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Colorado real estate > Requirements governing the activities of licensees > Flashcards

Requirements governing the activities of licensees Flashcards

1
Q

An associate broker advertising a listing must include the name of the employing broker in all ads.

A

F.) The name of the firm as licensed with the Real Estate Commission must be in all advertising.

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2
Q

A broker hired as an employee pays her own social security taxes.

A

F.) Federal law requires the employer to with hold and pay this tax.

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3
Q

A broker hired as an employee must receive minimum wage and health insurance benefits.

A

F.) Only the withholding’s of Federal and state income tax and employment is required.

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4
Q

A broker may rebate part of a commission back to an unlicensed seller.

A

T.) This is a Re-negotiation of the listing fee.

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5
Q

A listing broker may give part of a commission to the buyer in a transaction with the permission of the seller.

A

T.) Such a buyer incentive must be disclosed to any lender.

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6
Q

A seller may sell property “as is” without responsibility to reveal any defects.

A

F.) Seller must disclose latent material defects.

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7
Q

An associate brokers website must include the name of the brokerage firms as licensed with the Real Estate Commission.

A

T.)

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8
Q

If a broker and seller agree to conceal material defects that are discovered after closing, the professional broker is primarily responsible.

A

F.) Seller and broker share responsibility since the seller directed, ratified or approved the fraudulent deceit.

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9
Q

A broker may sell a property she owns personally without any special disclosures.

A

F.) Broker must disclose conflict of interest due to ownership and must also disclose they are a licensed broker.

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10
Q

The agent representing the seller of a house built before 1978 is required by Federal Law to give buyers a copy of a pamphlet prepared by the Environmental Protection Agency (EPA).

A

F.) Responsibility is the sellers; typically the listing agent will assist by providing the pamphlet to the seller.

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11
Q

If a residential permit was issued on a listed property prior to January 1st 1978, the seller is required by federal law to remove all lead-based paint.

A

F.) Seller must provide the warning about lead-base paint and disclose any known lead paint hazard.

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12
Q

When a homeowners association changes managers, the former managing broker must keep the records for 4 years.

A

F.) All records belong to the association and must be returned by the previous broker.

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13
Q

When a contract is terminated under its provisions, the earnest money should be returned to the buyer immediately.

A

T.) The only exception to this rule is if the earnest money is in dispute.

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14
Q

A broker must always have a proper written mutual agreement from the seller and buyer before returning earnest money under a contract termination.

A

F.) The terms of the contract specify return of the earnest money without delay unless the funds are in dispute

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15
Q

Colorado law permits a listing based on the “net” price of the property

A

T.) However, net listing are uncommon and may be risky for all parties.

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16
Q

A commission rule allows for listing to last “until sold”.

A

F.) A Commission rule specifically calls for a “definite termination date” in all listings (and buyer representation agreements).

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17
Q

A non-resident Colorado broker is not required to maintain a place of business within Colorado.

A

T.) The non-resident broker must have a place of business in their resident state.

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18
Q

A non-resident broker with a transaction in Colorado may hold trust funds in a properly insured bank in his or her resident state.

A

F.) Trust funds for a Colorado transaction must be held in a Colorado depository.

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19
Q

An earnest money check is held by the buyers broker until closing.

A

F.) Commission rule E-1 specifically requires that earnest money be delivered to the listing broker.

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20
Q

If a homeowners association changes management companies, all original records must be returned to the association immediately.

A

T.)

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21
Q

Listing broker must deposit earnest money in an appropriate trust account within 3 business days following receipt.

A

F.) Funds must be deposited within 3 business days after notice of acceptance of the contract.

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22
Q

A promissory note for earnest money should be made payable to the listing brokerage firm.

A

T.) Listing broker is responsible to present the note for payment.

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23
Q

An employing broker must personally supervise every transaction within the firm.

A

F.) The employing broker has the primary responsibility, but may delegate the supervisory authority to another experienced broker with the written agreement of the other broker.

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24
Q

An employing broker may delegate the supervision of a transaction to another experienced broker.

A

T.) Employing broker will remain responsible along with the delegated supervisor.

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25
Q

An employing broker may not be the designated broker assisting a party to a transaction.

A

F.) Law permits employing broker to be a designated broker. In some cases this may create some conflict with the supervision of an in-company transaction.

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26
Q

An employing broker is the designated broker for an in-company transaction and does not wish to supervise the transaction. The employing broker may appoint another broker to supervise.

A

T.) Employing broker and firm remain responsible for the appointed broker.

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27
Q

After a broker provides a change of status form to a seller, the broker will be a transaction-broker for all subsequent transactions.

A

F.) The form is specific to one potential transaction. Subsequent transactions will be under the original listing status.

28
Q

When an associate changes brokers all listing contracts automatically move with the broker.

A

F.) Firm owns listing

29
Q

When an associate changes brokers, the listings remain with the original firm and the employing broker designates a new broker to service the listings.

A

T.)

30
Q

An unlicensed assistant may fill in blanks in a form after the broker provides the major parts of the information

A

F.) The brokerage must provide all of the information. The assistant may put it into the blanks without “drafting” any of it.

31
Q

An unlicensed assistant may prepare and present a competitive market analysis for a seller.

