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Real Estate > RE Midterm Cards > Flashcards

RE Midterm Cards Flashcards

1
Q

The Colorado Real Estate Broker License law was passed to

A

Protect the public

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2
Q

When the Real Estate Commission receives written complaint against a licensee, the Commission office:

A

Is compelled to investigate the complaint

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3
Q

In Colorado, which of the following is responsible for conducting hearings regarding denying, suspending, or revoking a real estate license?

A

Administrative Law Judge

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4
Q

How many days does a licensee have to object or to appeal to a decision made by an administrative law judge before the decision becomes final?

A

30 Days

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5
Q

Which of the following will require a real estate license?

A

a person who, for a fee, negotiates the sale of a house

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6
Q

Which of the following will not require a real estate license?

A

a regularly salaried on-site manager of an apartment building

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7
Q

Which of the following would not require a real estate license?

A

The administrator/executor of an estate

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8
Q

Which of the following will require a real estate license?

A

soliciting a fee or valuable consideration from a prospective tenant for furnishing information concerning the availability of real property which may be leased or rented as a private dwelling

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9
Q

Which of the following is required to be licensed to sell real property in Colorado?

A

A corporation that, for a fee, auctions real estate

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10
Q

Which of the following are not exempt from Colorado Real Estate License Law?

A

Option dealer

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11
Q

Where does one desiring to become a Colorado real estate broker apply?

A

Colorado Real Estate Commission

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12
Q

In order to be an employing broker, the licensee

A

must have at least 2 years’ active experience and completed the broker administrative course

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13
Q

Every applicant for licenser must

A

be at least 18 years of age

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14
Q

Which of the following is true regarding Colorado Real Estate License Law?

A

A real estate broker’s license may be granted to individuals, partnerships, limited liability companies or corporations

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15
Q

What is required by the commission for a broker’s license to be denied, suspended, or revoked?

A

A majority vote by the commission members

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16
Q

An employing broker who maintains more than one place of business in Colorado must:

A

Supervise all licensed activities originating in such offices

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17
Q

If the person designated by the partnership, limited liability company, or corporation ceases to be the designated broker:

A

D. (a)the corporation may designate another broker to make application for a license
(b) the director of the Real Estate Commission may issue a temporary license to prevent hardship for a period not to exceed ninety days

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18
Q

If a licensee changes employment or has a change of business address without notification to the commission:

A

the licensee shall automatically have their license put on inactive status

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19
Q

Which of the following is true?

A

Prior to submitting an application for a license, an applicant must submit a set of finger prints to the Colorado bureau of investigation

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20
Q

Which of the following is true?

A

D. all of the above
A. Every Colorado real estate broker shall maintain a place of business within the state; except for nonresident broker if the broker maintains a place of business in his/her other state
B. If a real estate broker maintains more than one place of business within the state, the broker shall be responsible for supervising all licensed activities in such offices
C. No person shall be licensed under more than one name

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21
Q

Upon a change of business location or employment the licensee shall

A

Immediately notify the commission of the change

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22
Q

When a licensee terminates his employment with his employing broker, whose duty is it to notify the Commission in writing?

A

The licensee and the broker jointly

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23
Q

A broker must file an application within how many years of passing the broker’s exam or lose all rights to his/her passing score?

A

1 year

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24
Q

An initial broker’s license expires 12 midnight on December 31 of the initial year that it was issued

A

On or before December 31 of every third year after issuance

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25
Q

What happens to the license status of employed brokers if their employing broker’s license expires or is revoked?

A

The become inactive

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26
Q

If a licensee has not fulfilled the continuing education course requirements prior to renewal, the licensee may take what other course of action in order to renew?

A

Completion of the Colorado portion of the real estate exam

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27
Q

What is the maximum amount of administrative fine can the commission impose for each separate offense of licensing law?

A

$2,500

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28
Q

A license may be revoked for which of the following violations?

A

Failing to provide the purchaser and seller of real estate with a closing statement of the transaction

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29
Q

The Colorado Real Estate Commission may investigate and suspend a license for any of the following except:

A

not cooperating with another broker who is a member of the MLS

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30
Q

Which of the following is/are true when a licensee is party to a lawsuit which involved his conduct as a licensed broker?
I. The courts have jurisdiction over his license remaining in force not the Real Estate Commission
II. His license is automatically revoked
III. A copy of the complaint and a record of the outcome must be supplied to the Commission on request

A

C. III ONLY (A copy of the complaint and a record of the outcome must be supplied to the Commission on request)

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31
Q

A broker must keep records

A

4 years

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32
Q

Which of the following is legal?

