CRES FINAL TEST QUESTIONS WITH 100%
ACCURATE ANSWERS
Which of the following requires the use of the Licensee Buyout Addendum to the contract to
Buy & Sell? - Accurate answers A broker is offering a guarantee as an inducement to list
with his company
The buyer notifies the seller in writing of a termination of the contract under the Loan
Objection Deadline. What happens to the earnest money? - Accurate answers The broker
must immediately return the money to the buyer
The illegal practice of inducing homeowners to sell their properties by making representations
about the prospective entry of persons of a certain race/national origin into the neighborhood
is also called: - Accurate answers blockbusting
June is a listing broker in Colorado. When and how must she disclose to a potential buyer that
she has a working relationship with the seller? - Accurate answers in writing, before
providing specific real estate services
Beatrice a listing agent who has received two similar offers to purchase. She has made an
appointment with the sellers to present the offers, but meanwhile another offer comes in from
an associate in the same company. In this situation, which should Beatrice present? - Accurate
answers all three offers for simultaneous review
After a tenant gave notice and vacated an apartment, the landlord discovered substantial
damage to the unit. No time was set in the lease specifying the length of time the landlord had
to account or refund the security deposit after deductions. Which of the following is an
appropriate action by the landlord? - Accurate answers itemize the damage in writing and
return any excess deposit within one month
Stan is a real estate broker in Colorado. He has identified a property for a fast food outlet and
has asked four friends to contribute money to the purchase and gain partial ownership. Stan
will manage the property and negotiate the lease for the fast food franchise. Which of the
following is correct with regard to Stan's role as a broker in this arrangement? - Accurate
answers He must comply with state and federal securities laws in arranging this investment
group.
A security is a financial instrument backed by assets. They give the holder an interest or right in
something else. Regulation under state or federal securities laws may apply to which of the
following? - Accurate answers Resort condominium project in which owners enter their
units in a common rental pool to enhance their income.
, The common rental pool arrangement for increasing income may qualify this offering as a
security.
A buyer and seller have written two contracts for one property: a higher contract to submit for
a larger loan request and another with a lower actual purchase price because they know the
seller is anxious to sell quickly. Which correctly describes this arrangement? - Accurate
answers Fraudulent dual contracting
How is the relationship handled when a buyer wishes to work with a broker to locate property
to purchase? - Accurate answers Buyer and broker may agree to a relationship which
could include agency, transaction-brokerage, or no working relationship between the parties
A buyer is assuming a loan and the loan balance has turned out to be less than the assumption
balance provided by the seller. How would this be handled according to the Residential
Contract to Buy and Sell ? - Accurate answers The buyer may terminate the contract by
written notice if the difference causes the buyer's cash at closing to increase by a stated
amount.
What is the effect of a Loan Objection Deadline when specified in an approved Residential
Contract to Buy and Sell? - Accurate answers If the buyer cannot get a satisfactory written
loan commitment by that date, the buyer may terminate the contract upon written notice to
the seller.
Which of the following is true if a buyer receives a property inspection report indicating several
apparently serious problems on the day after the Inspection Objection Deadline? - Accurate
answers The buyer missed the opportunity to object based on inspection issues, and the
contract is still in force.
In the Contract to Buy and Sell, what does the statement, "time is of the essence hereof"
mean? - Accurate answers All dates and deadlines will be strictly interpreted.
How are court costs and legal fees handled if a dispute over the Residential Contract to Buy and
Sell goes to court? - Accurate answers They are awarded to the winning party.
What is considered a proper response by the seller when he or she receives an offer from a
buyer - Accurate answers checking an appropriate box, initialing the form, and submitting
a counterproposal
Which of the following is true when a broker signs the Broker Acknowledgments at the end of
the Residential Contract to Buy and Sell? - Accurate answers The broker acknowledges
receipt of the earnest money deposit.
