303 Colorado

Question 1

When MUST a seller’s agent provide agency disclosure to a potential buyer?

Answer 1

c) Before asking about a buyer’s financial qualifications

Question 2

Which of the following closing costs is MOST likely to be the responsibility of the seller?

Answer 2

c) Brokers’ compensation

Question 3

A real estate broker is in violation of Colorado Real Estate Commission Rule F when using a purchase contract that is:

Answer 3

c) Drafted by the broker’s attorney for general use by the broker in real estate sales

Question 4

What is the latest date by which a broker’s ownership interest in a property MUST be disclosed?

Answer 4

a) Upon introduction to a principal

Question 5

The errors and omissions insurance requirements to maintain an active real estate license include:

Answer 5

a) Yearly proof of insurance to the Colorado Real Estate Commission

Question 6

The Colorado Real Estate Commission-approved Licensee’s Buy-Out Addendum MUSTbe used when a Licensee:

Answer 6

a) Offers to purchase the seller’s residence concurrent with listing of such property

Question 7

All known material defects in a property MUST be disclosed EXCEPT:

Answer 7

c) Remediated methamphetamine properties

Question 8

An out-of-state client has 15 rental units in Colorado and wants a broker associate to manage them for a fee. In this case, the broker associate should:

Answer 8

d) Ask the employing broker to obtain a property management agreement and to set up a proper escrow account

Question 9

An employing or independent broker with whom a brokerage relationship has been established MUST provide closing statements to the respective parties:

Answer 9

c) At the time of delivery and acceptance of title

Question 10

The documentary fee charged by the County Clerk and Recorder on the sale of a $325,000 property would be?

Answer 10

b) $32.50

Question 11

A transaction-broker owes the seller the duty to disclose the:

Answer 11

b) Buyer’s financial inability to complete the purchase

Question 12

Earnest money received by a broker in a sale of property should be deposited into the
employing broker’s trust account in a bank or depository UNLESS the:

Answer 12

d) Parties to the transaction agree otherwise

Question 13

According to the Commission approved Seller’s Property Disclosure, which of the following statements is CORRECT?

Answer 13

d) The seller certifies to the truth of the information based on current actual knowledge

Question 14

A designated broker shall be permitted to reveal confidential information to a supervising broker when:

Answer 14

c) The designated broker has the informed consent of the party she is working with

Question 15

Single-party listings:

Answer 15

a) Should have no holdover provision

Question 16

Which of the following closing costs is MOST likely to be the responsibility of the buyer?

Answer 16

a) Discount points

Question 17

An unlicensed personal assistant may:

Answer 17

c) Write checks from an escrow account

Question 18

If a licensee takes an actual square footage measurement of a property, the licensee must disclose:

Answer 18

a) The methodology, standard or manner in which the measurement was taken

Question 19

When may a broker receive compensation for services performed by a title insurance entity?

Answer 19

a) Under no circumstances

Question 20

An individual broker may NOT be designated to work for both a seller and a buyer in the same transaction as:

Answer 20

b) An agent for both

Question 21

Under a Colorado Real Estate Commission approved Counterproposal, which of the following

Answer 21

c) The original proposed contract is not to be signed by the seller

Question 22

A designated brokerage appointment is established when:

Answer 22

b) An employing broker specifies one employed broker to work with a seller

Question 23

The sale of a six-unit apartment complex will close on April 20. The seller is holding a security deposit of $750 for each unit. How will these deposits be handled at the closing?

