Colorado Contracts and Regulations Questions and Answers 100% Pass

Colorado Contracts and Regulations Questions and Answers 100% Pass It is the obligation of the _________ to disclose a buyer's financial ability to purchase a home? Buyer agent After the foreclosure sale, the trustor or mortgagor who wishes to reclaim their residential property may do so in Colorado within what time frame? owners may not redeem after the foreclosure sale An INCORRECT statement concerning brokers generating contract forms by use of a computer is: Blank spaces in the form may be filled in prior to negotiations between the principal parties of the transaction The MAXIMUM time allotted for a foreclosure sale through the Public Trustee's office after notice of election to foreclose has been publicized is: 125 The following statement is True. Rule F applies to Real Estate Commission approved contracts An unlicensed assistant may Fill in the blanks of a form if the broker provides all the information When a homeowners' association changes mangers/brokers, All records must be returned to the association without charge for copies The listing broker must deposit earnest money in an appropriate trust account Within 3 business days after notice of acceptance of an offer In the listing form, the seller can decide NOT to provide a Seller's Property Disclosure to the buyer Mediation fees are Negotiable The Commission Approved Deed of Trust (s) One is due on sale, one is assumable by credit worthy buyer and one is freely assumable The following answer regarding seller liability is False. A seller can be vicariously liable for any actions of the listing agent if the seller has signed an Exclusive Right- to- Sell Contract. If a broker receives interest in their trust accounts they could do all of the following except use the money for covering expenses. Real estate agents in Colorado are allowed to help buyers and sellers with contracts because of the court case "Conway-Bogue Realty Inv. Co. vs. Denver Bar Ass'n". The major difference between the Colorado Fair Housing Laws and the Federal Fair Housing Act is Colorado applies to both commercial and residential whereas federal only applies to residential. If a broker acts as a transaction-broker which of the following is NOT true? The broker must keep all information regarding the transaction confidential, no matter what. When must a seller give possession to a buyer? At the time stated in the purchase contract. A buyer who has signed a buyer broker contract may do all of the following except The buyer may have the lender pay the broker's commission If a married couple sign a residential sales contract and do not choose joint tenancy or tenancy in common the couple will be purchasing as tenants in common if no decision is made. If the buyer is assuming the seller's present loan and if the actual loan amount is found to be less than the stated amount in the contract which causes the amount of cash required from the buyer at closing to be increased by more than the amount inserted in the contract, the buyer may terminate the contract (voidable) if the down payment increases more than the amount inserted in the assumption paragraph. The Real Estate Commission's E&O Insurance has a minimum coverage of $100,000 per claim and $300,000 annual aggregate Colorado Real Estate Commission broker license law was passed to Protect the people of Colorado. What law requires a potential buyer to contact law enforcement officials for further information if the presence of a registered sex offender is a concern to the buyer? Megan's Law A broker shall provide a "High level of supervision" for Licensed persons with less than two years experience A Licensee Buy-Out Addendum includes all of the following statements EXCEPT: Is binding for all parties whether the licensee plans to keep the property as an investment or not. A broker cannot be accused of abandoning a buyer in which circumstance: The buyer selects another broker to consummate the transaction A landlord may refuse to accommodate a known alcoholic with a history of one of the following without incurring a civil rights violation The alcoholic exhibits disruptive and abusive or dangerous behavior The Contract to Buy and Sell real estate has a provision if agreed upon allowing for signatures to be evidenced by facsimile. Documents with original signatures: Shall be provided upon request of any party. The wording in the inspection provision of the buy/sell contract allows the buyer to terminate the contract if the physical condition of the property or inclusions is unsatisfactory in the buyer's subjective discretion In addition to Federal law, Colorado legislature amended CADA in 2008 and added as a protected class: Gender identity Sexual orientation The MINIMUM time allotted for an agricultural property, through the Public Trustee's office after filing of the notice of election and demand (NED) to foreclose is: 215 days A Licensee Buy-Out Addendum to the Contract to Buy and Sell Real Estate is required when a licensee enters into a contract to purchase a property in all the following circumstances EXCEPT: Solely for personal use or future resale A mortgage company offers the broker $100.00 for placement of a loan. This fee Is allowable if broker fully informs any party with whom he has established a brokerage relationship, or worked with as a customer, and obtains written consent of such party Based on the Colorado Statute of Frauds, which lease must be in writing? Two-year lease for commercial space Most residential leases in Colorado Contain an implied warranty of habitability Which of the following is true concerning the use a trade name? Any broker using a trade name owned by another shall clearly include the brokerage firm's name as registered with the commission in a conspicuous manner The following statement regarding a non-resident licensee is false. The non resident licensee... Must maintain a place of business in this state The MAXIMUM time allotted for the