A

to pay a finder’s fee or share of any commission to a real estate broker licensed in another state

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33
Q

If a person solicits a fee from a prospective tenant for furnishing information concerning the availability of housing that is for rent, that person

A

D. (a) will need a real estate brokers license
(c) shall give the prospective tenant a contract or receipt that will include the address and telephone number of the real estate commission

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34
Q

A broker in the employ of another broker may accept a commission( compensation) from:

A

employing broker only

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35
Q

When is an employing broker responsible for the unlawful acts of his employed broker associates?

A

if employing broker had actual knowledge of unlawful act or had been negligent in proper supervision of employees (broker associate)

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36
Q

When is a real estate broker entitled to a commission?

A

when the purchase transaction is consummated

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37
Q

In which case would the licensee need NOT present an offer to purchase to his client?

A

if listing is expired

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38
Q

In Colorado your assumed working relationship in absence of any written agreement with a potential buyer or seller is:

A

transaction broker

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39
Q

If you have a designated brokerage relationship with a person, that brokerage relationship could extend to:

A

it only applies to you

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40
Q

A customer is a party to a real estate transaction with:

A

whom the broker has no brokerage relationship

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41
Q

If a party (potential buyer) asks questions concerning a relationship that the broker does not offer, the broker must:

A

provide a written definition of that relationship on a Commission approved form

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42
Q

With a designated broker, who represents the principal?

A

Designated broker (licensee)only

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43
Q

A broker representing a buyer must disclose

A

if the buyer has credit problems which may affect his ability to pay the purchase price

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44
Q

Which of the following is false regarding the compensation/commission paid to a broker?

A

determines the principal agent relationship

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45
Q

If a buyer or seller chooses not to sign the acknowledgement in the written Brokerage Disclosure Form, the broker shall:

A

note on the disclosure form that the party chose not to sign and retain a copy

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46
Q

If an applicant has been convicted of a felony or misdemeanor at any time in the past, the applicant must submit with his or her application:

A

D. all of the above

a. a written signed personal explanation and detailed account of each violation
b. a police officer’s report, arrest report, or incident report
c. a signed written statement from employing broker that indicates his/her understanding of the nature of the applicant’s violation and willingness to supervise applicant if license is granted

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47
Q

Normally, trade names, corporations, partnerships and LLCs applications are filed with

A

Secretary of State

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48
Q

Which of the following is false regarding license renewal?

A

all renewal fees paid are refundable within six months of renewal

49
Q

Errors and Omissions insurance shall be maintained by

A

very active licensee

50
Q

Colorado licensing law requires E&O insurance as follows

A

the corporation or limited liability company broker and the broker applying for the license

51
Q

Which of the following is not a method for satisfying the continuing education requirements:

A

take courses in sales, marketing, personal growth, or motivational meetings

52
Q

After a listing broker receives an earnest money deposit, he must:

A

Deposit it within three business days after notification by seller of acceptance

53
Q

When a broker or brokerage firm creates a trust/ escrow account, the brokerage firm must do which of the following:

A

D. all of the above

a. identify the fiduciary nature of each separate account in the deposit agreement with a Recognized Depository by use of the words “trust or “escrow”
b. have the words like “sales escrow” or “security deposit escrow” in the deposit agreement
c. retain a copy of each executed account deposit agreement for inspection by the commission

54
Q

In order for a broker to receive a “mark-up” and/or other compensation for services performed by any third party or affiliated business entity, the broker

A

must have prior written consent from owner

55
Q

The entire record of trust account transactions in chronological order of all money belonging to others which is received or disbursed by a broker will appear in

A

the journal

56
Q

Which of the following is/are true?

