: Flashcards
1
Q
- 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
A. When the deed is transferred
Rationale: this is done at the time of closing.
2
Q
- 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.
A
B. Buyer broker who does not except money.
3
Q
- 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.
A
C. Complete 24 hours of continuing education every three years or passing the Colorado portion of the real estate exam.
4
Q
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
A. Require repayment of damages
Rationale: the court can only cause repayment of damages. The division of real estate procedures cannot insist on damages
5
Q
- 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.
A
D. The broker must be designated as broker by the corporation.
6
Q
- 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
A. Disclose in the contract or in a separate statement written concurrently that he/she is licensed.
7
Q
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
A
B. Deeds
8
Q
- 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.
A
B. Legal in Colorado as long as the seller agrees.
9
Q
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
A
D. Condemnation
Remember the four uses of condemnation.
10
Q
- 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
A. To help brokers conform to the Conway Bogue Realty investment company versus the Denver Bar Association decision.
11
Q
12. Using Net Operating Income to appraise the property is a function of: A. Substitution B. Capitalization C. Reconciliation D. Comparison
A
B. Capitalization
12
Q
- 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.
A
B. When the seller list with another broker who then does something that merits a commission.
13
Q
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
A
B. Voidable
14
Q
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
A
D. Vicarious liability
15
Q
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
A
D. Variance
16
Q
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
A
B. When change of status occurs
17
Q
- 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.
A
C. A currently Licensed corporation or partnership who’s designated broker leaves, creating a hardship
18
Q
- 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.
A
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.
19
Q
- 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
A. Deposits earnest money in the general operating account.
20
Q
- 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.
A
D. Suspended or revoked only after hearing as held.
21
Q
- 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.
A
D. Host an open house while the licensed associate is showing another listing.
22
Q
- 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.
A
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
23
Q
- 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
A
B. Return the deposit to the buyer because no sale has taken place.
24
Q
- 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.
A
C. Fair and honest dealing and disclosure of material facts about the property.
25
Q
- A private owner of a single 20 acre parcel of land wishes to sell acres and retain 10 acres for her own use. Which of the statement is true for this owner?
A. As the private owner, there are no restrictions or registration requirements.
B. The owner is not required to register with the real estate commission but must meet local and state requirements for the subdivision.
C. A private owner may not sell only part of the single parcel, only a registered subdivide are made by land.
D. The private owner must comply with federal land sales rules.
A
B. The owner is not required to register with the real estate commission but must meet local and state requirements for the subdivision.
26
Q
- A transaction broker in Colorado does not have a duty to:
A. Exercise reasonable Skilling care.
B. Present all offers and counter offers in a timely manner.
C. Promote the interests of buyer or seller with the utmost good faith, loyalty and fidelity.
D. Account in a timely manner for all money and property received.
A
C. Promote the interests of buyer or seller with the utmost good faith, loyalty and fidelity
27
Q
- According to the Colorado real estate brokerage relationship law, it is required practice for Colorado brokers to:
A. To Establish agency in writing
B. Prepare contracts to buy and sell and render advice as to the legal affect there of
C. Conduct Escrow services
D. Charge a reasonable fee for closing transactions.
A
A. To Establish agency in writing
28
Q
1. For how long does a broker have to keep the records after real estate closing in Colorado? A. 30 days B. 1 year C. 3 years D. 4 years
A
D. 4 years
29
Q
- Relationships as established by Colorado brokerage relationship law continue:
A. For six months from the date of engagement.
B. For 90 days from the date of engagement.
C. Until performance or completion of the agreement by which the broker was engaged.
D. Indefinitely
A
C. Until performance or completion of the agreement by which the broker was engaged.
30
Q
- According to the Colorado brokerage relationship law, the seller’s agent may not disclose which of the following to the buyer without the sellers consent?
A. All adverse material facts about the property.
B. All adverse material facts about the title to the property.
C. All adverse psychological impacts or stigmas on the property.
D. All environmental hazards affecting the property required by law to be disclosed.
A
C. All adverse psychological impacts or stigmas on the property.
31
Q
- If a seller’s agent receives four offers on the same property, including one after the property is under contract, he/she must:
A. Present only the best offer.
B. Present all in order of dollar amount.
C. Present all offers.
D. Present all offers including the one after the contract is signed.
A
C. Present all offers
32
Q
32. The Colorado real estate commission was formed to: A. standardized testing B. unify forms C. regulate licensees D. protect the public
A
D. protect the public
33
Q
- And employed licensee has earned commissions, quits her first broker, and goes to work for another broker. How does she receive her commissions?
