On the Commission-approved purchase and sale agreement involving remedies in the event of a buyer default; if no box is checked what is the default:
neither liquidated damages nor specific performance is in effect - a judge will have to decide
the liquida
the liquidated damages clause is automatically in effect
On the commission approved purchase and sale agreement form; if the specific performance box is not checked the liquidated damages clause is automatically in effect.
Water Rights: Who owns the water rights to a property?
The property owner owns the water rights
The recorded owner of the water rights, not necessarily the owner of the property
The State of Colorado
The local water district
The recorded owner of the water rights, not necessarily the owner of the property
Water rights transfer with their very own deed separate from the deed which transferred ownership of the property. Therefore the person owning the surface rights may not hav
The rescission provisions of truth-in-lending apply to what type of loan?
purchase money
construction
business
home equity
home equity
A home equity loan has a three day right of recission or a re-finance.
More info:
From Investopedia.com - A right of rescession under federal law set forth by the Truth in Lending Act that gives a borrower the right to cancel a home equity loa
A $75,000 loan requires a $1,875 in discount points to be paid by seller and $375 in discount ponits to be paid by the buyer. This is how many total discount points?
2
2.5
3
3.5
3
$1875 + $375 = $2,250. I / V = R. $2,250 / $75,000 = .03
Definition of 'Discount Points'
Discount Points are a form of prepaid interest. A borrower buys a point and in return gets a lower interest rate on the loan. Each discount point generally costs 1%
From whom does the licensee receive a commission?
Employing Broker
Seller
Buyer
Either 2 or 3 may pay a commission to the licensee
Employing Broker
It is unlawful for a real estate broker registered in the commission office as in the employ of another broker to accept a commission or valuable consideration for the performance of any of the acts specified in this part 1 from any perso
A resident Colorado broker's office must:
Be in a commercial office building to comply with zoning
Be a virtual office doing business by phone and using a post office box mailing address
Have a physical address in Colorado where the commission staff can i
Have a physical address in Colorado where the commission staff can inspect records
. Resident broker required to have office; exceptions.
Every resident Colorado real estate broker shall maintain and supervise a brokerage practice available to the public,
The selling landlord has collected the September rents from all five tenants: two at $845 and three at $925. Determine the proration to be allowed the buyer when the sale is closed on September 19.
1965
1637
1786
1690
2 x $845 = $1690 3 x $925 = $2775 $4465 total rent divided by 30 days = $148.8333 PER DAY x 12 (days the buyer owns the property) = $1786
In Colorado, when must real estate licenses be renewed?
every three years with expiration on December 31 of the third year
every three years on the anniversary date of first being licensed, or any date mandated by the CREC.
each year at the anniversary of
every three years on the anniversary date of first being licensed, or any date mandated by the CREC.
All HUD homes are:
sold as is
subject to buyer's inspection
in need of renovation
financed through FHA
All HUD homes are sold as is.
Broker attends client closing. What must he/she do with signed closing documents?
deliver to client within 2 business days
deliver to title/closing company
deliver immediately to Employing Broker
deliver to Managing Broker within 3 business days
deliver immediately to Employing Broker
Clients AND employing brokers are to recieve closing doucments immediately.
More info:
Rule E-5. Closing responsibility; closing statement distribution.
Pursuant to 12-61-113 (1)(h), at time of closing, the individu
When is a broker to open or have access to an escrow account?
When he applies for his broker's license
When he starts to work as a broker
When he receives earnest money
None of the above
When he receives earnest money
A broker is not required to open a trust account, in a recognized Colorado depository, until he takes money that belongs to others.
A house is closed on May 15. HOA dues are $108 per month and are due and payable on the first day of each month. The HOA dues will appear on the closing statement as a:
$49 debit to the seller
$59 debit to the seller
$59 credit to the seller
$49 credit to
$59 credit to the seller
The seller paid the HOA dues on May first for the entire month. With a closing on May 15 ( remember the Buyer is responsible for the day of Closing), this means the Seller paid 17 days (May 15-31) too much. Since the Buyer is rece
Title passes from the grantor to the grantee:
at the time of recording of the deed
at time of the buyer's initial possession of the property
at time the closing begins
when the seller signs the warranty deed and gives it to the buyer
when the seller signs the warranty deed and gives it to the buyer
Title passes when the signed deed is delivered to and accepted by the buyer during closing.
Written agency agreements require brokers to disclose their duties and obligations to a party prior to:
writing a counteroffer
agreement to amend/extend contract with broker
closing of the property
showing a home to a buyer
showing a home to a buyer
Agency contracts must be in writing and must be disclosed prior to negotiating any part of the real estate transaction.
A house is sold on June 15. The annual taxes in the amount of $850 for the year have not been paid. What does the seller owe the buyer at closing?
384.25
465.75
468.08
381.92
Jan. 1 - June 14 = 165 days. $850 / 365 = $2.3288 per day tax liability.165 days x $2.3288 = $384.25
Fixtures listed on the approved Colorado exclusive right to Sell Listing contract will be included
If on the property at the time of the listing
Unless they are crossed out on the form
In every case
If attached on the date of the listing unless specifical
If attached on the date of the listing unless specifically excluded by Seller
If they are attached and not specifically excluded they will be included.
Lock boxes are used for:
brochures and flyers placed at the home for sale
buyer's security
storing the seller's valuables during an open house
broker's access into homes that are listed for sale
broker's access into homes that are listed for sale
According to the approved Colorado Contract to Buy and Sell Real Estate, when may purchaser assign the contract to another purchaser?
without restrictions
only with seller's approval if the "shall not be assignable" box in the clause is checked
under no c
only with seller's approval if the "shall not be assignable" box in the clause is checked
The Assignability and Inurement Clause in the contract reads: "This contract ( ) shall ( ) shall not be assignable by Buyer without Seller's prior written consent.
The amount due to the seller appears on a closing statement as a:
Debit to the broker
Credit to the broker
Credit to the seller
Credit to the buyer
Credit to the broker
This answer pertains to the bottom of the settlement sheet when the columns are reconciled. Once you have applied all credit and debits, you total up all columns to the bottom. Obviously they are not going to be the same. Looking at t
To pre-qualify a buyer, a broker should obtain the following information from the buyer:
buyer's criminal background
buyer's marital status
buyer's drivers license number
buyer's present occupation information (i.e. gross income, how long at present job)
buyer's present occupation information (i.e. gross income, how long at present job)
To pre-qualify a buyer the broker should obtain from the buyer their social security number and current address for the lender to pull a credit report; the buyer's present
When viewing the property, the buyer asks if the shelving in the basement is included. The broker is safe to say:
yes, the shelving is included
I don't know, but I will find out for you
the MLS printout does not mention the shelving, so it must not be inc
I don't know, but I will find out for you
Never assume anything, call the listor and find out the correct information for your buyer.
A broker answered a call. A prospective buyer wants to see the home he drove by over the weekend. Feeling uncomfortable; for safety reasons the broker should:
insist they meet at the office before going out and showing the property
do not show them the ho
insist they meet at the office before going out and showing the property
The good news is that violence towards real estate agents is although not unknown, is uncommon. Still prudence is always in order. If someone makes you uncomfortable, invite them to
In the Colorado Contract to Buy & Sell the inspection provision allows the buyer to terminate the contract:
Only after listing unsatisfactory conditions that cause the buyer to terminate
If the property is unsatisfactory in the buyer's subjective discreti
If the property is unsatisfactory in the buyer's subjective discretion
The Buyer solely determines if the condition of a property is satisfactory or not. Although the Buyers normally will list items they wish the Seller to address; they are not required t
If the property does contain lead-based paint, the seller must:
have it removed at the seller's expense
disclose that there is lead-based paint
disclose that they have painted the house, therefore there is no problem
disclose the families medical records,
disclose that there is lead-based paint
The authority of the agent to act as the agent's principal is usually given by the terms of the:
brokerage disclosure to buyer
agreement to amend/extend contract
purchase and sale contract
listing contract
listing contract
A listing agreement is an employment agreement between the seller and the broker. A right to buy contract is an employment agreement between the buyer and the broker.