A

E. all of the above
a. Trust or Escrow Funds must be Available Immediately without Penalty
b. A Broker’s or Brokerage Firm’s personal or business operating funds must not be commingled
with Money Belonging to Others.
c. In the absence of a specific written agreement to the contrary, commissions, fees, and
other charges collected by a Brokerage Firm for performing any service on behalf of
another are considered “earned” and available for use by the Brokerage Firm only after
all contracted services have been performed and there is no remaining right of recall by
others for such money.
d. If a Broker is acting as a builder in a transaction, all deposit money received from a buyer must
be placed in a Trust or Escrow Account and not used by the Broker for any purpose, including
construction, unless the Broker receives written consent from the buyer.

57
Q

Which of the following is/are true?

A

E. all of the above
a. The Brokerage Firm may transfer the earnest money from the Brokerage Firm’s Trust or Escrow Account to a lawyer or a closing entity closing the transaction.
b. If a promissory note is received as earnest money pursuant to an executed contract, the seller
must be informed of the date such promissory note becomes due.
c. In the event a branch office of a Brokerage Firm maintains a Trust or Escrow Account separate
from the Trust or Escrow Account(s) maintained by the Brokerage Firm’s main office, a
separate record keeping system must be maintained in the branch office. The responsibility of
maintaining separate record keeping systems will be the responsibility of the Employing Broker.
d. A Broker and Brokerage Firm must produce for inspection by the Commission any document
or record as may be reasonably necessary for investigation or audit in the enforcement of the
Commission statutes and these Rules.

58
Q

All of the above are true except:

A

When for any reason the owner fails, neglects or is unable to consummate a purchase transaction through no fault of the purchaser, the broker is entitled to retain the earnest money as a penalty.

59
Q

If a broker prepares any instrument/document that relates to the employment, engagement, or consummation of a real estate transaction in which the broker participates:

A

must give a duplicate of the original to all parties that execute such document

60
Q

Which of the following is true:

A

a broker must present all offers to other consumer’s broker if such other consumer has an unexpired listing contract

61
Q

Which of the following is false regarding the “Sign crossing Rule”?

A

brokers can contact an unexpired listing if the listing has been on the MLS for 3 months or longer

62
Q

When must closing statements be provided to the buyers and sellers?

A

at the time of delivery and acceptance of deed

63
Q

Responsibility for the property closing and an accurate, complete and detailed closing statement rests with

A

individual licensee who has established a brokerage relationship with buyer or seller

64
Q

When a licensee has received written notification from the commission that a complaint has been filed against the licensee or that the licensee has been selected for an audit, the licensee:

A

shall submit a written, complete, and specific answer to the complaint or provide the commission with any documents or records requested by the commission

65
Q

A broker can never receive a fee from which of the following in regards to a real estate transaction in which the licensee is entitled to receive a real estate commission as a result of the sale of a property in such transaction?

A

a settlement service/title company

66
Q

You are an Associate Broker selling a property listed with your employing brokerage. Which of the following must be included in any advertising for that property?

A

The name of the brokerage firm

67
Q

When a licensee buys, sells, or leases property on the licensee’s own account, the licensee

A

shall disclose in the contract instrument or in a separate concurrent writing that he/she is a licensed real estate broker

68
Q

When a licensee buys, sells, or leases property on the licensee’s own account, the licensee

A

shall disclose any known conflicts of interest

69
Q

When must a broker disclose their working relationship/duties and obligations to a prospective buyer?

A

when the buyer gives the broker information concerning buyer’s real estate needs, motivation, and financial information.

70
Q

The licensee is obligated to do which of the following

A

paying the cost of legal document preparation when they are preparing such documents for their clients

71
Q

A broker’s office policy

A

shall apply to all licensees in the office and be signed by each licensee

72
Q

In a double-ended transaction, (this is one in which the licensee has a working relationship with both the buyer and the seller) it is illegal for the licensee

A

to work as a single agent for one party, treating the other party as a transaction broker

73
Q

If a listing licensee gives information about the square footage of floor space in the living area of a residence

A

the licensee shall use the Commission approved form for such disclosure

74
Q

Shortly before a sale closes, the seller tells his broker that he will NOT pay the broker’s commission since he will receive no proceeds from the transaction. In this situation, the broker should:

A

sue the seller if no commission is paid at closing

75
Q

A change of status disclosure must be given to a seller

A

when converting from Agency to Transaction Broker status

76
Q

The purpose of commission rule F is to:

A

insure broker compliance with the Colorado Supreme Court Conway-Bogue decision

77
Q

Which of the following would not be considered a “standard form” by the real estate commission?

