Colorado Exam 1-74 Questions Flashcards Preview

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Flashcards in Colorado Exam 1-74 Questions Deck (75)
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1
Q

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A

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2
Q
  1. After hearing in an initial decision before in the administration of law , the real estate commission may do all of the following except
  2. Fine and censure a licensee
  3. Suspend a licensees license
  4. Revoke a licensees license
  5. Direct six months to one year in jail and says spend a license for an equal period of time
A
  1. Direct six months to one year in jail and says spend a license for an equal period of time
3
Q
  1. Which of the following need a real estate license in Colorado?
  2. and on-site manager of an apartment building for performing the customary duties of an on-site manager
  3. A regular a salaried, on-site manager of a condominium complex employed by a Homeowner association, who also shows and sells units in the complex, for individual owners
  4. A real estate broker license in another state the receives a share of the commission from a Colorado real estate broker
  5. A person employed by a corporation who negotiates the purchasing of rights of way the telecommunication lines
A
  1. A regular a salaried, on-site manager of a condominium complex employed by a Homeowner association, who also shows and sells units in the complex, for individual owners
4
Q
  1. Which of the following is not required to maintain errors and omission insurance?
  2. An inactive licensee
  3. An active licensee
  4. An attorney at law was also an active licensee
  5. A broker associate
A
  1. An inactive licensee
5
Q

Five. Excluded

A

Excluded

6
Q

Six. Sally Smith is license with a real estate commission as Smith Realty an investment company, a Colorado corporation. All advertising that Sally or her associates do must be

  1. Under the name of Sally Smith
  2. . As Sally Smith DBA Smith Realty an investment company
  3. Smith Realty an investment company
  4. With the associates name license under Smith Realty an investment company
A

3 . Smith Realty an investment company

7
Q
  1. And employing broker may designate one or more brokers to serve the public in a particular transaction, this designation would be best covered in:
  2. An independent contractor agreement
  3. The office policy manual
  4. The employee – employer agreement.
  5. The sales contract
A
  1. The office policy manual
8
Q
  1. As a result of the sale a broker would properly received from a title company
  2. free CE classes
  3. Coffee at a sponsored event.
  4. Brochures for the brokers listings.
  5. A trip to the national realtor convention
A
  1. Coffee at a sponsored event.
9
Q
  1. A broker is purchasing property for his own use he must:
  2. Use the licensing buy out addendum
  3. Disclose this license status in writing
  4. Disclose the brokerage company relationship
  5. Be a transaction broker
A
  1. Disclose this license status in writing
10
Q
  1. Which of the following is required one a broker takes a listing?
  2. A commission right expressed as a percentage
  3. The signature of employing broker
  4. A release signed and attached to the current listing from any previous broker
  5. A definite date of termination
A
  1. A definite date of termination
11
Q
  1. A broker is preparing a contract to buy and sell and needs an addendum to cover aspects of the sale not covered in negotiations between the two parties which of the following can prepare the addendum?
  2. The broker preparing the offer
  3. An attorney at law
  4. The employing broker
  5. The title company
A
  1. An attorney at law
12
Q
  1. An unlicensed personal assistant may do all the following except
  2. Distribute information on list of properties
  3. Provide access to property.
  4. Type a contract to buy and sell at the direction of the broker
  5. Negotiate with the buyer after showing a property until a license person is available
A
  1. Negotiate with the buyer after showing a property until a license person is available
13
Q
  1. A seller is not happy with the licensee who has her listing. She meets another broker at a neighborhood event and indicates that she would be interested in talking to this other broker about her listing the broker may:
  2. Try to help her by telling her how to deal with her agent
  3. Negotiate how his broker might take a future listing
  4. Sympathized with the seller for having such a bad agent
  5. Tell the seller how to fire her agent
A
  1. Negotiate how his broker might take a future listing
14
Q
  1. Relating to the real estate commission position statement on seller assist to down payments, a broker can facilitate safeguards by all the following except:
  2. Note the presence and amount of any seller paid costs in the proper transaction documents.
  3. Record all transaction terms in the MLS
  4. Confirm comparable sales including the details of previous contracts
  5. Advise buyers and sellers to seek legal counsel
A
  1. Confirm comparable sales including the details of previous contracts
15
Q
  1. In employing broker can pay part of his commission to
  2. An unlicensed friend who helps to negotiate a sale.
  3. And employing broker in another state
  4. An associate broker working for another company
  5. A relocation company who did not refer to the buyer or seller
A
  1. And employing broker in another state
16
Q
  1. A lease agreement has expired unless the lease agreement states otherwise, the landlord must return the tenants security deposit within:
  2. Three months
  3. 60 days
  4. 45 days
  5. One month
A
  1. One month
17
Q
  1. Colorado water law is based upon
  2. Littoral rights.
  3. Prior appropriation.
  4. Mandates from the federal government.
  5. Allocation based on surface and subsurface rights.
A
  1. Prior appropriation.
18
Q
  1. A buyer purchases property and is told by the broker that third parties me on an interest in subsurface rights to the property. All of the following could be subsurface rights except:
  2. Geothermal energy.
  3. Natural gas
  4. Improvements
  5. Minerals
A
  1. Improvements
19
Q
  1. A property owner wishes to pay property tax and one payment without penalty. The taxes must be paid:
  2. On or before June 15
  3. Within 10 days of receiving the tax statement from the county
  4. On that or before April 15.
  5. On or before the last day of April.
A
  1. On or before the last day of April.
20
Q
  1. The primary difference between mortgage brokers and mortgage bankers is:
  2. Mortgage brokers arrange loans between lenders and borrowers.
  3. Mortgage bankers never originate loans from their own funds
  4. Mortgage brokers always originate loans from their own funds
  5. Mortgage bankers always act as intermediaries
A
  1. Mortgage brokers arrange loans between lenders and borrowers.
21
Q

