Ultimate Test 3 Flashcards by Austin Jay Godfrey

An Associate Broker must use the Buyout Disclosure when:

a) The purchase by the associate is to induce the Seller to list their property in order to purchase another property

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A Contract Addendum may not be completed by:

d) Buyer’s or Seller’s Brokers

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A property is assessed at $129,000 and is taxed at 92 mills (9.2% per $100). What is the tax per annum?

b) $11,868.00

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What is the latest date by which a licensee’s ownership must be disclosed?

a) At the time of signature/seller contract

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According to the brokerage disclosure given to the buyer, the broker will disclose:

a) Whether the broker is a transaction broker and thus also a transaction broker for the buyer
b) That the broker has consent to disclose confidential information to the supervising broker
c) Whether the broker is an agent for the seller
d) All of the above!!!

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Mortgage brokers are licensed by:

a) The Division of Real Estate

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The square footage disclosure applies to:

a) Residential property only

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Security deposits held by a landlord must be refunded:

a) Within one month of the termination of the lease

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A broker who assists one or more parties in a Real Estate transaction without being an advocate for any party is:

c) A transaction broker

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Which of the following would not constitute good funds under the Colorado good funds law?

a) Cash

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Broker John is engaged by buyer A and seller B as an agent. Buyer A decides to buy seller B’s house. Broker John must provide A and B with:

d) A written change of status

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A buyer’s agent could be accused of abandoning her buyer if:

d) She does not provide agreed upon services

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The approved buy/sell contract provides that:

c) The parties agree to proceed to mediation before commencing arbitration proceedings

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A broker acting as an agent for the seller:

a) Must counsel the seller

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A license issued on Feb. 2, 2008 expires on:

b) Dec. 31, 2011

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A foreclosure sale of a residential property cannot be held before a minimum of how many days have elapsed after recording of the notice of election and demand:

a) 110 days

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A buyer’s agent could be accused of abandoning her buyer if:

d) She does not provide agreed upon services

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The approved buy/sell contract provides that:

c) The parties agree to proceed to mediation before commencing arbitration proceedings

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A broker acting as an agent for the seller:

a) Must counsel the seller

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A license issued on Feb. 2, 2008 expires on:

b) Dec. 31, 2011

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A foreclosure sale of a residential property cannot be held before a minimum of how many days have elapsed after recording of the notice of election and demand:

a) 110 days

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The owner’s redemption period after the foreclosure sale for a Commercial property is:

d) There is no redemption period after the sale

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When a property is in foreclosure under a deed of trust, which is authorized to sell the property at a public sale?

d) The public trustee of the county

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If property taxes are to be paid in two installments, when does interest accrue on the outstanding balance?

a) March 1 if the first installment is delinquent

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Taxpayers in Colorado have two options for paying property tax. One allows two installments and the other is a single payment. If the taxpayer elects the single payment option, the property tax must be paid by:

a) April 30

In the Colorado contract all of the following are negotiable except:

d) Splitting the cost of mediation

An illegal requirement in a listing would include:

a) Limiting sale requirement to only one protected class under Fair Housing

A contract is considered to be fully executed when:

a) All requirements have been fully completed

Closing cost disclosure requirements are regulated by:

d) RESPA

PMI allows a purchaser to:

a) Qualify for a higher loan amount

A cooperative property reflects:

a) A corporate ownership of a building

Which type description would include “Starting at the old Oak tree. ?”

d) Metes and Bounds

When a contract is acknowledged it means that:

d) It has been notarized

The purpose of a monument is to show:

a) Where a lot begins and/or ends

In an appraisal of a single residential property, the least important consideration would be:

d) Capitalization Rate

Which of the following always requires an appraisal?

b) FHA loan

The most probable selling price would indicate:

c) Market value

A Broker has failed to renew their license; 30 days has elapsed. During this time their license is:

a) Considered expired and they may not practice Real Estate

A Broker’s agency agreement with the Seller continues until:

d) Completion of the sale

A check for earnest money was presented with the contract. This check must be:

b) Referenced within the sales contract

If you are working as a Transaction Broker, the only required disclosure is:

c) Disclosure of working relationships

An unlicensed assistant may:

d) Sit an open house

A husband and wife purchase a home as joint tenants. The husband wills his ownership interest to his son. Upon his death the son receives:

a) Nothing

An earnest money deposit does not clear the account. The contract is now:

