Test Prep/Day Five

Question 1

Two. For income tax purposes, the cash balances for broker account are maintained on the:
a. Cash basis of accounting.
B. Accrual method of accounting.
C. Method week according to IRS regulations.
D. Accountants desk pad.

Answer 1

a. Cash basis of accounting.

Question 2

Three. When the developer wishes to proceed with the sale of the residential timeshare development of 40 units, the development must be registered with:
A. The Colorado real estate commission.
B. The interstate land sales registration.
C. The timeshare development board.
D. None of the above.

Answer 2

A. The Colorado real estate commission.

Question 3

Four. A broker representing buyer must disclose:
A. That the buyer will except alternative financing.
B. That the buyer will pay more than the asking price.
C. If the buyer has credit problems, which may affect his ability to pay the purchase price.
D. That the buyer intends to resell immediately.

Answer 3

C. If the buyer has credit problems, which may affect his ability to pay the purchase price.

Question 4

Five. The developer of a condo conversion into 20 residential units must:
A. Notify existing tenants that the conversion will terminate their lease. B. Register with the Colorado real estate commission prior to subdividing.
C. File a request with the state 0ACRS if the land is less than 35 acres.
D. Obtain permission from the interstate land sales development board.

Answer 4

B. Register with the Colorado real estate commission prior to subdividing.

Question 5

Six. The Colorado real estate commission listing forms provided for: A. The broker to disclose any adverse material facts about the property.
B. Brokers to receive 5% commission.
C. A listing term of 90 days
D. A holdover provision of 120 days.

Answer 5

A. The broker to disclose any adverse material facts about the property

Question 6

Seven. Unlicensed personal assistance:
a. May write checks from an escrow account if I authorized by a broker.
B. Negotiate lease is on behalf of the landlord if I authorized by the broker.
C. Negotiate sales terms I’ll be half of the seller if I authorized by the seller.
D. Collect rentals and manage a building for clients on a commission basis.

Answer 6

a. May write checks from an escrow account if I authorized by a broker.

Question 7

Eight. A developer who develops 52 timeshare units must be registered with:
A. The Colorado real estate commission. 
B. The Colorado land development board. 
C. The state timeshare board. 
D. The Colorado board of realtors.

Answer 7

A. The Colorado real estate commission.

Question 8

Nine. The developer who develops 21 co-operative units must register with: A. The Colorado border realtors.
B. The timeshare commission.
C. The Colorado real estate commission.
D. The Federal housing agency.

Answer 8

A. The Colorado border realtor

Question 9

10. And unlicensed real estate assistant can do which of the following?
    A. Show a house and negotiate an offer
    B. Host an open house and offer opinions on an offer
    C. Measure the property
    D. Answer phone calls and explain to prospective buyer why a house is listed at certain price

Answer 9

C. Measure the property

Question 10

11. The seller is caring back alone. Which of the following does not apply?
    A. The charge for the credit information of the buyer may be paid by the buyer.
    B. The seller may require credit information on the buyer.
    C. The seller may release buyers credit history to other lenders.
    D. The seller may decide that the buyers credit history is unacceptable.

Answer 10

C. The seller may release buyers credit history to other lenders.

Question 11

12. A licensee does not measure the property. Which of the following is correct? The licensee:
    A. Must not provide measurements from a source known to be unreliable.
    B. May not request a buyer to obtain a professional opinion of exact measurements are required.
    C. May not use a survey as a measurement reference.
    D. May not use an improvement location certificate as a measurement reference.

Answer 11

A. Must not provide measurements from a source known to be unreliable

Question 12

13. A change of status disclosure must be given to a seller:
    A. When converting from agency to transaction broker status.
    B. At the time that the listing agreement is signed.
    C. Only if the seller request the same
    D. By no later than the first business day after the change of status.

Answer 12

A. When converting from agency to transaction broker status.

Question 13

14. The commission rules on measuring the property require the buyer’s broker:
    A. Two can verify the measurements personally.
    B. To disclose to the sellers that the popping measurements may be material.
    C. To use an appraiser to measure the property.
    D. To indicate and disclosed to the buyer obvious miss measurements.

Answer 13

D. To indicate and disclosed to the buyer obvious miss measurements.

Question 14

One. Unless expressly reserved in the instrument of conveyance, all except which of the following is/are included with the title to the land in Colorado:
A. Mineral rights 
B. Tributary water rights 
C. Subsurface rights 
D. Air rights

Answer 14

B. Tributary water rights