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COLORADO REAL ESTATE PRACTICE EXAM WITH
COMPLETE QUESTIONS AND CORRECT VERIFIED
ANS WERS LATEST UPDATE JUST RELEASED THIS
YEAR
Question: What is the maximum commission rate that a buyer may be charged pursuant to an
Exclusive Right-to-Buy contract?
a) 0.028
b) 0.03
c) 0.07
d) none of the above - ANSWER✔✔d) none of the above
Question: In the absence of an Exclusive Right-to-Buy Contract, a buyer may:
a) look at houses with more than one agent in the same day
b) look at the same house with more than one agent in the same day
c) look at houses with a broker and then purchase a home being held open by another broker in
the same day
d) all of the above - ANSWER✔✔d) all of the above
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Question: Under an Exclusive Buyer Agency Agreement, the broker has what agency
relationship to the purchaser? - ANSWER✔✔Fiduciary
Question: Proper disclosure of brokerage relationships must be made: - ANSWER✔✔in writing
Question: Which of the following statements is true concerning agency? - ANSWER✔✔Written
agreement establishes agency
Question: The buyer's legal procedure to enforce a contract is: - ANSWER✔✔Specific
performance
Question: In a transaction broker situation, what responsibility does the principal have to the
agent? - ANSWER✔✔He may have to pay a commission
Question: An agent and buyer enter into an Exclusive Right-to-Buy Contract, the -
ANSWER✔✔Buyer is bound to work with only one broker during the term of the contract
Question: How is the relationship handled when a buyer wishes to work with a broker to locate
property to purchase? - ANSWER✔✔Buyer and broker may agree to a relationship which could
include agency, transaction-brokerage, or no working relationship between the parties
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Question: From whom may the buyer's sales agent receive payment for their services? -
ANSWER✔✔Their broker only
Question: The Exclusive Right-to-Buy Contract is available as: - ANSWER✔✔buyer-agency and
transaction broker relationships
Question: The length of the holdover period in the Exclusive Right-to-Buy Contract is best
described as: - ANSWER✔✔a freely negotiable period that may be invalidated when the buyer
signs a new Exclusive Right-to-Buy Contract
Question: The alternative dispute resolution, mediation clause, in the Exclusive Right-to-Buy
Contract is for the purpose of:
a) limiting the time period for disputes to 30 days
b) encouraging alternatives to litigation
c) reducing the cost of resolving disputes
d) all of the above - ANSWER✔✔d) all of the above
Question: Agency disclosure does not have to be made to a buyer under which of the following
circumstances?
a) During "small talk" regarding general price range, location, property styles, etc.
b) When responding to general factual questions concerning advertised properties
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c) Showing a home at an open house
d) all of the above - ANSWER✔✔d) all of the above
Question: A transaction broker may disclose the following information regarding a buyer he is
assisting in the purchase of a property: - ANSWER✔✔adverse material facts regarding the
buyer's financial ability to purchase the property
Question: The real estate broker is liable to the buyer if he: - ANSWER✔✔acts in excess of the
authority given by his principal
Question: A broker enters into an Exclusive Right-to-Buy contract with a purchaser. The
purchaser finds a satisfactory property and makes an offer, which is accepted. The listing broker
is unavailable during much of the transaction and the selling broker performs several of the
listing broker's responsibilities. In gratitude, the seller offers a $500 bonus to the selling broker.
When is it acceptable for the broker to receive this money? - ANSWER✔✔With full written
disclosure to both parties
Q:What kind of license must be held to sell options in real estate? - ANSWER✔✔An Associate
Broker's license
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SUCCESS!
COLORADO REAL ESTATE PRACTICE EXAM WITH
COMPLETE QUESTIONS AND CORRECT VERIFIED
ANS WERS LATEST UPDATE JUST RELEASED THIS
YEAR
Question: What is the maximum commission rate that a buyer may be charged pursuant to an
Exclusive Right-to-Buy contract?
a) 0.028
b) 0.03
c) 0.07
d) none of the above - ANSWER✔✔d) none of the above
Question: In the absence of an Exclusive Right-to-Buy Contract, a buyer may:
a) look at houses with more than one agent in the same day
b) look at the same house with more than one agent in the same day
c) look at houses with a broker and then purchase a home being held open by another broker in
the same day
d) all of the above - ANSWER✔✔d) all of the above
1
SUCCESS!
,Page 2 of 102
Question: Under an Exclusive Buyer Agency Agreement, the broker has what agency
relationship to the purchaser? - ANSWER✔✔Fiduciary
Question: Proper disclosure of brokerage relationships must be made: - ANSWER✔✔in writing
Question: Which of the following statements is true concerning agency? - ANSWER✔✔Written
agreement establishes agency
Question: The buyer's legal procedure to enforce a contract is: - ANSWER✔✔Specific
performance
Question: In a transaction broker situation, what responsibility does the principal have to the
agent? - ANSWER✔✔He may have to pay a commission
Question: An agent and buyer enter into an Exclusive Right-to-Buy Contract, the -
ANSWER✔✔Buyer is bound to work with only one broker during the term of the contract
Question: How is the relationship handled when a buyer wishes to work with a broker to locate
property to purchase? - ANSWER✔✔Buyer and broker may agree to a relationship which could
include agency, transaction-brokerage, or no working relationship between the parties
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Question: From whom may the buyer's sales agent receive payment for their services? -
ANSWER✔✔Their broker only
Question: The Exclusive Right-to-Buy Contract is available as: - ANSWER✔✔buyer-agency and
transaction broker relationships
Question: The length of the holdover period in the Exclusive Right-to-Buy Contract is best
described as: - ANSWER✔✔a freely negotiable period that may be invalidated when the buyer
signs a new Exclusive Right-to-Buy Contract
Question: The alternative dispute resolution, mediation clause, in the Exclusive Right-to-Buy
Contract is for the purpose of:
a) limiting the time period for disputes to 30 days
b) encouraging alternatives to litigation
c) reducing the cost of resolving disputes
d) all of the above - ANSWER✔✔d) all of the above
Question: Agency disclosure does not have to be made to a buyer under which of the following
circumstances?
a) During "small talk" regarding general price range, location, property styles, etc.
b) When responding to general factual questions concerning advertised properties
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c) Showing a home at an open house
d) all of the above - ANSWER✔✔d) all of the above
Question: A transaction broker may disclose the following information regarding a buyer he is
assisting in the purchase of a property: - ANSWER✔✔adverse material facts regarding the
buyer's financial ability to purchase the property
Question: The real estate broker is liable to the buyer if he: - ANSWER✔✔acts in excess of the
authority given by his principal
Question: A broker enters into an Exclusive Right-to-Buy contract with a purchaser. The
purchaser finds a satisfactory property and makes an offer, which is accepted. The listing broker
is unavailable during much of the transaction and the selling broker performs several of the
listing broker's responsibilities. In gratitude, the seller offers a $500 bonus to the selling broker.
When is it acceptable for the broker to receive this money? - ANSWER✔✔With full written
disclosure to both parties
Q:What kind of license must be held to sell options in real estate? - ANSWER✔✔An Associate
Broker's license
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