Ultimate Test 2 Flashcards by Austin Jay Godfrey

1) What can unlicensed administrative assistants do?

c) Deliver paperwork

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2) Who is ultimately responsible to pay the broker’s commission in a buyer agency agreement?

a) The buyer

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In the Colorado approved sales contract, the Additional Provisions must contain only:

d) Transaction specific terms

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The Colorado approved sales contract provides that if the buyer and seller cannot resolve their dispute:

d) The buyer and seller proceed to mediation and share the mediator’s cost

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After an unresolved closing dispute involving earnest money, the broker may:

b) Interplead to court

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If the buyer and seller agree to facsimile signatures, when is the latest by which original signatures must be obtained?

a) 10 days after obtaining facsimile signatures???

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How many purchase contracts are approved by Colorado?

d) One

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The property disclosure form should NOT be completed by:

d) The seller and the broker

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Which of the following is correct in relation to a counterproposal by a seller?

d) The original contract must not be signed by the seller

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If a non-resident of Colorado sells a property for more than $100,000, who is responsible for collecting the 2% special tax?

c) The closing agent or closing company

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A licensee who does not measure a property personally must not provide measurements obtained from:

d) A source which is known to be unreliable

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Net operating income is obtained by:

a) Subtracting expenses

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Designated brokerage responsibility is achieved by:

b) Written assignment within the office policy

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A defeasance clause:

a) Would eliminate the lender’s claim on the lien

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A violation of civil rights must be reported to the Colorado Civil Rights Commission within:

d) 1 year

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Colorado subdivision registration requirements do not apply to:

c) Camping sites

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In which of the following scenarios must the broker make use of the licensee buyout addendum:

c) If the broker agrees to buy a property as inducement to list and possibly purchase another property

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In an arbitration dispute, which of the following is awarded the attorney’s fee:

b) The prevailing party

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You inform a seller that his home is worth $180,000. He puts in a $15,000 improvement. You tell him that his improvement will not necessarily increase his value by $15,000. You are utilizing the principle of:

d) Contribution

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A purchaser pursuing a 100% financed loan would most probably seek:

d) A VA loan

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Two relatives take title wishing that their heirs receive the property upon their death. They would take ownership as:

b) Tenants in common

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Abandoned fixtures owned by a commercial tenant may become the property of the landlord through:

a) Laws of abandonment

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In filling out the forms at a closing, the title company is acting in the capacity as:

a) A scrivener for the broker

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A contract signed under duress is:

b) Voidable

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Betty Smith is an associate broker who wants to advertise her name and number on a yard sign. What must she do to achieve this?

d) Print her firm's name as licensed in the state and her name and telephone number

The latest a foreclosure sale on a non agricultural property can take place:

b) 125 days

Prior to signing the contract of sale, Colorado law provides that a lead-based paint disclosure signed by the seller and the licensee must be handed to the buyer:

d) If the property is intended for any residential use and a building permit was issued prior to January 1, 1978

An amend and extend of the sales contract:

b) Is used to change a date in the contract mutually

A contract is considered to be fully executed when:

a) All requirements have been fully completed

Which type of mortgage would be used to secure both real and personal property?

b) A package mortgage

Which of the following is most likely to be used by an appraiser as the date of valuation?

b) The date of inspection

The best indication to an owner of a house of what his house should sell for would be:

b) An independent appraisal

The highest and best use of a property is:

a) the most profitable, legally permissible and physically possible use

Which of the following would be most important for an appraiser?

a) The net operating income

On a September 10th closing, with current property taxes of $2,140, which of the following entries would be appropriate?

a) Seller owes buyer $1,484.38

An agreement to amend and extend a sales contract can be used to:

c) Change a closing date

A deed is presumed to be transferred when:

b) The deed is recorded

The City Council takes over a property with just compensation through:

d) Condemnation

A 6% commission on a $720,000 property was split 3 to 2 with the salesman receiving the larger share. The salesman received?

c) $25,920

An owner giving a bargain and sale deed is?

a) Implying he has an ownership interest

Defeasance clause in a mortgage:

a) Eliminates the rights of the mortgagee

A property has a land value of $40,000 and improvements are worth $210,000. After 30% depreciation, what is the property worth?

b) $187,000

The procedure which results in a small deviation from zoning requirements in known as a/an:

d) Variance

Seller instructs a broker not to mention a roof that needs replacement. The broker:

b) Must refuse the listing until seller removes the restriction

A buyer's broker will be considered to have abandoned their buyer if they:

b) Fail to abide by contract requirements

In a Colorado closing, M gave a deed which contained only implied warranties. This was most likely a:

b) Bargain and sale deed

Before closing, a seller decides not to sell his home, and the buyer is not in default. The deposit:

c) Will be returned to the buyer

A seller who is not normally engaged in the granting of credit, and who is carrying back a $5,000 mortgage, may charge a MAXIMUM interest rate of:

d) 45%

In Colorado a person who commits equity skimming can be convicted of:

a) A felony

The contents of a broker's written office policies are governed by:

a) The Real Estate Commission

If a broker wishes to give part of his commission to his seller/client, he/she:

c) He/she can give the seller part of his commission as a rebate at his discretion