21 dismissed

A

21 dismissed

22
Q

22 dismissed

A

22 dismissed

23
Q
  1. The Colorado homestead exemption, unless waved, will protect the homeowner:
  2. From any debt
  3. Secured debt only
  4. Unsecured debt only
  5. Only if the home owner has registered the homestead exemption
A
  1. From any debt
24
Q
  1. A statutory power of attorney for property:
  2. Maybe used to grant an agent power with respect to property and other matters.
  3. Would be illegal to use in Colorado.
  4. Must be a general power of attorney
  5. Must be specific purpose
A
  1. Maybe used to grant an agent power with respect to property and other matters.
25
Q
  1. Which of the following is not an approved listing form?
  2. Exclusive right to sell
  3. Exclusive brokerage
  4. Exclusive net
  5. Exclusive right to buy
A
  1. Exclusive net
26
Q
  1. In a listing agreement, broker A has the right to change his relationship from agent to transaction broker. The change of status form must be signed at the time:
  2. The seller signs the listing
  3. The buyer signs the offer to purchase
  4. Of closing
  5. The relationship changes
A
  1. The relationship changes
27
Q
  1. A licensee may take an agency agreement with the buyer or seller
  2. On a commission approved form
  3. On a form prepared by a buyer or seller’s attorney
  4. In writing
  5. All of the above
A
  1. All of the above
28
Q
  1. The lead-based disclosure is not properly given. The contract is:
  2. Terminated
  3. Void
  4. Canceled
  5. Rescinded
A
  1. Void
29
Q

