Colorado Real Estate Exam Prep State
Portion Section 5, Forms and Contracts
Questions and Answers
The Supreme Court decision in the Conway-Bogue case relating to the practice of law
by real estate brokers and employed licensees stated: - answer Colorado licensees
completing standard form are practicing law and have a limited permission to do so.
The purpose of Commission Rule F relating to approved forms is to: - answerhelp
insure the brokers compliance with the Conway-Bogue decision of Colorado supreme
court
When you complete standard approved forms with commonly used wording: -
answerThe wording must be adapted to fit your transaction
According to the Commission-approved Exclusive Right-to-Sell Listing Contract: -
answerA brokers compensation is established by the broker
A broker with a Transaction-Broker Exclusive Right-to-Sell listing agreement could
cooperate with all the following brokers EXCEPT - answerA sellers subagent.
Subagency is illegal in Colorado
As defined in the Commission-approved listing agreement forms, Property is best
defined: - answerthe real property plus the personal property and rights described later
In the Exclusive Right-to-Sell Listing Contracts, what does the seller agree regarding
existing monetary encumbrances? - answerSeller will pay off any encumbrance not
assumed by buyer
Two joint tenants sign a listing with your company. What is the minimum number of
duplicate originals you need? - answer3 one for each persons signature.
Under the mediation provision of the brokerage relationship forms, the parties must: -
answerAgree to submit a dispute to mediation before litigation arbitration
Regarding filing in blanks in a standard commission-approved form this - answeris the
practice of law but is specifically permitted by Colorado law
A seller has no knowledge of any plumbing system problems on the property she is
selling. In actuality, however, the pipes are seriously corroded and will need to be
, replaced soon. In the Sellers Property Disclosure, when responding to whether the
seller has any knowledge of the problems, she should respond as - answerno
Five years ago, Unit 5B in a condominium was the site of a brutal and highly publicized
murder. The unit was sold to an elderly woman who contracted the AIDS virus in a
blood transfusion and died in the unit last year. As the agent for the woman's estate,
what are your disclosure responsibilities to prospective purchasers of Unit 5B? -
answerYou are specifically relieved of liability for nondisclosure of either by the
Colorado stigmatized property disclosure law.
Based on the Exclusive Right-to-Sell Listing Contract (Transaction-Broker) the Listing
Broker must disclose to any potential buyer - answermaterial facts about the property
actually known by the broker
According to the ExclusiveRight-to-Sell Listing Contracts, fixtures listed on the approved
form will be included - answerif attached on the date of the listing unless specifically
excluded by the seller.
Real estate practice in Colorado assumes that which type of deed will convey
residential property, unless otherwise provided? - answerGeneral Warranty Deed
When completing the Exclusive Right-to-Sell Listing Contract, which monetary
encumbrances does the seller list? - answerall encumbrances known to the seller
The Exclusive Right-to-Sell listing form mentions the Sellers Property Disclosure form.
The seller: - answermay decline to provide the disclosure but must still disclose latent
material defects
The "holdover clause" in the approved Exclusive Right-to-Sell Listing Contract form
protects the broker's commission for certain disclosed buyers - answerfor a negotiated
the unless the seller lists the property with another broker after the expiration date
Base on the language of the Exclusive Right-to-Sell Listing Contract form, what
happens if a defaulting buyer forfeits an earnest money deposit? - answerthe broker
and the seller split the funds
In the event that the seller and the broker have a dispute about the Exclusive Right-to-
Sell Listing contract, which of the following is true? - answerBoth agree to mediation
before proceeding to arbitration or litigation
When a buyer wishes to work with a broker to locate property to purchase, the -
answerbuyer and broker may agree to a relationship, which could include agency,
Transaction-Brokerage, or no working relationship between the parties
Which of the following would most likely demonstrate, "reasonable efforts to locate
property" called for in the Exclusive Right-to-Buy Contract? - answershowing the buyer
Portion Section 5, Forms and Contracts
Questions and Answers
The Supreme Court decision in the Conway-Bogue case relating to the practice of law
by real estate brokers and employed licensees stated: - answer Colorado licensees
completing standard form are practicing law and have a limited permission to do so.