A. Direct from the first broker.
B. From the first broker but pager the second broker.
C. Has no rights to her commissions. D. None of the above.
A
A. Direct from the first broker
34
Q
- If unemployed licensees license has been in activated because her employing broker’s license was revoked:
A. She may have her license transferred without charge to another broker if the original license was issued in the same year.
B. She must complete all unfinished transactions before transferring her license to another broker.
C. She will be required to retake the Colorado portion of the sales person examination.
D. She will be allowed to move her license to a new broker upon payment of the appropriate fee and filing the necessary forms.
A
D. She will be allowed to move her license to a new broker upon payment of the appropriate fee and filing the necessary forms.
The fee for this transfer is $50.
35
Q
- In terms of the Conway Bogue case, a broker may prepare:
A. forms for friend in real estate transaction in which the broker is not involved.
B. Standard and approved forms for real estate transaction in which he or she is involved as a broker.
C. Any standard form.
D. Any standard real estate form.
A
B. Standard and approved forms for real estate transaction in which he or she is involved as a broker.
36
Q
36. All of the following are protected under the Colorado fair housing law except: A. Race. B. National origin. C. Marital status. D. Age
A
D. Age
37
Q
- Familia status under the Colorado fair housing law means:
A. Dependent children of any age.
B. Old people.
C. children under 18 domiciled with a parent or guardian.
D. Families who are married without children.
A
C. children under 18 domiciled with a parent or guardian.
38
Q
- In Colorado, a deed of trust maybe used to provide security for real estate loan. If the deed of trust is set up with a private trustee:
A. The trustee will hold legal title to the property and be shown on the deed.
B. Any foreclosure will be handled by the private trustee.
C. Any foreclosure will be handled by the public trustee.
D. Any foreclosure will be handled in the appropriate court.
A
D. Any foreclosure will be handled in the appropriate court.
39
Q
- A seller was dissatisfied with her broker and contacted another broker. She found there was five days left on the listing. All of the following are true regarding the second broker except:
A. The second broker may not negotiate the terms of a new listing or otherwise if the second broker originated the discussion with the seller.
B. The second broker may immediately delete take the new listing that will take effect when the old listing expires.
C. The second broker may need only take an open listing and change it to an exclusive right to sell when the old listing expires.
D. The second broker may negotiate the terms of a future listing.
A
C. The second broker may need only take an open listing and change it to an exclusive right to sell when the old listing expires
40
Q
- A deep reports to create a joint tenancy with right of survivorship. Which of the following would cause the deed to create tenancy in common instead?
A. The parties receive their interest at the same time.
B. The three parties agreed to divide the property 40% 30% 30% between them.
C. The parties agree that all have the right of possession.
D. All parties are named on a single deed conveying the property.
A
B. The three parties agreed to divide the property 40% 30% 30% between them
Footnote. Joint tenancy always deals with survivorship.
41
Q
- According to the rules of regulations of the Colorado real estate commission, a broker should recommend that:
A. The buyer have a title examination. B. The seller use the brokers title company to close the transaction.
C. The buyer use the brokers attorney for review of the title evidence.
D. The seller need not retain an attorney but the buyer should retain counsel as the broker is not representing him.
A
A. The buyer have a title examination.
42
Q
- Which of the following may be subject to regulation under state or federal securities law?
A. Resort condominium project in which owners enter in to their units in a common rental pool to enhance their income.
B. Sale of 1000 mountains sites primarily through Internet advertising. C. Condominium project that includes both residential and retail uses within one structure.
D. Speculative purchase of raw land by a doctor as part of a retirement plan.
A
A. Resort condominium project in which owners enter in to their units in a common rental pool to enhance their income.
43
Q
- According to Colorado law, if A trust deed is held by a private trustee, any foreclosure must be:
A. Judicial.
B. Conducted by the state public trustee.
C. Conducted by the county public trustee.
D. Strict foreclosure.
A
A. Judicial.
44
Q
- Which is presumed to be true of a lease in Colorado?
A. Every lease contains an implied warranty of habitability and quiet enjoyment.
B. Every lease contains an implied warranty of quiet enjoyment only.
C. Every lease contains an implied warranty of habitability only.
D. Only residential leases have an implied warranty of habitability.
A
B. Every lease contains an implied warranty of quiet enjoyment only
45
Q
- A broker would be in violation of rule F if she uses a residential purchase contract:
A. Written by the sellers attorney for you send that transaction.
B. Written by the buyers attorney for you send that transaction.
C. Written by the brokers real estate attorney for the general use of the office.
D. Written by an attorney representing a new home builder for use of sales of new home with warranties.
A
C. Written by the brokers real estate attorney for the general use of the office.
46
Q
- When completing the exclusive right to sell listing contract, which monetary encumbrances does the seller list?