A broker has overbooked his Saturday for showing buyers some homes. The broker may suggest all of the following except:
getting together on Sunday instead of Saturday
have his unlicensed assistant show and sell the buyers a home
give a referral to another
have his unlicensed assistant show and sell the buyers a home
An unlicensed assistant may chauffeur the buyer to the property, but may not be involved in any type of sales.
Implied agency (also known as Implication) arises when:
an agent accepts an oral listing
a principal accepts an oral listing
one person behaves toward another in a way that suggests or implies that he is acting as that other person's agent
one person behaves toward another in a way that suggests or implies that he is acting as that other person's agent
An agency may be created by implication (implied agency) when one person behaves toward another in a way that suggests or implies that he is
It is the broker's responsibility when showing properties to:
set up the showing for sometime within the next week
wait outside while the buyer looks at the house
lock all the doors and leave the lights on so the next broker does not have to turn them on.
call ahead to set up the showing
It is the broker's responsibility when showing priorities to call ahead to set up the showing, enter the home first and leave the home last, make sure all the doors and windows are locked and the lights turned off.
The amount due from the buyer appears on a closing statement as a:
Credit to the broker
Credit to the seller
Credit to the buyer
Debit to the buyer
Credit to the buyer
The amount due from the buyer appears on a closing statement as a credit to the buyer. This is a receipt for the money that the buyer has already paid. Remember that the closing is over!
How many times can the exclusion on capital gains taxes be claimed?
3 transactions over the past 12 months
5 transaction over the past 15 months
1 transaction every 24 months
2 transactions every 18 months
1 transaction every 24 months
If your client(s) sold their main home and made a profit, they may be able to exclude that profit from taxable income. Here's how:
Individuals can exclude up to $250,000 in profit from the sale of a principal residence (or $5
Previewing a property means:
showing the property to the buyer for the first time
viewing the property before the broker takes the buyer to see it
a showing on a property that the broker does not need to set up before hand
showing flyers or the MLS listin
viewing the property before the broker takes the buyer to see it
While showing properties, your buyer points out a house that she wants to see:
since you have showed that property before you pull over an immediately and take her in
because it is not on the list for today's showings, you tell her it is under contract
pu
pull over and call the listing office to set up the showing ASAP
Even though you have been to the property before you must call the listing office and set up the showing for that day.
A broker pulls up in front of the next home to be shown to the buyers and, at first glance, they tell the broker that they don't like the looks of the house, the broker should:
make them complete the cancelled home showing form
continue on to the next pro
call the listing office and cancel the showing as soon as possible
Since the showing was already set try to see the home even if it is just to compare that home with the others they have seen or will be seeing. If they still do not want to see the propert
Under the Commission-approved Contract to Buy and Sell, if the buyer diligently tried to get a loan, was unable to do so and notified the Seller of such before the Loan Objection Deadline had passed, what would happen to the earnest money deposit?
The bro
The broker would release the money back to the buyer
A buyer has until the Loan Objection Deadline to provide written notice s/he cannot get a commitment for a satisfactory loan and wants to terminate the contract. If s/he does provide such notice, the ea
A seller listed her home with a broker. After a few months, the seller found a buyer, and the sale closed. The seller was not obligated to pay a commission to the broker. This listing was MOST likely:
net listing
buyer agency agreement
exclusive agency li
exclusive agency listing
Do not confuse an exclusive agency agreement with an exclusive right to sell. An exclusive agency means that if the seller finds a buyer independent of their listing broker - the seller owes no commission. An exclusive right means
If the buyer has no earnest money:
prepare a promissory note to submit with the offer
that is okay, if the seller doesn't mind
they can write a postdated check, and the other broker can hold it
they cannot write an offer
prepare a promissory note to submit with the offer
In lieu of earnest money the agent should have the buyer sign a promissory note to the listing company or closing agent. The earnest money shows good faith to the seller. The not should not be for more th
The seller agrees to all terms of the offer presented, except that they want 72 hours before possession, not 48 hours as in the offer. Since it is such a small change, they made the change by crossing out the 48 hours and writing in 72 hours and initialin
also initial the change, and the contract is deemed accepted by all parties
Initialing is legal but is not a preferred method of changing a contract, the best way would be to write up a counteroffer with the change.
In a contract written in which the buyer is obtaining a new FHA loan:
the buyer has the right to terminate the contract if the property doesn't appraise for the sales price
the buyer must proceed with the contract if the seller agrees to reduce the price
the buyer has the right to terminate the contract if the property doesn't appraise for the sales price
The buyer can still buy the property, but retains the right to terminate the contract if it does not appraise at the purchase price.
When an employing broker A sells his company to broker B:
broker A is responsible for retention of all records prior to sale
broker B is responsible for retention of all records before and after sale
broker A is only responsible for records of transaction
broker A is responsible for retention of all records prior to sale
Broker selling company is responsible for retention of all transaction records that occurred prior to the sale of the company.
Your buyer's earnest money:
is put in the broker's trust account, whether or not the offer is accepted
is held, but not cashed, until the closing date and returned to them at that time
is returned if the contract is not accepted by the seller
is deposited
is returned if the contract is not accepted by the seller
As a licensee, are you required to become a member of the MLS?
No, however the MLS is the most used marketing tool for listed properties
No, but you must become a member of the Internet
Yes, and you must also join one of the boards
Yes, and you must adver
No, however the MLS is the most used marketing tool for listed properties
You are not required to become a member of the MLS or join any of the boards, however the MLS is the most used marketing tools for listed properties and probably the least expensive
As per the Exclusive Right to Sell Listing Contract fixtures listed on the improved form will be included:
In every case
Unless they are crossed out on the form
If on the property at the time of the listing
If attached on the date of the listing unless sp
If attached on the date of the listing unless specifically excluded by the seller
All fixtures will be included unless specifically excluded by the seller at the time the listing was taken.
If an Asian family is looking for a home, you must assume they would want a home in:
a predominantly Asian community
a good neighborhood
any neighborhood
a predominantly black neighborhood
any neighborhood
Stereotyping a buyer is not illegal however steering is illegal. A broker must assume that a buyer would want to live in any neighborhood.
The seller of the property is including the refrigerator and window coverings with the sale. Where in the offer to purchase is this addressed?
Since these items are in the multiple listing, there is no need to mention them
In the inclusions section of the
In the inclusions section of the contract
All items that are inclusions to the sale and not to be sold as personal property must be included in the inclusions part of the contract.
What fee will ALWAYS show as a credit on the sellers closing statement?
Recording the Warranty Deed
Documentary Fee
New Loan Amount
Sales Price
Sales Price
The seller, not the buyer, recieves the sales price of the property, hence it is always Seller Credit.
All of the following are true regarding the Exclusive Right-to-Sell listing contract except:
there is a one contract for all types of listings
a listing contract may establish seller-agency
a listing contract may be executed without establishing agency
mo
more than one listing contract may be executed for the same time period, for the same property
The Right to Sell Listing contract provides exclusivity to the listing broker to sell the property. The broker will be entitled to compensation regardless of wh
If the Loan Objection Deadline passes and there is no loan commitment by the lender, what happens to the contract if the buyer and seller have not signed an amendment extending the date?
