Colorado Flashcards
1
Q
Who may never prepare the addendum
A
Title company
2
Q
Safe guard
A
a measure taken to protect someone or something or to prevent something undesirable
3
Q
An employing broker can pay part of his commission to
A
Am employing broke in another state
4
Q
What’s the primary difference between mortgage brokers and mortgage bankers
A
Mortgage brokers arrange loans between lenders and borrowers
5
Q
Rescind
A
To cancel
6
Q
Designation would best be covered
A
The office policy manual
7
Q
A brokers purchasing property for his own used him a
A
Disclose his licensing status in writing 
8
Q
Which of the following required to when a broker takes a listing
A
A definition date for termination
9
Q
The landlord must return the tenants security deposit within
A
One month
10
Q
The Colorado homestead exemption unless waved will protect a home
A
From any debt
11
Q
Statutory power of attorney for property
A
Maybe used to grant an agent powers to sign with respect to the property and other matters
12
Q
The acronym MEC in the contract to buy and sell means
A
Latest day upon with both parties have signed
13
Q
If the title commitment or title documents are not deliver to the buyer on the date specified in the contract contract may be
A
Terminated with the appropriate form
14
Q
The purpose of the broker signing in the brokers acknowledgment is to acknowledge what
A
Receipt of earnest money
15
Q
If the buyer is in the fall and sellers remedies a specific performance
A
The specific box must be checked
16
Q
The buyer has the right to walk through the property prior to closing the purpose of the walk-throughs to
A
Verify the physical condition complies with a contract
17
Q
Under a real estate commission rule F which of the following can be omitted in the printing of contract buy and sell
A
Financing terms not applicable
18
Q
Which of the following would not been approved deed of trust for the seller carry back
A
Due on transfer not more than 1% escalation
19
Q
The licensee buy out addendum is to be used when the licensee is
A
Guaranteeing to purchase the listing if it doesn’t sell
20
Q
Broker must keep which of the following records to properly account for money belonging to others
A
Ledger journal bank reconciliation
21
Q
A property manager must deposit recollection in a trust account no later than
A
Five business days after rent is received
22
Q
Earnest money must now beDeposited in a listing brokers trust account not later than the
A
Third business day after the broker received notice of acceptance of the contract
23
Q
Which of the following trust accounts record show all transactions
A
Journal
24
Q
A broker for a corporation is keeping trust accounts such separate accounts must be maintained
A
In the name of the broker and in the name of the corporation
25
The purpose of closing instructions and earnest money receipt is to
Agree on a closing fee
allow the closing company to receive and disperse funds
Assure how seller will receive the net proceeds
26
Who or which of the following is responsible for a complete accurate and detailed closing statement
Broker who personally established a relationship
27
Who is typically responsible for the preparation of the dead
Broker
28
What is a debit credit entry for loan assumption
Credit buyer and debit seller
29
How were the earnest money held by a broker be entered on the closing statement
Credit buyer and debit broker
30
Title insurance for the buyer will be paid by
Seller
31
The Colorado documentary fee is paid at closing and is based upon the
Sales price and paid by the buyer
1 penny for ever 100 $
0.01x sales price
32
Interest on an owner carry new owner carry loan will be calculated on the statement as
Principal times the interest rate divided by 365 days times the days from closing to the end of the month
33
A Broker wishes to retain agency status except when selling his own listing how can this be done
The listing form allows for this
34
You may do which of the following as a transaction broker working with a buyer
Inform the seller that’s a buyer cannot afford the property at the offer price
35
As a single agent for the buyer you’ve been instructed not to inform the seller that the buyer does not intend to occupy the property
The contract to buy and sell provides for truthful disclosure
36
I may or may not buy your home I have
An option contract
37
Binding
In agreement that’s legally enforceable
38
Relating to group errors and omissions insurance the real estate commission
Shall select a competitive bidding process
39
Colorado license law does not require employing broker us to
Adhere to the code of ethics
40
 A broker associate doing general mailing and recapping the sales in an area over the last year
- should cite the course of the data
- include disclaimer that all sales were not necessarily listed or sold by licensee -separately identify the licensees on sales activity
41
Water Colorado is considered to be
Owned by the people of Colorado
42
Subsurface rights  our address and what section of the Colorado contract to buy and sell real estate
Title advisory
43
Colorado fair housing act provides protection to the buyer of what type of property that is not included in federal fair housing act
Commercial
44
What does Colorado fair housing act cover
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Race
Color
Religion
National origin
Gender