A all encumbrances to be assumed by a buyer.
B. All encumbrances that the seller will not pay off.
C. Only encumbrances of public record.
D. All encumbrances known to the seller.
A
D. All encumbrances known to the seller.
47
Q
- According to the exactly right to buy contract, who is responsible with regard to registered sex offender’s (Megans law?)
A. Brokers must disclose the presence of any known registered sex offender’s.
B. Buyers must obtain this information from local law-enforcement officials.
C. Sellers will be required to disclose any sex offenders in the neighborhood.
D. Sex offenders privacy rights are protected by state and federal law.
A
B. Buyers must obtain this information from local law-enforcement officials.
48
Q
48. A 6% commission on the $720,000 property was split 3 to 2 with the salesman receiving the larger share. The salesman received? A. $25,029 b. $25,290 C. $25,920 D. $25,092
A
C. $25,920
Rationale: 6% times 720,000 equals the amount. It is is divided five ways. The salesman gets three of the shares.
49
Q
- In the purchase price and terms section of the residential contract to buy and sell, the entry for cash at closing:
A. Represents the total amount the buyer should expect to bring to closing.
B. Does not include the buyers closing costs, such as loan fees.
C. Should match the good faith estimate provided with the HUD/1 form.
D. Represents the approximate amount the seller will receive at closing.
A
B. Does not include the buyers closing costs, such as loan fees.
50
Q
- Some properties may be subject to the property taxes from a special taxing district serving a defined area. If the buyers determined that the property is with in a special taxing district, they may:
A. Terminate the contract by written notice to the seller.
B. Demand that the seller pay the indebtedness of such a district.
C. Petition to be excluded from the district.
D. Terminate the contract automatically on the off record matters date.
A
A . Terminate the contract by written notice to the seller.
51
Q
- And the Colorado exclusive right to buy contract, who is ultimately responsible for paying the commission?
A. The seller.
B. The buyer.
C. Negotiable between the buyer and sellers broker’s.
D. Split 50/50 between the buyer and the seller.
A
B. The buyer.
52
Q
- Unless otherwise agreed, the Colorado commission approved exclusive right to sell listing contract gives the broker the right to:
A. Sign the purchase agreement for the buyer.
B. Collect the deposits from the buyer.
C. Assign the listing agreement to another broker.
D. Show the property when the seller is not at home.
A
B. Collect the posits from the buyer.
53
Q
- Mr. and Mrs. Z give an exclusive right to sell listing contract your broker T. The listing is prepared on the Colorado real estate commission approved form for residential property. The term of the listing is for 90 days with 120 day holdover provision.
Broker T shows the property to B and B makes an offer that is it rejected by seller Z. During the hundred day hold over period B buys the property. Broker T:
A. Is entitled to half commission as he was preparing the cause.
B. Is entitled to full commission it B’s name was given to the seller in writing.
C. Is not entitled to a commission from the seller.
D. Is entitled to a double commission.
A
B. Is entitled to full commission it B’s name was given to the seller in writing.
54
Q
- Colorado real estate commission approved listing forms provide for:
a. The broker to disclose any adverse material facts about the property.
B. Brokers to receive a 5% commission.
C. A listing term of 90 days.
D. A holdover provision of 120 days.
A
a. The broker to disclose any adverse material facts about the property.
55
Q
55. A tendency at will may be terminated by: A. Death of either party. B. Sale of the property. C. A three day notice. D. All of the above.
A
D. All of the above.
56
Q
- The inspection provision of the contract to buy and sell allows the buyer to terminate the contract:
A. Only if a licensed inspector determines that there are significant problems with the property.
B. Only after listing unsatisfactory conditions that cause the buyer to terminate.
C. If the property is unsatisfactory and the buyer subjective discretion.
D. Immediately if the seller refuses to correct certain defects.
A
C. If the property is unsatisfactory and the buyer subjective discretion.
57
Q
- According to the Colorado real estate commission approved exclusive right to sell listing contract transaction broker, the broker shall disclose which of the following:
A. The sellers motivation.
B. Any adverse material information about the property actually no I’m by the broker.
C. That seller will agree to financing terms other than those offered.
D. That the seller is willing to except less than the
A
B. Any adverse material information about the property actually no I’m by the broker.
58
Q
- The Colorado real estate commission/approved exclusive right to buy contract (transaction broker ) does not contain which of the following provisions?