It terminates
There is a three-day grace period
Nothing
The buyer is
The buyer is in default if he/she does not close
buyer has until the Loan Objection Deadline to provide written notice s/he cannot receive a satisfactory loan and wants to terminate the contract. If s/he does provide such notice, the earnest money must be
The seller agrees to pay $1500 of the buyer's closing costs, this is shown on the settlement sheet as:
debit to the seller, credit to the broker
debit to the seller, credit to the buyer
debit to the seller single entry
debit to the broker, credit to the b
debit to the seller, credit to the buyer
Debit Seller/Credit Buyer. The term Closing Costs covers a variety of charges such as Recording Fees, Survey, Documentary Fee, Appraisal and others. The Seller contribution may not cover all of them. To keep it sim
A buyer submits an offer to purchase to the listing agent. He finds out that more than several offers are coming in for the same property. He can expect that:
his offer is presented first because it was received first
if it is unacceptable to the seller,
all offers will probably be presented at the same time, and the seller will select among them
Agents are required to submit all offers received, if more than one offer is received before an offer is presented then the agent must submit all offers at the s
The Real Estate Commission will NOT issue a temporary hardship employing broker license to:
Corporation
Partnership
Individual Proprietor
LLC
Individual Proprietor
There is no provision for an individual proprietor to receive a temporary employing broker license for a hardship.
Statute 12-61-103, Application for license - rules.
(7) (c) If the person so designated is refused a license by the re
You are a buyer's agent. The buyer is anticipating a large legal settlement that will allow them to purchase home cash. It hasn't come through yet, but is anticipated within the next three months. Your buyer finds a home right away and wants to write an o
you must disclose this information to the seller's agent
This is considered to be material facts and it must be disclosed to the listing agent. You should also tell your buyer that you have to disclose it to the seller.
When can you talk to a seller about listing his house, if the house is listed with another broker?
Five days before listing expires
The day after listing is taken
Anytime, if the seller approaches you first
After the holdover period expires
Anytime, if the seller approaches you first
Talking to the seller anytime prior to the listing expiration date is called "going behind the sign" and is illegal unless the seller approaches the agent first. Rule E-13 allows this practice.
If the listing broker is out of town, and you cannot reach them to present an offer:
contact the seller directly to present your offer
call the listing broker's office and ask if there is another broker handling the out of town broker's business or ask to
call the listing broker's office and ask if there is another broker handling the out of town broker's business or ask to speak to the employing broker of that office.
What form signed by the buyer and seller instructs and authorizes the title company to prepare all of the closing documents?
The closing instructions
Contract to buy and sell real estate
Title authorization form
The amend/extend form
The closing instructions
The closing instructions are signed by the seller at the time the listing is taken and by the buyer when he makes an offer for the property.
The commissioners are selected in the following way:
Popular vote
Appointed by the real estate director
Appointed by the governor
They volunteer
Appointed by the governor
The minimum amount of time you must give a seller to respond to your offer is:
24 hours
8 hours
no minimum
24 hours when in town, 48 hours if out of town
no minimum
The amount of time a buyer will allow a seller to respond to the offer is up to the buyer, and should be stated in date and time. There is no minimum or maximum.
You are helping a couple who is not married purchase a home. They look to you when you ask them how they want to take title.
you cannot advise them in this matter -- they must seek legal advice
you tell them that couples take title as joint tenants
you te
you cannot advise them in this matter -- they must seek legal advice
It is a violation of the Convay-Bogues case to offer legal advice.
The seller agrees to pay $1500 of the buyer's closing costs, this is shown on the settlement sheet as:
debit to the seller, credit to the broker
debit to the seller, credit to the buyer
debit to the seller single entry
debit to the broker, credit to the b
debit to the seller, credit to the buyer
Debit Seller/Credit Buyer. The term Closing Costs covers a variety of charges such as Recording Fees, Survey, Documentary Fee, Appraisal and others. The Seller contribution may not cover all of them. To keep it sim
You hold open one of your listings that you took as a seller's agent. A buyer comes through the front door and wants to buy on the spot. The following is true:
you cannot write the offer for him -- he must use another agent
you can write the offer, so lon
you can write the offer, so long as you disclose that you are a seller's agent and indicate that in the offer to buy that he signs
The buyer will be the customer and the seller is the principal. You cannot be a transaction broker to one part of the transa
Lender required addons (called endorsements) to the Title insurance endorsements appear on a closing statement as a:
Debit to the buyer
Credit to the buyer
Debit to the seller
Credit to the seller
Debit to the buyer Credit to the broker
Buyers pay for the extended policy (sometimes-called mortgagee policy or title insurance endorsements) naming the lender as beneficiary. On the 6 column worksheet this is shown as Debit Buyer and Credit Broker (so t
An agent lists a property using the Colorado Exclusive Right to Sell Listing Contract and checked the "Shall Not" box in the Holdover Clause. Just before the listing expired, a buyer views the property. Wanting to retain the rights to this buyer, the list
No, the new listing broker earned the listing side commission
Only the current listing broker earns the commission. Checking the "shall not" box in the Holdover clause indicated that the provisions of the clause would no longer be in effect should the pro
When must a seller respond to an offer to buy ?
automatically within 24 hours
an offer never expires until the seller responds
as specified in the offer
no later than 48 hours after it is written
as specified in the offer
Everything is negotiable and the time to accept the offer should be written into the contract to buy and sell real estate. It is best to use both date and time for acceptance.
Your buyer is purchasing a town home. He has heard that the community has very restrictive covenants and wants to make sure that his offer is contingent upon his approval of their rules.
he must check this out ahead of time, since the contract makes no pr
if properly prepared, the buy and sell contract gives him the right to review the covenants and terminate, if they are unacceptable.
When completing the contract to buy and sell real estate, it is important to insure that the buyer has the opportunity to
If the homeowner association charges a transfer fee to the new owner of the property, who normally pays this?
Negotiable
Always paid by the seller
Always paid by the buyer
There is no such thing as a transfer fee
Negotiable
This is usually paid by the seller but is always negotiable.
If the seller finds out he is not being transferred and defaults on the sales contract:
it depends if specific performance or liquidated damages was checked
the listing agent can force the sale
neither agent is entitled to commission since the deal never
the buyer can sue him for specific performance and damages
A seller does not have the option of liquidated damages. The buyer is allowed to sue for specific performance or for damages, or both.
In Colorado the broker must disclose:
stigmatized properties
material facts
buyer's motivating factors
how long they have been a licensed agent
material facts
Your offer to buy a property for $150,000 is accepted, but unfortunately there is a fire in the kitchen prior to closing. The insurance company estimates about $9,000 to repair and repaint. The repairs will be made in time to meet the closing date.
the bu
the buyer must proceed
If the damage is repaired and the cost of the repairs are less than 10% of the cost of the property, then the buyer cannot terminate the contract. If the repairs exceed 10% then the buyer may terminate the contracT.
When an employing broker changes the primary business address,
all of the licenses of employed licensees must be sent to the commission for reissue at the correct address.
this change will be noted at the next license renewal cycle.
each employed licensee
the broker must notify the commission in a manner acceptable to the commission, or the brokerage license will become inactive.
The broker must notify the commission in a manner acceptable to the commission, or the brokerage license will become inactive.
A
If a licensee is also a licensed appraiser, can the licensee offer to appraise a home if they intend to be the listing agent for that same property in the future?
No, that would be a conflict of interest
Yes, as long as it is disclosed to all parties
Yes,
Yes, as long as it is disclosed to all parties
There are no laws that prohibit an appraiser or a mortgage broker from working as such on a transaction upon which they are involved as a real estate broker, or acting as a real estate broker in the future on
An ad in the newspaper must appear under the name of:
the broker of record - All advertising must contain the name of the employing broker
The Real Estate Commission may NOT issue a temporary license to prevent hardship to a:
Sole proprietor
Publishing a foreclosure notice of sale in a newspaper is the duty of the:
Public Trustee
Ernie Pyle offers to pay $100.00 to anyone who will clear his driveway of snow. This is an example of which of the following?
