Colorado Exam 1-74 Questions

Question 1

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Answer 1

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Question 2

2. After hearing in an initial decision before in the administration of law , the real estate commission may do all of the following except
3. Fine and censure a licensee
4. Suspend a licensees license
5. Revoke a licensees license
6. Direct six months to one year in jail and says spend a license for an equal period of time

Answer 2

4. Direct six months to one year in jail and says spend a license for an equal period of time

Question 3

3. Which of the following need a real estate license in Colorado?
4. and on-site manager of an apartment building for performing the customary duties of an on-site manager
5. A regular a salaried, on-site manager of a condominium complex employed by a Homeowner association, who also shows and sells units in the complex, for individual owners
6. A real estate broker license in another state the receives a share of the commission from a Colorado real estate broker
7. A person employed by a corporation who negotiates the purchasing of rights of way the telecommunication lines

Answer 3

2. A regular a salaried, on-site manager of a condominium complex employed by a Homeowner association, who also shows and sells units in the complex, for individual owners

Question 4

4. Which of the following is not required to maintain errors and omission insurance?
5. An inactive licensee
6. An active licensee
7. An attorney at law was also an active licensee
8. A broker associate

Answer 4

1. An inactive licensee

Question 5

Five. Excluded

Answer 5

Excluded

Question 6

Six. Sally Smith is license with a real estate commission as Smith Realty an investment company, a Colorado corporation. All advertising that Sally or her associates do must be

1. Under the name of Sally Smith
2. . As Sally Smith DBA Smith Realty an investment company
3. Smith Realty an investment company
4. With the associates name license under Smith Realty an investment company

Answer 6

3 . Smith Realty an investment company

Question 7

7. And employing broker may designate one or more brokers to serve the public in a particular transaction, this designation would be best covered in:
8. An independent contractor agreement
9. The office policy manual
10. The employee – employer agreement.
11. The sales contract

Answer 7

2. The office policy manual

Question 8

8. As a result of the sale a broker would properly received from a title company
9. free CE classes
10. Coffee at a sponsored event.
11. Brochures for the brokers listings.
12. A trip to the national realtor convention

Answer 8

2. Coffee at a sponsored event.

Question 9

9. A broker is purchasing property for his own use he must:
10. Use the licensing buy out addendum
11. Disclose this license status in writing
12. Disclose the brokerage company relationship
13. Be a transaction broker

Answer 9

2. Disclose this license status in writing

Question 10

10. Which of the following is required one a broker takes a listing?
11. A commission right expressed as a percentage
12. The signature of employing broker
13. A release signed and attached to the current listing from any previous broker
14. A definite date of termination

Answer 10

4. A definite date of termination

Question 11

11. A broker is preparing a contract to buy and sell and needs an addendum to cover aspects of the sale not covered in negotiations between the two parties which of the following can prepare the addendum?
12. The broker preparing the offer
13. An attorney at law
14. The employing broker
15. The title company

Answer 11

2. An attorney at law

Question 12

12. An unlicensed personal assistant may do all the following except
13. Distribute information on list of properties
14. Provide access to property.
15. Type a contract to buy and sell at the direction of the broker
16. Negotiate with the buyer after showing a property until a license person is available

Answer 12

4. Negotiate with the buyer after showing a property until a license person is available

Question 13

13. A seller is not happy with the licensee who has her listing. She meets another broker at a neighborhood event and indicates that she would be interested in talking to this other broker about her listing the broker may:
14. Try to help her by telling her how to deal with her agent
15. Negotiate how his broker might take a future listing
16. Sympathized with the seller for having such a bad agent
17. Tell the seller how to fire her agent

Answer 13

2. Negotiate how his broker might take a future listing

Question 14

14. Relating to the real estate commission position statement on seller assist to down payments, a broker can facilitate safeguards by all the following except:
15. Note the presence and amount of any seller paid costs in the proper transaction documents.
16. Record all transaction terms in the MLS
17. Confirm comparable sales including the details of previous contracts
18. Advise buyers and sellers to seek legal counsel

Answer 14

3. Confirm comparable sales including the details of previous contracts

Question 15

15. In employing broker can pay part of his commission to
16. An unlicensed friend who helps to negotiate a sale.
17. And employing broker in another state
18. An associate broker working for another company
19. A relocation company who did not refer to the buyer or seller

Answer 15

2. And employing broker in another state

Question 16

16. A lease agreement has expired unless the lease agreement states otherwise, the landlord must return the tenants security deposit within:
17. Three months
18. 60 days
19. 45 days
20. One month

Answer 16

4. One month

Question 17

17. Colorado water law is based upon
18. Littoral rights.
19. Prior appropriation.
20. Mandates from the federal government.
21. Allocation based on surface and subsurface rights.

