Co Real Estate Exam Prep Pre Test

Front 1

A special tax or assessment of $834 is shown on a certificate of taxes due for a curb and gutter project. The tax is payable over 10 years with an annual interest of 5%. If the buyer agreed to assume this property obligation, how will it show on the settlement worksheet?

Back 1

IT WILL NOT SHOW UP BECAUSE IT HAS NO FINANCIAL EFFECT ON THE CLOSING

Front 2

if a broker is going ot discuss potentially confidential information with an unrepresented buyer, which of the following is NOT true?

Back 2

THE BUYER MUST SIGN THE WRITTEN DISCLOSURE

Front 3

A loan being assumed by the buyer has what effect at closing?

Back 3

DEBIT SELLER, CREDIT BUYER

Front 4

all of the following may draft a specific contract to buy and sell EXCEPT:

Back 4

THE LISTING BROKERAGE FIRM'S ATTORNEY

Front 5

A broker lists the Square footage of a new listing in the marketing materials. The listing broker must do all of the following EXCEPT:

Back 5

PERSONALLY MEASURE OR HIRE SOMEONE TO MEASURE THE PROPERTY

Front 6

Colorado-approved contracts contain a clause that states the parties agree to mediate if they have a dispute. All of the following are true of the clause EXCEPT:

Back 6

IF THE PARTIES MEDIATE, THEY MAY NOT PROCEED TO ARBITRATION OR LITIGATION

Front 7

The brokerage firm that has designated a broker to represent a seller as part of an Exclusive Right-To-Sell listing contract:

Back 7

OWNS THE CONTRACT BUT DOES NOT REPRESENT THE SELLER

Front 8

Owners association dues of $300 are paid in advance on a quarterly basis. For a closing on July 29th, what would be the prorated amount on the closing statement?

Back 8

$208.70 DEBIT BUYER, CREDIT SELLER

Front 9

if the sole proprietor establishes an account to hold money belonging to others, which of the following is true?

Back 9

ALL CHECKS, DEPOSIT SLIPS, AND BANK STATEMENTS MUST INCLUDE THE WORD TRUST AS PART OF THE ACCOUNT NAME

Front 10

When the seller offers to assist with the buyer's down payment or gives other concessions, the broker should help sagefuard everyone's interest by doing all of the following EXCEPT:

Back 10

INFORM THE COLORADO REAL ESTATE COMMISSION AND THE TITLE COMPANY

Front 11

A broker developed a website to advertise the broker's office with the brokerage's name, location, and phone number. what additional information does the broker need to include?

Back 11

NO NEED FOR ANY ADDITIONAL DISCLOSURES

Front 12

A Colorado broker associate reffered her client to a broker in florida. The forlida broker called to tell her that the buyer's property in Florida will close soon and she wants to know where to send the referral fee. Which of the following is TRUE about this referral fee?

Back 12

THE FEE MUST BE MADE PAYABLE TO THE BROKERAGE FIRM

Front 13

A listing broker must disclose her brokerage relationship with the seller to any unrepresented buyer before:

Back 13

DISCUSSING POTENTIALLY CONDIFENTIAL INFORMATION

Front 14

A buyer's agent is asked by the buyers if the agent can represent them as a seller's agent when they decided to sell. The broker's company offers only buyer agency. The agent should:

Back 14

GIVE THE BUYERS THE DEFINITIONS OF WORKING RELATIONSHIPS DISCLOSURE FORM AND ASK THEM TO SIGN IT AND THEN REFER THE BUYERS TO ANOTHER BROKER

Front 15

An unlicensed assistant may do all of the following to support the efforts of a licensed broker EXCEPT:

Back 15

PREPARE A COMPARATIVE MARKET ANALYSIS AND PRESENT IT TO A SELLER

Front 16

A buyer in a closed transaction has filed a complaint with the Colorado Real Estate Commission, claiming the buyer's agent misrepresented the property. The commission, in responding to a complaint, would:

Back 16

REQUEST THE AGENT/BROKER SUPPLY A RESPONSE IN WRITING

Front 17

The colorado real estate commission requires all brokerage firms to have a written office policy to give broker associates a full understanding of the firm's operations. Which of these is the only item required by statue to be in writing?