Disability
Familial status 
Sexual orientation
National origin
Creed
Marital status
```
45
Federal fair housing act covers
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Race
Color
Religion
Disability
National origin
Gender
Disability
Familial status
```
46
Special taxing districts disclosure is required and which of the following
Contract to buy and sell real estate
47
Colorado use tax would be due for which of the following transactions
Transfer personal property in the sale of a business opportunity
48
Uniform duties purpose of real estate commission setting forth these duties as to
Better educate the public as well as the brokerage community
49
According to the contract to buy and sell their earnest money deposit must be given to a listing broker
With the offer
50
Rule F allows a broker to complete standard forms with the commonly using wording this means
Wording can be adapted to fit your transaction
51
They earnest money release form approved by the commission would be used
For optional use by the broker
52
Disclosure form allows if you were the agent for the seller and you have no relationship with the buyer you can continue to work as an agent of the seller
53
Trust accounts must be reconciled
each month that activity has occurred
54
A broker could manage property and use the sales trust account to deposit rental money if the broker manages less than seven single-family residential properties
55
With a Colorado closing the notary fee will be paid by
the Party that signed the document being notarized
56
Colorado property taxes for the current year would be entered on the settlement statement
Debit seller credit buyer
57
In a new loan closing the net loan proceeds represents the amount due from the lender and would be computed by which of the following New loan less cost paid by the seller for both buyer and seller
58
Closing statements would be signed by the
licensee who has relationship to the party
59
The total a broker credit should equal the total of brokers debits
Brokers debit
60
The total Broker debt entry represents An amount received which equals
the amount paid out by the broker
61
Colorado real estate commission Rule 35 requires Brokers to
Make written disclosure of their brokerage relationship before electing a receiving confidential information
62
The change of status form must be signed
At the time it Broker changes from agent to transaction broker
63
Your seller client want you to retain your agency status at all times unless you personally saw the property
You can agree by checking appropriate box in the listing contract
64
A designated broker
Assist one or more parties as an Agent or transaction broker
65
A mold is closure may not be copied from other firms should be composed and created by individual companies attorneys is not a required state form
66
Home warranty programs when purchase separately protect
The builder
the seller
the purchaser
67
A purchaser has a home to sell as a condition to purchasing a new property broker should utilize the
conditional sale deadline clause
68
You have to be licensed to fill out a contract and negotiate
69
Attorney at fact
One time permission
70
Receivor
is the one that takes the property at a probate
71
Probate court looks over deeds and will make sure that everything has been transferred legally and correctly
72
If you die intestate an administrator will be appointed(someone in family)Carry out the wishes of a will
73
If someone dies testate an executor will be appointed the type of deed to pull property at a probate is an executors deed
74
The state will be settled through the laws of descent  and distribution
75
The power of attorney creates attorney in fact
76
Enjoin
To stop
77
At closing lenders make you sign the promissory note (money) lender makes you sign the deed of trust closing lady gives Deed to buyer and second he grabs it it means delivery and acceptance he now owns a property lender then gives you title insurance policy which equals marketable title also known as merchantable title
78
Mortgage
Process of putting your house as collateral for not paying off the loan
79
Receivor
Person who takes property out of probate action
80
Conservator
Someone who is appointed by the court for someone who is incapacitated
81
Guardian
Appointed by the court if the person is too young
82
We are brokers who may or may not work as agents
83
Transaction brokers can be verbal
| agency has to be in contract
84
Co-oping broker
Buyers broker
85
Listing broker
Working for seller
86
The good fun statue must be available immediately without penalty as a matter of right
87
you need a certificate of license history if you move states
88
Separate escrow accounts required for managing more than seven or more residents
Escrow accounts for every type of escrow (two escrows for regular agent)
89
Land contract
installment contract
owner will carry
contract for deed
90
Imputed knowledge
Could be held responsible even if they haven’t known about it
91
Property manager received funds must be deposit in escrow account no later than five business days
92
Earnest money must be deposited in the bank or brokers trustor Escrow Account no later than three business days from acceptance of the offer
93
Separate recordkeeping must be maintained in the branch office
94
Closing statements are to be returned to employing broker immediately
95