Answer 17

2. Prior appropriation.

Question 18

18. A buyer purchases property and is told by the broker that third parties me on an interest in subsurface rights to the property. All of the following could be subsurface rights except:
19. Geothermal energy.
20. Natural gas
21. Improvements
22. Minerals

Answer 18

3. Improvements

Question 19

19. A property owner wishes to pay property tax and one payment without penalty. The taxes must be paid:
20. On or before June 15
21. Within 10 days of receiving the tax statement from the county
22. On that or before April 15.
23. On or before the last day of April.

Answer 19

4. On or before the last day of April.

Question 20

20. The primary difference between mortgage brokers and mortgage bankers is:
21. Mortgage brokers arrange loans between lenders and borrowers.
22. Mortgage bankers never originate loans from their own funds
23. Mortgage brokers always originate loans from their own funds
24. Mortgage bankers always act as intermediaries

Answer 20

1. Mortgage brokers arrange loans between lenders and borrowers.

Question 21

21 dismissed

Answer 21

21 dismissed

Question 22

22 dismissed

Answer 22

22 dismissed

Question 23

23. The Colorado homestead exemption, unless waved, will protect the homeowner:
24. From any debt
25. Secured debt only
26. Unsecured debt only
27. Only if the home owner has registered the homestead exemption

Answer 23

1. From any debt

Question 24

24. A statutory power of attorney for property:
25. Maybe used to grant an agent power with respect to property and other matters.
26. Would be illegal to use in Colorado.
27. Must be a general power of attorney
28. Must be specific purpose

Answer 24

1. Maybe used to grant an agent power with respect to property and other matters.

Question 25

25. Which of the following is not an approved listing form?
26. Exclusive right to sell
27. Exclusive brokerage
28. Exclusive net
29. Exclusive right to buy

Answer 25

3. Exclusive net

Question 26

26. In a listing agreement, broker A has the right to change his relationship from agent to transaction broker. The change of status form must be signed at the time:
27. The seller signs the listing
28. The buyer signs the offer to purchase
29. Of closing
30. The relationship changes

Answer 26

4. The relationship changes

Question 27

27. A licensee may take an agency agreement with the buyer or seller
28. On a commission approved form
29. On a form prepared by a buyer or seller’s attorney
30. In writing
31. All of the above

Answer 27

4. All of the above

Question 28

28. The lead-based disclosure is not properly given. The contract is:
29. Terminated
30. Void
31. Canceled
32. Rescinded

Answer 28

2. Void

Question 29

29 canceled

Answer 29

29 canceled

Question 30

30. If a buyer does not receive a loan commitment by the loan commitment deadline, and does not notify the seller in writing, the buyer may:
31. Terminate the contract
32. Loose his earnest money
33. Declare the seller in default
34. Unilaterally extend the date

Answer 30

2. Loose his earnest money

Question 31

31. The acronym MEC in the contract to buy and sell means the:
32. Latest date that the contract can be excepted
33. Latest date upon which both parties have signed
34. Date that the earnest money must be deposited
35. Date for buyers loan commitment

Answer 31

2. Latest date upon which both parties have signed

Question 32

32. The buyer and seller are in agreement that the date for closing needs to be moved for by one week. The proper form to be completed is a/and:
33. Agreement to amend/extend contract with broker
34. Agreement to amend/extend contract
35. Agreement to amend closing instruction
36. Counterproposal

Answer 32

2. Agreement to amend/extend contract

Question 33

33. If the title commitment or title documents are not delivered to the buyer on the date specified in the contract. The contract can be:
34. Void
35. Terminated
36. Canceled
37. Rescinded

Answer 33

2. Terminated

Question 34

34. According to the contract to buy and sell, the payment of closing services will be paid:
35. By the seller
36. By the buyer
37. By the broker
38. Depending upon which box is checked