A

A Contract to Buy and Sell form created by the broker.

78
Q

According to Rule F the “Additional Provisions” section of a Commission-approved form must contain:

A

Transaction-specific terms that result from negotiations or the instructions of the parties to the transaction.

79
Q

Which of the following is true regarding the use of Commission approved forms?

A

e. all of the above
a. a broker may add its firm name, address, phone, e-mail, trademark or other identifying information
on a Commission approved form
b. any deletion to the printed body of a Commission approved form must result from negotiations or
instructions of the parties to the transaction and must be made directly on the printed body of the
form and in a legible manner that does not obscure the deletion that has been made.
c. blank spaces on a Commission approved form may be lengthened or shortened to accommodate the
applicable data or information
d. a and b only

80
Q

Certain provisions in the “Contract to Buy and Sell Real Estate” may be omitted if such provisions do not apply to the transaction. Which of the following provisions is NOT one that is allowed to be omitted?

A

Lead Based Paint

81
Q

The purpose of commission rule F is to:

A

insure broker compliance with the Colorado Supreme Court Conway-Bogue decision

82
Q

Which of the following is TRUE regarding Commission approved forms?

A

provisions that are inserted into blank spaces must be printed in a style of type that clearly differentiates such insertions from the style to type used for the Commission approved form
language

83
Q

If a broker originates or initiates the use of a preprinted or prepared addendum that modifies or adds to the terms of a Commission approved contract form which does not result from the negotiations of the parties, such addendum must be prepared by

A

e. all of the above
a. an attorney representing the broker or brokerage firm
b. a principal party to the transaction Can’t find anymore ?????????????
c. an attorney representing a principal party
d. none of the above

84
Q

Brokers generating Commission approved forms in an electronic format must ensure that:

A

the forms are protected so as to prevent inadvertent changes or prohibited modification of Commission approved forms by the broker or recipient

85
Q

Which of the following is true?

A

d. all of the above
a. A Broker who is not a principal party to the contract may not have personal provisions,
personal disclaimers, or exculpatory language in favor of the Broker, Employing Broker,
or Brokerage Firm inserted into a Standard Form.
b. A Broker or Brokerage Firm may add signature lines and identifying labels for the
parties’ signatures on a Commission-Approved Form.
c. A Broker may delete part or all of the following provisions of the “Counterproposal” and
the “Agreement to Amend/Extend Contract” if such provisions do not apply to the
transaction. In the event any provision is deleted, the provision’s caption or heading must
remain unaltered on the form followed by the words “omitted-not applicable”.
1. Section 3. Dates and Deadlines Table
2. Section 4. Purchase Price and Terms [in the Counterproposal only]

86
Q

Cp -3 If a licensee negotiates a sale or a listing with an owner of an unexpired exclusive right to sell listing contract the licensee

A

d. a and c
a. has violated the sign-crossing rule
c. is allowed to do so as long as the licensee was first contacted by the owner

87
Q

CP-6 After an unresolved closing dispute involving earnest money, the broker may

A

b. interplead to court

88
Q

CP-12 If a broker rebates a portion of his/her sales commission to a purchaser or seller that the broker is working with, the broker:

A

has not violated license law

89
Q

CP-20 An unlicensed personal assistant cannot:

A

independently draft listing or sales contracts or offer opinions or interpretations of such documents

90
Q

CP- 23A broker must use the Licensee Buy-Out Addendum

A

when purchasing a property concurrently with listing as a result of an agreement to induce a seller
to list with him

91
Q

Cp -38 Colorado law requires real estate brokers to disclose their affiliated business arrangements to

A

to all parties to the real estate transaction and all parties are then expected to sign the appropriate disclosure form

92
Q

CP-1,2,12,38 Which of the following is prohibited?

A

paying a commission to any person not licensed when that person is performing the actions of a real estate broker

93
Q

Cp- 40Which of the following is prohibited?

A

d. all of the above
a. a real estate team not identifying the employing brokerage firm in team’s advertising
b. paying an unlicensed team member a commission
c. licensed team members being paid a commission by someone other than the employing broker

94
Q

CP- 27Which of the following is true?

A

Property Management is on ongoing relationship as where a leasing agent performs a onetime activity

95
Q

Cp-27Who must draft a property management agreement if broker chooses to perform as a property manager?

