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Colorado real estate > Colorado Forms and Contracts > Flashcards

Colorado Forms and Contracts Flashcards

1
Q

A listing broker must disclose material facts about the property actually known by the broker.

A

T.)

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2
Q

A listing is not valid until its signed by both the seller and the buyer.

A

F.) The listing is between the seller and the broker, not the buyer.

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3
Q

The holdover clause in the listing provides that the broker will receive a commission if the listing sells within 90 days of the expiration date.

A

F.) The length of the holdover period is negotiable. The sale must be to a party the broker disclosed to the seller in writing, and no commission is due if the seller list exclusively with another broker during the holdover period.

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4
Q

The holdover clause might also be called a protection or extension clause.

A

T.)

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5
Q

Based on the approved listing form if the buyer forfeits the earnest money, the seller and broker split the money.

A

T.)

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6
Q

In the listing form, the seller can decide not to provide a sellers property disclosure to the buyer.

A

T.) But, the standard language of the contract to buy and sell states that the seller shall provide the disclosure. The language must be altered if the seller has elected not to provide it.

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7
Q

A seller will not complete a sellers property disclosure and the broker suspects there are material defects in the property. If the seller doesn’t disclose these facts the broker should refuse the listing.

A

T.)

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8
Q

With a sellers real property disclosure the sellers certifies to truth of disclosures based on current actual knowledge.

A

T.)

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9
Q

If a seller wants to sell the property as is, the seller is not responsible to disclose known material defects.

A

F.) Material defects must always be disclosed

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10
Q

If a seller wants to sell a property as is, the listing broker is relieved of obligations to do a visual inspection or ask questions regarding material defects.

A

F.) Even property sold as is requires disclosures of material defects.

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11
Q

According to the listing contract, the brokers compensation is set by law.

A

F.) The fee is determined by each broker.

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12
Q

A seller listed his house with a broker for three months. After one month the seller decided to take the property off the market. The seller can withdraw the listing, but may be responsible for paying some of the brokers expenses.

A

T.)The listing is “irrevocable” and may not be unilaterally canceled without cause.

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13
Q

A broker must have written listing with a seller in order to receive a commission for a sale.

A

F.) A broker may also have an agreement with a buyer calling for payment of a fee.

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14
Q

The success fee in an exclusive right to buy agreement always comes from the seller.

A

F.) It often comes from the listing broker as a cooperative fee. It may also come from the seller directly, from the buyer, or from an outside source.

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15
Q

An extension holdover or protection clause is found in the contract to buy and sell.

A

F.) This clause is in the listing or buyer representation agreements.

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16
Q

Based on the approved contract to buy and sell, if a buyer cannot get a loan commitment by the deadline, the buyer can terminate the contract by written notice to the seller

A

T.)

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17
Q

Faxed signatures are never acceptable for real estate contract negotiations

A

F.) Parties may give permission in the contract to buy and sell.

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18
Q

The contract to buy and sell provides that faxed signatures may be acceptable for negotiations, but original signatures will be provided no later than closing.

A

T.) The parties may agree to use faxed signatures in negotiation.

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19
Q

According to the contract to buy and sell if the parties have a dispute, the loser pays for the mediation fees.

A

F.) The parties agree to split mediation fees.

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20
Q

In the contract to buy and sell, the party who pays for the appraisal is negotiated between the buyer and seller.

A

T.)

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21
Q

Mediation fees are negotiable.

A

F.) All approved contracts require the fees to be spit between the parties.

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22
Q

If the parties have a dispute and mediation fails, the parties agree to interpleading arbitration.

A

F.) Only mediation is required by contract. Either party may then proceed to arbitration then litigation.

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23
Q

When the parties have a dispute about the earnest money, the broker may interplead the matter and send the parties to court.

A

T.)

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24
Q

A broker receives permission to receive and hold earnest money from the contract to buy and sell

A

T.)

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25
Q

Earnest money is normally held by the seller.

A

F.) The contract to buy and sell gives that authority to a named entity normally the listing broker.

26
Q

When a seller is providing seller financing, the approved contract to buy and sell permits the seller to terminate the contract based on the buyers credit information.

A

T.)

27
Q

A seller must follow FHA lending standards in evaluating a buyers qualification for seller financing.

A

F.) The contract states “… at the sellers sole and absolute discretion”.

28
Q

Credit information provided to a seller for seller financing must be kept confidential.

A

T.) The contract calls for the information to be kept confidential.

29
Q

According to the residential contract to buy and sell real estate, a buyer who is dissatisfied with inspection results must offer the seller an opportunity to satisfy the problems.

A

F.) May terminate the contract with written notice immediately.

30
Q

According to the residential contract to buy and sell real estate, the buyer must pay for the appraisal.

A

F.) Its negotiable between the buyer and seller. Specifically which by checking a box.

