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CO RE Exam > Unit 5 (part 2) > Flashcards

Unit 5 (part 2) Flashcards

1
Q

What are other names for a holdover period?

A
  • Safety clause
  • Protection clause
  • Extension clause
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2
Q

What is a holdover period?

A

This clause states that the seller is liable to pay the commission to the real estate agent should the property sell within ‘x’ number of days after the listing agreement concludes, provided that the buyer was introduced to or saw the property during the listing period. An agent who puts in a lot of time and effort wants to be protected should a buyer decide to make an offer shortly after the listing agreement expires.

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3
Q

What is required to uphold a holdover period? (What needed to be done during the listing period?)

A
  • The broker must have negotiated holdover terms

- And submitted buyer names in writing during the listing terms (this is in the listing agreement with the seller)

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4
Q

Does the holdover period protection stop once the seller lists exclusively with another broker during the holdover period?

A

Yes

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5
Q

Is the length of the holdover period negotiable?

A

Yes

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6
Q

The exclusive right to buy/sell listing contract designates the _______ to work for the _____.

A

Broker; Principal

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7
Q

Does the brokerage firm or the designated broker have the relationship with the consumer?

A

Designated broker

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8
Q

Can a one-person firm be a designated broker?

A

No. Only a multi-person firm

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9
Q

Do all listing require a start and end date?

A

Yes

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10
Q

Do listing brokers need to have a formal inspection done for their own knowledge of a property?

A

No

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11
Q

Should brokers have actual knowledge for inspecting a property for defects?

A

Yes

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12
Q

Are brokers responsible for verifying the accuracy of statements made by sellers or buyers?

A

No (unless they think what they are saying is untrue)

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13
Q

Are listing brokers required to disclose known material defects to potential buyers?

A

Yes; they must ask the seller if any material defects exist

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14
Q

If there is a defect that you know will change the mind of the buyer, are you required to disclose it?

A

Yes

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15
Q

What is CP-13?

A

Single-party listings (for sale by owner). A listing for only one specific buyer

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16
Q

A CP-13 endures that a broker will be paid in a for-sale by owner transitions. How is this agreement created?

A
  • Within the additional provisions section.

- States who the parties are, how they are represented, and the compensation

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17
Q

Is there a holdover clause in the single-party listing.

A

No

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18
Q

Are disclosure forms signed by the parties to a transaction? If so, why?

A

To prove that they have been given and received.

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19
Q

Does the broker fill out and sign the seller’s property disclosure form? If not, who does?

A

No. The seller fills it out best to their knowledge/

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20
Q

Is the seller required to disclose the material facts on the property even if the property is listed in as-is condition?

A

Yes

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21
Q

If the seller declines to complete the disclosure form, should the broker inform the seller that the buyer will most likely requires the disclosure as part of the Contract to Buy and Sell?

A

Yes

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22
Q

Who discloses the potential for lead based paint?

A

The seller

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23
Q

What properties require a lead based paint disclosure?

A

Properties with building permits issued before January 1, 1978. (The date is not from when improvements were completed)

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24
Q

Who signs the lead-based paint disclosure and who is it given to?

A

Signed by the licensee and seller. Given to the buyer

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25
Q

Why does the seller sign the lead based paint disclosure?

A

To certify that the disclosure is accurate to the best of the seller’s knowledge.

26
Q

Why does the listing broker sign the lead based paint disclosure?

A

To affirm that the disclosure has been made.

27
Q

Why does the buyer’s broker sign the lead based paint disclosure?

A

To affirm timely disclosure from all licensees and the seller to the buyer

28
Q

Why does the buyer sign the lead based paint disclosure?

A

To affirm receipt and indicate choice of a 10-day inspection period

29
Q

Who is required to supply a Square Footage Disclosure? In what circumstance?

A

Listing Broker; If square footage of a residential property is given

30
Q

If the listing broker measures the property, do they need to indicate which method was used?

A

Yes

31
Q

If another source is used to measure the property, the listing broker must name the source?

A

Yes

32
Q

Is square footage for marketing, valuation or financing?

A

Marketing only

33
Q

Although a buyer’s broker relies on the sf given in the MLS, is that broker responsible for indications of obvious measurements by others?

A

Yes

34
Q

Is the buyer or seller responsible for any mismeasurements? If not, who is?

A

No; the brokers are

35
Q

What is the Agreement to Amend/Extend Contract With Broker used for?

A

To modify an existing listing contract with either the seller or the buyer. (i.e. to change the price in a listing contract)

36
Q

The Agreement to Amend/Extend Contract With Broker is an agreement between who?

A

The seller and the broker, or the buyer and the broker

37
Q

Is the Agreement to Amend/Extend Contract With Broker a dual form? If so, can it be used for?

A
  • Extends the duration of a relationship

- Lower a listing price

38
Q

In a Agreement to Amend/Extend Contract With Broker, the broker must amend or extend a listing or buyer representation agreement before the ______ ______.

A

termination date

39
Q

What is a Change of Status Form used for?

A
  • Used when changing status from an agent to representing both parties as a transaction-broker.
  • Used to notify the seller and/or the buyer of the implementation of the change of status (the brokerage relationship is NOW changing).
40
Q

If you are already a transaction-broker, do you ever need to use a Change of Status Form?

A

No

41
Q

Is the Change of Status Form a new agreement?

A

No. Permission was provided and agreed upon in the original listing agreement

42
Q

Name the 4 stages of a real estate purchase.

A
  1. Listed
  2. Offer, acceptance, and communication of acceptance
  3. Under contract
  4. Closing
43
Q

Who is the offeror?

A

Person who made offer

44
Q

Who is the offeree?

A

Person who received offer

45
Q

Is acceptance required to be communicated to the offeror in order to form a binding contract?

A

Yes

46
Q

Who is the vendee?

A

Buyer

47
Q

Who is the vendor?

A

Seller

48
Q

In what stage of the real estate purchase do you modify and amend the contracts?

A
  1. Under contract
49
Q

In what stage of the real estate purchase is the executory period?

A
  1. Under contract
50
Q

Who is the grantee during the closing stage?

A

Buyer

51
Q

Who is the grantor during the closing stage?

A

Seller

52
Q

In what stage of the real estate purchase do they transfer the legal title and execute the contract?

A
  1. Closing
53
Q

*Name all 5 versions of the Contract to Buy and Sell

A
  1. Residential
  2. Income-residential
  3. Residential Foreclosure Act
  4. Commercial
  5. Land
54
Q

What is the Residential Contract to Buy and Sell used for?

A

All non-income residential sales

55
Q

What is the Income-Residential Contract to Buy and Sell used for?

A

All residential income sales (no matter the size)

56
Q

What is the Residential Foreclosure Act Contract to Buy and Sell used for?

A

If the Colorado Foreclosure Protection Act applies

57
Q

What is the Commercial Contract to Buy and Sell used for?

A
  • All commercial property sales

- Cannot be used for any type of residential property

58
Q

What is the Land Contract to Buy and Sell used for?

A
  • Vacant land

- If residential property is to be conveyed with the land, the contract requires a residential addendum.

59
Q

Who are the parties to a Contract to Buy and Sell?

A

Buyer and seller (not the brokerage firm)

60
Q

Can a brokerage firm’s attorney draft a Contract to Buy and Sell? If not, who can?

A

No. Only an attorney for the principal

CO RE Exam (10 decks)

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