b) Void

The secondary market purchases loans from:

b) Banks

In a foreclosure sale, a lender gives a Quit Claim Deed:

a) To eliminate future title claims

Taxes are paid in two installments each year. If the property is worth $150,000 and assessed at 80%, with a mill levy of 8.2 percent, each payment would be:

d) 4,920

Several Brokers have decided to lock in a 7% listing commission, these Brokers have:

a) Restricted competition

A Buyer met an Inspector at the property and paid for his inspection. This payment would be reported on the closing statement as:

b) Paid outside closing

A Buyer refused to complete the purchase. The Seller may not force them to perform. The Contract:

c) Is an Option Contract

A Seller signed a counter offer, before the Buyer was informed a higher offer came in, the Seller:

a) May cancel the counter offer and accept the new offer

A Title Policy reported a history of who owned the property. This is most likely

c) An Abstract

A lender provides a loan from their own funds. This lender is most likely:

b) A Mortgage Banker

The main difference between a CAM and an appraiser is that an Appraiser:

c) Determines highest and best use

A tenant has a triple net lease. The annual expenses include: Taxes $2,500, Overhead $3,000, and Insurance $1,100. The tenant’s share of this would be:

a) $6,600

The purpose of a Tax Certificate is to:

a) Show the amount of taxes that must be paid annually

A Buyer’s Broker was employed on an hourly fee. The buyer purchased a property. The Broker:

c) Will not receive a commission since she was on an hourly wage

To receive a commission on an open listing the Broker must prove he was the:

a) Procuring cause

Discount points are used to:

a) Increase the Lender’s yield

How is the interest on an assumed loan entered on the closing statement?

b) Debit Seller, Credit Buyer

A Broker lists a home for a client. He is working as:

b) Single agent

There are no disclosure requirements for:

a) A properly remediated methamphetamine contaminated house

A lead based paint disclosure allows for:

c) A Buyer to have the home inspected for lead based paint

A Broker’s commission is:

b) Always negotiable

Although carbon monoxide is colorless and odorless, it is:

b) Inexpensively tested and mitigated

A Broker tells a Buyer that this is the best landscaped home in the neighborhood. After he moves in the Buyer discovers that it isn’t the best landscaped home. The Broker is guilty of:

d) Puffing

The value of a Property is determined by:

d) The Market

Who may be legally barred from leasing a Rental Unit?

c) A Known Violent and Aggressive Individual

An important detail in appraising a home would be the:

c) Sales Date

A listing contract belongs to the:

b) Brokerage Firm

A listing would be terminated by:

b) Condemnation of the Property

Which of the following is the seller’s responsibility?

d) Broker compensation

Seller must disclose all known material defects EXCEPT:

c) Remediated meth labs

An out-of-state property owner wants you to set up a management company, you must:

a) Ask your employing broker to set up a management agreement and escrow account

In an exclusive agency listing contract which of the following is negotiable:

d) Length of holdover clause

To earn a commission on a real estate security:

c) One of the parties must have a securities license

It is not appropriate for broker to accept a listing:

d) At a high price with intention of reducing it later

The agreement to amend/extend may:

b) Only amend dates in terms of mutual agreement of the parties

Which may be a single agent?

d) A broker representing a landlord in leasing transactions

In approved Buy and Sell contracts the purchaser may assign the contract:

c) Only after obtaining seller's consent in writing

The doctrine of prior appropriation states:

b) Water priority is based on date water was first directed for use

One of the major advantages of F. H. A. financing is:

c) Relatively small down payment

Buyer signs a contract which is accepted by the seller. Before closing the seller cancels his offer. The Seller may:

a) Unless contract was an option

An example of puffing would be:

d) This lot definitely has the most beautiful view of the lake

What Federal act requires that parties have knowledge of all closing costs?

c) Real Estate Settlement Procedures Act

If subject is in an improvement district where assessments have been confirmed:

a) Purchaser must be informed there will be additional assessments as well as a lien

Illegal price fixing occurs when:

b) Two agree to identical fee structures

What’s the direct benefit of investing in an income property:

c) 1031 exchanges

A contract is terminated if:

a) One of the parties finds it impossible to perform

Which of the common law agency duties would a broker find easiest to perform in dual agency

c) Accounting

Which is true of asbestos?

b) Encapsulation is safer than removal

A man died leaving property to his daughter in his will. Before taking possession the property must be?

c) Probated