COLORADO FORMS AND CONTRACTS EXAMS SCRIPT
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔If the seller has already signed a listing agreement with another broker... - ✔✔You
can write a future listing agreement that would start the day after the current agreement
expires. You must NOT be the one to initiate contact for this purpose. You would be
guilty of sign crossing if you do.
✔✔Earnest Money is - ✔✔The sellers recourse in the event that the buyer defaults on a
contract
✔✔The earnest money amount chosen is roughly - ✔✔1% of the sales price
✔✔FIRPTA (Foreign Investment in Real Property Tax Act) - ✔✔Is the IRS's withholding
on sales of property by foreign persons with a 2% tax with holding
✔✔FIRPTA applies when - ✔✔Foreign persons sale a home for more than $300,000.00
and the withholding is 15% of the purchase price and is due within 20 days of closing
✔✔Fixtures are - ✔✔Attached with the intent to be permanent i.e. sheds on a concrete
slab or ceiling fans.
✔✔Personal property items (refrigerator, washer or dryer) transfer by - ✔✔Bill of Sale
✔✔Water rights are conveyed... - ✔✔Separately with their own deed
✔✔All deeds convey interest to - ✔✔Whatever interest the seller has at the time of
conveyance
✔✔General, Special/Limited and Bargain and Sale deeds also convey title to - ✔✔"after
acquired property"
✔✔Only Special Warranty and General Warranty Deeds have - ✔✔Warranties
✔✔Only a __________ ________ ________ gives warranties for not only for the seller
but for the owners before the seller. In other words, if a problem was created two sellers
ago, the seller would still be liable. - ✔✔General Warranty Deed
✔✔Sellers would benefit more from what type of deed - ✔✔Special Warranty
✔✔As either an agent or transaction - broker you are required to - ✔✔Disclose adverse
material facts about the property known to you
,✔✔Seller's are encouraged to complete what form - ✔✔The Seller's Disclosure form
which will help disclose any material facts about the property.
✔✔Brokers should let seller's know about the seller's disclosure form that - ✔✔The
buyers will expect to see the form from the seller's
✔✔Lead based paint disclosures are required for any property with a building permit
prior to - ✔✔01/01/1978
✔✔The Lead Based Paint disclosure must be signed by _______ by the Leas Based
Paint disclosure deadline on the contract or the contract is ______ - ✔✔Needs to be
signed by seller, buyer, listing broker and selling broker and will be void if not signed by
deadline
✔✔If a buyer forfeits the earnest money, that money is to be shared by - ✔✔The seller
and brokerage firm
✔✔If the parties have a dispute that they cannot agree on then they must have -
✔✔Mediation
✔✔The parties must seek a resolution through mediation up to - ✔✔30 days
✔✔Both parties select a _____ and split ____ ____ - ✔✔Mediator and split the cost
✔✔If mediation is unsuccessful - ✔✔Then the parties can sue each other. (Mediation
then litigation)
✔✔Any changes to the contract (lowering the list price or extending the termination
date) must be done - ✔✔In writing
✔✔Single Party Listing - ✔✔Listing only if one specific buyer purchases the property.
✔✔In a Single Party Listing, since you are only authorized to show the property to only
one specific person, the holdover period... - ✔✔Will be removed
✔✔Once buyers are under contract to purchase a property, the agent is no longer -
✔✔Required to continue to actively look for other properties for them that meet their
needs
✔✔The buyers agent may have to disclose to the seller events that might affect -
✔✔The buyers ability to financially perform - such as a job loss
, ✔✔Buyers who are recognizable by name may want to shield their identities so they are
not charged more for goods or services. In this event, the agent should - ✔✔Ask
permission to put the buyers name on the contract and to inform the title company of the
buyers identity
✔✔Whose responsibility is it to determine if there are registered sex offenders near by?
- ✔✔The buyers
✔✔Contracts end with one of three ways - ✔✔All duties were performed and the home
was sold so the contract ends the day the home sells. Mutually agree to end the
contract. Expiration of the contract might occur and we did not extend our contract
✔✔Death of who would end the contract - ✔✔Principals (the client and the brokerage
firm) if the agent dies, the employing broker owns the listing and could designate
another broker
✔✔Who's responsibility is it to determine if there are registered sex offenders near by? -
✔✔The buyer
✔✔The contract must be signed on or before the _________ date you are extending -
✔✔Termination
✔✔When it comes to the title- what can the agent do? - ✔✔Define the terms but cannot
tell the clients on how they should take title
✔✔Inclusions on the contract are listed using... - ✔✔Different font/size/color (a ceiling
fan is a fixture in the property and stays with the home as an inclusion)
✔✔What type of ownership does a person have with a condo? - ✔✔The owner owns
inside the unit; while the outside is owned by all through tenants in common
✔✔Items the buyer does not want and show not be in/at the property at closing should
be listed in - ✔✔Exclusions
✔✔A rose bush is - ✔✔Real property and stays with the house; despite the fact that it
was listed as an exclusion on the listing agreement
✔✔Water rights are transferred via - ✔✔Deed ( well rights are not )
✔✔If either party is unable to complete the required activities by the deadline, the
broker assisting that party will need to... - ✔✔Create an Agreement to Amend/Extend
the contract and it will need to be signed by all parties before the end of the date
indicated
2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔If the seller has already signed a listing agreement with another broker... - ✔✔You
can write a future listing agreement that would start the day after the current agreement
expires. You must NOT be the one to initiate contact for this purpose. You would be
guilty of sign crossing if you do.