29 canceled

A

29 canceled

30
Q
  1. If a buyer does not receive a loan commitment by the loan commitment deadline, and does not notify the seller in writing, the buyer may:
  2. Terminate the contract
  3. Loose his earnest money
  4. Declare the seller in default
  5. Unilaterally extend the date
A
  1. Loose his earnest money
31
Q
  1. The acronym MEC in the contract to buy and sell means the:
  2. Latest date that the contract can be excepted
  3. Latest date upon which both parties have signed
  4. Date that the earnest money must be deposited
  5. Date for buyers loan commitment
A
  1. Latest date upon which both parties have signed
32
Q
  1. The buyer and seller are in agreement that the date for closing needs to be moved for by one week. The proper form to be completed is a/and:
  2. Agreement to amend/extend contract with broker
  3. Agreement to amend/extend contract
  4. Agreement to amend closing instruction
  5. Counterproposal
A
  1. Agreement to amend/extend contract
33
Q
  1. If the title commitment or title documents are not delivered to the buyer on the date specified in the contract. The contract can be:
  2. Void
  3. Terminated
  4. Canceled
  5. Rescinded
A
  1. Terminated
34
Q
  1. According to the contract to buy and sell, the payment of closing services will be paid:
  2. By the seller
  3. By the buyer
  4. By the broker
  5. Depending upon which box is checked
A
  1. Depending upon which box is checked
35
Q
  1. If a dispute arises relating to the contract to buy and sell, the parties shall first:
  2. Follow the directions of the listing broker
  3. Submit the matter to arbitration
  4. Submit the matter to mediation
  5. Proceed to small claims court
A
  1. Submit the matter to mediation
36
Q
  1. The purpose of the broker signing in the ״broker acknowledgments״ area of the contract to buy and sell, is to acknowledge:
  2. Their brokerage relationship.
  3. Who will pay compensation.
  4. Receipt of the earnest money.
  5. How much the commission will be
A
  1. Receipt of the earnest money.
37
Q
  1. If a buyer is in default and the sellers remedy is specific performance:
  2. The buyer may treat the contract is terminated
  3. The specific performance box must be checked
  4. Liquidated damages are sellers sole remedy
  5. Seller waves additional damages
A
  1. The specific performance box must be checked
38
Q
  1. The buyer has the right to walk – through a property prior to closing. The purpose of the walk – is to:
  2. Renegotiate the inspection items
  3. Give the buyer and out if he chooses not to buy
  4. Verify that the physical condition complies with the contract
  5. I sure the broker a commission
A
  1. Verify that the physical condition complies with the contract
39
Q
  1. Under real estate commission rule F, which of the following can be omitted in the printed of the contract to buy and sell?
  2. The date and deadline table
  3. Financing terms not applicable
  4. The recommendation of legal counsel
  5. The broker acknowledgments
A
  1. Financing terms not applicable
40
Q
  1. Which of the following would not be approved deed of trust form for a seller carry-back?
  2. Due on transfer strict
  3. Due on transfer – credit out Worthley restriction
  4. Assumable – do not Due on sale
  5. Due on transfer – not more than 1% escalation
A
  1. Do on transfer – not more than 1% escalation
41
Q
  1. During the listing process, the seller tells you that he will not fill out a sellers property disclosure form. What is the best response to the seller?
  2. Tell the seller that you will fill out the form to the best of your ability
  3. Inform the seller that most buyers will insist on having the seller fill out the form
  4. Tell the seller that disclosure of material fact is completely optional
  5. Refused to take the listing
A
  1. Inform the seller that most buyers will insist on having the seller fill out the form
42
Q
  1. Went to licensee measures of property and makes disclosure of square footage on the proper form, she must disclose:
  2. The “exact square footage
  3. The disclosure is for loan purposes
  4. The standard, methodology and manner of measurements
  5. That the measurement may not be independently checked
A
  1. The standard, methodology and manner of measurements
43
Q
  1. When a seller fills out a seller property disclosure form, she is:
  2. Stating that all items are in working condition
  3. Warranting that the item will be in working order after closing
  4. Stating that the information is of her current, actual knowledge
  5. Stating that the item is fit for the buyers intended purpose
A
  1. Stating that the information is of her current, actual knowledge
44
Q
  1. The licensee buy out addendum is to be used when a licensee is:
  2. Listing property personally owned by the licensee
  3. Selling property to a relative who has a real estate license
  4. Buying property for personal use
  5. Guaranteeing to purchase a listing if it doesn’t sell
A
  1. Guaranteeing to purchase a listing if it doesn’t sell
45
Q
  1. A broker must keep which of the following records to properly account for money belonging to others?
  2. Ledger, journal and operating account checkbook
  3. Property file, ledger and journal
  4. Ledger, journal, bank reconciliation 4. Trust account and operating account checkbook, property file, ledger and journal
A
  1. Ledger, journal, bank reconciliation
46
Q
  1. A property manager must deposit rents collected in a trust account not later than:
  2. Two days after rent is received
  3. 10 days after rent is received
  4. Five business days after rent is received
  5. Three business days after rent is collected
A
  1. Five business days after rent is received
47
Q
  1. A contract has been excepted by the seller. Earnest money must now be deposited in the listing brokers a trust account not later than:
  2. Fifth business day after listing broker receives the money
  3. Third business day after broker receives notice of acceptance of contract
  4. Third day afterreceive notice of acceptance of contract
  5. Fifth business day after broker receives notice of the acceptance of contract
A
  1. Third business day after broker receives notice of acceptance of contract
48
Q
  1. When an employee broker for a partnership, limited liability company or corporation receives or disperses earnest money, escrow or trust funds, the employing broker:
  2. Is personally responsible for the funds
  3. Has personally responsibility for funds only if individual proprietor
    3 has no responsibility for the funds if the entity breached the duty to the public
  4. He has no responsibility for the funds
A
  1. Is personally responsible for the funds
49
Q
  1. Which of the following trust account records show all the transactions?
  2. Ledger
  3. Journal
  4. Transaction file
  5. Operating account
A
  1. Journal
50
Q
  1. A broker for corporation is keeping trust accounts. Such separate accounts must be maintained:
  2. In the same name of the broker
  3. In the name of the broker and in the name of the corporation.
  4. For the benefit of the social it’s retirement benefits
  5. In the name of each associate who has money in the
A
  1. In the name of the broker and in the name of the corporation.
51
Q
  1. A water bill of $84.59 is due and unpaid for the period of July 1 through September 30. The closing is August 31. What is the proper debit and credit?
  2. Debit buyer $28.50 and credit seller $28.50
  3. Debit seller $84.59 and credit buyer $84.59
  4. Debit seller $56.09, debit buyer $28.50 , Credit broker $84.59
  5. Debit seller $28.50, credit buyer $56.09, credit broker $28.50
A
  1. Debit seller $56.09, debit buyer $28.50 , Credit broker $84.59
52
Q
  1. The purpose of the closing instructions and earnest money receipt is to do all except:
  2. Agree on the closing fee
  3. Allow the closing company to receive and disburse funds
  4. Relieve the broker of liability for complete, accurate and detailed closing statement
  5. Assure how The seller will receive net proceeds at closing
A
  1. Relieve the broker of liability for complete, accurate and detailed closing statement
53
Q
  1. Who or which of the following is responsible for a complete, accurate and detailed closing statement? The: 1. Employing broker
  2. Broker who personally establish the relationship
  3. Closing company
  4. Closer for the closing company
A
  1. Broker who personally establish the relationship
54
Q
  1. If a broker instructs the closing company to prepare the deed to convey title for the closing, who is responsible for preparation of the Deed? The:
  2. Closing company
  3. Seller
  4. Broker
  5. Sellers attorney
A
  1. Broker
55
Q
  1. What is the debit/credit entry for a loan assumption?
  2. Debit seller and credit broker
  3. Credit seller and debit buyer
  4. Credit buyer and debit broker
  5. Credit buyer and debit seller
A
  1. Credit buyer and debit seller
56
Q
  1. What is the usual debit/credit entry for the brokers commission?
  2. Debit buyer and credit seller
  3. Debit seller and debit broker
  4. Debit seller and credit buyer
  5. Debit seller and credit broker
A
  1. Debit seller and credit broker
57
Q
  1. How would earnest money held by the broker be entered on the closing statement?
  2. Credit buyer and debit broker
  3. Credit seller and debit buyer
  4. Credit buyer and debit seller
  5. Shown as POC on closing statement
A
  1. Credit buyer and debit broker
58
Q
  1. Title insurance for the buyer will be paid for:
  2. Buyer
  3. Seller
  4. Broker
  5. Lender
A
  1. Seller
59
Q
  1. A new loan will be shown on the settlement statement as:
  2. Debit seller, credit buyer
  3. Credit seller as a single entry
  4. Credit buyer as a single entry
  5. Credit buyer, debit broker
A
  1. Credit buyer as a single entry
60
Q
  1. The closing fee for Colorado closing paid to the closing entity or broker will be paid by:
  2. Buyer
  3. Seller
  4. Split between buyer and seller
  5. As agreed to in the contract to buy and sell
A
  1. As agreed to in the contract to buy and sell
61
Q
  1. The seller has not paid the June 1 homeowner association dues of $180. The closing is June 18. The proration will be:
  2. $180 debit seller and credit broker
  3. $108 debit seller and $72 debit buyer and credit broker $180.0
  4. $102 debit seller, $78 debit buyer and credit broker $180
  5. $72 debit seller, $102 debit buyer and credit broke $180
A
  1. $102 debit seller, $78 debit buyer and credit broker $180
62
Q
  1. The Colorado documentary fee is paid at closing and is based upon the:
  2. Loan amount and paid by seller
  3. Loan amount and paid by buyer
  4. Sales price and paid by the seller
  5. Sales price and paid for by the buyer
A
  1. Sales price and paid for by the buyer
63
Q
  1. Interest on an owner – carry new owner – Carry loan will be calculated on the settlement statement as:
  2. Principal times the interest rate divided by 365 days times the days from the first of the month to the date of closing.
  3. Principal times the interest rate divided by 365 days times the days from closing to the end of the month.
  4. I figure given by the lender
  5. Principal times the interest rate divided by 12 months times the days from the first of the month to date of closing
A
  1. Principal times the interest rate divided by 365 days times the days from closing to the end of the month
64
Q
  1. A broker wishes to retain agency status except when selling his own listing. How can this be done?
  2. The listing form allows for this
  3. Don’t show his own listings
  4. The broker must be a transaction broker
  5. The form only allows for single
A
  1. The listing form allows for this
65
Q
  1. Which of the following would be a valid company policy when a broker sells his own listing?
  2. Represent seller as seller’s agent and buyer as transaction broker
  3. Represent seller and seller’s agent and buyer as buyer agent
  4. represent seller as seller’s agent and disclose to buyer that she is a customer
  5. Represent seller as transaction broker and buyer as agent
A
  1. represent seller as seller’s agent and disclose to buyer that she is a customer
66
Q
  1. The Colorado real estate commission may upon a written complaint must, investigate all of the following except:
  2. No violations of Colorado consumer protection act.
  3. Non-disclosure by a licensee of license status one selling on licensees own account
  4. A broker converting funds from her trust account to her operating account.
  5. Nondisclosure to A buyer relating to a situation that with psychologically impact the property.
A
  1. Nondisclosure to A buyer relating to a situation that with psychologically impact the property.
67
Q
  1. One of the following would not be acceptable for disclosing brokerage relationships:
  2. Brokerage disclosure to the buyer
    2 Brokerage disclosure to seller – for sale by owner
  3. Definitions of working relationships
  4. Exclusive right to sell listing contract
A
  1. Definitions of working relationships
68
Q
  1. A broker has a relationship with his buyer principal. This relationship could be described as:
  2. Transaction – broker
  3. Attorney in fact
  4. Customer
  5. Fiduciary
A
  1. Fiduciary
69
Q
  1. Unless otherwise agreed, the relationship created in Colorado with a buyer or seller would be:
  2. Agent of the buyer and agent of the seller.
  3. Agent of the buyer and transaction broker for the seller
  4. Transaction – broker to buyer or seller
  5. Agent to sell her with the buyer as A customer
A
  1. Transaction – broker to buyer or seller
70
Q
  1. When can a broker create a dual agency relationship in Colorado?
  2. When the broker secures an agreement from both buyer and seller
  3. When the broker becomes a transaction – broker to about
  4. Never, since dual agency as a legal in Colorado
  5. Anytime the broker works with both
A
  1. Never, since dual agency as a legal in Colorado
71
Q