Answer 34

4. Depending upon which box is checked

Question 35

35. If a dispute arises relating to the contract to buy and sell, the parties shall first:
36. Follow the directions of the listing broker
37. Submit the matter to arbitration
38. Submit the matter to mediation
39. Proceed to small claims court

Answer 35

3. Submit the matter to mediation

Question 36

36. The purpose of the broker signing in the ״broker acknowledgments״ area of the contract to buy and sell, is to acknowledge:
37. Their brokerage relationship.
38. Who will pay compensation.
39. Receipt of the earnest money.
40. How much the commission will be

Answer 36

3. Receipt of the earnest money.

Question 37

37. If a buyer is in default and the sellers remedy is specific performance:
38. The buyer may treat the contract is terminated
39. The specific performance box must be checked
40. Liquidated damages are sellers sole remedy
41. Seller waves additional damages

Answer 37

2. The specific performance box must be checked

Question 38

38. The buyer has the right to walk – through a property prior to closing. The purpose of the walk – is to:
39. Renegotiate the inspection items
40. Give the buyer and out if he chooses not to buy
41. Verify that the physical condition complies with the contract
42. I sure the broker a commission

Answer 38

3. Verify that the physical condition complies with the contract

Question 39

39. Under real estate commission rule F, which of the following can be omitted in the printed of the contract to buy and sell?
40. The date and deadline table
41. Financing terms not applicable
42. The recommendation of legal counsel
43. The broker acknowledgments

Answer 39

2. Financing terms not applicable

Question 40

40. Which of the following would not be approved deed of trust form for a seller carry-back?
41. Due on transfer strict
42. Due on transfer – credit out Worthley restriction
43. Assumable – do not Due on sale
44. Due on transfer – not more than 1% escalation

Answer 40

4. Do on transfer – not more than 1% escalation

Question 41

41. During the listing process, the seller tells you that he will not fill out a sellers property disclosure form. What is the best response to the seller?
42. Tell the seller that you will fill out the form to the best of your ability
43. Inform the seller that most buyers will insist on having the seller fill out the form
44. Tell the seller that disclosure of material fact is completely optional
45. Refused to take the listing

Answer 41

2. Inform the seller that most buyers will insist on having the seller fill out the form

Question 42

42. Went to licensee measures of property and makes disclosure of square footage on the proper form, she must disclose:
43. The “exact square footage
44. The disclosure is for loan purposes
45. The standard, methodology and manner of measurements
46. That the measurement may not be independently checked

Answer 42

3. The standard, methodology and manner of measurements

Question 43

43. When a seller fills out a seller property disclosure form, she is:
44. Stating that all items are in working condition
45. Warranting that the item will be in working order after closing
46. Stating that the information is of her current, actual knowledge
47. Stating that the item is fit for the buyers intended purpose

Answer 43

3. Stating that the information is of her current, actual knowledge

Question 44

44. The licensee buy out addendum is to be used when a licensee is:
45. Listing property personally owned by the licensee
46. Selling property to a relative who has a real estate license
47. Buying property for personal use
48. Guaranteeing to purchase a listing if it doesn’t sell

Answer 44

4. Guaranteeing to purchase a listing if it doesn’t sell

Question 45

45. A broker must keep which of the following records to properly account for money belonging to others?
46. Ledger, journal and operating account checkbook
47. Property file, ledger and journal
48. Ledger, journal, bank reconciliation 4. Trust account and operating account checkbook, property file, ledger and journal

Answer 45

3. Ledger, journal, bank reconciliation

Question 46

46. A property manager must deposit rents collected in a trust account not later than:
47. Two days after rent is received
48. 10 days after rent is received
49. Five business days after rent is received
50. Three business days after rent is collected

Answer 46

3. Five business days after rent is received

Question 47

47. A contract has been excepted by the seller. Earnest money must now be deposited in the listing brokers a trust account not later than:
48. Fifth business day after listing broker receives the money
49. Third business day after broker receives notice of acceptance of contract
50. Third day afterreceive notice of acceptance of contract
51. Fifth business day after broker receives notice of the acceptance of contract

