Colorado Contracts and Regulations Final
UPDATED ACTUAL Exam Questions and
CORRECT Answers
The Real Estate Commission can seize a brokerage firms's or broker's records prior to receiving a
response from a complaint. - CORRECT ANSWER - False. The Commission must wait until
the response time has passed.
Brokers must respond to the Real Estate Commissions's request for a response or the broker's
license may be revoked. - CORRECT ANSWER - True.
Which duty would be appropriate for an agent and NOT for a transaction-broker? - CORRECT
ANSWER - Counseling as to material benefits and risks
A broker using computer-generated forms must. - CORRECT ANSWER - make sure the
program reproduces the approved language exactly.
An employing broker who leaves town - CORRECT ANSWER - can delegate authority, in
writing, to a qualified broker.
Standard forms identified in Commission Rule F were developed to - CORRECT ANSWER -
assist brokers in complying with the Conway-Bogue Supreme Court decision. Only licensees are
required to use these forms, so "all transactions" is too broad; transactions with attorneys or for
sale by owners are not required to use these forms.
Errors and omissions insurance is required for - CORRECT ANSWER - all licensed
corporations and limited liability companies. In addition to individual policies, the licensed
brokerage firm, corporation, or LLC is required to carry errors and omissions insurance.
A broker listed and sold a property where the seller gave the buyer $5,000 in concessions. The
broker should do all of the following EXCEPT - CORRECT ANSWER - notify the title
company or Real Estate Commission. The title company does not need to be notified because the
, concessions are in the contract and, therefore, the closing entity will be able to identify them.
The Real Estate Commission would be notified only if rules or laws were broken.
A property manager with a disabled tenant who wishes to make reversible changes to the unit
may - CORRECT ANSWER - expect the tenant to pay for them. All tenants, with or without
disabilities, are allowed to make reversible changes at their own expense with the expectation
that they will return the property to the same condition as when it was rented.
Which form is intended to help ensure fair and uniform tax assessments? - CORRECT
ANSWER - Real Property Transfer Declaration (TD-1000)
A broker is working with a seller who has many properties she wishes to sell. How many
properties can the listing broker and brokerage firm list? - CORRECT ANSWER - As many
properties as they can effectively market
Errors and omissions (E&O) insurance is required for all of the following EXCEPT - CORRECT
ANSWER - inactive licensees renewing on inactive status.
A broker who has a brokerage relationship with both the seller and the buyer must be -
CORRECT ANSWER - a transaction-broker.
A Colorado landlord may refuse to rent to a - CORRECT ANSWER - Caucasian student. The
Caucasian student could be excluded as a student if all students are excluded because occupation
is not covered. Exclusion could not be based on race.
A property built before January 1, 1978, requires a Lead-Based Paint Disclosures based on a -
CORRECT ANSWER - Building permit
All of the following may draft an addendum that has not been negotiated by the seller and the
buyer to an executory purchase contract EXCEPT - CORRECT ANSWER - the brokers for
the parties. Rule F-3 states that only a party to the contract or an attorney can draft an addendum
that has not been negotiated between the parties. The brokers are not parties to executory
purchase contracts and, therefore, cannot draft addenda.
UPDATED ACTUAL Exam Questions and
CORRECT Answers
The Real Estate Commission can seize a brokerage firms's or broker's records prior to receiving a
response from a complaint. - CORRECT ANSWER - False. The Commission must wait until
the response time has passed.
Brokers must respond to the Real Estate Commissions's request for a response or the broker's
license may be revoked. - CORRECT ANSWER - True.
Which duty would be appropriate for an agent and NOT for a transaction-broker? - CORRECT
ANSWER - Counseling as to material benefits and risks
A broker using computer-generated forms must. - CORRECT ANSWER - make sure the
program reproduces the approved language exactly.
An employing broker who leaves town - CORRECT ANSWER - can delegate authority, in
writing, to a qualified broker.
Standard forms identified in Commission Rule F were developed to - CORRECT ANSWER -
assist brokers in complying with the Conway-Bogue Supreme Court decision. Only licensees are
required to use these forms, so "all transactions" is too broad; transactions with attorneys or for
sale by owners are not required to use these forms.
Errors and omissions insurance is required for - CORRECT ANSWER - all licensed
corporations and limited liability companies. In addition to individual policies, the licensed
brokerage firm, corporation, or LLC is required to carry errors and omissions insurance.
A broker listed and sold a property where the seller gave the buyer $5,000 in concessions. The
broker should do all of the following EXCEPT - CORRECT ANSWER - notify the title
company or Real Estate Commission. The title company does not need to be notified because the
, concessions are in the contract and, therefore, the closing entity will be able to identify them.
The Real Estate Commission would be notified only if rules or laws were broken.
A property manager with a disabled tenant who wishes to make reversible changes to the unit
may - CORRECT ANSWER - expect the tenant to pay for them. All tenants, with or without
disabilities, are allowed to make reversible changes at their own expense with the expectation
that they will return the property to the same condition as when it was rented.
Which form is intended to help ensure fair and uniform tax assessments? - CORRECT
ANSWER - Real Property Transfer Declaration (TD-1000)
A broker is working with a seller who has many properties she wishes to sell. How many
properties can the listing broker and brokerage firm list? - CORRECT ANSWER - As many
properties as they can effectively market
Errors and omissions (E&O) insurance is required for all of the following EXCEPT - CORRECT
ANSWER - inactive licensees renewing on inactive status.
A broker who has a brokerage relationship with both the seller and the buyer must be -
CORRECT ANSWER - a transaction-broker.
A Colorado landlord may refuse to rent to a - CORRECT ANSWER - Caucasian student. The
Caucasian student could be excluded as a student if all students are excluded because occupation
is not covered. Exclusion could not be based on race.
A property built before January 1, 1978, requires a Lead-Based Paint Disclosures based on a -
CORRECT ANSWER - Building permit
All of the following may draft an addendum that has not been negotiated by the seller and the
buyer to an executory purchase contract EXCEPT - CORRECT ANSWER - the brokers for
the parties. Rule F-3 states that only a party to the contract or an attorney can draft an addendum
that has not been negotiated between the parties. The brokers are not parties to executory
purchase contracts and, therefore, cannot draft addenda.