Definition of working relationships are to be given to seller or buyer
96
When can you not have a designated agency
| when you’re a one person firm
97
Who are the parties of the listing contract
seller and the firm or
seller and employing broker
98
Who are the parties of the sales contract
Buyer and seller
Buyer and seller
99
Improvements-
Anything man-made
100
Appurtenance
Something of value that passes with the property but is not a part of it
101
What determines market value
the market
who determines market value
an appraiser
102
Emblements 
Annual crops belongs to whoever plan of them
103
Prohibited provision
(hold harmless clause) Exculpatory languageNot to have anything in the contract that are protected language
104
There is no approved form for leases
105
Can’t charge principal separate cost for preparing documents
106
What do you have to keep in your files as an associate broker
```
Listing agreement
square footage disclosure
lead based paint disclosure
purchase contract
any addendum to the property
```
107
The real estate commission has no authority to get into commission disputes
108
You can rebate a portion of your commission to the seller it just Has to be on the settlement statement sheet
109
Single party listing cannot have a holdover clause
110
Amend
To change
111
Only courts can file Lis pendants relates to title ownership
112
Promissory note is secured by the deed of trust
113
All deed transfer ownership the difference is the promises they guarantee
114
Mediation arbitration ledigation
115
Where can you not keep your records
In the downtown location of your CPA
116
Affiliated business arrangement
One stop shop you just need to have disclosure
117
Rule F assist us with complying with Rule E
118
There is no approved forms for the following if needed an attorney should always draw up a contract
Owner will carry
new home with warranty
construction contracts
no approved form for deeds
119
Conventional life estate
Reversionary property reverts back to grantor when grantee dies
remainder grantor gives property to someone upon their death when that someone dies it goes to someone else
Pur autre vieYou receive a life estate based on someone else’s life
120
The failure of a landlord to provide a written statement within the record time shall work for forfeiture of all his rights to withhold any portion of the security deposit under this section failure from the landlord to return deposit can be awarded with treble damages three times the amount If they kept your deposit with no reason
121
Provisions that are entered in blank spaces need to have differentiated print
122
Colorado consumer act
Protect the public from unfair business practices
123
Prior to submitting an application for A license a person must
Proof of education and testing
Compliance with a good moral character
Fingerprints the Colorado Bureau of investigation
Proof of education and testing
Compliance with a good moral character
Fingerprints the Colorado Bureau of investigation
124
If a Colorado broker maintains more than one place of business, the broker must
Be responsible for the supervision of all licensee activity
125
Entity
| LLC
126
Licensure
| the granting or regulation of licenses
127
All parties who sign a document must have a copy of such document. The copies must legible
128
An employing broker can counsel an associate broker relating to a transaction:
In all matters as long as the client’s confidential matters are protected
129
Which of the following would have the priority of appropriation of water rights
domestic purposes
130
The borrower can redeem the property if he does so not later than
75 days after the foreclosure sale
131
The Real Estate Commission has the power to investigate a licensee upon own motion
132
In listing a property, a broker will do all of the following
Use a commission approved form
Prepare closing instructions for future delivery to the closing company
Negotiate the commission that the company directs the broker to charge
133
What’s true relating to the Colorado Fair Housing Act:
Both commercial and residential property are covered
Marital status is covered
Colorado courts may levy fines for any violation of the law
134
Which of the following could be considered to be the sale of a security
The developer is the exclusive sale or rental agent of a condominium offer
A rental pool is a requirement of condition of the sale
The tax deduction benefits of depreciation are used as an inducement for the sale
Any of the above
135
The purchaser of property at a foreclosure sale would receive a certificate of purchase
136
The Contract to Buy and Sell Real Estate is referred to as:
A preliminary contact
An earnest money contact
An executor contract
137
A sign of equity skimming could be when a purchaser chooses to buy a property:
Subject to an existing loan
138
Which of the following is a uniform duty expected of all real estate brokers:
Keeping the buyer or seller fully informed regarding the transaction
Disclosing the buyer or seller material facts actually known by the broker
Accounting in a timely manner for all money and property received
139
the following would be a Colorado Real Estate Commission approved form:
Exclusive Tenant Contract
Exclusive Right to Lease Listing Contract
Brokerage Duties Addendum to Property Management Agreement
140
What is the purpose of a licensee buyout addendum?
