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Colorado Test > Test Prep > Flashcards

Test Prep Flashcards

1
Q

A deed of trust may be used to provide security for a real estate loan in Colorado. Which of the following is TRUE if the deed of trust is set up with a private trustee?

A

Any foreclosure will be handled in the appropriate court.

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2
Q

A lender wants to foreclose on a loan that is in default. Which of the following is the lender required to give the homeowner prior to foreclosure?

A

Information about Colorado’s foreclosure hotline

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3
Q

After a public auction foreclosure sale for deed of trust default on a residential property, how long does the owner have to redeem the property?

A

There is no redemption period

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4
Q

After a tenant gave notice and vacated an apartment, the landlord discovered substantial damage to the unit. Which of the following is an appropriate action by the landlord?

A

Itemize the damage in writing and return any excess deposit within 1 month.

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5
Q

As an agent for the seller, a real estate broker must

A

protect the seller’s best interest

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6
Q

A licensee has an agency listing and an associate in a branch office is agent for an interested buyer. Neither agent got an addendum signed with their agency agreements. Which of the following is TRUE if this buyer tours the agency listing?

A

The broker is an undisclosed dual agent which is an illegal relationship.

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7
Q

An associate broker discovers an error on the closing statement. Who is responsible for ensuring the accuracy of closing statements?

A

The associate broker’s broker is responsible

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8
Q

At which point is the title transferred during a closing in Colorado?

A

The title is transferred as soon as the deed is signed and delivered to the buyer.

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9
Q

A developer would be required to register with the Real Estate Commission for which of the following projects?

A

Conversion of an apartment complex into 25 residential condominiums.

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10
Q

How are real estate commissions determined in Colorado?

A

Negotiable between the broker and the seller or buyer

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11
Q

In Colorado, which of the following must be investigated by the real estate commission?

A

Any verified written complaint

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12
Q

A buyer is assuming a loan and the loan balance has turned out to be less than the assumption balance provided by the seller. How would this be handled according to the Residential Contract to Buy and Sell ?

A

Depending on how the form is completed, either the buyer may terminate the contract or the seller could reduce the price to make up for the difference.

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13
Q

A buyer’s agent is filling out a Contract to Buy and Sell for young married buyers. When he asks how they wish to take title, they are unsure. What should he do?

A

Leave the choice blank and advise the couple to seek legal counsel and tell him their choice later.

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14
Q

A dishwasher in a property under contract is listed affirmatively “In Working Condition” on the Seller’s Property Disclosure. What must the seller do if the dishwasher fails before closing?

A

The seller must replace the dishwasher with a used appliance of similar age, size, and condition.

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15
Q

A home owner bought a central air conditioning system and had it installed into his property. When he comes to sell the property is the A/C system considered personal property or real property?

A

Real property because the A/C system has been installed and therefore a part of the property,

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16
Q

A Residential Contract to Buy and Sell does NOT require inclusion of which of the following?

A

Leased security systems

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17
Q

According to the Exclusive-Right-to-Sell Listing Contract (Residential) (Seller Agency), which of the following is TRUE with regard to fixtures listed on the approved form?

A

They are included if attached on the date of the listing unless specifically excluded by the seller.

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18
Q

Andrew is selling his property and has no knowledge of any plumbing system problems. In fact the pipes are corroded and will require replacement very soon. How should Andrew respond in the seller’s property disclosure when asked if the seller has any knowledge of plumbing system problems?

A

No

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19
Q

During a walk-through just prior to closing, the buyers realize the carpet is much more worn than they thought and they file an objection requiring the sellers to replace the carpet. Which of the following is TRUE according to the Residential Contract to Buy and Sell?

A

The walk-through does not give them this option.

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20
Q

How may 2 or more owners of a single property in Colorado hold title?

A

Joint tenancy with right of survivorship

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21
Q

In the Contract to Buy and Sell, what does the statement, “time is of the essence hereof” mean?

A

All dates and deadlines will be strictly interpreted.

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22
Q

In the section on Purchase Price and Terms in a Mandatory Residential Contract to Buy and Sell, which of the following is TRUE concerning the entry for cash at closing?

A

It does not include the buyer’s closing costs, such as loan fees.

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23
Q

How long must transaction records be maintained by an independent broker?

A

A minimum of 4 years

24
Q

A broker has created a website advertising the broker’s office. What additional information should be included on the site?

A

No additional disclosures are needed.

25
Q

A broker may choose to handle an in-company transaction several different ways according to the Exclusive-Right-to-Sell Listing Contract. Wch of the following is TRUE?

A

Brokerage policy calls for a specific addendum, but the seller may specify that no in-company addendum may be used.

26
Q

A buyer and seller have written 2 contracts for 1 property: a higher contract to submit for a larger loan request and another with a lower actual purchase price because they know the seller is anxious to sell quickly. Which correctly describes this arrangement?

A

Fraudulent dual contracting.

27
Q

A listing agent has received 2 similar offers to purchase. She has made an appointment with the sellers to present the offers, but meanwhile another offer comes in from an associate in the same company. In this situation, which should the agent present?

A

All 3 offers for simultaneous review.

28
Q

An associate broker has developed a website. What must she include on the site?

A

Name and location of the brokerage company that holds the associate’s license.