A. Buyer agrees to conduct all negotiations for property exclusively through the broker.
B. Broker will be buyers exclusive agent for the purposes of representing buyer to acquire interest in a real property.
C. Broker will make a reasonable effort to locate the property.
D. Broker shall disclose to any prospective seller all adverse material facts actually known by broker.
A
B. Broker will be buyers exclusive agent for the purposes of representing buyer to acquire interest in a real property.
59
Q
- A Colorado real estate licensee not required to maintain a written brokerage relationship office policy is:
A. A broker acting for a corporation. B. A broker acting as a sole proprietor or without sales people.
C. A broker in the employee of another broker.
D. A broker acting for a limited liability company.
A
C. A broker in the employee of another broker.
60
Q
- When a nonresident broker receives an earnest money deposit, it must be held:
A. And then the county in the state of the nonresident broker.
B. And I bank recognized as a depository institution in Colorado.
C. In the account of a Colorado resident broker.
D. By the Colorado Secretary of State.
A
B. And I bank recognized as a depository institution in Colorado
61
Q
- The contract to buy and sell states that “a time is of the essence here of”. This statement means that:
A. Everything in the contract must be complete within one year, or it will be void.
B. All dates and deadlines must be performed within a reasonable margin of the stated time or date.
C. Everything not done by closing will be waived.
D. Dates and deadlines will be strictly interpreted.
A
D. Dates and deadlines will be strictly interpreted.
62
Q
- What is the purpose of the brokerage real estate commission rule F?
A. To protect the public by helping to enforce the Colorado Supreme Court decision of Conway Bogue realty versus Denver bar association and the provisions of the brokerage relationship law.
B. Regulate attorney activity in real estate.
C. Regulate documents used in real estate transactions.
D. Regulate documents used in closing.
A
A. To protect the public by helping to enforce the Colorado Supreme Court decision of Conway Bogue realty versus Denver bar association and the provisions of the brokerage relationship law.
63
Q
- In advertising a property for sale or rent, a broker associate in Colorado must disclose:
A. The employing broker’s license name.
B. The employing broker’s phone.
C. Both the broker associates and employing broker’s license name and phone.
D. The broker associates name.
A
C. Both the broker associates and employing broker’s license name and phone.
64
Q
- What disclosure is required when a buyers agent approaches a for sale by owner on behalf of the buyer client?
A. No disclosure since the seller has elected to be unrepresented.
B. None as long as the broker seeks to list the property prior to submitting the buyers offer.
C. Disclosure of the brokers working relationship with the buyer.
D. Disclosure of the buyer’s financial capability to complete a purchase.
A
C. Disclosure of the brokers working relationship with the buyer.
65
Q
65. Which of the following may not adopt a tradename in the practice of real estate? A. A corporation. B. A limited liability company. C. A broker. D. A broker associate.
A
D. A broker associate.
66
Q
66. In Colorado, who gets a copy of the contract to buy and sell? A. Buyer. B. Seller. C. Broker. D. All of the above
A
D. All of the above
67
Q
- The developer of a condo conversion into 20 residential units must:
A. Notify existing tenants that the conversion will terminate their lease. B. Register with the Colorado real estate commission prior to subdividing.
C. Follow request with the state OACRS if the land is less than 35 acres.
D. Obtain permission from the inter state land sales development board.
A
B. Register with the Colorado real estate commission prior to subdividing.
68
Q
- Which of the following requires the use of the licensee buyout addendum to the contract to buy and sell?
A. A broker wishes to acquire property here she has listed to the use as an investment.
B. An associate in the listing brokerage company wishes to purchase a property listed by another associate.
C. And associate is offering a guaranteed buyout arrangement as it inducement to list with his or her company sothat the seller can buy another property listed with the associate.
D. A listing associate offers to purchase the property immediately after the listing expires.
A
C. And associate is offering a guaranteed buyout arrangement as it inducement to list with his or her company sothat the seller can buy another property list.
69
Q
- In Colorado, when your real estate license is inactive, and you are selling your own home, you must:
A. Disclose when advertising that you used to have a license.
B. Disclosing the contract to separate writing concurrently that you’re licensed.
C. No disclosure is required to be provided at your own home.
D. No disclosure is required while you are inactive.
A
B. Disclosing the contract to separate writing concurrently that you’re licensed
70
Q
- A broker may use the escrow funds before closing:
a. As directed by the beneficiaries of the escrow.