A salesperson is offering to purchase as an inducement for obtaining a listing contract
141
A seller, who has never made a loan before, has decided to carry back financing for the buyer. What is the maximum interest rate that the seller can charge:
45%
142
According to the Contract to Buy and Sell Real Estate,
all prorations are considered final
143
Which of the following is true when using the Counterproposal Form
The date and deadline table may be deleted if inapplicable
If the date and deadline is left blank, it means “no change”
The proposed contract is not to be signed by the party initiating the counter proposals
144
The “Escrow Accounting Equation” means that the cash balance must equal the:
Account liabilities
145
The general function of the journal is similar to: the trust account check register
146
The escrow account bank statement heading must include all of the following:
Licensed brokerage name
Type of escrow account
The broker’s name
147
At any given time, the sum of all ledger pages must equal the amount of
The trust account checkbook
148
Loan discount fees can be paid by both buyer and seller
149
Individual members of the public are vicariously liable for the acts of omissions of real estate brokers if the acts:
Approved
Directed
Ratified
150
A broker may be properly designated
In writing by the employing broker
151
A Square Footage Disclosure is required on:
Residential property only
152
Lower LTV higher the equity
153
Material fact
is anything that would affect the buyer/tenants decision to purchase or lease the property and the value of the property
154
 Mediation
Mediation
arbitration
litigation
interplead to courts wait 120 days
155
Buyer will have liquid damages if they checked specific box for specific performance
156
Rule of three (references)
157
The closing instruction forms (CL8-9-95)
| Closing instructions engage the closing entityEngages a closing service on behalf of the buyer and seller
158
Out of state seller 2% sales price
| Or entire amount you’re walking away with for out-of-state buyer which ever is less
159
Between contract and closing cost of less than 10% seller needs to fix or provide insurance
160
Time is of the essence
| Dates are important
161
Mediation is not binding unless parties agree split cost 50-50

162
Parole evidence rule
It’s an oral agreement didn’t make it into contract it didn’t happen
163
Consideration some thing of value for something of value
164
Tort - private wrong 
165
Acceleration clause
| Clause that allows the lender to claim full payment of loan
166
Agricultural properties
| Sold within
215 -230 days
167
Non-agricultural properties
Sold within 110 days to 125 days
168
Power of sales clause

Gives power to trustee to start immediate for closure public trustee will initiate notice of election and demand
169
NED give 10 days to pay if not house will foreclose.
Equitable period of redemption before statutory period of redemption (na for Colorado
Borrower has until noon before forclosure to pay same day
170
Hypothecation
Hypothecation is the practice of securing debt by pledging collateral. It occurs most often in mortgage lending.
171
Conventional loans are not assumable because of acceleration clause
172
Country taxes = things like school district
City tax= sales tax
Federal tax=IRS taxes
173
How are taxes payable
Taxes are paid in arrears in Colorado you can do whole amount on April 30 or half the last day of February and the other half June 15 June 16 taxes are delinquent
174
Mill levy 1/10 of 1%
175
30 days to fight assessed value
176
Value
Contract Value
market value
assessed value for tax purposes
177
The county trustee issues a certificate of purchase for tax sale
178
mechanics lien Cannot last for longer than six months unless they sue you
179
You have to inform your employing broker before you can manage properties
180
```
How to eliminates tenancy at will
Sale of property
death of either party
destruction of property
10 day notice
```
181
What’s an advantage to a landlord net lease
| Your subsidizing the landlord’s expenses
182
Subsidizing
pay part of the cost of producing (something) to reduce prices for the buyer.