29
Q

An associate broker ordered the following listing in the real estate section of the local phone directory: “Laura Casey, Real Estate associate broker , Residential Property My Specialty.” What additional information must be included?

A

The name of her employing broker

30
Q

An associate broker received a thank you letter and bonus check from the seller several weeks after the closing. The associate broker cashed the check because she felt she earned it. Which of the following is TRUE?

A

It is a violation of commission regulations to accept the money.

31
Q

An associate broker wishes to purchase investment property. What must he do when the property is not listed with any broker?

A

Disclose to the seller that he is a licensed real estate broker and inform his or her broker of the transaction.

32
Q

A broker has let his license lapse for 18 months and now wishes to have it reinstated. What fee(s) will he have to pay?

A

A reinstatement fee and reactivation fee

33
Q

As well as the pre-licensing education, applicants are required to fulfill 4 other criteria. Which of the following is NOT one of these requirements?

A

Applicants for licensure must complete a medical check.

34
Q

Colorado is a single-license state. This means

A

all Colorado real estate licensees are brokers.

35
Q

How many hours of continuing education must licensees complete in order to retain their licenses?

A

24 hours of continuing education during each 3 year license cycle.

36
Q

In Colorado, when can real estate licenses be renewed?

A

45 days prior to the license’s expiration

37
Q

In Colorado, which of the following individuals is exempt from real estate license law?

A

An investor who owns multiple investment properties and sells 1 to an owner-occupant.

38
Q

Regulation under state or federal securities laws may apply to which of the following?

A

Resort condominium project in which owners enter their units in a common rental pool to enhance their income.

39
Q

A broker manages 3 properties for the same owner. When 1 property needed repairs, there was not enough money in the management account to cover the cost and the broker used excess funds from the emergency account and later replaced them with a check from the owner. Which of the following is TRUE?

A

The broker is in violation of regulations for improperly handling escrow funds.

40
Q

A broker received a buyer’s earnest money check for $5,000 and immediately cashed it. At closing the broker gave the seller a personal check for $5,300 which represented the original earnest money plus interest. Which of the following is TRUE?

A

The broker should have deposited the money in a bank escrow or trust account and should have discussed the interest with the parties.

41
Q

How long does a public trustee have to hold a foreclosure sale for a residential property under a Colorado deed of trust arrangement?

A

110 to 125 days after the lender’s notice of default and request for sale.

42
Q

In Colorado, which of the following is presumed to be true of a lease?

A

Every lease contains an implied warranty of quiet enjoyment only.

43
Q

The Colorado legislature passed a law in 2008 mandating common interest communities to

A

adopt a written policy setting forth its procedure for resolving disputes and to provide it to unit owners upon request.

44
Q

Under the Colorado Fair Housing Act, which of the following may a landlord refuse to rent?

A

An apartment to three students for fear they will have loud parties

45
Q

A licensee has an exclusive-right-to-sell listing with a seller as a transaction-broker. What must she disclose when a potential buyer calls on this listing?

A

That she works with the seller as a transaction-broker and will owe the same duties to the buyer in a purchase transaction.

46
Q

A licensee has listed the Chapman’s home as a seller’s agent and it is now under contract. The Chapmans ask him to also work with them to find and purchase a new home. What will be the licensee’s role in the purchase transaction?

A

He may be either an agent or transaction-broker depending on the mutual agreement.

47
Q

How is the relationship handled when a buyer wishes to work with a broker to locate property to purchase?

A

The buyer and broker may agree to a relationship which could include agency, transaction-brokerage, or no working relationship between the parties

48
Q

When an out-of-state investor sells a property in Colorado, which of the following is required of the closing entity?

A

Withhold up to 2% of the selling price as possible income tax liability.

49
Q

Which of the following is NOT a closing document?

A

Agent-Seller Agreement

50
Q

Richard privately owns a single 20-acre parcel of land and wishes to sell ten acres. Which of the following statements is TRUE?

A

He is not required to register with the Commission but must meet local and state requirements for dividing his land as such.

51
Q

The Colorado Real Estate Commission is a part of

A

The Colorado Department of Regulatory Agencies (DORA)

52
Q

What is the purpose of the Real Estate Commission in Colorado?

A

To protect Colorado residents in real estate matters

53
Q

The inspection provision of the Residential Contract to Buy and Sell allows the buyer to terminate the contract in which of the following situations?

A

If the property is unsatisfactory in the buyer’s subjective discretion.

54
Q

The Residential Contract to Buy and Sell includes various provisions that call for notification to one of the parties about various events or objections. Which of the following is TRUE with regard to the wording of the approved form?

A

Notice is effective when received by either the party or the broker working with that party.

55
Q

The section regarding Common Interest Community Documents in a Residential Contract to Buy and Sell refers to which of the following?

A

Any community subject to mandatory assessment for maintenance of common elements.

56
Q

Under Colorado law, which of the following statements about Home Service Warranty Contracts is FALSE?

A

The contract must be transferable.

57
Q

What do a broker’s services include according to the Exclusive-Right-to-Sell Listing Contract (Residential) (Seller Agency)?

A

Informing the seller that he or she will be vicariously liable for the acts of the seller’s broker when acting within the scope of the agency.

Colorado Test (1 decks)

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