Back 17

THE BROKERAGE RELATIONSHIPS THE FIRM OFFERS AND HOW BROKERS ARE DESIGNATED

Front 18

A buyer has sent a notice to terminate to the listing broker based on the buyer's inspecrionof the property. The notice was sent at 11pm on the date listed under the inspection objection deadline in the contract to buy and sell. What is the next step the listing broker should take?

Back 18

IMMEDIATELY RETURN THE EARNEST MONEY TO THE BUYER

Front 19

According to the financing obligations section of the approved contract to buy and sell, a seller provided seller financing for a transaction may do all of the following EXCEPT:

Back 19

SHARE THE BUYER'S CREDIT INFORMATION WITH OTHER POTENTIAL LENDERS

Front 20

As part of the requirement to supervise all associate brokers in the firm, the employing broker would be required to do all of the following EXCEPT:

Back 20

ATTEND, OR HAVE A QUALIFIED BROKER ATTEND, ALL LISTING APPOINTMENTS, SHOWINGS, AND CLOSINGS OF ANY NEWLY LICENSED BROKER ASSOCIATE FOR THE FIRST MONTH OF LICENSURE

Front 21

A broker associate works for All Star Realty. The broker must ensure that all advertising, including social media, has:

Back 21

THE BROKERAGE'S NAME AS REGISTERED WITH THE COLORADO REAL ESTATE COMMISSION

Front 22

the approved licensee buyout Addendum provided for all of the following EXCEPT:

Back 22

THE SELLER WILL PAY COMMISSIONS AND COVER ANY LOSSES AFTER CLOSING

Front 23

In Colorado, a number of approved forms are used by brokers. A listing broker asked the seller to use complete the approved seller's property disclosure for a residential property. All of the following are true about this form EXCEPT:

Back 23

IT IS REQUIRED BY LAW TO BE GIVEN TO THE BUYER AS PART OF THE CONTRACT TO BUY AND SELL

Front 24

All of the following are true of Colorado Commission-approved real estate forms EXCEPT:

Back 24

BROKERS MAY USE A STANDARD FORM IF THEY LIKE IT BETTER, EVEN IF THERE IS AN APPROVED FORM

Front 25

If an associare broker agrees to manage rental properties for a friend, the associate broker must:

Back 25

HAVE THE EMPLOYING BROKER SIGN A MANAGEMENT AGREEMENT AND ESTABLISH THE TRUST ACCOUNTS FOR THE MANAGEMENT ASSIGNMENT

Front 26

Which of the following is NOT true regarding Colorado property tax?

Back 26

IF TAXPAYERS CHOOSE TO MAKE ONE PAYMENT, THEY MUST CONTINUE TO MAKE ONLY ONE SINGLE PAYMENTS FOR AS LONG AS THE OWN THE PROPERTY

Front 27

Brokers selling real estate must renew their license and errors and omission insurance every:

Back 27

3 YEARS FOR THE LICENSE AND EVERY YEAR FOR THE ERRORS AND OMISSIONS INSURANCE

Front 28

An employing broker leaving town can delegate supervisoin of a broker associate to all of the following EXCEPT:

Back 28

AN UNLICENSED OFFICE MANAGER

Front 29

An agent wold owe ______ to the principal, but a transaction broker would not.

Back 29

DISCLOSURE OF BENEFITS AND RISKS

Front 30

A broker is a principal buying a for sale by owner (FSBO) and the seller is NOT represented. What will the brokerage relationship be?

