Duties and powers of the Real Estate Commission

Question 1

COLORADO REAL ESTATE LAW WAS ENACTED TO PROTECT BROKERS.

Answer 1

F.) THE LAW PROTECTS THE PUBLIC DEALING WITH LICENSED BROKERS.

Question 2

THE REAL ESTATE COMMISSION MUST INVESTIGATE EVERY COMPLAINT AGAINST A LICENSEE

Answer 2

F.) ONLY WRITTEN COMPLAINTS MUST BE INVESTIGATED.

Question 3

IF A LICENSEE VIOLATES THE LICENSE LAW, THE COMMISSION MAY LEVY A FINE OF UP TO 2,500.

Answer 3

T.

Question 4

COLORADO BROKERS ARE ALLOWED TO PREPARE ANY TYPE OF LEGAL DOCUMENT.

Answer 4

F.) BROKERS MAY PREPARE LEGAL DOCUMENTS FOR A REAL ESTATE TRANSACTION ON STANDARD AND APPROVED FORMS.

Question 5

THE REAL ESTATE COMMISSION’S DISCIPLINE OF LICENSEES MAY INCLUDE A FINE, PUBLIC CENSURE, LICENSE SUSPENSION OR LICENSE REVOCATION.

Answer 5

T.

Question 6

THE REAL ESTATE COMMISSION HOLDS A PUBLIC HEARING TO DETERMINE IF A LICENSEE IS GUILTY OF VIOLATING LICENSE LAW

Answer 6

F.) THE HEARING IS HELD IN COURT BY AN ADMINISTRATIVE LAW JUDGE.

Question 7

THE REAL ESTATE COMMISSION WILL INVESTIGATE A COMPLAINT REGARDING THE FAILURE OF A LICENSEE TO DISCLOSE STIGMATIZED PROPERTY.

Answer 7

F.) STIGMA IS NOT CONSIDERED A MATERIAL FACT UNDER CO LAW AND THE BROKER MAY NOT DISCLOSE IT WITHOUT CONSENT OF THE SELLER.

Question 8

The Real Estate Commission will investigate a violation of the Consumer Protection Act.

Answer 8

T.

Question 9

The Real Estate Commission has authority over ethical conduct.

Answer 9

F.) The National Association of Realtors has a code of ethics for its members.

Question 10

The Real Estate Commission has the authority to grant and revoke licenses.

Answer 10

T.)

Question 11

HUD can revoke a broker’s license for a violation of Fair Housing.

Answer 11

F.) Only the Real Estate Commission can revoke a Real Estate License.

Question 12

A securities license is required to sell options in Real Estate.

Answer 12

F,) A Real Estate License is required to set Real Estate options.

Question 13

A broker’s license allows the licensee to set Real Estate securities,

Answer 13

F.) A securities license is needed to sell securities.

Question 14

A transaction broker can provide advisement to their client.

Answer 14

T.) Advisement is informing the client of their choices without recommending a particular choice.

Question 15

An employing broker who designates one associate broker to work with the seller and another to work with a buyer has a limited agency relationship with parties.

Answer 15

F.) The employing broker has no relationship.

Question 16

No consent of the principal is required for a designated broker to share confidential information with employing broker

Answer 16

F.) Written consent was given in the listing buyer representation agreement.

Question 17

A one-person firm can have a designated broker

Answer 17

F.) The one person and their firm will be an agent for the seller or buyer.

Question 18

A transaction broker does not need to disclose if a buyer is financially unable to complete a transaction.

Answer 18

F.) This is a material fact that must be disclosed

Question 19

To work with a customer/buyer and avoid becoming a transaction-broker, a listing broker would use the Brokerage Disclosure to Buyer Form.

Answer 19

T.) This is the form that creates customers.

Question 20

The definitions of Brokerage relationships is the form used to create customers.

Answer 20

F.) Either the Brokerage Disclosure to buyer or brokerage disclosure to seller form.

Question 21

A broker owes a customer the duties of honesty, fair dealing and care.

Answer 21

T.)