Test Prep/Day Nine

Question 1

One. Which of the following documents must have an original signature in the brokers closing file? A. The final contract
b. The loan documents
c. All notarized documents
D. A Power of attorney name in the broker attorney in fact.

Answer 1

D. A Power of attorney name in the broker attorney in fact.

Question 2

2. The real estate commission has approved three types of trust deeds for use by licensees. Regarding this, which of the following statements is incorrect?
   A. One trust deed contains a strict due on sale clause.
   B. One trust deed contained a modified due on sale clause which makes a loan assumable if the purchaser is a credit worthy.
   C. One place is a limit of 1% per annum on any increase in the interest rate.
   D. One has no due on sale clause and the loan is fully assumable.

Answer 2

C. One place is a limit of 1% per annum on any increase in the interest rate.

Question 3

3. If the local property tax has not been paid on April 10 for the previous year, it may be paid without penalty by: 
A. April 30 
B. July 31 
C. April 15 
D.July 15

Answer 3

A. April 30

Question 4

4. After recording a notice of election and demand to foreclose a deed of trust, what is the earliest date on which a public trustee in Colorado may hold a foreclosure sale?
A. 60 days later. 
B. 215 days later 
C. 75 days later 
D. Six months later.

Answer 4

B. 215 days later

Question 5

5. In Colorado, and order to foreclose a deed of trust when the trustee is someone other than the public trustee, it would be regarded as:
A. Trust indenture 
B. Mortgage 
C. Promissory note 
D. And estoppel

Answer 5

B. Mortgage

Question 6

6. According to Colorado law, if I trust deed is held by a private trustee, any foreclosure must be:
   A. Judicial
   B. Conducted by the state public trustee
   C. Conducted by the county public trustee
   D. Strict foreclosure

Answer 6

A. Judicial

Question 7

Seven. A farm belonging to a is for closed due to a's failure to pay his mortgage. How long must before closing credit or wait before the foreclosure sale can be held?
A. Six months 
B. One year 
C. 18 months 
D. 215 days

Answer 7

D. 215 days

Question 8

Eight. A broker secures the following three listings: an exclusive right to sell, and exclusive agency and an open listing. Which of the following must be included in all three?
A. Commission of 5% 
B. A holdover period of 90 days 
C. Provision for an hourly rate 
D. A definite termination date

Answer 8

D. A definite termination date

Question 9

9. A tax certificate is found to contain an error at the closing. Who is liable for the additional tax liability?
   A. The county treasurer, if negligence is established.
   B. The seller
   C. The buyer
   D. The broker

Answer 9

A. The county treasurer, if negligence is established.

Question 10

10. Under RESPA, a licensee involved in a real estate transaction may not receive a fee for:
    A. Referring a buyer to an unlicensed lender.
    B. Preparing a settlement statement.
    C. Influencing the parties to take out title insurance with a particular corporation.
    D. Being the efficient cause of the sale

Answer 10

C. Influencing the parties to take out title insurance with a particular corporation.

Question 11

11. An apartment manager of seven buildings who travels from site to site and negotiates leases:
    A. A is exempt from licensing law as long as he/she lives at one of the sites.
    B. Must have a real estate license.
    C. Is licensed as a site manager.
    D.must maintain seven trust accounts

Answer 11

B. Must have a real estate license

Question 12

12. After recording a notice of election and demand to foreclosure a deed of trust, what is the latest date on which the public trustee in Colorado may hold a foreclosure sale?
A. 125 days later. 
B. 115 days later. 
C. 215 days later. 
D. 230 months later

Answer 12

A. 125 days later.

Question 13

13. A mill represents: 
A. One 10th of 1% 
B. One 10,000 of the sale price 
C. Taxing discrepancies 
D. Individual taxing diversely between counties

Answer 13

A. One 10th of 1%

Question 14

14. In Colorado, the documentary fee: a. Varies from county to county
    B. Is one dollar per 1000
    C. Is .01 cents per 100
    D. Is obtained by dividing the purchase Price by 1000

Answer 14

C. Is .01 cents per 100

Question 15

15. A deed of trust held by a public trustee is foreclosed by:
A. Private sale by the public trustee 
B. Public sale by the court 
C. Public sale by the public trustee 
D. Private sale by the court

Answer 15

C. Public sale by the public truste

Question 16

16. When is it required that the sellers broker use the approved licensee Biot addendum?
    A. In all cases where the broker buys property from a seller client
    B. Never
    C. When the broker buys the sellers property as the result of an agreement in which the broker offers this as an inducement for the seller to list with him and continue to market the property.
    D. In all cases where the broker has less than two years experience.

Answer 16

C. When the broker buys the sellers property as the result of an agreement in which the broker offers this as an inducement for the seller to list with him and continue to market the property