Answer 47

2. Third business day after broker receives notice of acceptance of contract

Question 48

48. When an employee broker for a partnership, limited liability company or corporation receives or disperses earnest money, escrow or trust funds, the employing broker:
49. Is personally responsible for the funds
50. Has personally responsibility for funds only if individual proprietor
    3 has no responsibility for the funds if the entity breached the duty to the public
51. He has no responsibility for the funds

Answer 48

1. Is personally responsible for the funds

Question 49

49. Which of the following trust account records show all the transactions?
50. Ledger
51. Journal
52. Transaction file
53. Operating account

Answer 49

2. Journal

Question 50

50. A broker for corporation is keeping trust accounts. Such separate accounts must be maintained:
51. In the same name of the broker
52. In the name of the broker and in the name of the corporation.
53. For the benefit of the social it’s retirement benefits
54. In the name of each associate who has money in the

Answer 50

2. In the name of the broker and in the name of the corporation.

Question 51

51. A water bill of $84.59 is due and unpaid for the period of July 1 through September 30. The closing is August 31. What is the proper debit and credit?
52. Debit buyer $28.50 and credit seller $28.50
53. Debit seller $84.59 and credit buyer $84.59
54. Debit seller $56.09, debit buyer $28.50 , Credit broker $84.59
55. Debit seller $28.50, credit buyer $56.09, credit broker $28.50

Answer 51

3. Debit seller $56.09, debit buyer $28.50 , Credit broker $84.59

Question 52

52. The purpose of the closing instructions and earnest money receipt is to do all except:
53. Agree on the closing fee
54. Allow the closing company to receive and disburse funds
55. Relieve the broker of liability for complete, accurate and detailed closing statement
56. Assure how The seller will receive net proceeds at closing

Answer 52

3. Relieve the broker of liability for complete, accurate and detailed closing statement

Question 53

53. Who or which of the following is responsible for a complete, accurate and detailed closing statement? The: 1. Employing broker
54. Broker who personally establish the relationship
55. Closing company
56. Closer for the closing company

Answer 53

2. Broker who personally establish the relationship

Question 54

54. If a broker instructs the closing company to prepare the deed to convey title for the closing, who is responsible for preparation of the Deed? The:
55. Closing company
56. Seller
57. Broker
58. Sellers attorney

Answer 54

3. Broker

Question 55

55. What is the debit/credit entry for a loan assumption?
56. Debit seller and credit broker
57. Credit seller and debit buyer
58. Credit buyer and debit broker
59. Credit buyer and debit seller

Answer 55

4. Credit buyer and debit seller

Question 56

56. What is the usual debit/credit entry for the brokers commission?
57. Debit buyer and credit seller
58. Debit seller and debit broker
59. Debit seller and credit buyer
60. Debit seller and credit broker

Answer 56

4. Debit seller and credit broker

Question 57

57. How would earnest money held by the broker be entered on the closing statement?
58. Credit buyer and debit broker
59. Credit seller and debit buyer
60. Credit buyer and debit seller
61. Shown as POC on closing statement

Answer 57

1. Credit buyer and debit broker

Question 58

58. Title insurance for the buyer will be paid for:
59. Buyer
60. Seller
61. Broker
62. Lender

Answer 58

2. Seller

Question 59

59. A new loan will be shown on the settlement statement as:
60. Debit seller, credit buyer
61. Credit seller as a single entry
62. Credit buyer as a single entry
63. Credit buyer, debit broker

Answer 59

3. Credit buyer as a single entry

Question 60

60. The closing fee for Colorado closing paid to the closing entity or broker will be paid by:
61. Buyer
62. Seller
63. Split between buyer and seller
64. As agreed to in the contract to buy and sell

Answer 60

4. As agreed to in the contract to buy and sell

Question 61

61. The seller has not paid the June 1 homeowner association dues of $180. The closing is June 18. The proration will be:
62. $180 debit seller and credit broker
63. $108 debit seller and $72 debit buyer and credit broker $180.0
64. $102 debit seller, $78 debit buyer and credit broker $180
65. $72 debit seller, $102 debit buyer and credit broke $180

Answer 61

3. $102 debit seller, $78 debit buyer and credit broker $180

Question 62

62. The Colorado documentary fee is paid at closing and is based upon the:
63. Loan amount and paid by seller
64. Loan amount and paid by buyer
65. Sales price and paid by the seller
66. Sales price and paid for by the buyer

