COLORADO FORMS AND CONTRACTS TEST PAPER EXAM
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔The Colorado Real Estate Commission has approved a broad variety of standard
forms and made their use mandatory by licensees. Which of the following is one of the
primary reasons for these forms? - ✔✔Assures the brokers compliance with the
Conway-Bogue decision of the Supreme Court
✔✔When an earnest Money Promissory Note is used to provide earnest money,
another condition that must be met includes that the - ✔✔Note must be specifically
mentioned in the contract along with the due date
✔✔How would an Associate Broker with Realty, Inc., complete the name of the broker
in the blank on the Exclusive Right-to-Sell Listing Contract? - ✔✔Realty, Inc
✔✔In the Purchase Price and Terms section of the Mandatory Residential Contract to
Buy and Sell, the entry for cash at closing - ✔✔does not include buyers closing costs,
such as loan fees. It is not intended to represent final figures.
✔✔Some properties may be subject to property taxes from a special taxing district
serving a defined area. If buyers determine that the property pis within a special taxing
district, they may - ✔✔terminate the contract by written notice to the seller.
✔✔Based on the inspection provision of the Residential Contract to Buy and Sell, if the
buyer receives a property inspection report on the day after the Inspection Objection
Deadline but the report contains several apparently serious matters, the buyer -
✔✔missed the opportunity to object based on inspection issues, and the contract is still
in force.
✔✔Various provisions of the Residential Contract to Buy and Sell call for notification to
one of the parties about various events or objections. According to the working of the
approved form, notice - ✔✔is effective when received by either the party or the broker
working with that party
✔✔What disclosure is required when a Buyer's Agent approaches a "For Sale By
Owner' on behalf of the buyer client? - ✔✔Disclosure of broker's working relationship
with the buyer
✔✔The approved Earnest Money Promissory Note - ✔✔must be due early enough to
assure good funds for closing
, ✔✔What is the primary difference between the Commission-approved Deed of Trust
forms? - ✔✔Form contain different provisions for assumption of loan upon sale of the
property
✔✔Which of the following is appropriate when the license wishes to extend the effective
period for a listing agreement? - ✔✔Agreement to Amend/Extend Contract with Broker
✔✔Which of the following requires the use or the Licensee Buy-Out Addendum to the
Contract to Buy and Sell? - ✔✔an associate is offering to guarantee Buy-Out
arrangement as an inducement to list with his or her company
✔✔Brokers working for buyers under Exclusive Right-to-Buy Contract may -
✔✔negotiate an hourly fee to be paid in addition to any other compensation agreed
✔✔According to the Exclusive Right-to-Buy Contract, who is responsible in regard to
registered sex offenders (Megan's Law)? - ✔✔Buyers must obtain this information from
local law enforcement officials.
✔✔If a buyer is assuming a loan and the loan balance turns out to be less than the
assumption balance provided by the seller, the Residential Contract to Buy and Sell
provides that - ✔✔Depending on how the form is completed, the buyer may terminate
the contract or the seller could reduce the price to make up the difference.
✔✔The Residential Contract to Buy and Sell Provides an opportunity for the parties to
specify that the title insurance policy provided to the buyer will have expanded
coverage. The box is checked to provide this coverage - ✔✔the title insurance company
may require a survey or Improvement Location Certificate which could increase the cost
to both the buyer and the seller
✔✔The Residential Contract to Buy and Sell contains a section regarding Association
Documents. This section refers to documents for - ✔✔any community subject to
mandatory assessments for maintenance of common elements
✔✔The inspection provision of the Contract to Buy and Sell allows the buyer to
terminate the contract - ✔✔If the property is unsatisfactory in the buyers subjective
discretion
✔✔The Contract to Buy and Sell states that, "time is of the essence hereof" This
statement means that - ✔✔Dates and deadlines will be strictly interpreted
✔✔If a Residential Contract to Buy and Sell form is marked to indicate the "Liquidated
Damages" choice in case the buyer is in default - ✔✔earnest money and any other
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔The Colorado Real Estate Commission has approved a broad variety of standard
forms and made their use mandatory by licensees. Which of the following is one of the
primary reasons for these forms? - ✔✔Assures the brokers compliance with the
Conway-Bogue decision of the Supreme Court
✔✔When an earnest Money Promissory Note is used to provide earnest money,
another condition that must be met includes that the - ✔✔Note must be specifically
mentioned in the contract along with the due date
✔✔How would an Associate Broker with Realty, Inc., complete the name of the broker
in the blank on the Exclusive Right-to-Sell Listing Contract? - ✔✔Realty, Inc
✔✔In the Purchase Price and Terms section of the Mandatory Residential Contract to
Buy and Sell, the entry for cash at closing - ✔✔does not include buyers closing costs,
such as loan fees. It is not intended to represent final figures.
