COLORADO FORMS AND CONTRACTS COMPREHENSIVE
EXAM 2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔If Meth was ever used, stored, disposed of, or manufactured on the property then -
✔✔That material fact must be disclosed by the seller
✔✔If the seller has re-mediated the use of Meth by a certified hygienist and has been
re-mediated then - ✔✔Disclosure of the meth house is not required by the seller
✔✔Under the UCC bulk sales act - ✔✔The buyer must pay a use fee on any non-real
property used in a business
✔✔The UCC Bulk sales act applies to all property over - ✔✔$500 in the transaction and
the property is transferred by using a bill of sale
✔✔If an inclusion fails to work while the property is under contract, the seller is required
to replace that inclusion with - ✔✔Another of similar age, size and quality
✔✔Liquidated damages means that - ✔✔The seller's only recourse if the buyer is in
default is the buyers earnest money.
✔✔Buyers can choose to make the contract Specific Performance which means - ✔✔If
the buyer defaults, the seller gets the buyers earnest money and can sue for liquidated
damages
✔✔When a buyer finds out he cannot get a loan AFTER the New Loan Termination
Deadline, then the earnest money will be - ✔✔Lost under the liquidated damages
provision
✔✔Seller are always subject to the _________ provision in the Contract to Buy and sell
- ✔✔Specific Performance
✔✔If a seller receives a signed offer from a buyer, makes changes and then signs the
offer, the offer does not become a contract until both seller and buyer - ✔✔Initial
changes that were made
✔✔Additional Provision sections is reservered for - ✔✔Transaction-specific matters and
do not involve the brokers unless doing so is in the clients best interest
✔✔No broker exculpatory language (broker not to be held liable for) can be placed in -
✔✔Additional Provisions
, ✔✔Buyers sign the offer & if the seller signs, then they are - ✔✔Accepting the contract
as presented
✔✔If the seller wishes to make a counter proposal, then he or she does not - ✔✔Sign
the contract
✔✔Both brokers sign the contract to acknowledge - ✔✔Receipt of earnest money and
disclose their relationship with the client (agent versus transaction broker)
✔✔Dual Contracts - ✔✔When submitting a contract to a lending institution that is
different than the contract used to buy, sell or build.
✔✔RULE F - Forms - ✔✔Assists brokers in complying with the Conway-Bogue. It
describes our ability to fill out a contract without having to be attorneys
✔✔RULE F guidelines - ✔✔1. May never use a form that is not exactly copied from
DORA approved forms. 2. Must reproduce the form exactly as it was written 3. We may
line out an item so long as the words are still readable 4. If Omitting a section in the
contract, then we must write "omit" next to that section. 5. Must fill in the blanks using a
different font, size and color. 6. We may not draft (write on a napkin) an addendum to
the contract 7. If a standard and approved form is available, it must be used by the
broker not one drafted by the brokerage firms lawyers. 8. Home builders selling their
own homes are exempt from using CREC contracts. 9. We do not give legal advice.
✔✔Under Rule F certain finance sections can be removed by marking them omitted -
✔✔IF they do not apply to the contract
✔✔Securing a loan usually requires what two documents - ✔✔Deed of Trust ( puts the
property up as collateral) for the loan and the Promissory Note ( promise to repay the
loan amount )
✔✔In a Deed of Trust there are clauses called - ✔✔Acceleration (allows for the entire
amount to become due)
✔✔Under the UCC (Uniform Commercial Code) what is illegal - ✔✔Usury is illegal
✔✔Anyone lending money in more than 5 transactions per year is considered - ✔✔A
commerical lender and is subject to usury law.
✔✔If a lender has more than 5 transactions per year, the maximum interest rate it can
charge is - ✔✔21%
✔✔If the lender makes 5 or fewer transactions per year, the maximum interest rate it
can charge is - ✔✔45%
EXAM 2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔If Meth was ever used, stored, disposed of, or manufactured on the property then -
✔✔That material fact must be disclosed by the seller
✔✔If the seller has re-mediated the use of Meth by a certified hygienist and has been
re-mediated then - ✔✔Disclosure of the meth house is not required by the seller
✔✔Under the UCC bulk sales act - ✔✔The buyer must pay a use fee on any non-real
property used in a business
✔✔The UCC Bulk sales act applies to all property over - ✔✔$500 in the transaction and
the property is transferred by using a bill of sale
✔✔If an inclusion fails to work while the property is under contract, the seller is required
to replace that inclusion with - ✔✔Another of similar age, size and quality
✔✔Liquidated damages means that - ✔✔The seller's only recourse if the buyer is in
default is the buyers earnest money.
✔✔Buyers can choose to make the contract Specific Performance which means - ✔✔If
the buyer defaults, the seller gets the buyers earnest money and can sue for liquidated
damages
✔✔When a buyer finds out he cannot get a loan AFTER the New Loan Termination
Deadline, then the earnest money will be - ✔✔Lost under the liquidated damages
provision
✔✔Seller are always subject to the _________ provision in the Contract to Buy and sell
- ✔✔Specific Performance
✔✔If a seller receives a signed offer from a buyer, makes changes and then signs the
offer, the offer does not become a contract until both seller and buyer - ✔✔Initial
changes that were made
✔✔Additional Provision sections is reservered for - ✔✔Transaction-specific matters and
do not involve the brokers unless doing so is in the clients best interest
✔✔No broker exculpatory language (broker not to be held liable for) can be placed in -
✔✔Additional Provisions
, ✔✔Buyers sign the offer & if the seller signs, then they are - ✔✔Accepting the contract
as presented
✔✔If the seller wishes to make a counter proposal, then he or she does not - ✔✔Sign
the contract
✔✔Both brokers sign the contract to acknowledge - ✔✔Receipt of earnest money and
disclose their relationship with the client (agent versus transaction broker)
✔✔Dual Contracts - ✔✔When submitting a contract to a lending institution that is
different than the contract used to buy, sell or build.
✔✔RULE F - Forms - ✔✔Assists brokers in complying with the Conway-Bogue. It
describes our ability to fill out a contract without having to be attorneys
✔✔RULE F guidelines - ✔✔1. May never use a form that is not exactly copied from
DORA approved forms. 2. Must reproduce the form exactly as it was written 3. We may
line out an item so long as the words are still readable 4. If Omitting a section in the
contract, then we must write "omit" next to that section. 5. Must fill in the blanks using a
different font, size and color. 6. We may not draft (write on a napkin) an addendum to
the contract 7. If a standard and approved form is available, it must be used by the
broker not one drafted by the brokerage firms lawyers. 8. Home builders selling their
own homes are exempt from using CREC contracts. 9. We do not give legal advice.
✔✔Under Rule F certain finance sections can be removed by marking them omitted -
✔✔IF they do not apply to the contract
✔✔Securing a loan usually requires what two documents - ✔✔Deed of Trust ( puts the
property up as collateral) for the loan and the Promissory Note ( promise to repay the
loan amount )
✔✔In a Deed of Trust there are clauses called - ✔✔Acceleration (allows for the entire
amount to become due)
✔✔Under the UCC (Uniform Commercial Code) what is illegal - ✔✔Usury is illegal
✔✔Anyone lending money in more than 5 transactions per year is considered - ✔✔A
commerical lender and is subject to usury law.
✔✔If a lender has more than 5 transactions per year, the maximum interest rate it can
charge is - ✔✔21%
✔✔If the lender makes 5 or fewer transactions per year, the maximum interest rate it
can charge is - ✔✔45%
