Colorado Law Part 1

Question 0

Agent broker duties

Answer 0

Old car- obedience loyalty disclosure confidentiality accounting reasonable skill and care

Question 1

Fiduciary duties for law of agency

Answer 1

(Old car) obedience, loyalty, disclosure, confidentiality, accounting, reasonable skill and care

Question 2

Transaction broker duties

Answer 2

Dcar- disclosure confidentiality accounting reasonable skill and care

Question 3

Brokers owe customers

Answer 3

Dah- disclosure accounting honesty

Question 4

Signatures are acknowledged to show that the document..

Answer 4

Is signed properly

Question 5

Supreme Court decision in Conway-Bogue case relating to the practice of law by real estate brokers state that…

Answer 5

Colorado licensees may complete standard or approved forms in a real estate transaction. Basis for how co re business is done

Question 6

The purpose of Commission Rule F relating to approved forms is

Answer 6

To help ensure broker’s compliance with Conway-bogus decision. Commission created this rule and mandatory approved forms to assist licensees

Question 7

A transaction broker is most like a…

Answer 7

Professional coach/referee. They are in a neutral position…not an advocate for either party

Question 8

Who is responsible for cost of requested documents

Answer 8

The broker who requested them. May not charge buyer or seller

Question 9

What is not an essential element of every contract?

Answer 9

Competent grantor. A grantor is a party to a deed and is not a party to every contract, such as a lease

Question 10

Example of steering

Answer 10

Broker suggesting someone live by a certain church or school

Question 11

Example of redlining

Answer 11

Declining to give a buyer a loan because of high crime rates

Question 12

Example of blockbusting

Answer 12

Broker suggesting values will go down because a different ethnic group has moved in

Question 13

Associate brokers are required to:

Answer 13

Work for an employing broker for two years before becoming eligible to be an independent broker

Question 14

A broker asked to complete just the contract to buy and sell…seller to complete other tasks for closing must complete…

Answer 14

Representation agreement or disclosure before completing the paperwork. Per Conway-bogue, brokerage firm must be connected with the transaction through a brokerage relationship. Brokers may not prepare documents for parties with whom they do not a brokerage relationship

Question 15

When a Colorado licensee completes the blanks in a commission approved form

Answer 15

This is the practice of law but is specifically permitted by Colorado law

Question 16

Independent brokers may…

Answer 16

Work independently without the supervision of another broker

Question 17

A designated broker is:

Answer 17

The only broker in the company with a brokerage relationship. A designated agent has the duty of full disclosure with the seller. The employing broker has no brokerage relationship

Question 18

In an in company transaction where the employing broker has designated one broker to work with the buyer and another broker with the seller…the brokerage relationship will be between

Answer 18

Each designated broker and the party they represent, not the employing broker. There is no transfer of confidential information to the employing broker or other brokers in the firm

Question 19

An employing broker supervising broker associates must

Answer 19

Have them agree to sign the office policy

Question 20

Rule F of the real estate commission establishes standard or approved forms to help a broker comply with:

Answer 20

Conway-Bogue decision

Question 21

An employing broker for a brokerage firm designates an associate broker to perform services for a buyer. The brokerage relationship will be…

Answer 21

Only the designated broker

Question 22

A broker using a form generated by a computer program must:

Answer 22

Use a program with security that will not allow the form to be changed inadvertently or intentionally

Question 23

Colorado does not recognize dual agency, but one broker may work with both the seller and buyer in the transaction if…

Answer 23

The broker is a transaction broker

Question 24

Another name for a formal warning (lowest form of discipline)

Answer 24

Letter of Admonishment

Question 25

After hearing and judges verdict, commission may do what to broker

Answer 25

. Public censure .suspend license . Revoke license . Fine broker up to $2,500 per incident

Question 26

Conway-bogus licensees must be (3)

Answer 26

Connected to the transaction Must use standard and approved forms May not charge a separate fee for preparing documents

Question 27

Title company may;

Answer 27

Prepare closing statements, but may not prepare legal documents Act as a scrivener of the broker Broker may not accept referral fees or inducements from title companies

Question 28

A license is required for any person who for compensation does any of the following (LLBEANS)

Answer 28

``` Lists Leases Buys Exchanges Auctions Negotiates Sells ```

Question 29

Candidates for license must

Answer 29

Complete 168 hours of education, pass the state exam, present valid Id, be at least 18

Question 30

Dual contracting is fraud in all states. What is it?

Answer 30

When 2 contracts are used. One buyer/seller uses. Second that they give to bank in order for the buyer to receive a higher ltv than allowed

Question 31

Licensees should disclose to the public immediately

Answer 31

To a member of the public if they have an interest in buying a property or if they are a principal in the sale of a property

Question 32

Brokers must disclose their status in writing

Answer 32

In any purchase contract which they are a party

Question 33

The commission can audit a broker's escrow account at any time to verify the broker has

Answer 33

Maintained 4 yrs of records Not commingled funds Provided all purchasers and sellers with proper closing statements

Question 34

Commission has NO authority and will NOT investigate the following

Answer 34

Ethics violations Disputes between brokers Criminal violations

Question 35

Commission will request that the licensee respond to the complaint and supply written documentation. Prior to receiving response the commission:

Answer 35

Does not have subpoena power Will not use lawsuits to obtain records May not take the firm's records without cause

Question 36

Following investigation, commission will do one of the following:

Answer 36

Dismiss the complaint Issue letter of admonishment (warning) Send to a hearing

Question 37

If licensee found guilty by a judge commission determines penalty:

Answer 37

Imposes a fine not to exceed $2,500 per incident Censure, suspends or permanently revokes license Make licensee records available to the public for inspection on commission website ***may not impose jail sentences or charge damages

Question 38

License must be renewed every 3 years

Answer 38

Expires at midnight of original date

Question 39

In order for license to be renewed brokers must complete 24 hours of continuing education

Answer 39

Brokers may take and pass only the state portion which counts for all 24 hours in 3 yr renewal cycle Licensee has 31 days after anniversary date to pay without penalty After must pay renewal fee plus reinstatement fee of one half renewal Brokers may only work for one broker at a time

Question 40

Non resident brokers must:

Answer 40

Have an office in their home state Agree to keep all trusts in co depository Accept legal action in co

Question 41

To sell a real estate security a securities license is required

Answer 41

Must sell real estate options for a fee

Question 42

RESPA

Answer 42

Federal law that applies to lenders, title companies, and real estate brokers. Requires lenders to make certain disclosures to consumers about residential mortgage loans

Question 43

Disclosure forms require signatures of

Answer 43

Buyer and seller. Shows it was completed and signed

Question 44

Rule F requires all blanks filled in

Answer 44

Using a different font

Question 45

Conway-bogue states

Answer 45

All brokers are allowed to strike through sections that don't apply

Question 46

If admin judge finds broker violated license law, discipline determined by:

Answer 46

Real estate commission

Question 47

Senior housing is allowed to discriminate against which protected group

Answer 47

Familial status

Question 48

Protected groups

Answer 48

FRESH CORN

Question 49

Who should complete seller property disclosure

Answer 49

Seller

Question 50

Disclosure forms should be given to the buyer

Answer 50

Prior to buyer writing and offer forms need to be signed by all required parties

Question 51

RESPA rules:

Answer 51

Referral fees between active real estate licensees are exempt from referral fee restrictions