sale of an agricultural property, through the Public Trustee's office after filing of the notice of election and demand (NED) to foreclose is: 230 If a broker and seller agree to conceal material defects that are discovered after closing, The seller and broker are responsible The following statement is True regarding brokers owning their own property Brokers, when selling their own property, must disclose their ownership Brokers, when selling their own property, must disclose that they are a licensed broker When a contract is terminated under its provisions, The earnest money should be returned to the buyer immediately A lead based paint disclosure must be given to a buyer of any property with a building permit issued before Jan. 1, 1978 A non-resident broker with a transaction in Colorado Must hold trust funds in a Colorado depository If a homeowners' association changes management companies, all original records must be returned to the association immediately the broker needs to keep copies of records for 4 years Brokers are not obligated to verify the accuracy and completeness of statements made by buyers and sellers A broker __________ to take a listing. May refuse If a seller wants to sell a property 'as is', The seller is responsible for disclosing any known defects If a seller wants to sell a property 'as is', the listing broker must still do a visual inspection or ask questions regarding material defects the listing broker is obligated to disclose any known material defects According to the listing contract, the broker's compensation Is negotiable Regarding the Seller's Property Disclosure form, the broker may assist the seller by answering questions about the form The success fee in an Exclusive-Right-to-Buy Contract Often comes from the listing broker According to the Contract to Buy and Sell, if the parties have a dispute The parties agree to split the mediation fees In the Contract to Buy and Sell Who pays for the appraisal fee is negotiated between the buyer and seller According to the Residential Contract to Buy and Sell Real Estate, a buyer who is dissatisfied with inspection results May terminate the contract with written notice immediately According to the Residential Contract to Buy and Sell Real Estate Check the box to specify who pays for the appraisal The listing broker has presented an offer to the sellers who accept the offer. At that moment the broker receives a call stating that the offer is withdrawn The buyers may withdraw the offer at any time, until they learn of acceptance A broker may add a clause to additional provisions of the Contract to Buy and Sell Real Estate requiring the seller to provide the property in professionally clean condition at closing requiring the seller to have a professional clean and service the furnace prior to closing A listing may be extended by using An Amend / Extend Contract with Broker before the listing expires At what date must a listing extension be signed to establish the broker's right to a commission? Before the original expiration date of the listing A broker ________________ the square footage of each property listed. May use information from other sources for A broker who measures the square footage of a property Must describe the method of measurement Must use the Square Footage Disclosure ________________________ must verify square footage The listing broker A broker using an outside source for square footage in a marketing brochure Must disclose the source of the information A buyer's broker is showing a house listed in the MLS at 2,000 square feet, but the broker believes it is no more than 1,500 square feet. The broker is responsible for reporting obvious mis-measurements The following statement about computer generated versions of the approved forms is FALSE Computer generated versions of the approved forms must not be altered in any way The blanks in an approved contract Must be filled in with font or type which is different than the approved language The Commission Approved Deed of Trust form has options for all of the following EXCEPT Protected Deed of Trust The Commission Approved Deed of Trust form has options for all the following EXCEPT An automatic 1% increase in the interest rate if the loan is assumed Commission approved contracts allow for specific performance For all types of property The buyer's broker signs the Contract to Buy and Sell As a receipt for earnest money Regarding the Inspection process, if the buyer has objections... The seller and buyer must agree on what is to be done by the Inspection Resolution Deadline The _______ form can be used to change the Objection Deadline. Amend/Extend Regarding square footage A buyer's broker is responsible for obvious signs of mis-measurement by others A buyer's broker may rely on a listing broker's square footage Personal property is transferred by Bill of Sale Broker B is offering to purchase a property concurrently to convince the seller to list with her. She must use a Licensee Buy Out Addendum An Earnest Money Promissory note may be redeemed By the time of closing The following statement regarding the Lead Base Paint Disclosure is true. The seller must supply the lead base paint disclosure, if required, prior to accepting an offer The broker, in a single party listing, must remove the hold over provision Disclosure of material facts is Never optional The broker/buyer in the Licensee Buy Out Addendum is agreeing that the broker/buyer will keep the home on the market is agreeing that the broker/buyer has the ability to purchase the property Rule F allows all of the following except: an attorney may draft contracts for general use by a brokerage firm As part of the Contract to Buy and Sell, the title company acts as a scrivener for the broker the title company agrees to close the property for the buyer and seller A broker listing a residential property may use a reliable source of measurement The Exclusive Right to Sell listing contract is between The seller and the employing broker