VanEd CO State Exam Prep Questions
with Correct Answers
The Conway-Bogue Decision - answer is a court case that gave real estate agents in
the state of Colorado the right to assist buyers and sellers in some legal aspect of the
real estate transaction process.
This ruling established the right of real estate licensees to use approved, standardized
state forms. This decision provides that Brokers may not charge a separate fee for
preparing documents and that they must use the state's standard and approved forms.
What is the lowest level action the CREC may take against an agent? - answer Issue
letter of admonishment (warning)
A(n) ____________ law judge hears a real estate case referred by the CREC. - answer
Administration
The CREC will investigate a phone complaint. True or False? - answer False
There are three levels of licensing available to all brokers depending on experience and
time in the industry: - answer Associate Broker: All initial licensees must work for an
employing broker (2 years minimum) and be subject to the employing broker's
supervision.
Independent Broker: An Independent Broker is a one person company and may not
employ other brokers. A minimum of two years of experience is required and
Independent Brokers must have an office open to the public.
Employing Broker: Like an Independent Broker, Employing Brokers must have at least
two years of experience. Unlike other brokers, Employing Brokers may employ other
licensees to work for their brokerage firm.
The CREC can grant a temporary license - answerThe CREC can grant a temporary
license one time for 90 days but only to a corporation or LLC and can be extended one
time for an additional 90 days. You may see this on the test verbatim and should
memorize this clause.
What is required to renew a license? - answerThe state requires that you complete 24
hours of continuing education. Twelve of these hours must be the yearly update course.
Each update course counts as 4 hours. You may only take the update course in the
year it is for. In addition, you would need to take 12 hours of elective credit.
,What is required to become an Employing Broker or Independent Broker? - answerTwo
years of experience and the 24 hour Broker Administration Course (EB)
How many hours of the Annual Commission Update (ACU) must the Broker take to fulfill
the CE requirements in a 3 year cycle? - answerTwelve hours
Who is exempt from licensing? - answerHome builders, apartment complex operators,
attorneys, inactive Licensee working for a new home builder or apartment complex as a
regularly salaried employee.
Who may be issued a temporary license? For how long? How long can it be extended
and how many times? - answerA Corporation or LLC for 90 days and renewable for 90
days
What is required to sell real estate securities? - answerA securities license
COLD AC is an acronym for - answerCare, Obedience Loyalty Disclosure and
Accountability, Confidentiality.
Colorado Fair Housing Act - answerState statute complementing the Federal Fair
Housing laws, and adds three protected classes: Creed, Ancestry and Marital Status.
If we are omitting items that are in the contract we - answercan write a line through the
non-applicable portion and write"omit"on the line.
Can a broker write an addendum to a contract? - answerWe may not write an
addendum to the contract. If the parties wish to add an addendum they must write it
themselves or have an attorney draft it for them.
A valid listing agreement must contain - answera start and end date.
Is anyone exempt from using the DORA contracts and if so, who are they? -
answerYes. A home builder selling their own homes, as well as attorneys are exempt
from using the DORA contracts.
The funds must be deposited into the Broker's trust account or a third party account
such as a title company within - answer72 hours (3 days) of acceptance of a contract to
buy and sell.
Property management funds held by a Broker must be deposited within - answer5
business days from time of receipt of the funds.
In Colorado, the tax is ___ of the selling price. - answer2%
Suppose the Seller is out-of-state and selling investment property. Now suppose the
property is selling for $200,000 and the Seller stands to clear only $1,000 at closing.
, The Colorado tax code tells us we should withhold 2% or $4,000 so what will happen?
In the event that there are not sufficient funds to cover the tax, the lesser amount of the
cash due to Seller at closing or 2% will be withheld. In this case, the $1,000 would be
withheld. If the Seller was to receive $10,000 at closing we would withhold the $4,000
and give the Seller the balance of $6,000.
A well will have the permit transferred by - answerthe state engineer's office
a house is on 35 or more acres in Colorado, - answerit will likely be granted a 'well
permit' for domestic use.
How much is fined for failure to deliver a Lead Based Paint Disclosure? -
answer$16,000 to the selling Broker
What are the 2 additional nortice forms used when working with a property under
foreclosure? - answerNotice of Cancellation and the Seller Warning-Equity Skimming.
Required under the CO Foreclosure Protection Act
In what type of listing would there be no holdover agreement? - answerSingle-Party
Listing
Rule E13 - answerRule E-13 prohibits sign crossing
If a Broker showed a house to someone and they then bought another house and the
broker did not get paid, what would be the most likely reason they did not get paid? -
answerHe did not have an Exclusive Right to Buy contract with the client.
If you have a listing and find a Buyer that you would like to represent as well, you should
use what form to go from a Buyers and Sellers Agent to a Transaction Broker? -
answerchange of status
Is the Broker required to do a visual inspection of the property when taking a listing? -
answerYes
On the Contract to Buy and Sell, if the fireplace implements are not listed as included
they are - answerExcluded.
In Colorado, the Buyer is held to liquidate damages normally but the Seller is always
held to ________________ damages. - answerspecific performance
If the contract is initialed by the Seller rather than signed it is being - answercountered.
What if we have a contract and dates need to be extended? Which form do we use? Do
both parties have to agree? - answerAmend and Extend the Contract to Buy and Sell.