The purpose of Commission Rule F relating to approved forms is to: - answerhelp
insure the brokers compliance with the Conway-Bogue decision of Colorado supreme
court
When you complete standard approved forms with commonly used wording: -
answerThe wording must be adapted to fit your transaction
According to the Commission-approved Exclusive Right-to-Sell Listing Contract: -
answerA brokers compensation is established by the broker
A broker with a Transaction-Broker Exclusive Right-to-Sell listing agreement could
cooperate with all the following brokers EXCEPT - answerA sellers subagent.
Subagency is illegal in Colorado
As defined in the Commission-approved listing agreement forms, Property is best
defined: - answerthe real property plus the personal property and rights described later
In the Exclusive Right-to-Sell Listing Contracts, what does the seller agree regarding
existing monetary encumbrances? - answerSeller will pay off any encumbrance not
assumed by buyer
Two joint tenants sign a listing with your company. What is the minimum number of
duplicate originals you need? - answer3 one for each persons signature.
Under the mediation provision of the brokerage relationship forms, the parties must: -
answerAgree to submit a dispute to mediation before litigation arbitration
Regarding filing in blanks in a standard commission-approved form this - answeris the
practice of law but is specifically permitted by Colorado law
A seller has no knowledge of any plumbing system problems on the property she is
selling. In actuality, however, the pipes are seriously corroded and will need to be
, replaced soon. In the Sellers Property Disclosure, when responding to whether the
seller has any knowledge of the problems, she should respond as - answerno
Five years ago, Unit 5B in a condominium was the site of a brutal and highly publicized
murder. The unit was sold to an elderly woman who contracted the AIDS virus in a
blood transfusion and died in the unit last year. As the agent for the woman's estate,
what are your disclosure responsibilities to prospective purchasers of Unit 5B? -
answerYou are specifically relieved of liability for nondisclosure of either by the
Colorado stigmatized property disclosure law.
Based on the Exclusive Right-to-Sell Listing Contract (Transaction-Broker) the Listing
Broker must disclose to any potential buyer - answermaterial facts about the property
actually known by the broker
According to the ExclusiveRight-to-Sell Listing Contracts, fixtures listed on the approved
form will be included - answerif attached on the date of the listing unless specifically
excluded by the seller.
Real estate practice in Colorado assumes that which type of deed will convey
residential property, unless otherwise provided? - answerGeneral Warranty Deed
When completing the Exclusive Right-to-Sell Listing Contract, which monetary
encumbrances does the seller list? - answerall encumbrances known to the seller
The Exclusive Right-to-Sell listing form mentions the Sellers Property Disclosure form.
The seller: - answermay decline to provide the disclosure but must still disclose latent
material defects
The "holdover clause" in the approved Exclusive Right-to-Sell Listing Contract form
protects the broker's commission for certain disclosed buyers - answerfor a negotiated
the unless the seller lists the property with another broker after the expiration date
Base on the language of the Exclusive Right-to-Sell Listing Contract form, what
happens if a defaulting buyer forfeits an earnest money deposit? - answerthe broker
and the seller split the funds
In the event that the seller and the broker have a dispute about the Exclusive Right-to-
Sell Listing contract, which of the following is true? - answerBoth agree to mediation
before proceeding to arbitration or litigation
When a buyer wishes to work with a broker to locate property to purchase, the -
answerbuyer and broker may agree to a relationship, which could include agency,
Transaction-Brokerage, or no working relationship between the parties
Which of the following would most likely demonstrate, "reasonable efforts to locate
property" called for in the Exclusive Right-to-Buy Contract? - answershowing the buyer
