303 Colorado Flashcards
When MUST a seller’s agent provide agency disclosure to a potential buyer?
c) Before asking about a buyer’s financial qualifications
Which of the following closing costs is MOST likely to be the responsibility of the seller?
c) Brokers’ compensation
A real estate broker is in violation of Colorado Real Estate Commission Rule F when using a purchase contract that is:
c) Drafted by the broker’s attorney for general use by the broker in real estate sales
What is the latest date by which a broker’s ownership interest in a property MUST be disclosed?
a) Upon introduction to a principal
The errors and omissions insurance requirements to maintain an active real estate license include:
a) Yearly proof of insurance to the Colorado Real Estate Commission
The Colorado Real Estate Commission-approved Licensee’s Buy-Out Addendum MUSTbe used when a Licensee:
a) Offers to purchase the seller’s residence concurrent with listing of such property
All known material defects in a property MUST be disclosed EXCEPT:
c) Remediated methamphetamine properties
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:
d) Ask the employing broker to obtain a property management agreement and to set up a proper escrow account
An employing or independent broker with whom a brokerage relationship has been established MUST provide closing statements to the respective parties:
c) At the time of delivery and acceptance of title
The documentary fee charged by the County Clerk and Recorder on the sale of a $325,000 property would be?
b) $32.50
A transaction-broker owes the seller the duty to disclose the:
b) Buyer’s financial inability to complete the purchase
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:
d) Parties to the transaction agree otherwise
According to the Commission approved Seller’s Property Disclosure, which of the following statements is CORRECT?
d) The seller certifies to the truth of the information based on current actual knowledge
A designated broker shall be permitted to reveal confidential information to a supervising broker when:
c) The designated broker has the informed consent of the party she is working with
Single-party listings:
a) Should have no holdover provision
Which of the following closing costs is MOST likely to be the responsibility of the buyer?
a) Discount points
An unlicensed personal assistant may:
c) Write checks from an escrow account
If a licensee takes an actual square footage measurement of a property, the licensee must disclose:
a) The methodology, standard or manner in which the measurement was taken
When may a broker receive compensation for services performed by a title insurance entity?
a) Under no circumstances
An individual broker may NOT be designated to work for both a seller and a buyer in the same transaction as:
b) An agent for both
Under a Colorado Real Estate Commission approved Counterproposal, which of the following
c) The original proposed contract is not to be signed by the seller
A designated brokerage appointment is established when:
b) An employing broker specifies one employed broker to work with a seller
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?
c) $4,500 debit seller, credit buyer
Broker B’s office policy is to offer seller agency only. If Buyer J asks a question about buyer agency, Broker B MUST:
b) Give the buyer a written definition of buyer agency published by the Real Estate Commission
With regard to reasonable supervision of licensees, employing brokers may:
a) Delegate supervisory authority to another experienced licensee
It is NOT appropriate for a broker to accept a listing:
a) At a high price with the intent to reduce the price at a later time
Colorado’s Statutory Power of Attorney form:
b) Creates a limited agency relationship
A landlord who wrongfully withholds a tenant’s security deposit may be liable for:
c) Treble damages
In Colorado, in order for a written listing agreement to be valid, it MUST:
a) Have a termination date
The Colorado Real Estate Commission has the power to investigate all of the following complaints EXCEPT:
a) Disputes between an employing broker and a broker associate over commission due
In order to become a licensed broker in Colorado, an individual must be AT LEAST:
a) 18 years old
Which of the following items is EXEMPT from subdivision registration with the Colorado Real Estate Commission?
d) Campground memberships
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:
d) Help ensure fair and uniform assessments for property tax purposes
Which of the following Colorado Real Estate Commission-approved contracts will allow a buyer to sue for specific performance?
c) All approved purchase contract forms
What amount of personal funds is a Colorado broker permitted to keep in an escrow account?
d) A sufficient amount to maintain the account
A broker can facilitate safeguards in relation to seller-assisted down payments in all of the following ways EXCEPT by:
d) Notifying the Real Estate Commission of the true price of the property
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?
d) One year
Under the Colorado Fair Housing Act, it is unlawful to discriminate on the basis of:
c) Sexual Orientation
Which of the following could be a single agent?
c) A broker who represents a landlord in a leasing transaction
A licensee may satisfy all continuing education course requirements by:
b) Taking and passing the Colorado portion of the real estate examination
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?
a) Immediately deliver them to the employing broker
Under Colorado’s regulations regarding the practice of law by brokers, a broker may do all of the following EXCEPT:
b) Prepare legal documents for a sale in which he is not involved as a broker
The correct disclosure form for a broker to use with a buyer in a transaction-broker relationship is:
b) Definitions of Working Relationships
Under landmark Colorado case law, title companies in Colorado are permitted to offer closing services including preparation of legal documents as
c) Scrivener of the listing broker
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:
b) Advise the client that many buyers require the form
n the event of a dispute over earnest money, the Contract to Buy and Sell Real Estate states that the broker:
a) May hold the money until written instructions are received from the buyer and the seller
The doctrine of prior appropriation states that:
a) The priority of water rights is based on the date the water was first diverted for beneficial use
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?
a) Broker H
What MUST the seller disclose regarding the water supply for a residential property?
a) The source of water for the property
In order to collect a commission, which of the following is a requirement for a broker with an open listing?
c) The broker or one of his licensees must be the procuring cause for the sale