Which of the following is correct according to the Colorado Real Estate Commission Position
Statement regarding Rule F? - Accurate answers Brokers may not add exculpatory
ACCURATE ANSWERS
Which of the following requires the use of the Licensee Buyout Addendum to the contract to
Buy & Sell? - Accurate answers A broker is offering a guarantee as an inducement to list
with his company
The buyer notifies the seller in writing of a termination of the contract under the Loan
Objection Deadline. What happens to the earnest money? - Accurate answers The broker
must immediately return the money to the buyer
The illegal practice of inducing homeowners to sell their properties by making representations
about the prospective entry of persons of a certain race/national origin into the neighborhood
is also called: - Accurate answers blockbusting
June is a listing broker in Colorado. When and how must she disclose to a potential buyer that
she has a working relationship with the seller? - Accurate answers in writing, before
providing specific real estate services
Beatrice a listing agent who has received two similar offers to purchase. She has made an
appointment with the sellers to present the offers, but meanwhile another offer comes in from
an associate in the same company. In this situation, which should Beatrice present? - Accurate
answers all three offers for simultaneous review
After a tenant gave notice and vacated an apartment, the landlord discovered substantial
damage to the unit. No time was set in the lease specifying the length of time the landlord had
to account or refund the security deposit after deductions. Which of the following is an
appropriate action by the landlord? - Accurate answers itemize the damage in writing and
return any excess deposit within one month
Stan is a real estate broker in Colorado. He has identified a property for a fast food outlet and
has asked four friends to contribute money to the purchase and gain partial ownership. Stan
will manage the property and negotiate the lease for the fast food franchise. Which of the
following is correct with regard to Stan's role as a broker in this arrangement? - Accurate
answers He must comply with state and federal securities laws in arranging this investment
group.
A security is a financial instrument backed by assets. They give the holder an interest or right in
something else. Regulation under state or federal securities laws may apply to which of the
following? - Accurate answers Resort condominium project in which owners enter their
units in a common rental pool to enhance their income.
, The common rental pool arrangement for increasing income may qualify this offering as a
security.
A buyer and seller have written two contracts for one property: a higher contract to submit for
a larger loan request and another with a lower actual purchase price because they know the
seller is anxious to sell quickly. Which correctly describes this arrangement? - Accurate
answers Fraudulent dual contracting
How is the relationship handled when a buyer wishes to work with a broker to locate property
to purchase? - Accurate answers Buyer and broker may agree to a relationship which
could include agency, transaction-brokerage, or no working relationship between the parties
A buyer is assuming a loan and the loan balance has turned out to be less than the assumption
balance provided by the seller. How would this be handled according to the Residential
Contract to Buy and Sell ? - Accurate answers The buyer may terminate the contract by
written notice if the difference causes the buyer's cash at closing to increase by a stated
amount.
What is the effect of a Loan Objection Deadline when specified in an approved Residential
Contract to Buy and Sell? - Accurate answers If the buyer cannot get a satisfactory written
loan commitment by that date, the buyer may terminate the contract upon written notice to
the seller.
Which of the following is true if a buyer receives a property inspection report indicating several
apparently serious problems on the day after the Inspection Objection Deadline? - Accurate
answers The buyer missed the opportunity to object based on inspection issues, and the
contract is still in force.
In the Contract to Buy and Sell, what does the statement, "time is of the essence hereof"
mean? - Accurate answers All dates and deadlines will be strictly interpreted.
How are court costs and legal fees handled if a dispute over the Residential Contract to Buy and
Sell goes to court? - Accurate answers They are awarded to the winning party.
What is considered a proper response by the seller when he or she receives an offer from a
buyer - Accurate answers checking an appropriate box, initialing the form, and submitting
a counterproposal
Which of the following is true when a broker signs the Broker Acknowledgments at the end of
the Residential Contract to Buy and Sell? - Accurate answers The broker acknowledges
receipt of the earnest money deposit.
Which of the following is correct according to the Colorado Real Estate Commission Position
Statement regarding Rule F? - Accurate answers Brokers may not add exculpatory