183
To renew a Colorado real estate licensee license must complete
24 hours of continuing education every three years or pass a Colorado portion of the real estate exam
184
If a broker is found to have violated division of real estate procedures the division may not require a payment of damages
185
 listing based on net price are legal in Colorado as long as the seller agrees
186
```
Voidable
Duress
under age
fraud
Insane by doctor
```
187
```
Void
Insane by court
Illegal purpose
 signing contract beforelead based paint disclosure
Must be in writing
```
188
Hardship
Hardship is it unusual irregularly in your property that makes it a uniquely difficult for you to comply fully with Zoning regulations
189
Who subdivided property
Surveyor
190
If the deed of trust is set up with a private trustee any foreclosure will be handled in the appropriate court
191
Federal security laws
Syndication
| Pooling of funds
192
According to the Colorado law ID a trust deed is held by a private trusty
any foreclosure must be judicial
193
In the Colorado exclusive right to buy contract who is ultimately responsible for paying commission
the Buyer
194
 holdover clause is a protection clause for broker 
195
The developer of a condo conversion into twenty residential units must register with a Colorado real estate prior to subdividing
196
An owner of 35 acre parcel undeveloped land may drill a well for water only after obtaining a well permit from the state engineer
197
Amendment change things
| addendum‘s further explain things
198
Conway bogue vs the Denver Bar association
Brokers are required to not charge the parties for the preparation of the legal documents used in a real estate transaction
199
Rue E3 requires that a broker leaving the employ of an owners association must return all association management record to the association or its designee
200
May a broker except a referral fee from a title insurance company or representative
No this is never permissible to accept such a fee
201
Famili status under the Colorado fair housing law means children under 18 domiciles with parent or guardian
202
The Colorado real estate commission requires continuing education when renewing licensees must complete 12 hours of elective courses as approved by the real estate commission plus the mandatory course as required
203
The managing broker for the listing company received an earnest money note

the broker would hold the note in a secure location until redeemed
204
A licensee renewing his license after the original license is issued must renew on every anniversary day of the original licensee every three years
205
Water rights are considered real property in Colorado
206
The Colorado homestead exemption as addressed in the Colorado approve deed of trust forms indicate that the trustor waive the right to homestead exemption
207
Farmer has six months to redeem property from the date of sale
208
Sellers is held to specific performances and liquidated damages
209
If the sales price is different on the page one that’s a inserted in section 4 to contract and buy and sell which of the following is true section 4 will prevail
210
Subdivision Any properties with more than 20 interest
211
The Conway versus bogue Denver BuyerStates that real estate agents can prepare legal documents
212
```
MAP
Must be connected
Must not charge 
Advise options or legal counsel
Pre-printed approved contracts
```
213
You must renew your Colorado license every
Three years
214
Real estate Recovery fund is held by
State treasurer
215
Carbon monoxide detectors
| 15 ft any sleeping quartes
216
What if a license is working with a tenant tenant agent
| A commission approvedExclusive tendant contract
217
Short sale addendum excepting less than the loan amount
218
Contract provides for the owners title insurance policy to be paid by
Seller
219
The total for the sellers credit would equal the sellers total debits
220
With an assumption of a loan but hazard insurance reserve could be entered as
credit seller and debit buyer
221
When is seller carry back a purchase money mortgage the entry would be
Debit seller credit buyer
222
If the owner lender requires a mortgage title insurance policy they should be entered as
debit the buyer and credit the broker
223
The real estate commission approved addendum brokerage duties disclosure to seller (BDD56 10 045)is used When dealing with REO and non-CREC approved listing agreements
224
A property was sold through an owner will carry who walks out the door with the closing deed
the seller
225
Which of the following would be most likely to be approved for continuing education by the real estate commission
real estate ethics class
226
Syndication
Transfer of something for control
227
In a new loan closing the net loan proceeds become a
Debit to broker