Both must agree.
with Correct Answers
The Conway-Bogue Decision - answer is a court case that gave real estate agents in
the state of Colorado the right to assist buyers and sellers in some legal aspect of the
real estate transaction process.
This ruling established the right of real estate licensees to use approved, standardized
state forms. This decision provides that Brokers may not charge a separate fee for
preparing documents and that they must use the state's standard and approved forms.
What is the lowest level action the CREC may take against an agent? - answer Issue
letter of admonishment (warning)
A(n) ____________ law judge hears a real estate case referred by the CREC. - answer
Administration
The CREC will investigate a phone complaint. True or False? - answer False
There are three levels of licensing available to all brokers depending on experience and
time in the industry: - answer Associate Broker: All initial licensees must work for an
employing broker (2 years minimum) and be subject to the employing broker's
supervision.
Independent Broker: An Independent Broker is a one person company and may not
employ other brokers. A minimum of two years of experience is required and
Independent Brokers must have an office open to the public.
Employing Broker: Like an Independent Broker, Employing Brokers must have at least
two years of experience. Unlike other brokers, Employing Brokers may employ other
licensees to work for their brokerage firm.
The CREC can grant a temporary license - answerThe CREC can grant a temporary
license one time for 90 days but only to a corporation or LLC and can be extended one
time for an additional 90 days. You may see this on the test verbatim and should
memorize this clause.
What is required to renew a license? - answerThe state requires that you complete 24
hours of continuing education. Twelve of these hours must be the yearly update course.
Each update course counts as 4 hours. You may only take the update course in the
year it is for. In addition, you would need to take 12 hours of elective credit.
,What is required to become an Employing Broker or Independent Broker? - answerTwo
years of experience and the 24 hour Broker Administration Course (EB)
How many hours of the Annual Commission Update (ACU) must the Broker take to fulfill
the CE requirements in a 3 year cycle? - answerTwelve hours
Who is exempt from licensing? - answerHome builders, apartment complex operators,
attorneys, inactive Licensee working for a new home builder or apartment complex as a
regularly salaried employee.
Who may be issued a temporary license? For how long? How long can it be extended
and how many times? - answerA Corporation or LLC for 90 days and renewable for 90
days
What is required to sell real estate securities? - answerA securities license
COLD AC is an acronym for - answerCare, Obedience Loyalty Disclosure and
Accountability, Confidentiality.
Colorado Fair Housing Act - answerState statute complementing the Federal Fair
Housing laws, and adds three protected classes: Creed, Ancestry and Marital Status.
If we are omitting items that are in the contract we - answercan write a line through the
non-applicable portion and write"omit"on the line.
Can a broker write an addendum to a contract? - answerWe may not write an
addendum to the contract. If the parties wish to add an addendum they must write it
themselves or have an attorney draft it for them.
A valid listing agreement must contain - answera start and end date.
Is anyone exempt from using the DORA contracts and if so, who are they? -
answerYes. A home builder selling their own homes, as well as attorneys are exempt
from using the DORA contracts.
The funds must be deposited into the Broker's trust account or a third party account
such as a title company within - answer72 hours (3 days) of acceptance of a contract to
buy and sell.
Property management funds held by a Broker must be deposited within - answer5
business days from time of receipt of the funds.
In Colorado, the tax is ___ of the selling price. - answer2%
Suppose the Seller is out-of-state and selling investment property. Now suppose the
property is selling for $200,000 and the Seller stands to clear only $1,000 at closing.
, The Colorado tax code tells us we should withhold 2% or $4,000 so what will happen?
In the event that there are not sufficient funds to cover the tax, the lesser amount of the
cash due to Seller at closing or 2% will be withheld. In this case, the $1,000 would be
withheld. If the Seller was to receive $10,000 at closing we would withhold the $4,000
and give the Seller the balance of $6,000.
A well will have the permit transferred by - answerthe state engineer's office
a house is on 35 or more acres in Colorado, - answerit will likely be granted a 'well
permit' for domestic use.
How much is fined for failure to deliver a Lead Based Paint Disclosure? -
answer$16,000 to the selling Broker
What are the 2 additional nortice forms used when working with a property under
foreclosure? - answerNotice of Cancellation and the Seller Warning-Equity Skimming.
Required under the CO Foreclosure Protection Act
In what type of listing would there be no holdover agreement? - answerSingle-Party
Listing
Rule E13 - answerRule E-13 prohibits sign crossing
If a Broker showed a house to someone and they then bought another house and the
broker did not get paid, what would be the most likely reason they did not get paid? -
answerHe did not have an Exclusive Right to Buy contract with the client.
If you have a listing and find a Buyer that you would like to represent as well, you should
use what form to go from a Buyers and Sellers Agent to a Transaction Broker? -
answerchange of status
Is the Broker required to do a visual inspection of the property when taking a listing? -
answerYes
On the Contract to Buy and Sell, if the fireplace implements are not listed as included
they are - answerExcluded.
In Colorado, the Buyer is held to liquidate damages normally but the Seller is always
held to ________________ damages. - answerspecific performance
If the contract is initialed by the Seller rather than signed it is being - answercountered.
What if we have a contract and dates need to be extended? Which form do we use? Do
both parties have to agree? - answerAmend and Extend the Contract to Buy and Sell.
Both must agree.