Back 30

THE BUYER IS AN AGENT; THE SELLER IS A CUSTOMER

Front 31

All of the following are required to have an active Colorado Real Estate License EXCEPT:

Back 31

AN ATTORNEY SELLING PROPERTY AS PART OF AN ESTATE

Front 32

Upon filing the election and demand with the public trustee, the next step in foreclosure is:

Back 32

THE PUBLIC TRUSTEE WILL ADVERTISE THE FORECLOSURE SALE

Front 33

A broker completed all of her required continuing education, but 15 days after her experation date, she still has not paid renewal fees for her licenser What is the current status of her license?

Back 33

ACTIVE BUT MAY NOT SELL REAL ESTATE

Front 34

A broker and a seller agree orally to extend the term of an exclusive listing agreement. The seller is bound by the extended dates:

Back 34

IF THE WRITTEN AGREEMENT TO AMEND/EXTEND IS SIGNED BEFORE THE ORIGINAL EXPIRATION DATE

Front 35

A broker has a signed Exclusive Right to Buy listing contract. The broker may get her commission from:

Back 35

THE BUYER, THE SELLER, OR THE LISTING BROKER

Front 36

A brokerage firm acquired a contracts software program for use in the firm. After a month of use, a broker associate discovers that one of the approved forms is missing a section. Per rule 7.2L, who is responsible for the error?

Back 36

EACH BROKER USING THE SOFTWARE

Front 37

A broker recieved an earnest money deposit with an offer from the buyer. Under Colorado law, the broker should:

Back 37

HOLD THE EARNEST MONEY DEPOSIT IN A SECURE PLACE UNTIL ACCEPTANCE

Front 38

Under designated brokerage, the brokerage relationship is between:

Back 38

THE DESIGNATED BROKER AND THE PARTY OR PARTIES THE BROKER WAS DESIGNATED TO REPRESENT

Front 39

Which of the following could a Colorado real estate bnroker use toward meeting the 12 hours of required elective continuing education credits?

Back 39

THE NATIONAL ASSOCIATION OF REALTORS ETHICS COURSE

Front 40

The minimum right to cure period for nonagricultural and agricultural property in colorado is:

Back 40

110 DAYS FOR NONAGRICULTURAL AND 215 DAYS FOR AGRICULTURAL

Front 41

A lieased security system was sold as part of residential property. Leased items included in the sale of real property:

Back 41

SHOULD BE NOTED IN THE CONTRACT TO BUY AND SELL BECAUSE THE BUYER MAY HAVE OBLIGATIONS AND LIABILITIES IF THE LEASE IS ASSUMED

Front 42

How much of a broker's own money may be in the trust account?

Back 42

ENOUGH TO MAINTAIN THE ACCOUNT

Front 43

A broker's trust account must comply with all of the following EXCEPT:

Back 43

HAVE ONLY THE BROKER AUTHORIZED TO WITHDRAW FUNDS

Front 44

The commission has approved a form for use as of January 1. The broker must use the new form no later than:

Back 44

JANUARY 1ST.

Front 45

All of the following are true about the lead-based paint disclosure EXCEPT:

Back 45

IS IT THE OBLIGATION OF THE SELLER AND ALL THE BROKERS

Front 46

A seller recieved a flyer and a phone call from a broker at XYZ Realty, suggesting that the seller list with the firm and that broker. The seller's home is actively listed with ABC Realty. Is there any issue with XYZ realty's solicitation?

Back 46

YES, THE BROKERAGE MAY SEND FLYERS WITH A DISCLAIMER BUT MAY NOT MAKE PHONE CALLS

Front 47

If the taxes for the preceding year are unpaid at the time of closing, the amount will ALWAYS be:

Back 47

A DEBIT ON THE SELLER'S CLOSING STATEMENT

Front 48

In a new loan closing, the settlement worksheet will show an entry for a tax reserve that indicates the new lender is:

Back 48

WITHHOLDING THIS AMOUNT FROM THE LOAN PRCEEDS TO START THE IMPOUND ACCOUNT FOR THE NEXT PAYMENT OF TAXES

Front 49

The required minimum notice to quit for a tenant under a tenancy at will is:

Back 49

3 DAYS

Front 50

In a single party listing which of the following provisions or contingencies does NOT apply?