A broker representing the seller disclosed some minor defects to a potential buyer. The seller advised the broker that there were no major problems with the house. After closing, the purchaser discovered major problems with the plumbing. The buyer canceled the agreement. He would most likely:

a) Not have a claim against the broker unless broker knew of defects

After closing, which of the following would the listing broker retain in her file:

d) Settlement statements

An exclusive right to sell listing contract:

b) Does not give the employing broker the right to sign the sales contract for the seller

A comparable market analysis prepared by a broker for a purpose other than the financing of the house sale requires which of the following discloses:

c) No disclosures are required

A seller does not want to fill out a property disclosure form. The broker should:

b) Inform the seller that many buyers require the form in their offer

A broker who filed a license renewal application 32 days after it has expired:

d) Would have to pay his license fee and a late fee

When an employee broker with less than 2 years’ experience attends a closing, the employing broker:

c) Need not be present but must be otherwise available should his advice or assistance be required

The Commission has a statutory right to inspect the records of a real estate broker. The inspection:

b) Can under certain circumstances be conducted without notice to the broker

Square Footage Disclosure is required on:

b) Residential real property improvements

The semi-annual tax on a $140,000 property assessed at 50% of value with a mill levy of 9.2% per $100 would be:

c) $3,220

A lender requires 3 month's interest escrow on a $650,000 loan at 7.5%. Amount of escrow would be:

d) None of the above

A buyer's title policy is paid for by:

b) The buyer

The main difference between tenancy in Common and Joint Tenancy is:

c) Survivorship

A residence is paid for. The owner takes out a $370,000 first loan, a $17,000 second loan and a $12,000 third loan. The home goes into foreclosure and the $2,500 tax bill goes unpaid. The order of payment in the foreclosure process would be:

b) $2,500; $370,000; $17,000; $12,000

An out-of-state seller wants to list his home for $80,000. You know firsthand that homes in that area sells in the $125,000 range. As a broker you should:

d) Recommend seller obtain a Competitive Market Analysis

Two brokers discuss setting commission rates as a fixed percentage. These brokers:

a) Have violated anti-trust laws

A building built on leased land is considered by the land owner:

b) To transfer to landowner upon end of lease

A monument would be used to:

b) Determine location of lots

A seller is not required to transfer ownership if the type of contract utilized is a/an:

b) Option contract

A broker has an interest in a title company. The broker must:

c) Provide names of several title companies

Escrow money may be deposited in other than listing broker's escrow account:

d) If parties agree

A psychological impairment may be disclosed

b) With seller's permission

An attorney in fact:

c) Must have written permission

An owner wishing to make a single tax payment must do so by:

d) April 30th

Taxes paid in advance, are a:

a) Debit buyer, credit seller

A developer of an industrial park would probably be most concerned with:

b) Environmental Issues

After delivering a counter offer a seller receives a higher contract offer. The seller may

a) Rescind the counter offer

If an associate broker changes brokers, they typically must:

a) Leave behind their listings

A Land Contract is also called:

b) An Installment Contract

What can terminate an appurtenant easement?

a) Uniting the servient and dominate properties

Barring an agreement to the contrary who pays the transfer tax on sale?

a) Seller

The closing date could be changed using which document?

b) Amend/Extend signed by all parties (seller, buyer, broker)

The Seller's Property Disclosure form is:

c) Completed by the seller

Regarding a seller assisted down payment, the broker can do all of the following except:

d) Advise the seller and any third-party contributors to extend the 6% limit

After a hearing for a licensee who has engaged in fraud, the Commission may:

a) Impose a fine up to $2,500 for each offense

If a title exam proves unsatisfactory, the purchaser:

c) Can terminate the contact, and have his earnest money returned

If the seller receives a Notice to Correct, but the seller and buyer have not agreed in writing to a settlement, what happens?

a) The contract shall terminate one calendar day following the Resolution Deadline

If taxes are paid in two lump sums, by which date must each be paid?

b) 2/28 or 2/29, and 6/15

If a Broker is found to have violated Division of Real Estate Procedures the division may not:

a) Require repayment of damages

A Broker working as an agent has no obligation to inform their client concerning:

d) Vicarious Liability

Remediation Issues apply to:

c) Asbestos, Meth Labs, Mold

A Seller may cancel a listing contract without liability if the Broker:

b) Violates a provision of the listing contract

Disclosure of Psychological Impairments is:

b) Is regulated by State Statute???

In an Agricultural Property the Redemption Period after a foreclosure Sale is:

d) Not allowed (In CO???)