70 excluded

A

70 excluded

72
Q
  1. My broker is the agent of the purchaser. The broker has an interest in the title to the property that the buyer is considering purchasing. The broker fails to disclose his interest. This most likely would be:
  2. Best since he will earn more commission if not disclosed
  3. Acceptable since he has an agent of the buyer
  4. Acceptable because he is a dual agent
  5. A violation of commission rule
A
  1. A violation of commission rule
73
Q
  1. You may do which of the following as a transaction broker working with a buyer:
  2. Tell the seller that the buyer will pay more for the property then offered
  3. Tell the buyer that the seller will take less than the listed price
  4. Inform the seller that the buyer cannot afford the property at the offered price
  5. Provide the buyer with information about the sellers motivation to sell
A
  1. Inform the seller that the buyer cannot afford the property at the offered price
74
Q
  1. As a single agent for the buyer, you have been instructed not to inform the seller that the buyer does not intend to occupy the property:
  2. This is acceptable without the buyers written permission
  3. The contract to buy and sell provides the for truthfull disclosure
  4. All such information must be kept confidential
  5. This must not be disclosed until the closing
A
  1. The contract to buy and sell provides the for truthfull disclosure
75
Q
  1. As an agent of the seller, you must
  2. Present all offers in a timely manner.
  3. Continue to market the property even if it’s under contract.
  4. Confirm the buyer’s financial ability.
  5. Require the seller to have legal counsel
A
  1. Present all offers in a timely manner.