Answer 23

c) $4,500 debit seller, credit buyer

Question 24

Broker B’s office policy is to offer seller agency only. If Buyer J asks a question about buyer agency, Broker B MUST:

Answer 24

b) Give the buyer a written definition of buyer agency published by the Real Estate Commission

Question 25

With regard to reasonable supervision of licensees, employing brokers may:

Answer 25

a) Delegate supervisory authority to another experienced licensee

Question 26

It is NOT appropriate for a broker to accept a listing:

Answer 26

a) At a high price with the intent to reduce the price at a later time

Question 27

Colorado’s Statutory Power of Attorney form:

Answer 27

b) Creates a limited agency relationship

Question 28

A landlord who wrongfully withholds a tenant’s security deposit may be liable for:

Answer 28

c) Treble damages

Question 29

In Colorado, in order for a written listing agreement to be valid, it MUST:

Answer 29

a) Have a termination date

Question 30

The Colorado Real Estate Commission has the power to investigate all of the following complaints EXCEPT:

Answer 30

a) Disputes between an employing broker and a broker associate over commission due

Question 31

In order to become a licensed broker in Colorado, an individual must be AT LEAST:

Answer 31

a) 18 years old

Question 32

Which of the following items is EXEMPT from subdivision registration with the Colorado Real Estate Commission?

Answer 32

d) Campground memberships

Question 33

Colorado real estate closings in which a documentary fee is paid must include a Real Property Transfer Declaration (TD-1000). The purpose of this form is to:

Answer 33

d) Help ensure fair and uniform assessments for property tax purposes

Question 34

Which of the following Colorado Real Estate Commission-approved contracts will allow a buyer to sue for specific performance?

Answer 34

c) All approved purchase contract forms

Question 35

What amount of personal funds is a Colorado broker permitted to keep in an escrow account?

Answer 35

d) A sufficient amount to maintain the account

Question 36

A broker can facilitate safeguards in relation to seller-assisted down payments in all of the following ways EXCEPT by:

Answer 36

d) Notifying the Real Estate Commission of the true price of the property

Question 37

Any charge alleging a violation of the Colorado Fair Housing Act must be filed with the Colorado Civil Rights Commission within a MAXIMUM of what period of time after the alleged violation?

Answer 37

d) One year

Question 38

Under the Colorado Fair Housing Act, it is unlawful to discriminate on the basis of:

Answer 38

c) Sexual Orientation

Question 39

Which of the following could be a single agent?

Answer 39

c) A broker who represents a landlord in a leasing transaction

Question 40

A licensee may satisfy all continuing education course requirements by:

Answer 40

b) Taking and passing the Colorado portion of the real estate examination

Question 41

An associate broker attends the closing of a client’s property sale. What MUST the associate broker do with copies of the signed closing documents?

Answer 41

a) Immediately deliver them to the employing broker

Question 42

Under Colorado’s regulations regarding the practice of law by brokers, a broker may do all of the following EXCEPT:

Answer 42

b) Prepare legal documents for a sale in which he is not involved as a broker

Question 43

The correct disclosure form for a broker to use with a buyer in a transaction-broker relationship is:

Answer 43

b) Definitions of Working Relationships

Question 44

Under landmark Colorado case law, title companies in Colorado are permitted to offer closing services including preparation of legal documents as

Answer 44

c) Scrivener of the listing broker

Question 45

When signing a listing agreement, a seller informs you that he does NOT want to provide a seller’s property disclosure form. Your BEST course of action is to:

Answer 45

b) Advise the client that many buyers require the form

Question 46

n the event of a dispute over earnest money, the Contract to Buy and Sell Real Estate states that the broker:

Answer 46

a) May hold the money until written instructions are received from the buyer and the seller

Question 47

The doctrine of prior appropriation states that:

Answer 47

a) The priority of water rights is based on the date the water was first diverted for beneficial use

Question 48

Broker H, who is licensed as sole proprietor, closes H’s business and becomes employed by Broker T. Who is responsible for retaining the transaction records of Broker H’s company?

Answer 48

a) Broker H

Question 49

What MUST the seller disclose regarding the water supply for a residential property?

Answer 49

a) The source of water for the property

Question 50

In order to collect a commission, which of the following is a requirement for a broker with an open listing?

Answer 50

c) The broker or one of his licensees must be the procuring cause for the sale