B. To pay the prorated taxes.
C. To pay a closing service.
D. To pay a broker closing cost.
A
a. As directed by the beneficiaries of the escrow.
71
Q
- As sales person has earn a commission on the sale of the listing that has originated and sold during her engagement with broker are. She has since quit broker r and has been hired by broker b. How does she receive her commission?
A Broker R may pay her direct even though she is with another broker.
B. Broker R must pay the commission to broker B.
C. She may appeal to the real estate commission for arbitration on the matter.
D. Broke R must pay the commission to broker B. However, he may make the check payable to both B and the sales person.
A
A. Broker R may pay her direct even though she is with another broker.
72
Q
72. Items added to the Colorado Real Estate commission approved contract to buy and sell real estate computerized (word processor) contract must be: A. capitalized. B. In shaded plant. C. In differentiated print. D. In bold print.
A
C. And differentiated print.
73
Q
- An applicant for a Colorado real estate license who has been license in another state must file what the Colorado application:
A. A statement from the former employee broker and the other state.
B. A copy of the license from the other state.
C.. A certificate of licensing history issued by each state where the licensee has held a real estate license. D. A recommendation from the board of the other state.
A
C. A certificate of licensing history issued by each state where the licensee has held a real estate license
74
Q
74. A broker associate who is licensed with the broker who used a trade name is licensed under which of the following? A. Individual salesman's name B. Individual brokers name C. Individual brokerage tradename D. Both the brokers name and tradename
A
B. Individual brokers nam
75
Q
- If a person collect security deposits on property for an owner, where should that money be placed? A. Brokers escrow account
B. Salesman’s escrow account
C. Broker security deposit trust account
D. Brokers management trust account
A
C. Broker security deposit trust account
76
Q
- When can a brokers license be revoked or suspended for the illegal acts of such broker salesperson’s?
A. When the sales person excepts a secret commission and doesn’t tell his broker.
B. When the broker fails to reasonably supervise the salesperson.
C. When the sales person works for another broker without permission.
D. When the sales person obtained his license to misrepresentation of fact.
A
B. When the broker fails to reasonably supervise the salesperson
77
Q
- Who would not be required to be licensed to sell property for a fee in the state of Colorado?
A. And auctioneer of farmland.
B. A trustee with proper authorization.
C. A person selling subdivision lots of $50,000 per lot.
D. A condominium sales person.
A
B. A trustee with proper authorization.
78
Q
- A Colorado broker wants to split a commission with an out-of-state broker. This is acceptable:
A. As long as it doesn’t exceed 10% commission.
B. Provided we have reciprocity with the other state.
C. Provided they are both licensed in Colorado.
D. Provided the out-of-state broker is licensed in the other state.
A
D. Provided the out-of-state broker is licensed in the other state.
79
Q
79. In a transaction with the listing broker in a buyers agent broker, who holds the earnest money deposit? A. Listing broker. B. Buyer's broker. C. Must be in a neutral escrow company. D. The brokers establish a joint escrow.
A
A. Listing broker.
80
Q
- The owner of an apartment instructs the broker that she will not sell her apartment to a member of any minority group. The broker bringing offers to the owner:
A. May except this restriction.
B. May have his license revoked.
C. May except this restriction as long as he does not advertise.
D. Must present all offers to the seller.
A
D. Must present all offers to the seller.
81
Q
81. What shows all deposits and payments to and from a brokers escrow account in chronological order? A. Bank reconciliation. B. Ledger cards. C. Bank statement. D. Account journal.
A
D. Account journal.
82
Q
- The closing instructions form (CL8 – 9–95):
A. Maybe used only by title insurance companies.
B. Must be part of every contract.
C. Provides for the closing company to give legal advice to the listing broker.
D. Engages a closing service on behalf of the buyer and seller.
A
D. Engages a closing service on behalf of the buyer and seller.
83
Q
- If in earnest money check is not honored by the buyers bank, the broker should:
A. Deposit it again to see if it will clear the second time.
B. File notice under Colorado’s bad check law for triple damages.
C. Notify the buyer’s broker that the contract is canceled due to the buyers default.
D. Notify the seller and ask what they wish to do next.
A
D. Notify the seller and ask what they wish to do next.
84
Q
- If her broker moves his place of business without advising the real estate commission:
A . His license is suspended.