A

attorney

96
Q

CP-27A broker may use all these forms for a lease agreement except:

A

the standard commission approved lease form

97
Q

CP-27 All money belonging to others which is received by a broker acting as a property manager must be deposited in the Broker’s escrow account within:

A

5 business days of receipt

98
Q

Cp- 27When a broker manages his\her own property all of the following is true except:

A

the broker can personally draft the lease agreement

99
Q

CP-27 If a broker will no longer be managing a property the broker must:

A

give written notice by first class mail to the tenant that the security deposit has been transferred to the landlord or new broker along with landlord’s or new broker’s contact information

100
Q

Cp-27A landlord may retain a portion of the tenant’s security deposit:

A

but must provide a written statement to the tenant listing reasons for retention

101
Q

CP-27 All of the following are TRUE regarding security deposits held by the broker acting as a property manager EXCEPT:

A

if the landlord is sued by the tenant for return of the security deposit, the tenant will bear the burden of proving the landlord liable

102
Q

CP-27When a landlord fails to return a tenant’s security deposit within the statutory time period and the tenant decides to file suit, the tenant must first

A

give the landlord a 7 day notice of intent to file

103
Q

CP-27After termination of a lease, if a landlord withholds a tenant’s security deposit for “pet damage” but refuses to give the tenant a written explanation, what relief would a court be able to grant to the tenant under the law?

A

treble the amount of the deposit withheld plus court costs and reasonable attorney’s fees

104
Q

CP-27 In Colorado, a residential tenant’s security deposit must be returned:

A

Within 30 days of surrender of premises, unless the lease specifies otherwise, but in no case to exceed 60 days

105
Q

CP-4 Which of the following is false?

A

accumulated interest belongs to the broker

106
Q

CP-5 Which of the following is false?

A

tenant security deposits and advanced rental deposits are exempt from escrow accounting rules

107
Q

CP-7 Which of the following is false?

A

The broker is responsible for fees charged for the preparation of legal documents where they are prepared by an attorney representing the consumer.

108
Q

Cp-13 Which of the following should be inserted into the space provided for additional provisions with a single party listing?

A

d. all of the above
a. The provisions of this listing contract shall apply only in the event of a sale made to ___________.
b. The termination date shall not be extended by the “Holdover Period” of this listing contract.
c. In the event a sale is made by the owner or their broker to any other party than the above names, this listing contract is void.

109
Q

Cp 8,9,10,14

Which of the following is false?

A

a cooperating broker who is not party to a listing contract needs to retain a copy of the listing contract and seller’s settlement statement in his broker transaction files F

110
Q

CP-21

Which of the following should not be identified in a broker’s Office Policy Manual?

A

retention of a cooperating broker’s listing contract

111
Q

CP- 25
Which of the following is a remedy for the broker when seller with whom he has a listing contract breaches said contract?

A

broker may commence mediation, arbitration, or a civil action

112
Q

CP 26,29,34

Which of the following is false?

A

real estate brokers must disclose to their buyers the presence of registered sex offenders in the area the plan to buy a house

113
Q

CP-39

Which of the following is true regarding lease options, lease purchase agreements, and installment land contracts?

A

These types of contracts are complex and should not be prepared by a real estate broker, rather, the documents should be drafted by a licensed Colorado attorney.

114
Q

CP 44, 46

Which of the following is false?

A

“Coming soon” listings are illegal in Colorado. F

115
Q

A developer converting a condominium into 52 time -share units must register with the

A

Colorado Real Estate Commission

116
Q

When must a developer register with the Colorado Real Estate Commission?
I. when his subdivision consists of 20 or more interests in real estate.
II. when converting 25 apartment units into condominiums

A

c. both I and II

117
Q

Before the developer of a time share use project, financed with a blanket encumbrance, may sell shares to the public, he must submit a “non-disturbance agreement” to the Real Estate Commission, which means that

A

the holder of the blanket encumbrance agrees to subordinate its security interest in the project to the rights of individual time share owners

118
Q

Home owners’ associations must register with the commission:

A

annually

119
Q

If a tax lien is put on a condominium unit or faces a tax sale for delinquent taxes:

A

the titles of the other condo units would not be similarly affected

Real Estate (1 decks)

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