A unilateral contract
Explanation: It is made by one party and anyone who fulfills the contract will receive the compensation.
An associate broker may operate from:
the address on his license
Your license must be in your broker's office, where you work.
A brokerage firm holding 4 earnest money deposits, and 15 security deposits for managed single-family residences must have a minimum of how many trust accounts?
3
Rule E-1 (h) A broker who manages less than 7 single-family residences may deposit rental receipts and security deposits and disburse money collected for such purposes in the "sales escrow" account" Elsewise, you need one escrow account for earnest mone
The length of the holdover period in the exclusive right-to-buy contract is best described as:
a freely negotiable period that may be invalidated when the buyer signs a new exclusive right-to-buy contract
The Commission Position on earnest money deposits indicates:
if the transaction fails and there is no dispute over who is to receive the earnest money the broker should release the funds *
immediately
*
Where a buyer, after signing a valid purchase agreement, asks the broker for permission to move into the property before the closing, the broker should:
The broker does not have the authority, to give the buyer permission to move on to the property before closing, and should refer all such requests to the owner.
A Corporation, LLC, Partnership must have E&O insurance for entity and employing broker. True/False
A Corporation, LLC, Partnership must have E&O insurance for entity and employing broker. TRUE
Every active real estate licensee, including licensed real estate companies, shall have in effect a policy of errors and omissions insurance to cover all acts re
Which of the following is true if a broker establishes an account to hold money belonging to others?
All checks, deposit slips, and bank statements must include the word "escrow" or "trust" as part of the account name.
In Colorado the minimum time following recording the Notice of Election and Demand before a residential foreclosure sale can be held is:
In Colorado the minimum time following recording the Notice of Election and Demand before a residential foreclosure sale can be held is: 110 - 125 days
Explanation
A residential foreclosure sale must be within 110 to 125 days of the recording of the Notic
The Colorado Contract to Buy & Sell contains a section regarding Association Documents. This section refers to documents for:
any community subject to mandatory assessments for maintenance of common elements
The owner of a treasurer's deed:
TREASURER'S DEED - Tax
PROPERTY TAX - Failure to Pay Property Taxes.
ALL COVENANTS / NO WARRANTIES
A house was listed for $84,900, and the seller received $71,424 after the broker deducted her 7% commission. What was the selling price?
$76,800.00
In a single-party listing, which of the following provisions or contingencies does NOT apply?
a. mediation
b. commission
c. holdover
d. financing
holdover does NOT apply
An out of state investor sells a property in Colorado. The closing entity withholds 2% of the
Selling price as possible income tax liability
How many days after notice of discrimination does someone have to file a complaint under Colorado Fair Housing Laws with the Colorado Civil Rights Commission?
1) 30 days
2) 60 days
3) 6 months
4) 1 year
Correct is 1 year. From the Colorado Civil Rights Commission:
Filing a Timely Charge of Discrimination
There is a legal requirement that a charge must be filed within a specific period of time (statute of limitations) from the date of notice of the last d
For a VA loan - how will the Buyer's Loan Processing Fee be shown on a settlement sheet
Debit Seller
The seller agrees to pay $1500 of the buyer's closing costs, this is shown on the settlement sheet as:
Debit Seller/Credit Buyer.
The term Closing Costs covers a variety of charges such as Recording Fees, Survey, Documentary Fee, Appraisal and others. The Seller contribution may not cover all of them. To keep it simple and make it work. The concession itse
An encumbrance issued by a court on a property of a defendant in a pending lawsuit for money damages is called an:
writ of attachment
Broker Jones negotiates the sale of a house for $195,000. The agreement recites a deposit of $2,500. Jones receives $1,500 cash and a $1,000 note. The buyer seeks FHA financing. Jones certifies to the lending institution that he has received a $2,500 cash
Jones is guilty of a criminal act and his license can be revoked
Fraud
A Buyers right to a specific performance remedy in the event of a Seller default in the Contract to Buy and Sell Real Estate:
Is the default remedy and as such need not be selected
When a license law complaint is made to the Commission against a licensee, the licensee must:
Submit a written response to the Commission if requested
Assume that Mr.and Mrs. Davis did not sign the lease agreement, but upon taking possession of the apartment on August 1 were handed a signed copy by landlord Smith. On August 20, Mr. and Mrs. Davis move out claiming that since they had not signed the agre
sue Davis immediately for the unpaid portion of the lease
By taking possession, Mr. and Mrs. Davis impliedly accepted the agreement and would be liable for the unpaid portion. Only the lessor needs to sign the lease.
According to the rules and regulations of the Colorado Real Estate Commission, a broker is required to recommend that:
the buyer have title review by legal counsel
How many single-family residences can a broker manage without having to open a trust account only for rents and deposits (separate from his sales trust accounts)?
up to seven
A deed of trust held by someone other than the public trustee is NOT:
� Notice that a legal action is pending that may affect ownership
� Exempt from loan rescission rules
� Foreclosed through the courts
� A conditional transfer of ownership from the Trus
� Notice that a legal action is pending that may affect ownership
Regardless of who holds the Deed of Trust, the transfer of ownership is real and not a notice of pending legal action. There are no loan recession rules associated with a Deed of Trust as t
Which of the following is true with regard to the approved Earnest Money Promissory Note?
must be due early enough to assure good funds for closing
To be the broker of record for a corporation:
The only requirement in order to be the broker of record for a corporation is that one have a valid, active Colorado broker's license, and have fulfilled the necessary requirements to be an Independent Broker.
A 1994 Colorado law allows "undesirable and dangerous persons" to be evicted:
after a three-day notice to quit
The tenant may remove trade fixtures that have been affixed to a building if:
the space is restored to its original condition
Which of the following provisions is not essential to the validity of a lease?
Competent lessor and lessee
Rent provision
Judgment clause
All of the above
Judgment clause
Explanation: A judgement clause is usually found only in a commercial lease and is infrequently used.
Contract closing date is March 29. Buyer and seller want to close on the 27th. In order to do this, they must:
amend the original contract
sign a counterproposal
this is not allowed unless a new contract is written up
nothing, this is okay per the origina
nothing, this is okay per the original contract
As long as both parties to the contract agree and the date is being moved up, there is no need to do and amend and extend contract.
An exclusive right-to-buy (Buyer Agency) contract may :
not continue for an indefinite period of time without a specific termination date
have a termination date up to one year after the start of the contract
may involve three or more parties to the contr
all of the above
All real estate agency contracts must have a definite beginning and ending date. The start of an Exclusive Right To Buy contracts may be post dated. There is no limit to the number of parties to a contract.
At closing, the earnest money is credited as follows:
to the seller
to the buyer
to the lender
to the listing agent as commission
Earnest money is credited to the buyer at closing and debited to the broker.
If a licensee desires to sell his or her own property, as a FSBO, the licensee must:
address the issue of who is to hold the earnest money
not use a Commission-approved purchase and sale contract
put their license in an inactive status
you are not allowed
address the issue of who is to hold the earnest money
Unless an agreement with an employing broker requires that an agent owned property be sold through the brokerage, a licensee may sell their property as a F.S.B.O., but they must indicate on the sales c
You competed for and won a listing contract, by offering a considerably reduced commission. In order to recoup some of your normal fee, you charge for each contract document that you prepare. Your seller agrees to this arrangement. It is:
not allowable It is illegal for a broker to charge a fee for the preparation of legal documents;
The support staff in an office is available to do all of the following, except?