B. The licenses of all sales persons under him are suspended.
C. All real estate licenses in that brokerage company are in activated. D. His license is revoked.
A
C. All real estate licenses in that brokerage company are in activated.
85
Q
- In Colorado, there must be a specific time of expiration of a written listing contract because of:
A. Legislation.
B. The real estate commission rules and regulations.
C. A Colorado Supreme Court decision.
D. Contract law.
A
B. . The real estate commission rules and regulations.
86
Q
- If a sales person terminate your employment with the broker and goes to another broker:
A. She may take with her listing contracts which bear her signature.
B. She may take with her sales contracts which bear her signature.
C. She may take earnest money she is holding to the new broker.
D. She may receive compensation directly from her old broker for transactions negotiated during her employment with the broker.
A
D. She may receive compensation directly from her old broker for transactions negotiated during her employment with the broker.
87
Q
87. When selling options in real estate in Colorado, what type of license is required? A. An option license. B. A brokers license. C. A securities license. D. A real estate auction license.
A
B. A brokers license.
88
Q
- In Colorado, when does the trust account have to be open by a real estate broker?
A. At the time of listing.
B. When preparing an offer contract by a buyer.
C. When acting as a buyer agent.
D. When excepting money.
A
D. When excepting money.
89
Q
- When an initial contract for sale of property is used other than the contract approved by the Colorado real estate commission, the contract should be prepared by:
A. A broker representing the seller.
B. A real estate attorney.
C. A broker representing the buyer.
D. An attorney representing the buyer or the seller.
A
D. An attorney representing the buyer or the seller.
90
Q
- Activities that require a license by license law and that are performed by a broker associate should be performed in the names of which of the following?
A. The brokers associates name only. B. The employing broker’s name only. C. The broker associates and employing broker’s names.
D. The broker associates licensed entity name.
A
C. The broker associates and employing broker’s names
91
Q
- The Colorado real estate commission approved exclusive right to sell listing (seller agency) contracts provide for:
A. A commission of 7%.
B. The option of the owner to provide buyer with the property disclosure form.
C. A provision for specific performance.
D. A 90 – day hold over.
A
B. The option of the owner to provide buyer with the property disclosure form.
92
Q
- A brokers office must:
a. Be open to the public during normal business hours.
B. Be a virtual office doing business by phone and using a PO Box mailing address.
C. Having a physical address where the commission staff can inspect records.
D. Being a commercial office building to comply was zoning .
A
C. Having a physical address where the commission staff can inspect records.
93
Q
93. In Colorado, when property is sold for unpaid property tax, the purchaser, at the time of purchase, receives: A. A sheriffs deed. B. A tax deed. C. A certificate of purchase. D. A treasures deed.
A
C. A certificate of purchase.
94
Q
- A statutory period of redemption on a trust deed for closure on a residential property in Colorado is:
A. No Cerner than 45 days from the date of sale.
B. No later sssthan 60 days after the notice of election and a man.
C. 60 days
D. No longer recognized.
A
D. No longer recognized.
95
Q
95. A change of the prior appropriation water rights from the lesser agricultural used to the higher residential use may be accomplished by: A. Escheat. B. Eminent domain. C. Condemnation. D. Variance.
A
C. Condemnation.
96
Q
96. In Colorado, the maximum time a lessor could hold security deposit is one month after termination of the lease or if specified by the lease not longer than: A. 30 days. B. 60 days. C. 90 days. D. 120 days.
A
B. 60 days.
97
Q
- J withholds a portion of the renters deposit with good cause but failed to notify the tenant of the reason. Which of the following is correct?
A. J will lose his right to any of the deposit.
B. J may be liable for triple the total deposit.
C. J may keep the deposit without notification because it was retained for good cause.
D. J will be liable for one and a half the amount of the deposit wrongfully withheld.
A
A. J will lose his right to any of the deposit.
98
Q
98. A N. E. D. On a Colorado farm was executed July 1, 2008. It was sold in foreclosure on March 1, 2009. On which of the following dates did the owners equitable period Of redemption end? A. July 1, 2008 B. March 1, 2009 C. May 14, 2009 D. May 15, 2009
A
B. March 1, 2009
In. N. E. D. – Stands for notice of election of demand
99
Q
99. The entire unpaid ad valorem taxes on a Colorado farm become delinquent on: A. April 30. B. February 28 C. July 31 D. June 16
A
D. June 16
100
Q
100. The Doctor No water rights which is accepted in Colorado is the: A. Correlative user B. Doctrine of prior appropriation. C. Riparian rights. D. Littoral rights.
