COLORADO REAL ESTATE – CONTRACTS EXAM QUESTIONS AND 100% CORRECT ANSWERS|LATEST 2025/2026|GRADED A+|VERIFIED

COLORADO REAL ESTATE – CONTRACTS EXAM
QUESTIONS AND 100% CORRECT
ANSWERS|LATEST 2025/2026|GRADED
A+|VERIFIED
"MEC" in a contract means:
B B B B




A. Mutual Execution of Contract
B B B B




B. Must Exit Contract
B B B




C. Multiple Element Contingency
B B B




D. Multiple Easement Criteria - ANSWER-
B B B B B A. Mutual Execution of Contract
B B B B




In Contract to Buy and Sell Real Estate. Means date upon which both parties have executed co
B B B B B B B B B B B B B B B B



ntract. MEC +1 would be the date in which both parties sign, plus one day. Typically used in co
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mmercial world but not frequently in residential agreements.
B B B B B B B




The Contract to Buy and Sell Real Estate says who will pay the closing costs:
B B B B B B B B B B B B B B




A. The Buyer
B B




B. The Seller
B B




C. Whatever is specified in the contract
B B B B B B




D. The Broker - ANSWER-
B B B B C. Whatever is specified in the contract
B B B B B B




Negotiable.



When disclosing the square footage on the Square Footage Disclosure form, the broker must d
B B B B B B B B B B B B B B



isclose:



A. That the broker warranties the measurements
B B B B B B




B. That the seller warranties the measurements
B B B B B B




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,C. That the disclosure is for the lender
B B B B B B B




D. Source of the measurement - ANSWER-
B B B B B B D. Source of the measurement
B B B B




Most of the time, Real Estate brokers do not measure the square footage themselves. On the
B B B B B B B B B B B B B B B B



disclosure you provide the source of the measurement and what that square footage is. Below
B B B B B B B B B B B B B B



that there is a disclaimer that square footage may not be exact and if the square footage is a c
B B B B B B B B B B B B B B B B B B B B



oncern, the buyer should independently measure it.
B B B B B B




On The Contract to Buy and Sell real Estate, if the buyer is in default and the seller remedy is sp
B B B B B B B B B B B B B B B B B B B B



ecific performance: B




A. The seller is entitled to the earnest money as the sole and only remedy
B B B B B B B B B B B B B B




B. The seller gets the earnest money and may sue
B B B B B B B B B




C. The seller waives the right to sue
B B B B B B B




D. The contract is terminated - ANSWER-
B B B B B B



B. The seller gets the earnest money and may sue
B B B B B B B B B




Default = buyer or seller has blown up the contract in a non permissible case.
B B B B B B B B B B B B B B B




Termination = getting out of the contract in a place that's permissible. Buyer gets earnest mon
B B B B B B B B B B B B B B B



ey back. B




Specific Performance = seller can elect to treat as cancelled and keep earnest money and can s
B B B B B B B B B B B B B B B B



ue to recover damages or seller may elect to treat contract as being in full force (can force buy
B B B B B B B B B B B B B B B B B B



er to buy property)
B B B




Specific performance box is checked when buyer fills out the contract to buy and sell real estat
B B B B B B B B B B B B B B B B



e. If specific performance isn't selected, the contract defaults to liquidated damages. If seller i
B B B B B B B B B B B B B B



s in default, the only option is specific performance since they don't put up earnest money.
B B B B B B B B B B B B B B B




According to Rule F what sections may be omitted from the contract to buy and sell real estate
B B B B B B B B B B B B B B B B B



:




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, A. Non-applicable financing conditions
B B B




B. Recommendation of legal and tax counsel
B B B B B B




C. Mediation
B




D. Assignability and inurement
B B B




E. Evidence of title - ANSWER-
B B B B B A. Non-applicable financing conditions
B B B




F= Forms. All of the contracts, what you can do, delete, etc are all under F.
B B B B B B B B B B B B B B B




Must ALWAYS recommend legal and tax councel
B B B B B B




Mediation is ALWAYS required for conflict first.
B B B B B B




Assignment and inurement is in any kind of contract
B B B B B B B B




Always want evidence of title in a contract.
B B B B B B B




Broker Gayle accepted an offer and received earnest money for her listing. The earnest money
B B B B B B B B B B B B B B



must be deposited in an escrow or trust account:
B B B B B B B B B




A. Within 24 hours of receipt
B B B B B




B. Within 2 business days of receipt
B B B B B B




C. Within three business days of receipt
B B B B B B




D. Within four business days of receipt - ANSWER-
B B B B B B B B



C. Within three business days of receipt
B B B B B B




In Contract to buy and sell real estate under Time Limits for deposit of money belonging to oth
B B B B B B B B B B B B B B B B B



ers. Property manager = 5 days. All other moneys = 3 days.
B B B B B B B B B B B




Which form should not be used to disclosure your brokerage relationship:
B B B B B B B B B B




A. Definitions of brokerage relationships
B B B B




B. Brokerage disclosure to tenant
B B B B




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