Colorado Real Estate- State Portion Questions and Answers Already Passed

Colorado Real Estate- State Portion Questions and Answers Already Passed Who usually deposits the earnest money check into escrow after a contract has been accepted? Listing Broker The licensee buy-out addendum must be used under all of the following conditions except: When a licensee is purchasing the property as a rental investment. What is the purpose of the real estate commission in Colorado? to protect the public As a buyer agent under an exclusive right to buy agreement, the broker has what agency relationship to the purchaser? Fiduciary A high level of supervision by employing brokers: Would include: review of documents in preparation for a closing, assistance in preparing contracts, monitoring of transactions from contracting to closing, attending closings, or making sure an experienced licensee attends the closing, being reasonably available for consultation According to the exclusive right to sell listing contract the listing broker must disclose to any possible buyer All material facts about the property the broker knows When a licensee uses a licensee buyout addendum your are putting the seller on notice that The buyer is a licensee the buyer may make a profit and the seller may incur a loss. Checking the will owe box in the holdover clause in the exclusive right to sell listing contract protects the listing brokers commission for disclosed buyers For the period of time specified in the contract even if the property is relisted by another broker The Colorado approved Agreement to Amend/Extend form should be signed Before the sales contract has been fully executed For a deed to be valid in Colorado, which of the following must be true concerning the grantors signature The grantors signature is required In Colorado a property subject to general ad valorem taxes is assessed on the first day of January of the current year and the lien against the property for the taxes attaches At that time A licensee may accept compensation from: The licensee's employing broker only A transaction broker when handling both sides of the transaction has a fiduciary responsibility to Neither the buyer nor the seller Which one of the following lists an unacceptable combination of relationships for a single broker on a particular transaction Transaction broker for the buyer and agent for the seller A blind person with a seeing eye dog makes application with a property manager for residence in an apartment complex. There is a no pet policy currently being enforced. What action may the property manager take? Charge no let deposit and only require the repair of any damage A developer is selling several parcels of property that have been developed. The developer wants to have his attorney prepare a sales contract that refers to the legal description and stipulates the warranties the developer is making. Which of the following is true The developer can hire an attorney to prepare his own contracts and include warranties and other information When a seller decides to submit a counter proposal in response to a contract to buy and sell the seller Checks the countered box, initials the original contract and signs the counter proposal The Torrens System is most commonly used in which part of Colorado? Eastern Adverse possession matured into title after open, notorious and hostile possession for: 18 years; 7 years with color of title All unpaid ad valorem taxes become delinquent on June 16th In a new loan closing, sometimes a lender may make some of the payouts such as recording fees survey and reserve taxes in order to protect its interest as the holder of the 1st lien. The net loan proceeds are entered on the settlement worksheet: As a debit to the broker, single entry A buyer purchases a furnished condominium as an investment. The document that evidences the buyers ownership of the furniture is a Bill of sale How is the broker's fee usually shown on the settlement statement? Debit to the seller, credit to the broker As to the preparation of legal documents at closing The licensee bears the cost of the preparation of legal documents except those prepared by the sellers or buyers attorney Trust account records must be kept for: Four years A real property transfer declaration (Td-1000) is used to Assist the county assessor to reach fair and uniform assessments for property tax purposes There are real estate commission approved forms for all of the following transactions except New construction and business opportunities Non-resident brokers conducting business in Colorado must: Have a trust account in Colorado if they take Colorado earnest money Which of the following is contained in the preprinted portion of a purchase and sale contract Presented home warranty information Tenant Terri signs a six month lease and agrees to pay $375 a month in rent, utilities included, on an apartment unit. Under the warranty of habitability Teri moves out after two months because the electrical service has been cut off. Teri: Is not obligated to continue making rent payments as she has been constructively evicted When must a listing broker disclose to a potential buyer the brokers working relationship with the seller In writing before receiving or eliciting confidential information A final balance due from buyer is entered on the settlement sheet as Credit buyer debit broker A real estate broker filling out a listing agreement finds that there is not enough room for the legal description. The broker may Attach the legal description as information may be added outside the body of the contract Earnest money checks received by a broker in connection with a real estate purchase contract must be Placed in brokers escrow account within 3 days of acceptance of contract A new loan for $165,000 is taken out at 6.5% by the buyer the closing is may 16th. How will the interest be shown on the settlement sheet. $470.13 debit to the buyer, credit to the broker A lender is charging 3 discount points on an 80% loan for a $300,000 sale. The broker is instructed to charge two points to the seller. The settlement sheet entry would appear as. $4,800 debit seller, $2,400 debit buyer, $7,200 credit broker 1 discount point = 1% of loan Lender title insurance is shown on the settlement sheet as Debit buyer, credit broker According to Conway-bogue decision it is a required practice for Colorado brokers to Use standard and approved forms Who of the following is exempt from real estate license law Investor who owns 12 investment properties and sells one to an owner occupant When a counteroffer is made, what happens to the original offer? It is deemed rejected Listing agreements must include A definite termination date Agent mike is the broker owner of AAA Realty a trade name registered with the state of Colorado and licensed with the Colorado real estate commission. Which of the following is correct All licenses employed by mike must only do business under AAA Realty The Colorado law that requires real estate contracts to be in writing is called the Statute of frauds A seller signs an offer prior to the acceptance time and date. Before the offer is returned to the buyer the buyer calls and withdraws. This offer is Void and not binding as it was withdrawn before delivery to the buyer According to real estate commission rules- who has responsibility for the accuracy of the closing The designated broker, the employing broker and any substitute broker 1 acre = 43,560 square feet Pro rations for state use Actual number of days in a specific month In Colorado the closing day belongs to the Buyer Dual agency is Illegal What form do you use to disclose agency Brokerage disclosure to buyer