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.
