Colorado forms And contracts

Question 1

The Supreme Court decision in the Conway-Bogue case relating to the practice of law by real estate brokers and employed licensees stated:

Answer 1

Colorado licensees completing standard form are practicing law and have a limited permission to do so.

Question 2

The purpose of Commission Rule F relating to approved forms is to:

Answer 2

help insure the brokers compliance with the Conway-Bogue decision of Colorado supreme court

Question 3

Commission rule F

Answer 3

It is compulsory for all real estate brokers licensed by the State of Colorado to use Commission approved forms in most of their contracting.

Question 4

When you complete standard approved forms with commonly used wording it must…

Answer 4

be adapted to fit your transaction.

Question 5

According to the Commission-approved Exclusive Right-to-Sell Listing Contract

Answer 5

A brokers compensation is established by the broker

Question 6

Exclusive Right-to-Sell listing

Answer 6

a contract between a homeowner and a real estate agent that grants the broker exclusive rights to collect commission when their property sells Regardless of who finds the buyer

Question 7

A broker with a Transaction-Broker Exclusive Right-to-Sell listing agreement could cooperate with all the following brokers EXCEPT

Answer 7

A sellers subagent. Subagency is illegal in Colorado

Question 8

Subagent

Answer 8

real estate agent or broker who brings in the buyer to purchase a property, but he is not the property’s listing agent

Question 9

Buyer’s agent

Answer 9

licensed real estate agent who represents the buyer in a transaction. The buyer’s agent has authority to act on behalf of the buyer in negotiating a Purchase and Sale Agreement with the seller’s agent.

Question 10

litigation and arbitration

Answer 10

litigation means taking a dispute to court. Both sides present their case before a judge or jury, who will then render a decision. Arbitration, on the other hand, is a private process in which both parties agree that an arbitrator (a neutral third party) will render a binding decision.

Question 11

Mediation

Answer 11

a process wherein the parties meet with a mutually selected impartial and neutral person who assists them in the negotiation of their differences

Question 12

Specific performance

Answer 12

Suing if the buyer or seller does not end up performing under specific terms of the contract. Usually the buyer suing the seller

Question 13

Mill Levy

Answer 13

Taxable value of a property
Ex: $300,000 house
Tax rate is 30 mills
Equation: 300,000x30=9,000,000/1000=9,000

Question 14

In the contract to buy and sell, who pays the appraisal fee?

Answer 14

It is negotiated between the buyer and seller

Question 15

According to the residential contract to buy and sell real estate, what can a buyer who is dissatisfied with the inspection do?

Answer 15

Terminate the contract immediately with written notice

Question 16

What is the purpose of listing licensee providing information on square footage?

Answer 16

For marketing purpose only

Question 17

When can a buyer withdraw an offer to a seller?

Answer 17

Prior to the listing broker delivering it to the seller. Once the seller has accepted and signed the contract the buyers may no longer withdraw

Question 18

If a seller makes a counteroffer to the buyer, what happens to the original offer?

Answer 18

The original offer is considered rejected and the buyer is not held liable to that original contract

Question 19

A buyers earnest money is held by

Answer 19

Whoever is named in the contract to hold it, in the contract to buy and sell give the authority to a named entity either the buyer or seller

Question 20

Straight line amortization

Answer 20

a way of calculating debt repayment The principal and interest amounts remain constant with every loan payment

Question 21

Liquidated damages

Answer 21

It is a provision that allows for the payment of a specified sum should one of the parties be in breach of contract.

Question 22

Injunction

Answer 22

an order from a court that prevents a party from taking certain action