Ultimate Test 1 Flashcards
A “single party listing” must not include:
b) A holdover clause
A broker may list a property currently listed by another broker when:
a) The new listing begins after the current listing ends
A Township consists of:
b) 36 square miles
The main difference between Federal and Colorado fair housing laws is that:
c) Colorado covers residential and commercial properties
A qualified fee simple estate may be:
b) Reclaimed in grantor’s name
A life estate may not be:
a) Passed by a will
What is the value of a property where the gross rent multiplier is 170 and the annual rent is
$12,000?
$170,000
A buyer purchasing a house in which the security system on lease is owned by a security company:
c) Should negotiate with the security company if he wishes to take over the lease
One of the major differences between Joint Tenancy and Tenancy in Common is that:
a) Joint Tenancy is not probated
The difference between a cooperative and a condominium is that a condominium owner may:
a) Own and finance their property
Which type of description would include “Beginning at the:
a) Metes and Bounds
The Lender’s margin is:
b) An amount added to the Index Rate on an adjustable mortgage.
The higher the leverage:
a) The greater the L.T.V
Whether or not an FHA loan is a qualified or unqualified assumption depends on:
b) The date of the loan
A property owner wants to sell his home but does not want to list his property. He tells a broker “If you sell my home I will pay you a commission”. This is most likely:
d) An open listing
Which would not be considered in the Comparison Approach:
b) Accrued depreciation
An appraiser uses comparable homes for his appraisal. He is using the principle of:
c) Substitution
Which of the following is never considered a fixture:
c) Land
A conditional use permit would reflect a slight variance in:
c) Zoning
A developer tries to obtain financing for property in a low income part of town. He is turned down by three lenders. These lenders are possibly guilty of:
b) Red lining
A Lead-Based Paint Disclosure must be signed by the seller and broker before the Buy and sell contract when the:
c) A building permit was obtained prior to January 1, 1978
The Fair Housing Act does not prohibit discrimination based on:
b) Homosexuality
The difference between a license and an easement is that:
c) A license can be canceled
RESPA requirements must be given to a borrower:
a) Within 3 days of loan application
Who is not required to carry E & O Insurance:
b) An inactive broker
The Square Footage Disclosure does not require the listing broker to:
c) Measure the property himself/herself
When a contract dispute arises the parties must:
c) Mediate within 30 days
Mineral Rights
c) May belong to a third party
Closing Statements held by a broker associate must be given to their broker:
a) Immediately
A broker may reintroduce a buyer to a property after listing has expired due to:
a) An extension or protection clause
The broker’s commission:
d) Is always negotiable
The broker’s commission
d) Is always negotiable
In a counterproposal, only new dates and deadlines may be entered:
c) A counterproposal can only change the sales prices
If a broker decides not to accept a listing assignment
d) He may accept or decline the listing at his discretion
If a broker measures the property, he must:
a) Disclose methodology
If a broker does not measure the property they:
b) Must disclose source of measurement
Which of the following advertisements would be permissible under Fair Housing Laws?
c) Cozy for one or two
There is a three-day right of recession right under the Truth in lending laws for all but which one of the following:
a) A first mortgage loan to buy a new house
A protection clause in a listing contract provides limited protection for:
d) The listing broker
A property is valued at $72,000. The assessment ratio is 50% and the mill rate is 60 mills.
The property tax is:
a) $2,160
A local bank’s underwriting policy provides that the monthly mortgage payment cannot be more than 25% of the borrower’s monthly gross income. If the mortgage payment is $900 the monthly income of the borrower is:
b) $3,600
When a house is sold “as is” the listing broker:
b) Should question the seller about possible defects
When a broker and his client wish to change the list price on a property they would use:
b) An amend and extend (listing contract)
One disadvantage of real estate as an investment is its:
c) Illiquidity
A comparative market analysis is based primarily on the economic principle of:
a) Substitution
When conducting a comparative market analysis, the broker would not:
c) Consider depreciation
An important factor in successful real property management is:
c) Careful selection of tenants
A borrower applies for an $80,000 loan at 8.5% interest. The bank requires an escrow of two months’ interest from the borrower. The amount in escrow would be:
$1,133.33
An owner wants to net $80,000 after paying a 7% commission to his broker. He must sell his house for:
b) $86,021
A renter would not be protected by Fair Housing laws if:
d) He is only using illegal drugs
The purpose of a master plan is to:
b) To provide for orderly future growth
The statement by a broker that “This is the best house in the neighborhood” is probably:
c) Puffing
Net listings are illegal in many states because:
c) They could encourage a broker to be dishonest
High leverage results in:
a) High returns relative to equity
A comparative market analysis will indicate:
c) The most probable sales price of a house
An improvement location certificate would most likely reveal:
d) Encroachments
All metes and bounds legal descriptions start and end at:
b) A monument
A broker who is negotiating a sale involving a seller assisted down payment should work with
d) Tax counsel ???