✔✔Some properties may be subject to property taxes from a special taxing district
serving a defined area. If buyers determine that the property pis within a special taxing
district, they may - ✔✔terminate the contract by written notice to the seller.
✔✔Based on the inspection provision of the Residential Contract to Buy and Sell, if the
buyer receives a property inspection report on the day after the Inspection Objection
Deadline but the report contains several apparently serious matters, the buyer -
✔✔missed the opportunity to object based on inspection issues, and the contract is still
in force.
✔✔Various provisions of the Residential Contract to Buy and Sell call for notification to
one of the parties about various events or objections. According to the working of the
approved form, notice - ✔✔is effective when received by either the party or the broker
working with that party
✔✔What disclosure is required when a Buyer's Agent approaches a "For Sale By
Owner' on behalf of the buyer client? - ✔✔Disclosure of broker's working relationship
with the buyer
✔✔The approved Earnest Money Promissory Note - ✔✔must be due early enough to
assure good funds for closing
, ✔✔What is the primary difference between the Commission-approved Deed of Trust
forms? - ✔✔Form contain different provisions for assumption of loan upon sale of the
property
✔✔Which of the following is appropriate when the license wishes to extend the effective
period for a listing agreement? - ✔✔Agreement to Amend/Extend Contract with Broker
✔✔Which of the following requires the use or the Licensee Buy-Out Addendum to the
Contract to Buy and Sell? - ✔✔an associate is offering to guarantee Buy-Out
arrangement as an inducement to list with his or her company
✔✔Brokers working for buyers under Exclusive Right-to-Buy Contract may -
✔✔negotiate an hourly fee to be paid in addition to any other compensation agreed
✔✔According to the Exclusive Right-to-Buy Contract, who is responsible in regard to
registered sex offenders (Megan's Law)? - ✔✔Buyers must obtain this information from
local law enforcement officials.
✔✔If a buyer is assuming a loan and the loan balance turns out to be less than the
assumption balance provided by the seller, the Residential Contract to Buy and Sell
provides that - ✔✔Depending on how the form is completed, the buyer may terminate
the contract or the seller could reduce the price to make up the difference.
✔✔The Residential Contract to Buy and Sell Provides an opportunity for the parties to
specify that the title insurance policy provided to the buyer will have expanded
coverage. The box is checked to provide this coverage - ✔✔the title insurance company
may require a survey or Improvement Location Certificate which could increase the cost
to both the buyer and the seller
✔✔The Residential Contract to Buy and Sell contains a section regarding Association
Documents. This section refers to documents for - ✔✔any community subject to
mandatory assessments for maintenance of common elements
✔✔The inspection provision of the Contract to Buy and Sell allows the buyer to
terminate the contract - ✔✔If the property is unsatisfactory in the buyers subjective
discretion
✔✔The Contract to Buy and Sell states that, "time is of the essence hereof" This
statement means that - ✔✔Dates and deadlines will be strictly interpreted
✔✔If a Residential Contract to Buy and Sell form is marked to indicate the "Liquidated
Damages" choice in case the buyer is in default - ✔✔earnest money and any other