31
Q

The listing broker has presented an offer to the sellers who accept the offer. At that moment, the broker receives a call from her office stating that the offer is withdrawn, The proposed contract is void.

A

T.) The buyer may withdraw the offer at any time prior to notification of acceptance.

32
Q

A broker may add a clause to additional provisions of the contract to buy and sell limiting the brokers liability for confirmation of zoning disputes.

A

F.) such exculpatory clauses are specifically prohibited by commission guidelines.

33
Q

If the buyer cannot meet the loan commitment deadline, the buyers broker must inform the seller by phone to keep the agreement from terminating.

A

F.) Phone contact is not sufficient. Written mutual agreement is needed for extension. The contract would not terminate, but the buyers earnest money would be at risk following the deadline.

34
Q

Any broker may buy a property listed with any other broker as long as they receive licensee buyout addendum.

A

F.) They may buy the property with a regular contract to buy and sell without any addendum. Just a disclosure that they have a license.

35
Q

A broker must use a licensee buyout addendum to purchase a property listed with the brokers firm.

A

F.) The addendum is required only for the brokers own personal listings or for the employing broker of the listing firm.

36
Q

The licensee buyout addendum to the contract to buy and sell is valid only if the principal broker signs the bottom of the addendum.

A

F.) The employing brokers signature makes it binding on the firm. With only the associate brokers signature, it is binding only on the associate.

37
Q

A buyers agent, arranging to show a for sale by owner property, does not have to worry about disclosure since they are working for the buyer.

A

F.) Must use the approved for sale by owner disclosure.

38
Q

When a counter proposal is used, the seller should sign both the contract and the counter proposal.

A

F.) The contract is not signed by the seller. The counter proposal must be signed and firmly attached to the original contract.

39
Q

A counter offer is a rejection of the initial offer and new offer.

A

T.)

40
Q

When filling out a counter proposal form, the broker should write in all the dates from the original offer.

A

F.) Only the dates that are changed.

41
Q

Computer generated versions of approved forms must use 12 point times type style for the body text of the form.

A

F.) No size specific, must be legible.

42
Q

Approved forms generated by computer software must use language exactly as approved by the real estate commission.

A

T.)

43
Q

Software used to generate approved standard forms must have controls to prevent the language of the form from being altered.

A

T.)

44
Q

The blanks in an approved contract must be filled in using italics.

A

F.) Blanks must be filled in with font or type that is different than the approved language.

45
Q

The amend/extend contract can be used to change the date of closing as long as it is signed by both parties.

A

T.)

46
Q

The amend/extend contract can be used to extend the terms of the listing agreement.

A

F.) The amend/extend contract with broker can do this, the amend/extend contract changes the terms of the contract to buy and sell.

47
Q

The commission approved deed of trust form has options for fully assumable, strict due on sale, or assumable if creditworthy.

A

T.)

48
Q

The commission approved deed of trust form has an option for an automatic 1% increase in the interest rate if the loan is assumed.

A

F.) The options are that the loan is fully assumable, strictly due on sale, ( not assumable), or assumable if purchaser is credit worthy.

49
Q

Listing for business opportunities , unlike all other listing agreements, do not need a definite termination date.

A

F.) All listing agreements must have a definite termination date.

50
Q

Open listings do not need a definite termination date.

A

F.) All listings must have a definite termination date.

51
Q

In the evidence of title section of the contract to buy and sell, a buyer may withdraw the requirement for a survey, but they must do so before the survey is ordered.

A

T.)

52
Q

Commission approved contracts allow for specific performance only for residential property.

A

F.) All commission approved contracts allow for specific performances.

53
Q

The selling broker signs the contract to buy and sell as a receipt for the earnest money.

A

T.)

54
Q

The selling broker signs the contract to buy and sell in order to ensure the proper commission percentage.

A

F.) Signs as a receipt for the earnest money

55
Q

The selling broker signs the contract to buy and sell to help the closing company prepare the statements of settlement.

A

F.) Signs as a receipt of the earnest money.

56
Q

If the seller and buyer cannot come to terms on the buyers requested repairs, the contract terminates immediately.

A

F.) Terminates one day after the resolution deadline contract.

57
Q

If the seller and buyer cannot come to terms on the buyers requested repairs, the contract terminates on the resolution deadline.

A

F.) Terminates one day after the resolution deadline in the contract.

58
Q

If the seller and buyer cannot come to terms on the buyers requested repairs, the contract terminates one day after the resolution deadline in the contract.

A

T.)

59
Q

Deletions in computer generated approved forms can be italicized.

A

F.) Must be lined out so the original language is visible or shown as omitted as inapplicable.

60
Q

On approved forms, listing information can be included outside the body of the form.

A

T.)

61
Q

A licensee providing services without a written agreement is an agent of the seller.

A

F.) The licensee would be a transaction broker.

62
Q

A broker is not required to measure square footage, but may not report square footage from an unreliable source.

A

T.)

Colorado real estate (4 decks)

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