Cindy is an associate broker who received a thank you letter and nice bonus check from the seller of a house several weeks after the closing. Cindy cashed the check because she felt she earned it. Which of the following is true in this situation?
It is a violation of commission regulations to accept the money.
When an exclusive right-to-buy contract has been executed, who is obligated to pay the broker working with the buyer?
It is determined by which box is checked in the contract
The following is true of 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
You're holding an open house for another agent. A prospective buyer comes in and asks a bunch of questions. You can't answer some of the questions but tell her you will get back to her. What is your relationship with this individual?
No agency was created
A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this relationship?
Agency coupled with an interest
Title insurance protects the buyer against:
All liens of record that are not listed in the schedule of exceptions
Real estate brokers must keep abreast of all of the following except:
changes in criminal laws
Who of the following is required to obtain errors and omissions professional liability insurance?
every active Colorado licensee
Upon acceptance by the seller of a Purchase and Sale Agreement, the buyer:
has an equitable interest in the property
A counterproposal:
amends the terms and conditions of a proposed contract to buy/sell
FHA loans are available:
for owner-occupied homes
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 subsequent broker must explain, prior to taking the listing, the potential liability for the payment of two commissions
The lender may require the following items from the purchaser except:
there current property taxes
The maximum amount of days that can be specified in the Holdover Period in the Listing Contract is:
negotiable by Seller and Broker
An owner falls behind on payments. The lender declares the full loan amount due. This is the result of what clause in the promissory note:
Acceleration clause
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 subsequent broker must explain, prior to taking the listing, the potential liability for the payment of two commissions
A transaction broker must:
not act as an advocate for either party, but must exercise reasonable skill and care
At the time of taking the listing, the broker has the responsibility of:
providing comparable properties and their price
Megan's Law requires:
sex offenders to register with the local police department
A broker acting as an agent must:
exercising reasonable skill and care, as well as act as an advocate for buyer or seller
A broker is working with a buyer. The buyer believes there to be a water leak in the home. What should the broker do?
Contact the listing broker and inform her of the problem.
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
A buyer working with a broker has been unable to reach the broker for two days. Even though the broker gave word to his office that an emergency called him out of town, the buyer could construe this to be:
abandonment
The closing instruction form must be used in conjunction with an approved:
listing contract at the time a listing is signed
If 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:
may cancel the contract to purchase
At the time of harvest, crops that require annual planting are generally considered to be
personal property
Prior to closing, it is usually the responsibility of the following person to order the appraisal:
the lender
The Exclusive-Right-to-Buy Listing Contract calls for "reasonable efforts to locate property." Which of the following would most likely demonstrate such efforts?
showing the buyer properties that meet the general description of the property as defined in the contract
The broker must keep funds received on behalf of others in:
an identified trust account separate from the broker's other funds
A three-day right of rescission applies to:
second mortgages
Which of the following items are signed by the buyer or seller, or lender and not sent to the county for recording?
The promissory note
When purchasing a "new home" through a builder, the earnest money should be held in the:
builders escrow account
Procuring cause means:
creating an uninterrupted chain of events that resulted in a closed transaction or sale
Broker A is a sole proprietor. He quits business and goes to work under Broker B. Whose responsibility is it to keep Broker A's previous records?
Broker A
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
Which of the following is true about licensees filling in blanks on a standard commission-approved form?
This is the practice of law but it is specifically permitted by Colorado law.