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Colorado Real Estate - Contracts
Questions and Answers Latest 2026
"MEC" in a contract means:
A. Mutual Execution of Contract
B. Must Exit Contract
C. Multiple Element Contingency
D. Multiple Easement Criteria Ans: A. Mutual Execution of
Contract
In Contract to Buy and Sell Real Estate. Means date upon
which both parties have executed contract. MEC +1 would
be the date in which both parties sign, plus one day.
Typically used in commercial world but not frequently in
residential agreements.
The Contract to Buy and Sell Real Estate says who will
pay the closing costs:
A. The Buyer
B. The Seller
C. Whatever is specified in the contract
D. The Broker Ans: C. Whatever is specified in the
contract
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Negotiable.
When disclosing the square footage on the Square
Footage Disclosure form, the broker must disclose:
A. That the broker warranties the measurements
B. That the seller warranties the measurements
C. That the disclosure is for the lender
D. Source of the measurement Ans: D. Source of the
measurement
Most of the time, Real Estate brokers do not measure the
square footage themselves. On the disclosure you provide
the source of the measurement and what that square
footage is. Below that there is a disclaimer that square
footage may not be exact and if the square footage is a
concern, the buyer should independently measure it.
On The Contract to Buy and Sell real Estate, if the buyer
is in default and the seller remedy is specific
performance:
A. The seller is entitled to the earnest money as the sole
and only remedy
B. The seller gets the earnest money and may sue
C. The seller waives the right to sue
© 2025 All rights reserved
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D. The contract is terminated Ans: B. The seller gets the
earnest money and may sue
Default = buyer or seller has blown up the contract in a
non permissible case.
Termination = getting out of the contract in a place that's
permissible. Buyer gets earnest money back.
Specific Performance = seller can elect to treat as
cancelled and keep earnest money and can sue to recover
damages or seller may elect to treat contract as being in
full force (can force buyer to buy property)
Specific performance box is checked when buyer fills out
the contract to buy and sell real estate. If specific
performance isn't selected, the contract defaults to
liquidated damages. If seller is in default, the only option
is specific performance since they don't put up earnest
money.
According to Rule F what sections may be omitted from
the contract to buy and sell real estate:
A. Non-applicable financing conditions
B. Recommendation of legal and tax counsel
C. Mediation
D. Assignability and inurement
© 2025 All rights reserved
Colorado Real Estate - Contracts
Questions and Answers Latest 2026
"MEC" in a contract means:
A. Mutual Execution of Contract
B. Must Exit Contract
C. Multiple Element Contingency
D. Multiple Easement Criteria Ans: A. Mutual Execution of
Contract
In Contract to Buy and Sell Real Estate. Means date upon
which both parties have executed contract. MEC +1 would
be the date in which both parties sign, plus one day.
Typically used in commercial world but not frequently in
residential agreements.
The Contract to Buy and Sell Real Estate says who will
pay the closing costs:
A. The Buyer
B. The Seller
C. Whatever is specified in the contract
D. The Broker Ans: C. Whatever is specified in the
contract
© 2025 All rights reserved
, 2 | Page
Negotiable.
When disclosing the square footage on the Square
Footage Disclosure form, the broker must disclose:
A. That the broker warranties the measurements
B. That the seller warranties the measurements
C. That the disclosure is for the lender
D. Source of the measurement Ans: D. Source of the
measurement
Most of the time, Real Estate brokers do not measure the
square footage themselves. On the disclosure you provide
the source of the measurement and what that square
footage is. Below that there is a disclaimer that square
footage may not be exact and if the square footage is a
concern, the buyer should independently measure it.
On The Contract to Buy and Sell real Estate, if the buyer
is in default and the seller remedy is specific
performance:
A. The seller is entitled to the earnest money as the sole
and only remedy
B. The seller gets the earnest money and may sue
C. The seller waives the right to sue
© 2025 All rights reserved
, 3 | Page
D. The contract is terminated Ans: B. The seller gets the
earnest money and may sue
Default = buyer or seller has blown up the contract in a
non permissible case.
Termination = getting out of the contract in a place that's
permissible. Buyer gets earnest money back.
Specific Performance = seller can elect to treat as
cancelled and keep earnest money and can sue to recover
damages or seller may elect to treat contract as being in
full force (can force buyer to buy property)
Specific performance box is checked when buyer fills out
the contract to buy and sell real estate. If specific
performance isn't selected, the contract defaults to
liquidated damages. If seller is in default, the only option
is specific performance since they don't put up earnest
money.
According to Rule F what sections may be omitted from
the contract to buy and sell real estate:
A. Non-applicable financing conditions
B. Recommendation of legal and tax counsel
C. Mediation
D. Assignability and inurement
© 2025 All rights reserved
