Flashcards in State Exam (from Live Workshop) Deck (45)
Who usually deposits earnest money into escrow after contract has been accepted?
(they have 3 business days f/ acceptance to deposit.)
Who holds the check until deposit? Negotiable.
A licensee must use the Licensee Buyout Addendum for these situations... (3)
-When purchasing the property as a rental investment
-When entering into a contract to purchase a property to facilitate or induce the owner to purchase ANOTHER property.
-When entering into a contract to purchase a property f/ an owner, but continues to market the perpetuity on behalf of the owner under an existing listing contract.
Purpose of the real estate commission in Colorado?
to PROTECT the public
As a Buyer's Agent under an Exclusive Right to Buy Agreement, the broker has what agency relationship to the purchaser?
A high level of supervision by employing brokers would include:
-review of docs in preparation for closing
-assistance in preparing contracts
-monitoring of transactions from contract to close
-make sure an experienced licensee attends the closing
-being reasonably available for consultation
According to the Excl Right to Sell (TB) listing contract, the listing broker must disclose to any possible buyer
All material facts about the property that the broker knows
(Cannot disclose - without written consent - seller's motivation, all facts about the transaction broker knows, all facts about seller broker knows)
When a licensee uses a Licensee Buyout Addendum, you are putting the seller on notice that
The buyer is a licensee & the buyer may make a profit and the seller may incur a loss.
Checking the 'shall' box in the 'Holdover Clause' in the Excl Right to Sell listing contract protects the listing broker's commission for disclosed buyers for how long?
For the period of time specified in the contract, even if the property is resisted by another broker.
The CO approved Agreement to Amend/Extend Contract form should be signed...(when-timeframe)?
BEFORE the sales contract has been fully executed
For a deed to be valid in CO, what is required?
The Grantor's signature
Proper recordation of documents affecting title and interest to real estate legally provides ??
constructive notice (available for anyone to see)
In CO, a property subject to general ad valorem taxes is assessed on the first day of January of the current year, thus when does the lien against the property for taxes attach?
At that time (when assessed)
A licensee may accept compensation only from whom?
A transaction broker, when handling both sides of the transaction, has a fiduciary responsibility to who?
Neither the buyer nor the seller
('Transaction broker' and 'fiduciary' never belong in the same sentence.)
According to Commission Position 6, If the transaction falls and there's no dispute over who is to receive the earnest money...
the broker should release the funds immediately.
If an ADA person is renting an apartment w/ a pet, even though there's a 'no pet' policy, what should happen?
Only require repairs from any damage.
Can a developer hire an attorney to write a sales contract that includes warranties and other info?
Yes, because developers don't fall under the Real Estate Commission.
When a seller submits a counterproposal in response to a Contract to B&S, the seller should check/initial/sign what?
-Check the Countered box
-Initial the original contract
-Sign the counterproposal
(You can also counter with a NEW counter proposal form )
What does familial status include?
Minors under the age of 18 residing w/ a parent or gaurdian
Torrens System is most commonly used where in CO?
(Probably not on test)
Eastern (FAR Eastern)
Adverse possession matures into title after open, notorious and hostile possession after what period of time?
OR it could be 18 yrs w/ 7 yrs of color title, i.e. paying taxes, inviting locals to 'my place' continually.
When do Ad Valorem taxes become delinquent?
In a new loan closing, lender makes some payouts (recording fees, survey and reserve taxes) in order to protect its interest as the holder of the 1st lien.
How is it entered on the settlement worksheet?
Debit to broker, single entry
(won't see single entry on exam)
A buyer purchases a furnished condo as an investment. What document shows the buyers evidence of ownership?
Bill of Sale
How is broker's fee 'usually' shown on the settlement statement?
Who pays for the preparation of legal documents at closing?
Licensee does, EXCEPT those peppered by the Seller's or Buyer's attorney.
How long must trust account records be kept?
A Real Property Transfer Declaration (TD-1000) is used for what?
Assisting the county assessor to reach fair and uniform assessments for property tax purposes.
A lender can declare a loan balance due on default of a mortgage payment because of what?
An acceleration clause in the mortgage