Be your own personal assistant - Need to hire your own personal assistant
To become an employing broker, one must:
Take 24 hours of Brokerage Administration, have two years active experience, and pass the state portion of the broker exam
The inspection is set for March 18. The buyer is unable to have it done by this date.
if the date passes, the property is deemed acceptable
The listing agent calls you regarding your low offer. They ask what your buyer's real number is, and if the seller's counter, how much more your buyer will come up with? In your buyer's best interest:
to tell the agent what your buyer is willing to pay
te
tell the agent to counter, and you will present it to your buyer
You have a fiduciary responsibility to your client and cannot reveal confidential information to the other agent.
Requirements of a real estate applicant:
must be at least 21 or older
meet the state requirements for licensing
must have a high school diploma or GED
must be a US citizen
meet the state requirements for licensing
An applicant for a real estate license must be 18 years or older, take 168 hours of pre-licensing education, pass the state's exam and work under an employing broker.
A broker must offer:
100% commission
50/50% commission split
75/25% commission split
commission splits and office fees referenced in the broker's office policy manual
commission splits and office fees referenced in the broker's office policy manual
Since much of your real estate business is done when other people are not working, a real estate office should:
be available to the public
be open 24 hours a day
be open at least three days a week
be open only on weekends and evenings
be available to the public
A real estate office should be available to the public but does not need to be open 24 hours a day.
C-2. Resident broker required to have office; exceptions.
Every resident Colorado real estate broker shall maintain and supervis
F.S.B.O. in real estate means:
first seller buys out
free soda and barbecue at our house
farmer stranded behind outhouse
for sale by owner
for sale by owner
A licensee may accept compensation from:
The licensee's employing broker only
The seller or buyer
Any licensed real estate broker
Any service provider to the transaction
The licensee's employing broker only
Before choosing a broker, you may:
inquire with the Real Estate Commission about the broker's status -- are there any complaints or past disciplinary actions against him or her?
pull a credit report
do a fingerprint check
ask competing brokers about the r
inquire with the Real Estate Commission about the broker's status -- are there any complaints or past disciplinary actions against him or her?
A licensee's sphere of influence includes all of the following except:
family, friends, co-workers
doctors, lawyers and other professionals they do business with
the subdivision the licensee lives in
residents of a nearby community
residents of a nearby community
Everyone you are acquainted with is part of your sphere of influence.
When an exclusive right-to-buy contract has been executed, who is obligated to pay the broker working with the buyer?
The seller
The listing broker
The buyer
It is determined by which box is checked in the contract
It is determined by which box is checked in the contract
Whichever box is checked is who has to pay the commisssion.
Someone living in a condominium exclusively owns:
The walls separating the units
The carpet inside the unit
The building elevator
The balcony outside the unit
carpet
Condominums are a form of cooperative ownership. Within this ownership, elements inside the condominium exclusively belong to the unit owner such as the carpet listed in the question. The unit owner has fractional ownership of the elements outside
When starting out as a new broker, you may want to consider which of the following when choosing a broker to work under?
Finding the broker with the lowest office fee
A broker that will provide training and support
A broker that doesn't require your atten
A broker that will provide training and support
What do you use to transfer personal property when you buy a furnished residential property
Deed of Trust
Bill of Sale
inventory itens on bottom of closing statement
Bill of Sale
Deeds transfer real estate. Whether you are buying a fridge at Best Buy, lumber from Home Depot or the furniture from a furnished home the rules involving the transfer of ownership of personal property are in charge and you use a Bill of Sale
The Colorado Legislature passed a bill on April 22, 1996, establishing single licensing. The primary effect of this law, is that Colorado:
you now can be single or married to receive a state real estate license.
you can only hold one state license at a ti
will no longer issue a real estate salesperson license
As of January 1, 1997 only real estate broker's license will be issued. Salesperson licensed under the old law will eventually need to upgrade to a broker. You are allowed to hold real estate licenses
The maximum amount of days that can be specified in the Holdover Period in the Listing Contract is:
30 days
60 days
90 days
negotiable by Seller and Broker
Negotiable.
the Listing Period expires (Holdover Period) (1) to anyone with whom Broker negotiated and (2) whose name was submitted, in writing, to Seller by Broker during the Listing Period (Submitted Prospect). Provided, however, Seller ___ Will __Will
The law that requires that any Colorado real estate license applicant:
apply for an associate broker license
apply for an independent license with educational classes en lieu of experience
will have a 30-day probationary period
will have the same level of
apply for an associate broker license
Taxes for the current year are usually:
prorated and charged to the seller and credited to the buyer at closing
a bill is sent to the seller when they are due, and they may forward it to the buyer to pay their share
paid by the Title Company as part of th
prorated and charged to the seller and credited to the buyer at closing
Since taxes are paid in arrears the seller pays are prorated for the period of time the seller has lived in the property, and is shown on the settlement statement as a debit to the se
The office policy manual establishes the types of brokerage relationships your broker offers. If your seller requests you to offer one that is not offered, you should:
offer that relationship to your seller anyway
discuss the issue with your broker
have t
discuss the issue with your broker
Your broker establishes an office policy manual for guidelines involving the real estate transactions in that office. Any deviation from office policy should be discussed with your employing broker.
The least expensive way of getting clients is:
bulk mailing to 5,000 residents
holding open houses
advertising in print and television
farming a 200-block subdivision
holding open houses
Open houses are one of many affordable ways to find a prospect, as there is little direct expense required.
Which of the following is NOT a fixture:
Shrub
Tree
Swimming Pool
Land
Land
Land is not a fixture. Land is something to which fixtures are attached. Fixtures are anything which is permanently attached to land or improvements such as patios, garage doors, grass, windows and basketball hoops. Personal property is something tha
Interest on the loan assumed is shown as:
debit to the buyer
credit to the buyer
credit to the broker
credit to the seller
Credit to the buyer a debit to the seller.
Title insurance endorsements appear on a closing statement as a:
Credit to the seller
Debit to the seller
Debit to the broker
Credit to the broker
Credit to the broker
The Title Company or broker, whoever is doing the closing, collects money for title insurance endorsements most typically from the buyer (Debit Buyer) and then places the coresponding amount into the Credit Broker column to ensure a c
A $4,000 tax lien is shown on the title work. The contract:
terminates
proceeds so long as the lien is paid at or prior to closing
buyer has to buy the property without title insurance
Title Company pays this as part of the insurance
proceeds so long as the lien is paid at or prior to closing
All liens and defects against the title; the seller has the option to cure all defects to title and the contract does not terminate.
Upon receiving your first license, it will:
automatically renew on December 31st, of the year you receive it for the following three years
be good for three years
expire on December 31st, of the year you receive it
state your name as independent broker
be good for three years
To become an employing broker, one must:
have three years active experience
pass the uniform portion of the broker exam
take 48 hours Brokerage Administration
take 24 hours Brokerage Administration
take 24 hours Brokerage Administration
Take 24 hours of Brokerage Administration, have two years active experience, and pass the state portion of the broker exam
A licensee who wishes to pursue a career in a specialty area of real estate:
must have a special license for property management
must have a special license to practice commercial real estate
must have a special license for farm and ranch land
does not ne
does not need any special license for farm-ranch and vacant land sales, property management, as well as commercial and residential real estate.
There is only one license in Colorado and it allows the practice of all types of real estate activity.
Being an independent contractor; your earned commissions:
reflect tax deductions
reflect no deductions
are paid once a month
are held for 30 days
reflect no deductions
The commission rule, that requires an employing broker to supervise associate brokers, stipulates:
the broker meets with his associate brokers once a week
the broker does not need to maintain a written office policy
the broker must review at least 10% of
the broker should exercise reasonable supervision over activities of licensed employees
The broker should exercise reasonable supervision over activities of the licensee, maintain a written office policy and review all contracts and to ensure required doc
Which items, are not considered physically attached to the property and are not included in the sale?
