Colorado Real Estate- State Portion
Exam Questions and Answers(Rated A)
Who usually deposits the earnest money check into escrow after a contract has been
accepted? - ANSWER-Listing Broker
The licensee buy-out addendum must be used under all of the following conditions
except: - ANSWER-When a licensee is purchasing the property as a rental investment.
What is the purpose of the real estate commission in Colorado? - ANSWER-to protect
the public
As a buyer agent under an exclusive right to buy agreement, the broker has what
agency relationship to the purchaser? - ANSWER-Fiduciary
A high level of supervision by employing brokers: - ANSWER-Would include: review of
documents in preparation for a closing, assistance in preparing contracts, monitoring of
transactions from contracting to closing, attending closings, or making sure an
experienced licensee attends the closing, being reasonably available for consultation
According to the exclusive right to sell listing contract the listing broker must disclose to
any possible buyer - ANSWER-All material facts about the property the broker knows
When a licensee uses a licensee buyout addendum your are putting the seller on notice
that - ANSWER-The buyer is a licensee the buyer may make a profit and the seller may
incur a loss.
Checking the will owe box in the holdover clause in the exclusive right to sell listing
contract protects the listing brokers commission for disclosed buyers - ANSWER-For
the period of time specified in the contract even if the property is relisted by another
broker
The Colorado approved Agreement to Amend/Extend form should be signed -
ANSWER-Before the sales contract has been fully executed
, For a deed to be valid in Colorado, which of the following must be true concerning the
grantors signature - ANSWER-The grantors signature is required
In Colorado a property subject to general ad valorem taxes is assessed on the first day
of January of the current year and the lien against the property for the taxes attaches -
ANSWER-At that time
A licensee may accept compensation from: - ANSWER-The licensee's employing
broker only
A transaction broker when handling both sides of the transaction has a fiduciary
responsibility to - ANSWER-Neither the buyer nor the seller
Which one of the following lists an unacceptable combination of relationships for a
single broker on a particular transaction - ANSWER-Transaction broker for the buyer
and agent for the seller
A blind person with a seeing eye dog makes application with a property manager for
residence in an apartment complex. There is a no pet policy currently being enforced.
What action may the property manager take? - ANSWER-Charge no let deposit and
only require the repair of any damage
A developer is selling several parcels of property that have been developed. The
developer wants to have his attorney prepare a sales contract that refers to the legal
description and stipulates the warranties the developer is making. Which of the following
is true - ANSWER-The developer can hire an attorney to prepare his own contracts and
include warranties and other information
When a seller decides to submit a counter proposal in response to a contract to buy and
sell the seller - ANSWER-Checks the countered box, initials the original contract and
signs the counter proposal
The Torrens System is most commonly used in which part of Colorado? - ANSWER-
Eastern
Exam Questions and Answers(Rated A)
Who usually deposits the earnest money check into escrow after a contract has been
accepted? - ANSWER-Listing Broker
The licensee buy-out addendum must be used under all of the following conditions
except: - ANSWER-When a licensee is purchasing the property as a rental investment.
What is the purpose of the real estate commission in Colorado? - ANSWER-to protect
the public
As a buyer agent under an exclusive right to buy agreement, the broker has what
agency relationship to the purchaser? - ANSWER-Fiduciary
A high level of supervision by employing brokers: - ANSWER-Would include: review of
documents in preparation for a closing, assistance in preparing contracts, monitoring of
transactions from contracting to closing, attending closings, or making sure an
experienced licensee attends the closing, being reasonably available for consultation
According to the exclusive right to sell listing contract the listing broker must disclose to
any possible buyer - ANSWER-All material facts about the property the broker knows
When a licensee uses a licensee buyout addendum your are putting the seller on notice
that - ANSWER-The buyer is a licensee the buyer may make a profit and the seller may
incur a loss.
Checking the will owe box in the holdover clause in the exclusive right to sell listing
contract protects the listing brokers commission for disclosed buyers - ANSWER-For
the period of time specified in the contract even if the property is relisted by another
broker
The Colorado approved Agreement to Amend/Extend form should be signed -
ANSWER-Before the sales contract has been fully executed
, For a deed to be valid in Colorado, which of the following must be true concerning the
grantors signature - ANSWER-The grantors signature is required
In Colorado a property subject to general ad valorem taxes is assessed on the first day
of January of the current year and the lien against the property for the taxes attaches -
ANSWER-At that time
A licensee may accept compensation from: - ANSWER-The licensee's employing
broker only
A transaction broker when handling both sides of the transaction has a fiduciary
responsibility to - ANSWER-Neither the buyer nor the seller
Which one of the following lists an unacceptable combination of relationships for a
single broker on a particular transaction - ANSWER-Transaction broker for the buyer
and agent for the seller
A blind person with a seeing eye dog makes application with a property manager for
residence in an apartment complex. There is a no pet policy currently being enforced.
What action may the property manager take? - ANSWER-Charge no let deposit and
only require the repair of any damage
A developer is selling several parcels of property that have been developed. The
developer wants to have his attorney prepare a sales contract that refers to the legal
description and stipulates the warranties the developer is making. Which of the following
is true - ANSWER-The developer can hire an attorney to prepare his own contracts and
include warranties and other information
When a seller decides to submit a counter proposal in response to a contract to buy and
sell the seller - ANSWER-Checks the countered box, initials the original contract and
signs the counter proposal
The Torrens System is most commonly used in which part of Colorado? - ANSWER-
Eastern