A
B. . Doctrine of prior appropriation.
101
Q
101. Unless expressly reserved in the instrument of conveyance, all except which of the following is included with the title to the land in Colorado? A. Mineral rights. B. Tributary water rights. C. Subsurface rights. D. Air rights.
A
B. Tributary water rights.
102
Q
- In Colorado, when must a broker deposit earnest money in the brokers trust account?
A. Within seven days of receipt.
B. No later than the first business day following the day such money was received.
C. No later than the third business day after the broker receive notice of acceptance of the contract
D. Within three days of contract acceptance.
A
C. No later than the third business day after the broker receive notice of acceptance of the contract.
103
Q
- An owner of a 35 – acre parcel of undeveloped land made drill a well for water only:
A. After purchasing the water rights.
B. After obtaining the well permit with the state engineer.
C. Without any permit as a 35 – acre site is entitled to an exempt well.
D. If there is a stream on the property that may be Diverted.
A
B. After obtaining the well permit with the state engineer.
104
Q
104. Which contract does not fall within the purview of commission Rule F? A. Open listing. B. Commercial sales contract. C. Exchange contract. D. Deed of transfer.
A
D. Deed of transfer.
105
Q
- Which of the following is true regarding statement of policy concerning rule F?
A. Listing information may be added outside the body of the approved form.
B. routine terms of finance maybe Preprinted in the body of the form provided such terms are printed in italics.
C. It requires that farm and ranch transactions be prepared only on commercial contract forms.
D. Installment land contract transactions must be prepared on the Colorado real estate commission standard and approved form for installment land contract.
A
A. Listing information may be added outside the body of the approved form.
106
Q
- Commission rule F does not include:
a. Open listing contracts.
B. Vacant land contracts
C. Exchange contracts
D. Construction contracts
A
D. Construction contracts
107
Q
- A licensee buyout addendum must be used when:
A. A sales person is purchasing the property.
B. A sales person is purchasing property listed by another salesperson in the office.
C. A sales person is offering to purchase as inducement for obtaining the listing contract.
D. As sales person is purchasing property listed with the company.
A
C. A sales person is offering to purchase as inducement for obtaining the listing contract.
108
Q
- A broker may list a property currently listed by another broker when:
a. The new listing begins after the current listing ends.
B. The broker initiates contact with the seller.
C. No sign is on sellers property.
D. New broker offer significantly lower
A
a. The new listing begins after the current listing ends.
109
Q
- In Colorado Supreme Court decision in the Conway Bogue versus the Denver Bar Association, which of the following is correct?
A. Real estate brokers are enjoined from the practice of law in real estate.
B. Brokers were required to charge the parties for the preparation of the legal documents used in real estate transaction.
C. If the broker encounters legal problems, such broker should seek an attorney’s advice.
D. Only title insurance companies are legally prepare your closings.
A
C. If the broker and counters legal problems, such broker should seek an attorney’s advice.
110
Q
- When a real estate broker completes the inclusions and exclusions in provisions of the residential contract to buy and sell real estate, items like water softeners, security systems and satellite-TV systems should be specifically considered because:
A. They are always permanent fixtures.
B. They are never permanent fixtures. C. They are very often rented or leased.
D. They are very expensive.
A
C. They are very often rented or leased
111
Q
- In terms of the residential contract to buy and sell real estate, the buyer who intends to borrow funds to pay the property is:
a. Required to obtain a loan commitment in writing and will be released from the contract if same is not obtained.
B. Obliged to inform the seller in writing that alone condition has been excepted. Before the loan conditions deadline and attach a copy of the acceptance to such notice.
C. Entitled to withdraw the loan or assumption at any time and give written notice to the seller that the contract is terminated.
D. No longer bound by lender limitations.
A
a. Required to obtain a loan commitment in writing and will be released from the contract if same is not obtained.
B. Obliged to inform the seller in writing that alone condition has been excepted. Before the loan conditions deadline and attach a copy of the acceptance to such notice.
Explanation: Jim gave to write answers in this question and you may see him in a couple of different ways.
112
Q
- In terms of the residential contract to buy and sell real estate, there are strict limits within which of the buyer may review:
a. Title documents
B. County records
C. The sellers credit report
D. Any appraisal obtained by seller or lender
A
a. Title documents
113
Q
- Rule E – three requires that a broker leaving the employee of an owners association must:
A. Nominates a substitute broker prior to leaving.
B. Give at least three weeks notice of intention to leave.
C. Return all association management record to the association or its designee.
D. Do all of the above.
A
C. Return all association management record to the association or its designee.
114
Q
- In the residential contract to buy and sell real estate, the buyer may request review of common interest community governing documents and may give written notice to the seller if any unsatisfactory provision and terminate the contract:
A. At any time prior to closing.
B. At any time prior to the survey deadline.
C. At any time prior to the title deadline.
D. At any time prior to the governing documents and title objection deadline.
A
D. At any time prior to the governing documents and title objection deadline.
115
Q
- The real estate commission must investigate:
a. Any verified written complaint.
