CO EXPRESS 3 Flashcards
While you are on phone duty, an agent describes an associate’s agency listing, and the agent agrees to meet the buyer and let them view the listing. What should the agent do when the buyer arrives?
A
Disclose the brokerage relationship in writing; if the potential buyer declines to sign the disclosure, annotate the form and proceed to show the property.
B
Disclose the brokerage relationship orally; no written disclosure is required since transaction-broker is the default relationship.
CShow the listing; the relationship will automatically be transaction-broker and disclosure is not required.
DNo disclosure is required.
Disclose the brokerage relationship in writing; if the potential buyer declines to sign the disclosure, annotate the form and proceed to show the property.
A written disclosure is required by law. While a buyer’s signature is desirable, it is not mandatory.
Which of the following is NOT included on the settlement statement?
AMoney the buyer/seller will pay at closing
BMoney buyer/seller will receive at closing
CMoney the broker is owed for services but will not receive at closing
DMoney the buyer/seller is owed but will not receive at closing
Money the broker is owed for services but will not receive at closing
Items included on the settlement statement are either debits or credits. These include debits; money the buyer/seller will pay at closing; money the buyer/seller is owed but will not receive at closing. And credits: money buyer/seller will receive at closing; money buyer/seller owes but will not have to pay at closing.
Who gets the ORIGINAL copy of the deed at the time of closing? AThe buyer BThe broker CThe county clerk DThe seller
The county clerk
Which of the following is correct according to the Colorado Real Estate Commission Position Statement regarding Rule F?
AExculpatory language limiting a broker’s liability may not appear in listings or buyer relationship agreements.
BBrokers may not add exculpatory language limiting their liability to the Contract to Buy and Sell.
CExculpatory language limiting the broker’s liability may be added to the Contract to Buy and Sell only in addenda, not in additional provisions.
DBrokers may not add exculpatory language to any commission-approved contract.
Brokers may not add exculpatory language limiting their liability to the Contract to Buy and Sell.
Exculpatory provisions do not belong in the Contract since a broker is not a party to the Contract to Buy and Sell. If some form of confirmation is needed from the buyer or seller, the broker should prepare a separate disclosure for that purpose.
Which of the following is one of the primary reasons that the Commission has approved a broad variety of forms and made their use mandatory by licensees?
AIt allows the commission to discipline brokers for improper contracting.
BIt protects the public by requiring the same forms for all real estate transactions in Colorado.
CIt assists attorneys and the public in following commission rules when contracting.
DIt assures the broker’s compliance with the Conway-Bogue decision of the Colorado Supreme Court.
It assures the broker’s compliance with the Conway-Bogue decision of the Colorado Supreme Court.
The Conway-Bogue decision gives real estate licensees the limited right to practice law by completing standard and approved forms, thus these numerous mandatory forms assist brokers in their compliance with this statute.
Which of the following is TRUE concerning the Colorado Real Estate Recovery Fund?
AIt promotes good real estate business practices.
BIt supplements errors and omissions insurance in protecting licensees against losses caused by professional mistakes or illegal actions.
CIt provides the public with protection if an individual is financially damaged by the improper actions of a licensee.
DIt is available to repay private parties who lose money in real estate investments.
It provides the public with protection if an individual is financially damaged by the improper actions of a licensee.
The Colorado Real Estate Recovery Fund will repay limited amounts to parties who are harmed by the actions of a licensee, who cannot collect from the licensee, and have obtained a court judgment against the licensee.
Which of the following would NOT be grounds for revoking a broker’s license in Colorado?
ADepositing earnest money into a personal checking account
BGuaranteeing future profit from the resale of property
CConviction of forgery
DNegotiating an excessive commission rate
Negotiating an excessive commission rate
Which of the following is TRUE if a buyer receives a property inspection report indicating several apparently serious problems on the day after the Inspection Objection Deadline?
AThe buyer can compel the seller to correct these serious defects before closing.
BThe buyer missed the opportunity to object based on inspection issues, and the contract is still in force.
CThe buyer may still object because the report came after the deadline.
DThe buyer is in default for missing the deadline, and the seller may terminate the contract.
The buyer missed the opportunity to object based on inspection issues, and the contract is still in force.
Which of the following is true if a Residential Contract to Buy and Sell form is marked to indicate the “Liquidated Damages” choice in case the buyer is in default?
ASeller may keep earnest money and also sue for actual damages resulting from the buyer’s default.
BBuyer may cure the default by offering money.
CEarnest money and any other payments or things of value received from the buyer will be kept by the seller as seller’s sole remedy for buyer’s default.
DSeller may be able to sue to force the buyer to perform under the contract.
Earnest money and any other payments or things of value received from the buyer will be kept by the seller as seller’s sole remedy for buyer’s default.
Which of the following is TRUE if no box is checked for the Appraisal Condition section of the Residential Contract to Buy and Sell?
AThe form has been improperly completed.
BThe buyer will be released from the contract if a new loan is refused due to a low appraisal.
CThe seller will have the ability to terminate the contract if the appraisal is substantially higher than the selling price.
DThe buyer will be able to obtain a VA or FHA loan, but the loan will not be subject to the appraisal.
The form has been improperly completed.
Which of the following is TRUE in describing how a dispute about the Exclusive-Right-to-Sell Listing Contract between seller and broker would be resolved?
ABoth must agree to mediation before proceeding to arbitration or litigation.
BThe matter must be resolved by a Commission hearing.
CBoth must agree to submit to arbitration with the local Realtor Association.
DBoth must agree to submit the matter to binding mediation.
Both must agree to mediation before proceeding to arbitration or litigation.
Which of the following is true with regard to the Seller’s Property Disclosure form that is mentioned in an Exclusive-Right-to-Sell listing form?
AThe seller is required by law to provide this form to every buyer.
BThe seller may check the “as is” box, making the buyer responsible to find any defects.
CThe seller may decline to provide the disclosure but still must disclose latent material defects.
DThe seller may refuse to provide the disclosure and avoid disclosure of material defects.
The seller may decline to provide the disclosure but still must disclose latent material defects.
Which of the following leases must be in writing according to the Colorado Statute of Frauds?
AResidential lease for 6 months that automatically converts to month-to-month
B2-year lease for commercial space
C3 month lease for an apartment
DMonth-to-month lease that is expected to last more than two years
2-year lease for commercial space
Which of the following must be disclosed by the listing broker to any potential buyer?
AAll facts about the transaction actually known by the broker.
BThe motivations of the seller, if requested by the buyer.
CFacts about the seller actually known by the broker.
DMaterial facts about the property actually known by the broker.
Material facts about the property actually known by the broker.
Which type of deed conveys residential property in Colorado, unless otherwise provided? AQuitclaim deed BBargain and sale deed CGeneral warranty deed DSpecial warranty deed
General warranty deed
Generally, a general warranty deed is preferred, however, if the situation calls for another type of deed this should be specified in both the listing and the sales contracts.
Who administers Colorado tributary water rights and well permits? AColorado legislature BColorado Supreme Court CColorado Ground Water Commission DState engineer
State engineer
A Colorado state engineer administers tributary water. Nontributary water in six defined water basins is administered by the Colorado Ground Water Commission.