Answer 62

4. Sales price and paid for by the buyer

Question 63

63. Interest on an owner – carry new owner – Carry loan will be calculated on the settlement statement as:
64. Principal times the interest rate divided by 365 days times the days from the first of the month to the date of closing.
65. Principal times the interest rate divided by 365 days times the days from closing to the end of the month.
66. I figure given by the lender
67. Principal times the interest rate divided by 12 months times the days from the first of the month to date of closing

Answer 63

2. Principal times the interest rate divided by 365 days times the days from closing to the end of the month

Question 64

64. A broker wishes to retain agency status except when selling his own listing. How can this be done?
65. The listing form allows for this
66. Don’t show his own listings
67. The broker must be a transaction broker
68. The form only allows for single

Answer 64

1. The listing form allows for this

Question 65

65. Which of the following would be a valid company policy when a broker sells his own listing?
66. Represent seller as seller’s agent and buyer as transaction broker
67. Represent seller and seller’s agent and buyer as buyer agent
68. represent seller as seller’s agent and disclose to buyer that she is a customer
69. Represent seller as transaction broker and buyer as agent

Answer 65

3. represent seller as seller’s agent and disclose to buyer that she is a customer

Question 66

1. The Colorado real estate commission may upon a written complaint must, investigate all of the following except:
2. No violations of Colorado consumer protection act.
3. Non-disclosure by a licensee of license status one selling on licensees own account
4. A broker converting funds from her trust account to her operating account.
5. Nondisclosure to A buyer relating to a situation that with psychologically impact the property.

Answer 66

4. Nondisclosure to A buyer relating to a situation that with psychologically impact the property.

Question 67

66. One of the following would not be acceptable for disclosing brokerage relationships:
67. Brokerage disclosure to the buyer
    2 Brokerage disclosure to seller – for sale by owner
68. Definitions of working relationships
69. Exclusive right to sell listing contract

Answer 67

3. Definitions of working relationships

Question 68

67. A broker has a relationship with his buyer principal. This relationship could be described as:
68. Transaction – broker
69. Attorney in fact
70. Customer
71. Fiduciary

Answer 68

4. Fiduciary

Question 69

68. Unless otherwise agreed, the relationship created in Colorado with a buyer or seller would be:
69. Agent of the buyer and agent of the seller.
70. Agent of the buyer and transaction broker for the seller
71. Transaction – broker to buyer or seller
72. Agent to sell her with the buyer as A customer

Answer 69

3. Transaction – broker to buyer or seller

Question 70

69. When can a broker create a dual agency relationship in Colorado?
70. When the broker secures an agreement from both buyer and seller
71. When the broker becomes a transaction – broker to about
72. Never, since dual agency as a legal in Colorado
73. Anytime the broker works with both

Answer 70

3. Never, since dual agency as a legal in Colorado

Question 71

70 excluded

Answer 71

70 excluded

Question 72

71. My broker is the agent of the purchaser. The broker has an interest in the title to the property that the buyer is considering purchasing. The broker fails to disclose his interest. This most likely would be:
72. Best since he will earn more commission if not disclosed
73. Acceptable since he has an agent of the buyer
74. Acceptable because he is a dual agent
75. A violation of commission rule

Answer 72

4. A violation of commission rule

Question 73

72. You may do which of the following as a transaction broker working with a buyer:
73. Tell the seller that the buyer will pay more for the property then offered
74. Tell the buyer that the seller will take less than the listed price
75. Inform the seller that the buyer cannot afford the property at the offered price
76. Provide the buyer with information about the sellers motivation to sell

Answer 73

3. Inform the seller that the buyer cannot afford the property at the offered price

Question 74

73. As a single agent for the buyer, you have been instructed not to inform the seller that the buyer does not intend to occupy the property:
74. This is acceptable without the buyers written permission
75. The contract to buy and sell provides the for truthfull disclosure
76. All such information must be kept confidential
77. This must not be disclosed until the closing

Answer 74

2. The contract to buy and sell provides the for truthfull disclosure

Question 75

74. As an agent of the seller, you must
75. Present all offers in a timely manner.
76. Continue to market the property even if it’s under contract.
77. Confirm the buyer’s financial ability.
78. Require the seller to have legal counsel

Answer 75

1. Present all offers in a timely manner.