The best way to describe a novation is:
c) A new contract which substitutes for an old contract
In Real Estate practice a variance is best described as:
c) Permission to deviate from a setback requirement in zoning laws
Which of the following would be an example of a legal non-conforming use:
c) Being allowed to continue a residential use as land formerly zoned for residential use which has recently been rezoned to commercial use
Which of the following would most likely result in a contract being declared void:
c) One of the parties has been certified by a court as insane
A person has equitable title when:
b) A buyer has purchased land and is paying the seller in 60 equal installments before the title is transferred
Equitable title would best be described as:
c) The rights of the buyer to a property after contract but before closing ???
A custom built appliance which is placed permanently in a specially built recess in a residence is:
d) A fixture
The legal process by which personal property becomes a fixture is:
d) Annexation
Which of the following would be an easement by necessity:
a) A driveway through a neighbor’s property which provides the only access to a public street
Which of the following would terminate a listing contract:
c) The death of the seller
A direct real estate origination is available from which of the following:
d) A regional credit union
Discrimination against a borrower based on age is addressed in:
b) The Equal Credit Opportunity Act
The appraised value of a house is an estimate of:
b) The most probable selling price of the house in an open and competitive market
A seller informs his broker that he needs to sell his house quickly and that he wants
$80,000 for it. The broker is experienced in the area and thinks the house is worth more than the seller’s asking price. What should the broker do?
c) Suggest that the seller have a comparative market analysis done before listing
A personal check is not considered “good funds”, except:
a) When it clears prior to closing
If the Lead-Based Paint Disclosure is not given prior to closing, the contract is:
d) Void
In the Colorado approved Residential Sales Contract, the cost of an appraisal of the house is:
b) A negotiable item
A broker working with a buyer who wants to make an offer must in terms of the disclosure laws give the buyer:
c) Definitions of all brokerage relationships
If a lead-based paint disclosure is not completed and signed before the sales contract is signed, the sales contract of a house where the building permit was issued prior to January 1,1978:
b) Is void
An earnest money receipt is referenced:
a) Within the approved residential sales contract
A TD 1000 is used by the county assessors to:
c) Help ensure fair property tax records
A listing agent was instructed by the seller that bad and potentially dangerous fumes from his workshop might be present in his house. He requests that all showings are to be by appointment only. The listing agent puts a MLS lock box and instructs his office to inform brokers to call first before showing the house. A broker wishing to show the house calls but gets no reply. He enters the house with his client and both get sick from the fumes. In this case:
a) The listing agent did not do enough to follow the seller’s instructions
An employing broker may be party to a principal’s confidential information if:
c) If the associate broker has the written consent of his/her principal
Which of the following would normally be a charge to the buyer in a new loan settlement statement:
d) Loan discount points
Which of the following is not required in the broker trust account documentation and records:
d) The address of the payee
A broker can satisfy the Colorado requirement for continuing education by successfully completing and passing:
c) The Colorado portion of the exam only
As a listing agent, is it legal to rebate a portion of your commission to the seller?
a) Yes
A party who requests information on a brokerage relationship not offered by a broker in terms of the broker’s office policy, must be given:
b) Written definitions of all brokerage relationships
Jane wants to advertise her services as an associate broker with a large franchise. She must, as a minimum requirement, state in addition to her name:
c) The employing broker’s name as licensed in the state records???
If a licensee changes employment, her listings:
b) Belong to the employing broker
When a real estate broker makes an evaluation of any reason other than marketing, the evaluation must contain a written notice that:
c) The preparer is not registered, licensed or certified as an appraiser
A complex is occupied over 80% by 55+ year olds:
a) It is exempt from Colorado’s Fair Housing Familial Status Law
Appraised value is an estimate of
d) The most probable selling price based on the market
A single party listing would not include:
b) A thirty-day holdover period
A house was sold for $200,000 and the loan-to-value ration was 80%. What was the loan amount?
c) $160,000
Who pays for the mortgagee title insurance?
c) The buyer
When can a lender pay a fee to a broker for introducing a loan:
a) Never
The broker selected by an employing broker to represent a seller in a transaction is called a/an:
d) Designated broker
What is the lowest level of disciplinary action the Commission can impose on a licensee?
d) Write a letter of admonishment
