Test Prep/Day Two

Question 1

Two. How much of his own money is a broker permitted to deposit and retain in his trust account?
A. $100
B. $500
C. Enough to maintain the account bank charges.
D. None.

Answer 1

C. Enough to maintain the account bank charges.

Question 2

Three. A broker collects rental for six single-family homes under a management agreement and also receives an earnest money deposit on sales. How many trust accounts must a broker maintain?
A. 11. 
B. One. 
C. Two. 
D. 10.

Answer 2

C. Two.

Question 3

Four. In Colorado, a buyers agent has all of the following duties except:
A. to perform the terms of the written agreement made with the buyer.
B. To promote the interests of the buyer.
C. To exercise reasonable skill and care for the benefit of the buyer.
D. To comply only with the requirements of the brokerage relationship law.

Answer 3

D. To comply only with the requirements of the brokerage relationship law.

Question 4

Five. Which of the following need not be in escrow if received by a broker? A. Security deposits
B. Earnest money
C. Advanced rentals
D. Fees paid by the seller for advertising costs

Answer 4

D. Fees paid by the seller for advertising costs

Question 5

Six. Colorado subdivision read registration requirements do not apply:
a. Land consisting of 35 acres or more b. Condominiums
C. Camping sites
D. Cooperatives

Answer 5

C. Camping sites

Question 6

7. Errors and omissions insurance requirements include:
   A. And your proof of insurance.
   C. Notice to the commission of the filing of any claim.
   C. Subrogation rights to the commission.
   D. A minimum of $100 million coverage policy

Answer 6

A. And your proof of insurance.

Question 7

8. In which of the following would you not find an entire record of the  brokers trust account transactions? 
A. The ledgers 
B. The journal 
C. A settlement statement 
D. All reconcile bank statements

Answer 7

C. A settlement statement

Question 8

Nine. If a broker does not receive a commission in real estate transaction, the broker:
a. May receive a fee from a title insurance company.
B. May, under no circumstances, receive a fee from a title insurance company.
C. They only receive a fee from a title insurance company.
D. Maybe paid a fee for preparing the sales agreement for a friend.

Answer 8

a. May receive a fee from a title insurance company.

Question 9

10. At what stage must a broker disclose the fact that he/she is a licensed broker when buying or selling his/her own property?
    A. 72 hours prior to signing a contract sale.
    B. At the time of signing the contract of the sale.
    C. Within 72 hours after signing the contract of the sale.
    D. A broker has no duty to make this disclosure.

Answer 9

B. At the time of signing the contract of the sale.

Question 10

11. The entire record of trust account transactions other broker will appear in: a.
    A client letter
    B. The journal
    C. A bank reconciliation
    D. The brokers half yearly bank statements

Answer 10

B. The journal

Question 11

One. The manager of a homeowner association must do all the following except:
a. Maintain Fidelity insurance of at least $50,000
B. Present annual financial reports.
C. Keep accurate financial records.
D. Present an annual budget.

Answer 11

a. Maintain Fidelity insurance of at least $50,000