✔✔Earnest Money is - ✔✔The sellers recourse in the event that the buyer defaults on a
contract
✔✔The earnest money amount chosen is roughly - ✔✔1% of the sales price
✔✔FIRPTA (Foreign Investment in Real Property Tax Act) - ✔✔Is the IRS's withholding
on sales of property by foreign persons with a 2% tax with holding
✔✔FIRPTA applies when - ✔✔Foreign persons sale a home for more than $300,000.00
and the withholding is 15% of the purchase price and is due within 20 days of closing
✔✔Fixtures are - ✔✔Attached with the intent to be permanent i.e. sheds on a concrete
slab or ceiling fans.
✔✔Personal property items (refrigerator, washer or dryer) transfer by - ✔✔Bill of Sale
✔✔Water rights are conveyed... - ✔✔Separately with their own deed
✔✔All deeds convey interest to - ✔✔Whatever interest the seller has at the time of
conveyance
✔✔General, Special/Limited and Bargain and Sale deeds also convey title to - ✔✔"after
acquired property"
✔✔Only Special Warranty and General Warranty Deeds have - ✔✔Warranties
✔✔Only a __________ ________ ________ gives warranties for not only for the seller
but for the owners before the seller. In other words, if a problem was created two sellers
ago, the seller would still be liable. - ✔✔General Warranty Deed
✔✔Sellers would benefit more from what type of deed - ✔✔Special Warranty
✔✔As either an agent or transaction - broker you are required to - ✔✔Disclose adverse
material facts about the property known to you
,✔✔Seller's are encouraged to complete what form - ✔✔The Seller's Disclosure form
which will help disclose any material facts about the property.
✔✔Brokers should let seller's know about the seller's disclosure form that - ✔✔The
buyers will expect to see the form from the seller's
✔✔Lead based paint disclosures are required for any property with a building permit
prior to - ✔✔01/01/1978
✔✔The Lead Based Paint disclosure must be signed by _______ by the Leas Based
Paint disclosure deadline on the contract or the contract is ______ - ✔✔Needs to be
signed by seller, buyer, listing broker and selling broker and will be void if not signed by
deadline
✔✔If a buyer forfeits the earnest money, that money is to be shared by - ✔✔The seller
and brokerage firm
✔✔If the parties have a dispute that they cannot agree on then they must have -
✔✔Mediation
✔✔The parties must seek a resolution through mediation up to - ✔✔30 days
✔✔Both parties select a _____ and split ____ ____ - ✔✔Mediator and split the cost
✔✔If mediation is unsuccessful - ✔✔Then the parties can sue each other. (Mediation
then litigation)
✔✔Any changes to the contract (lowering the list price or extending the termination
date) must be done - ✔✔In writing
✔✔Single Party Listing - ✔✔Listing only if one specific buyer purchases the property.
✔✔In a Single Party Listing, since you are only authorized to show the property to only
one specific person, the holdover period... - ✔✔Will be removed
✔✔Once buyers are under contract to purchase a property, the agent is no longer -
✔✔Required to continue to actively look for other properties for them that meet their
needs
✔✔The buyers agent may have to disclose to the seller events that might affect -
✔✔The buyers ability to financially perform - such as a job loss
, ✔✔Buyers who are recognizable by name may want to shield their identities so they are
not charged more for goods or services. In this event, the agent should - ✔✔Ask
permission to put the buyers name on the contract and to inform the title company of the
buyers identity
✔✔Whose responsibility is it to determine if there are registered sex offenders near by?
- ✔✔The buyers
✔✔Contracts end with one of three ways - ✔✔All duties were performed and the home
was sold so the contract ends the day the home sells. Mutually agree to end the
contract. Expiration of the contract might occur and we did not extend our contract
✔✔Death of who would end the contract - ✔✔Principals (the client and the brokerage
firm) if the agent dies, the employing broker owns the listing and could designate
another broker
✔✔Who's responsibility is it to determine if there are registered sex offenders near by? -
✔✔The buyer
✔✔The contract must be signed on or before the _________ date you are extending -
✔✔Termination
✔✔When it comes to the title- what can the agent do? - ✔✔Define the terms but cannot
tell the clients on how they should take title
✔✔Inclusions on the contract are listed using... - ✔✔Different font/size/color (a ceiling
fan is a fixture in the property and stays with the home as an inclusion)
✔✔What type of ownership does a person have with a condo? - ✔✔The owner owns
inside the unit; while the outside is owned by all through tenants in common
✔✔Items the buyer does not want and show not be in/at the property at closing should
be listed in - ✔✔Exclusions
✔✔A rose bush is - ✔✔Real property and stays with the house; despite the fact that it
was listed as an exclusion on the listing agreement
✔✔Water rights are transferred via - ✔✔Deed ( well rights are not )
✔✔If either party is unable to complete the required activities by the deadline, the
broker assisting that party will need to... - ✔✔Create an Agreement to Amend/Extend
the contract and it will need to be signed by all parties before the end of the date
indicated