Light fixtures
Curtain rods
Storage rods
Draperies
Draperies
Personal property is not included in the sale of real estate. Draperies do not satisfy the tests of fixtures since they are not permanently attached. All other items in answers are permanently attached.
The title company may be hired by the listing broker:
to prepare legal documents from scratch
and may charge the buyer and/or seller for the preparation of legal documents
and has ultimate responsibility for the accuracy of legal documents
to act as scriv
to act as scrivener for the transaction
Although buyers and sellers may be charged a fee for closing, no fee may be charged for preparation of legal documents, except by an attorney representing the buyer or seller. The Conway-Bogue decision granted real
The Licensee Buy-Out Addendum to a Contract To Buy and Sell Real Estate becomes a binding contract with the listing company when:
a. the listing company supervising broker signs
b. the seller & the licensee sign
c. the seller signs
d. the buyer, and the b
a. the listing company supervising broker signs
It is PERSONALLY binding on the seller and the agent (buyer) when they sign the contract. Although there is a place at the bottom for the supervising broker's signature, that signature is not mandatory. If t
Which does the buyer have to disclose to the seller when using the Licensee Buyout Addendum?
That the Buyer stands to make a profit
That the Buyer is exposed to possible losses and expenses
That the property may be immediately sold by the Buyer
All of the
All of the above are required disclosures
From the Licensee Buyout Addendum:
RESALE, PROFIT/LOSS, EXPENSES. Seller acknowledges that in entering into the Contract, Buyer is exposed to possible losses and expenses. Seller acknowledges that following Closin
At closing, the earnest money is credited as follows:
to the seller
to the buyer
to the lender
to the listing agent as commission
to the buyer
Earnest money is credited to the buyer at closing and debited to the broker.
A Realtor is:
any active broker
a member of NAREB
a member of IREM
a licensee that pledges to observe the Code of Ethics and Standards of Practice adopted by NAR
a licensee that pledges to observe the Code of Ethics and Standards of Practice adopted by NAR
A Realtor is a licensee that joins the National Association of Realtors and pledges to observe the Code of Ethics and Standards of Practice.
If the buyer and seller have not reached a resolution on inspection issues the contract will terminate:
one day following the resolution deadline.
on the expiration of the resolution deadline.
one day following the objection deadline.
on the objection dea
on the expiration of the resolution deadline.
The Buyer solely determines if the condition of a property is satisfactory or not. Although the Buyers normally will list items they wish the Seller to address; they are not required to do so. The Buyer can si
In Colorado, when must real estate licenses be renewed?
every three years with expiration on December 31 of the third year
every three years on the anniversary date of first being licensed, or any date mandated by the CREC.
each year at the anniversary of
every three years on the anniversary date of first being licensed, or any date mandated by the CREC.
In the Contract to Buy/Sell Real Estate (AKA the purchase contract), who is responsible for the cost of the appraisal?
Buyer
Seller
Split between all parties to the contract
Negotiable
Negotiable
Who pays what in the purchase contract is always a matter of negotiation. Although there are traditions that we follow, such as the Seller paying for Title Insurance, this is custom and not law. Neither the Real Estate Commission or State Statu
Which of the following is required for a person to be a broker of record for a corporation?
a corporate position as a director with voting rights
an executive position with the corporation such as president or chief executive officer
a valid active Colora
a valid active Colorado broker's license
The only requirement in order to be the broker of record for a corporation is that one have a valid, active Colorado broker's license, and have fulfilled the necessary requirements to be an Independent Broker.
If a broker is asked for additional information on working relationships, the broker must provide:
the written office policy
definitions of relationships
Commission-approved form "Definitions of Real Estate Working Relationships"
the telephone number for
Commission-approved form "Definitions of Real Estate Working Relationships"
Definitions of Real Estate Working Relationships is a form that gives the official Real Estate Commission-approved definitions of the various relationships such as Buyer Agency, S
Which is not true regarding the Counterproposal form:
The purchase contract should not be signed by the person creating the counterproposal
The date and deadlines table can be omitted if not used
If a date or deadline is left blank it means "no change"
Th
The only changes allowed are purchase price and earnest money
Whoever creates the counterproposal can make any change they want.
The closing entity must withhold from the sellers proceeds up to 2% of:
The net proceeds as a luxury tax if the seller is from out-of-state
The net proceeds as a sales tax if the seller is from out-of-state
The selling price as a possible property tax lia
The selling price as a possible income tax liability if the seller is from out-of-state
When a licensee purchases a property utilizing a licensee's buy-out agreement:
a commission may be collected
a commission may not be collected
a commission may be collected with proper disclosure
nothing prohibits a licensee from collecting a commission
a commission may not be collected
Under the licensee buyout agreement a licensee will not collect a commission.
Licensees are required to:
take 32 hours of continuing education every three years
carry a license pocket card
display their license in a conspicuous place
purchase E & O insurance every year
purchase E & O insurance every year
What is a mandatory recommendation in the Contract to Buy/Sell Real Estate?
Use of a home inspector
Use of Legal Counsel
Use of a surveyer to verify property boundaries
Use of Legal and Tax Counsel
Use of Legal and Tax Counsel
Brokers are required to recommend use of legal and tax counsel to their clients. This is accomplished through the following verbiage:
From the Contract to Buy/Sell Real Estate;
RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signi
Every employing broker must provide:
medical insurance
a 401K plan
supervision
personal assistants
supervision
Every employing broker must provide supervision. It is the law!
Which of the following is true for a person activating an inactive or expired Colorado real estate license?
are not required to make up for the continuing education requirements they missed
must satisfy the continuing education requirement before they app
must satisfy the continuing education requirement before they apply to activate an inactive license or to reinstate an expired license to active status
his answer is a two-edged sword. To convert an inactive or expired license to active status the license
A growing crop, also known as emblements, is regarded as:
real property until harvested
leasehold property
property of the land
property of the tenant farmer
property of the tenant farmer
Emblements are regarded as personal property even before harvest; thus a tenant has the right to take the annual crop resulting from his or her labor.
An offer to purchase is given to Broker Mary who has an Exclusive Right To Sell listing agreement with a seller. She..
must verify buyer's financial condition by her independent investigation
is responsible for validating sellers statements on Sellers Pro
must disclose all material facts about the property that is know to her
The Commission requires a licensee who advertises the square footage of a property to do which of the following:
disclose in the MLS the source of the measurement
disclose in writing to the Buyer using the Square Footage Disclosure form the manner in whic
disclose in writing to the Buyer using the Square Footage Disclosure form the manner in which the square footage was taken
This is accomplished on the Square Footage Disclosure Form. The licensee is not required to measure the square footage, but is respo
All units in a community are being assessed for sidewalk improvements to a road along one side of the community. This is:
Rise in property taxes
A Community Assessment
Rise in HOA dues
A Special Assessment
A Special Assessment
. Although a rise in property taxes is close, because the government is definitely pulling more money out of your pocket, this situation has its own name and is referred to as a Special Assessment. A Special Assessment is whenever the
As per the Assignability and Inurement clause in the Contract to Buy/Sell Real Estate:
Checking the "Is" box means the contract is assignable with the seller's prior written consent
Checking the "Is" box means the contract is assignable without the seller
Checking the "Is" box means the contract is assignable without the seller's prior written consent
Assignability and Inurement. This Contract ___ Is ___ Is Not assignable by Buyer without Seller's prior written consent.
As per the Assignability and Inurement clause in the Contract to Buy/Sell Real Estate:
Checking the "Is Not" box means the contract is NOT assignable without the seller's prior written consent
The seller agreed to include the stove, refrigerator and microwave, asked for in the purchase and sale contract. After taking possession, the buyer noticed that the refrigerator was smaller and a different color than the one he saw prior to closing. The s
no recourse because he didn't specify which one he wanted included in the purchase agreement
Specify clearly in the inclusions and exclusions of the purchase and sale contract what your buyer wants to be included.