Back 50

HOLDOVER

Front 51

If the real estate taxes for last year were $3,685, what would the prorated tax entry be for this year's taxes for a September 11 closing?

Back 51

$2,554.26 DEBIT SELLER, $2,554.26 CREDIT BUYER

Front 52

The contrac to buy and sell states that if faxed or electronic signatures are used during negotiations and the executory contract state, the original signatures must be provided:

Back 52

AT CLOSING, OR EARLIER UPON REQUEST OF ANY PARTY

Front 53

A flat-rate water bill of $37.50 that is paid in advance for the month has not been paid. For a closing on June 16th, which is the correct entry on the closing statement?

Back 53

DEBIT SELLER AND BUYER $18.75

Front 54

Errors and Omissions professional liablility insurance is required for all of the following EXCEPT:

Back 54

INACTIVE LICENSEES

Front 55

Which of the following is NOT true about designated brokerage?

Back 55

THE DESIGNATED BROKER "OWNS" THE LISTING

Front 56

Duties of the Colorado Real Estate Commission include all of the following EXCEPT:

Back 56

HEARING DISPUTES BETWEEN BROKERS

Front 57

A broker has been approached by a neighbor to list the neighbor's home. The property is currently listed with another company and the neightbor said she only has 2 weeks left on the listing contract. The broker should:

Back 57

LIST THE PROPERTY BUT MAKE SURE THE NEW LISTING CONTRACT DOES NOT START UNTIL THE EXPIRATON OF THE CURRENT LISTING

Front 58

Regarding the Contract to Buy and Sell's secton on common interest community documents, all of the following are true EXCEPT:

Back 58

THE SELLER WILL HAVE UNTIL THE CIC DOCUMENT RESOLUTION DEADLINE TO RESOLVE ANY CIC DOCUMENT ISSUES THE BUYER FINDS

Front 59

Which of the following is TRUE of the broker who attaches an addendum he drafted, but was not negotiated by the parties, to a purchase contract?

Back 59

THE BROKER IS IN VIOLATION OF CHAPTER 7

Front 60

If the buyer is assuming an 8.5% loan with a balance of $127, 538 at a closing on July 11th, what is the interest proration entry?

Back 60

$291.42, DEBIT SELLER

Front 61

Under an exclusive right-to-sell listing contract, a listing broker is required to do all of the following EXCEPT:

Back 61

VERIFY THAT ALL STATEMENTS MADE BY THE SELLER AND THE BUYER ARE COMPLETE AND ACCURATE

Front 62

If the designated broker for an agency listing changes brokerage firms:

Back 62

THE EMPLOYING BROKER MAY APPOINT A NEW DESIGNATED BROKER TO THE LISTING

Front 63

The holdover clause in the approved Exclusive Right-To-Sell listing contract form protexts the broker's commission for certain disclosed buyers:

Back 63

FOR A NEGOTIATED TIME UNLESS THE SELLER LISTS THE PROPERTY WITH ANOTHER BROKER AFTER EXPIRATION

Front 64

To work as a designated broker for both the buyer and the seller and represent them in the same transaction, a broker must:

Back 64

ACT AS THE TRANSACTION-BROKER FOR BOTH PARTIES

Front 65

How many trust accounts may a brokerage firm have?

Back 65

NO LIMIT

Front 66

A listing broker, using the Exclusive Right-to-sell listing contract or Exclusive right-to-buy listing contract, would be obligated as part of the brokerage services and iniform duties to do all of the following EXCEPT:

Back 66

VERIFY THE ACCURACY OR COMPLETENESS OF THE SELLERS' OR THE BUYERS' STATEMENTS

Front 67

All of the following are true about Colorado fair housing law EXCEPT:

Back 67

DISABLED TENANTS MUST MAKE A REQUEST TO THE OWNER OR THE MANAGEMENT COMPANY IN ORDER TO MAKE REVERSIBLE CHANGES TO THEIR UNIT