B. Any licensee accused of a crime.
C. At least 5% of all brokers each year.
D. disputes between brokers regarding commission splits
A
a. Any verified written complaint.
116
Q
- A broker has developed a website advertising the brokers office. What, if anything, does the broker need to include?
A. Name and address of the home office and states in which the brokerage holds licenses.
B. License number of the brokerage and a list of the current active licenses.
C. Names of active licensees, addresses and phone numbers.
D. There is no need for any additional disclosures.
A
D. There is no need for any additional disclosures.
117
Q
- And appurtenance is?
A. A fixture
b. A gross an easement
C. And encroachment creating value D. Something of value which is attached to impasses with the property.
A
D. Something of value which is attached to impasses with the property
118
Q
- A seller listed his house for sale with the broker on February 1. The listing agreement was to last five months. In April, the seller decided that the house was no longer for sale. Which of the following statements is true?
A. The seller has canceled the agreement, and there are no penalties.
B. The seller has withdrawn the brokers authority to sell the property and may be subject to reimbursing some broker expenses.
C. The seller is required by law to leave his house on the market until June.
D. The real estate commission will decide at the sellers action is justifiable.
A
B. The seller has withdrawn the brokers authority to sell the property and may be subject to reimbursing some broker expenses.
119
Q
- Several weeks after closing, and associate broker received a thank you letter and a nice bonus check from the seller of the house.The associate broker cash the check because he felt it was earned. In this situation, which of the following is true?
A. The associate broker may except the bonus because he is licensed as an associate broker.
B. The broker is allowed to except money if more than 30 days have elapsed since the closing.
C. The associate broker may except the money if this broker permits him to do so.
.D. It is a violation of commission regulations to except this money.
A
D. It is a violation of commission regulations to except this money.
120
Q
- May a broker accept a referral fee from a title insurance company or representative?
A. Yes, this practices good way to enhance your income.
B. No, it is never permissible to except such a fee.
C. Yes, but only if the broker will not be receiving a commission for the same transaction.
D. Yes, but only with The permission of the brokers principal or if the broker is not receiving a commission from the same transaction.
A
B. No, it is never permissible to except such a fee.
121
Q
- An associate broker wants to purchase a property for investment. The property is not listed with any broker. The associate must:
a. List the property so that he or she can get a commission on the purchase.
B. Have his or her broker list the property so that the commission can be properly handled.
C. Use a special sales agreement drawn up by a neutral attorney.
D. This close to the seller day here she has a license and inform his or her broker of the transaction.
A
D. This close to the seller day here she has a license and inform his or her broker of the transaction.
122
Q
- The listing agent receives to sell more offers to purchase and set an appointment with the sellers to present the offers. Another offer comes in from an associate in the same company. In this situation, the licensee should present:
A. All three offers for simultaneous review.
B. That in company offer first as a courtesy to the fellow associate if it’s not excepted, present the offer other two offers.
C. The older offers first sense that is why the appointment was made. If neither is excepted, present the end company offer at this appointment.
D. The offers in order and asked for a decision on H before moving onto the next.
A
A. All three offers for simultaneous review.
123
Q
- The tax certificate is used to show:
A. The taxes owed on real property. B. The tax trend within the community.
C. The amount of taxes based on county records.
D. The IRS liens on real property.
A
C. The amount of taxes based on county records.
124
Q
- A real estate broker has identified a property that is a good ideal for a fast food outlet. He asked for friends to contribute money and game partial ownership. The broker will manage the property and negotiate the lease for the fast food company. In this arrangement,The broker:
A period is not entitled to any commission on the purchase, since the broker will be an owner.
B. Will have no liability in the deal since he will not contribute money.
C. Must comply with state and federal securities laws in arranging this investment group.
D. Can’t keep both the sales commission and the lease commission without specifically telling the others about the amounts involved.
A
C. Must comply with state and federal securities laws in arranging this investment group.
125
Q
125. Real estate practice in Colorado assumes that which type of deed will convey residential property, unless otherwise provided? A. General warranty deed. B. Special warranty deed. C. Bargain and sale deed. D. Quit claim deed.
A
A. General warranty deed.