A broker who does not have any employed licensees must:
maintain an office policy on brokerage relationships
work out of an office, not his or her home
keep records for 7 years
offer all brokerage relationships
maintain an office policy on brokerage relationships
A transaction broker relationship may be created by:
Lead-Based Paint Disclosure
an oral disclosure is sufficient
approval of the employing broker
Brokerage Disclosure to Buyer
Brokerage Disclosure to Buyer
Seller and Buyer Agency relationships must be in writing. In the absence of a written agreement the default non-agency relationship is a transaction broker. However, prior to performing a licensed activity such as eliciting o
At the time of taking a listing, the broker should have the seller complete which of the following documents?
HUD-1
Seller's net proceeds
Promissory note for broker'scommission
Seller's Property Disclosure
Seller's Property Disclosure
The seller's property disclosure and lead based paint disclosure are required. The seller's net proceeds helps show costs the seller might pay and will vary with different offers.
Employing Broker "reasonable supervision" includes all of the following EXCEPT:
reviewing all contracts
review transaction files
maintaining an office policy manual
attending first meeting with client
attending first meeting with client
E-31. Reasonable supervision.
Pursuant to section 12-61-113(1)(o), C.R.S., and in addition to the requirements of Commission Rule E-30 "reasonable supervision" of licensees with two or more years of experience shall inc
In order to avoid blind advertising, you need to:
name the employing broker in the advertisement
hang your license under an employing broker
be supervised by another broker
write all of your ads yourself
name the employing broker in the advertisement
A buyer makes an offer through the listing broker on a seller's property. The buyer offers $98,000 and asks the seller to pay 3 discount points. The property is listed for $103,900.00. The seller agrees to the $98,000, but submits a counterproposal that s
The buyer is the offeror
When the buyer made her original offer, she was the offeror and the seller was the offeree. Once the seller countered the buyer's original offer their roles reversed. The seller became the offeror because the counterproposal const
The seller agrees to pay $1500 of the buyer's closing costs, this is shown on the settlement sheet as:
debit to the seller, credit to the broker
debit to the seller, credit to the buyer
debit to the seller single entry
debit to the broker, credit to the b
debit to the seller, credit to the buyer
Debit Seller/Credit Buyer. The term Closing Costs covers a variety of charges such as Recording Fees, Survey, Documentary Fee, Appraisal and others. The Seller contribution may not cover all of them. To keep it sim
Before being employed by a broker, you should receive and review:
the office telephone policies
the history of the company
a list of all current listings
an employment agreement
an employment agreement
A broker must offer:
only the relationships he or she chooses to offer
all relationships approved by the Real Estate Commission
transaction broker
buyer's and seller's agency
only the relationships he or she chooses to offer
A property is listed with Rockwell Realty at $70,000. Rockwell Realty negotiates with Woods who is familiar with the property and who agrees to buy the property at that figure. Rockwell Realty prepares an agreement of sale, which is signed by Woods. Copie
This is not an enforceable contract and Rockwell is not entitled to a commission
An offer can be withdrawn anytime prior to acceptance. Acceptance means the offer has been signed AND acceptance communicated to the other party. Since the postmark is the da
Which of the following is true concerning commissions earned by a broker in a real estate sales transaction?
they are based on a schedule of commission rates set by the real estate commission
they may be deducted from the earnest money deposit and claimed
they are determined by agreement of the broker and the principal
Commissions are always negotiable between the principal and the agent
The Commission's intent in promulgating Rule E-13 (Sign Crossing Rule) was:
to allow two agents to collect a commission on the same property
to assist brokers in obtaining more listings
to protect the owner from possible claims that two commissions are ow
to protect the owner from possible claims that two commissions are owed
Only when an owner contacts and initiates the discussion, may the licensee negotiate the terms upon which to take a future listing if the property is currently listed.
A broker may operate from:
his or her office
any office
the address on the broker's license
his or her car
the address on the broker's license
As per terms of Closing Instructions, a closing company must do all except:
provide an accurate and detailed closing statement
mandatory release of earnest money if buyer fails to close
provide copies of all signed documents
authorized to obtain any infor
mandatory release of earnest money if buyer fails to close
As per Closing instructions:
EARNEST MONEY DISPUTE. Except as otherwise provided herein, Earnest Money Holder shall release the Earnest Money as 36 directed by written mutual instructions, signed
An agency relationship may be established by:
a written agreement
an oral agreement
Approval of the employing broker
written disclosure
a written agreement
Agency relationships must be in writing.
Time is of the essence means:
performance will not be waived
the period of performance or acceptance will be enforced strictly
performance must be completed before a commission will be paid
the parties cannot agree to any extension of the agreement
the period of performance or acceptance will be enforced strictly
If dates are not met in the contracts the parties are considered out of contract.
A broker received a commission for $20,940 for the sale of a $349,000 house. What was the commission rate?
0.06
0.07
0.08
0.09
6%
The closing instruction form must be used in conjunction with an approved:
listing contract at the time a listing is signed
property disclosure
promissory note
buyer-agency agreement
listing contract at the time a listing is signed
The commission's position is that this form is initiated, with the buyer or seller at the time the listing is taken. (REM 13-6)
A broker acting as an agent must:
act as an advocate for the buyer or seller
exercising reasonable skill and care, as well as act as an advocate for buyer or seller
not act as an advocate for either the buyer or the seller
not inform the buyer or seller t
exercising reasonable skill and care, as well as act as an advocate for buyer or seller
Agency requires a fiduciary responsibility from the agent to the Principal, therefore, an agent must exercise reasonable skill and care as well as being an advocate fo
A three-day right of rescission applies to:
second mortgages
FHA loans
VA loans
conventional loans
second mortgages
Residential mortgages are exempt from rescission if the mortgage is created to finance the acquisition or initial construction of the consumer's principal dwelling. (REM 5-13)
If a property owner tells you the land only flooded during the "great flood" over 100 years ago, a licensees obligation to a potential buyer is....
provide them with necessary documentation and assure them that there''s nothing to worry about
direct them
direct them towards the public records which would specify whether the land is in a flood zone
Recognizing when you are out of your area of expertise and knowing how to deal with it, is an important skill and required by the Real Estate Commission. Recomm
If a member of the public suffers any loss, due to the lack of care or knowledge or skill, which a competent real estate broker should possess, that person can hold the broker liable for such loss through:
civil action before the Real Estate Commission
di
disciplinary action before the Real Estate Commission
The public can request and brokers can be subject to disciplinary action before the Real Estate Commission. Only courts can rule on civil actions and assess damages.
Which of the following would an unlicensed personal assistant be permitted to do?
Complete and present a comparative market analysis
Drive potential buyers to a listing and discuss purchase options
Answer questions about the seller's motivations as long a
Distribute factual literature prepared by a licensed associate
An unlicensed assistant is allowed to distribute literature, they can chauffeur buyers to a property as long as no licensed activity is performed and they may complete but not present a market
Antitrust laws govern all of the following practices except:
price fixing
allocation of markets
boycotting
a broker requiring all of his brokers to charge 6% commission
a broker requiring all of his brokers to charge 6% commission
Price fixing, boycotting, and allocations of markets are all illegal practices.