A

F.) May prepare, but must be presented by a broker; broker would need to identify the assistant as the preparer.

32
Q

An unlicensed assistant may show a property and provide buyer information about it as long as they know the right answers.

A

F.) May provide access, may not provide additional information or give opinions.

33
Q

An unlicensed assistant may measure a property and collect other information for marketing.

A

T.)

34
Q

An unlicensed assistant may sign trust account checks

A

T.) Employing broker remains liable for the money in the account.

35
Q

An unlicensed assistant may negotiate minor terms in a listing contract in the absence of a broker

A

F.) Negotiating is always beyond the authority of an unlicensed assistant.

36
Q

An unlicensed assistant may attend a closing in place of his broker.

A

F.) Designated brokers are to attend and verify the proper closing.

37
Q

The law considers employing brokers to have imputed knowledge of all confidential information regarding the firms listings

A

F.) Imputed knowledge means knowledge implied by law. The designated broker has actual knowledge, but under designated brokerage, that knowledge does not impute to anyone in the firm.

38
Q

An employing broker must provide reasonable supervision of associate brokers. An associate licensee with less than 2 years experience requires a high level of supervision.

A

T.)

39
Q

A high level of supervision includes ensuring that the employing broker or an experienced licensee attend closing or is available for assistance.

A

T.)

40
Q

All advertisements for listing must contain the name of the brokerage firm and the name of the listing broker

A

F.) Only the name of the brokerage firm is required.

41
Q

Rule F applies to the contract to buy and sell.

A

T.)

42
Q

Rule F applies to any contract, standard or approved, used by attorneys.

A

F.) Only brokers are subject to rule F.

43
Q

Rule F does not apply to contracts for new homes containing a warranty.

A

T.)

44
Q

Landlord held security deposits may be withheld to cover costs which are due to restore the premises to original condition excluding normal wear and tear.

A

T.)

45
Q

A property manager must deposit rents and other management funds within 3 days of receipt.

A

F.) Property manager has 5 days to deposit funds.

46
Q

With a tenancy at will the lessee must give 30 day notice

A

F.) 3 days notice

47
Q

The Colorado Landlord tenant act requires landlords to guarantee quit enjoyment and habitability of all rentals.

A

F.) Only quiet enjoyment.

48
Q

Every landlord must return a tenants security deposit, or furnish a written statement to the tenant showing the reasons for withholding all or part of the deposit, within 45 days after termination of the tenancy.

A

F.) One month, no more than 60 days if stated in the lease

49
Q

Colorado water law provides for automatic water rights with a parcel of at least 35 acres.

A

F.) No water rights are automatic. They must be adjudicated under the doctrine of prior appropriation.

50
Q

The owner of a subdivided lot of 35 or more acres receives an automatic domestic well permit.

A

F.) The lot has an automatic right to apply for a well permit.

51
Q

A mountain lot bordering a stream may take a reasonable amount of water from the stream for domestic use.

A

F.) All flowing (tributary) water in Colorado is subject to the doctrine of prior appropriation and water rights are decreed through the courts.

52
Q

Out of state investors in Colorado real estate are exempt from Colorado income tax on sale profits.

A

F.) A special withholding provision assures that they will pay the tax.

53
Q

The listing broker must always withhold 2% of the selling price from an out of state seller for possible state income tax.

A

F.) The closing entity, not necessarily the broker, is responsible to withhold unless any of several exemptions applies.

54
Q

The closing entity is always the attorney.

A

F.) The closing entity can be the broker and attorney or the title insurance closing company.

55
Q

The closing company must withhold funds from an out of state seller for potential income tax liability, unless they are exempt from this requirement.

A

T.)

56
Q

Colorado homeowners have an automatic homestead exemption of $45,000 protected from creditors.

A

T.) Exemption may be waived in the loan documents.

57
Q

Colorado fair housing law protects elderly persons from housing discrimination.

A

F.) Age is not protected in either Federal or Colorado Fair housing laws.

58
Q

A Colorado apartment complex may not be limited to “singles only”.

A

T.) Marital status is a protected class under Colorado Fair Housing law (and not under Federal fair housing),

59
Q

A landlord may charge a higher damage deposit for students.

A

T.) Occupation is not a protected class.

60
Q

Sexual orientation and homosexuality are covered under Colorado law.

A

F.) Local ordinances may cover this group.

61
Q

Colorado brokerage practice assumes a residential property will be conveyed by a special warranty deed.

A

F.) Normal practice assumes a general warranty deed unless the parties agree otherwise.

62
Q

The sale of commercial/investment property requires a securities license.

A

F.) This is still a real estate transaction.

63
Q

The sale of a condominium project requiring buyers to make units available for a pooled rental program may require a securities license.

A

T.) The buyer is relying on rental management for a return on the investment.

64
Q

Property tax in Colorado can be paid in 2 payments or in one lump some.

A

T.)

65
Q

If property taxes are already paid in one lump sum they are due the last day of February.

A

F.) one lump some is paid April 30th

66
Q

If a person elects to pay taxes in one lump sum, but they do not pay them, interest on the taxes accrue as of may 1st.

A

T.)

Colorado real estate (4 decks)

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