Seller is giving the buyer a contingency but doesn't want to be stopped from selling forever. The seller should consider:
increasing the earnest money
get proof of buyer financing
refuse the contingency
countering with an escape clause
countering with an escape clause
Before we define "escape clause" lets define "contingency". When a seller agrees to accept a contingency from a buyer, they are agreeing to sell the property to the buyer contingent on the buyer selling their property. Sel
At the time of harvest, crops that require annual planting are generally considered to be
personal property
real property
appurtenances
improvements
personal property
From the freedictionary.com - Commodities produced from the earth which are planted, raised, and gathered within the course of a single season.Crops might be produced either naturally or under cultivation. This distinction becomes import
As per the Contract to Buy/Sell Real Estate:
LEGAL FEES, COST AND EXPENSES. Anything to the contrary herein notwithstanding, in the event of any arbitration or litigation relating to this Contract, prior to or after Closing Date (� x), the arbitrator or c
the prevailing party all reasonable costs and expense
Do not confuse litigation and arbitration with mediation. Mediation is a non-binding process and all parties share in the costs equally. Litigation and arbitration is binding and the prevailing party w
Broker is allowed to facilitate safeguards for seller assisted financing by adherence to the following EXCEPT:
Advise buyers and sellers to consult legal and tax counsel for advice
Cooperate with appraisers as they perform their due diligence in asking qu
Notify Real Estate Commission of true selling price of home
The real estate commission does not track sale prices of homes.
CP-30 State of Colorado Real Estate Commission and Board of Real Estate Appraisers Joint Position Statement
The Colorado Real Estat
f the purchaser makes an offer to buy conditional on the ability to secure a loan and is unable to, after the buyer has in good faith pursued the loan application, the buyer:
will lose his earnest money
will pay damages
will pay the commission
may cancel
may cancel the contract to purchase
If the buyer has pursued a loan in good faith and cannot obtain the loan, the buyer may cancel the contract of purchase. (REM 13-7)
The following is true of discount points:
the seller must always pay the discount points
a discount is a percentage, of the loan amount, required by the lender to obtain the same yield that could be obtained on loans offering a higher interest rate
the bu
a discount is a percentage, of the loan amount, required by the lender to obtain the same yield that could be obtained on loans offering a higher interest rate
Discount pooints are a percentage of the loan amount and either party can pay discount fees. (R
If it is the broker's office policy to offer differing splits to various types of cooperating brokers, such as one amount to buyer agents and another to transaction brokers:
no disclosure is required
it must be clearly disclosed to a seller that such a po
it must be clearly disclosed to a seller that such a policy could result in restricting market exposure or cooperation from other brokers
It must be disclosed to the seller that such a policy could result in restricting market exposure or cooperation. (RE
At the time of taking the listing, the broker has the responsibility of:
providing buyers
providing comparable properties and their prices
driving a nice car
listing the property high
providing comparable properties and their prices
At the time of the listing, a broker should call to the attention of the owner comparable properties and prices. (REM 13-5)
A transaction broker must:
not act as an advocate for either party, but must exercise reasonable skill and care
act as an advocate for either buyer or seller
inform the buyer or seller that they could be legally responsible the agent's actons
may not act
not act as an advocate for either party, but must exercise reasonable skill and care
May not act as an advocate for either party but must exercise reasonable care.
The owner is justified in canceling the listing agreement if the listing broker:
makes full disclosure
provides proper comparable properties
does not exert reasonable effort to sell the property
presents offers delivered to the broker.
does not exert reasonable effort to sell the property
Of the following; who is responsible for for an accurate and complete closing statement?
closing company
closing agent for closing company
employing broker not attending closing
real estate broker attending closing
real estate broker attending closing
Real estate brokers are required by Rules E-4 and E-5 to provide copies of complete and accurate closing statements to buyers and sellers for any transaction in which the broker
assists or acts in an agency capacity. A
An Exclusive Agency Addendum to the Exclusive Right-To-Sell Listing Contract:
Engages the licensee as the Exclusive Agent for the property
Engages the licensee as the Exclusive Agent who will receive a commission upon any sale of the property
Allows a sec
Allows the seller to not pay a commission to the listing broker if the seller should procure a buyer
Exclusive Agency is an addendum you add to a listing contract. In it, the seller reserves the right to not to pay a commission to an agent if the seller f
A buyer's agent should do all of the following except:
search out appropriate properties for the buyer
never encourage the buyer to view properties or attend open houses on their own
be available to show the buyers properties at the convenience of the buy
reveal the buyer's motivation to the listing agent
A broker must be available for the buyer, must search out appropriate properties and should not encourage buyers to view homes on their own. (REM 13-5)
When a contract is rejected by the Seller, the seller should:
not return the contract
write "rejected" across the front of the contract
check the appropiate box and initial on the indicated line
indicate a rejection on the appropriate box and complete a c
check the appropiate box and initial on the indicated line
They should not sign the contract. Instead there is a check box to indicate if the offer is being rejected or countered. The seller intials in the appropriate area.
Procuring cause means:
showed the property to the buyers
creating an uninterrupted chain of events that resulted in a closed transaction or sale
a broker that provided affirmative service
the broker returned all of the buyer's calls in a timely manner
creating an uninterrupted chain of events that resulted in a closed transaction or sale
Procuring cause means creating an uninterrupted change of events that resulted in a closed transaction or sale.
Under the Commission-approved Contract to Buy and Sell, if the buyer diligently tried to get a loan, was unable to do so and notified the Seller of such before the Loan Objection Deadline had passed, what would happen to the earnest money deposit?
The bro
The broker would release the money back to the buyer
A buyer has until the Loan Objection Deadline to provide written notice s/he cannot get a commitment for a satisfactory loan and wants to terminate the contract. If s/he does provide such notice, the ea
In the case of a listing contract that has been unilaterally canceled by a seller who wishes to list with another broker during the active term of the original listing:
the new broker may list without any worry
the new broker may not list, as the listing
the subsequent broker must explain, prior to taking the listing, the potential liability for the payment of two commissions
The Broker must explain the liability for the potential payment of two commissions. (REM 13-5)
All of the following are true regarding the Exclusive Right-to-Sell listing contract except:
there is a one contract for all types of listings
a listing contract may establish seller-agency
a listing contract may be executed without establishing agency
mo
more than one listing contract may be executed for the same time period, for the same property
The Right to Sell Listing contract provides exclusivity to the listing broker to sell the property. The broker will be entitled to compensation regardless of wh
Keeping track of earnest money funds received in the course of a transaction is usually:
the responsibility of the listing agent
the responsibility of the selling agent
determined by mutual agreement in accordance with the contract
the responsibility of t
determined by mutual agreement in accordance with the contract
The contract to purchase stipulates who will hold the earnest money.
A counterproposal:
is a rejection of a proposed contract to buy/sell
amends the terms and conditions of a proposed contract to buy/sell
use is mandatory to modify the terms and conditions of a contract to buy/sell
is used to counter the purchase price onl
amends the terms and conditions of a proposed contract to buy/sell
The key here is "supersede and replace." This is not merely a rejection of an offer, it is amending the original offer, not rejecting it entirely.
Select the correct statement about a lease in Colorado:
Residential leases have an implied warranty of habitability
Commercial and Residential leases have an implied warranty of habitability
The Landlord is responsible for repairs
The Tenant is responsibl
Residential leases have an implied warranty of habitability
Property Mangement and Leases - Duties and Liabilities of the Parties, All residential leases have an implied Warranty of Habitability. This means they must meet a minimal set of standards for ho
FHA loans are available:
for low-income families only
for owner-occupied homes
for investors only
for owner-occupied homes and low-income families only
for owner-occupied homes
If an agent forgets to renew her license and submits the application to renew 30 days late. The status of her license during this 30 day period is:
active
suspended
expired
inactive
inactive
On the date a license expires, for the following 30 days it is placed into an "inactive" status and may be renewed by paying the regular renewal fee. After 30 days it is placed into an "expired" status. Renewing an expired license requires the pa
When purchasing a "new home" through a builder, the earnest money should be held in the:
broker's escrow account
builders escrow account
Title Company's escrow account
lenders escrow account
builders escrow account