CCR Colorado Contracts & Regulations
After signing the Exclusive Right to Sell Contract, the listing broker must also disclose:
a. the broker obligations to the seller.
b. the amount and source of listing commission to any buyer.
c. to all prospective buyers the listing broker's relationship to the seller.
d. all material defects, known or unknown.
The seller learns that the offer is from a buyer with kids. The seller tells the broker that he only
wants to sell to buyers with no kids. What can the listing broker do?
a. Follow the seller's instructions.
b. Advertise the home as "Ideal for Singles".
c. Refer the seller to a firm that specializes in sales to singles.
d. File a fair housing complaint and claim the commission as damages.
According to the Exclusive Right To Sell Listing, the broker need NOT perform which duties?
a. Present all offers.
b. Inform sellers about risks of transaction.
c. Work to get an offer at an acceptable price.
d. Verify accuracy about property condition.
A broker with a Transaction-Broker Exclusive Right-to-Sell listing agreement could cooperate with
all the following brokers EXCEPT a:
a. seller's subagent.
b. buyer's agent.
c. buyer's Transaction-Broker.
d. broker with no formal relationship with the buyer.
Which behavior most clearly makes you an agent?
a. Advocating the interests of your principal.
b. Disclosing material defects to a customer.
c. Interposition, advisement and communication for a party.
d. Thorough accounting for money and property entrusted to you.
When the Counterproposal form is used, the person making the counterproposal would:
a. start with a new contract.
b. sign only the counterproposal.
c. sign the contract and initial the counterproposal.
d. sign the original offer and the counterproposal.
Under an Exclusive Right-to-Buy Contract (Transaction-Broker) the:
a. broker owes Buyer utmost good faith, loyalty and fidelity.
,b. broker owes Seller utmost good faith, loyalty and fidelity.
c. buyer may be required to pay the broker a commission.
d. buyer may work with other brokers and not pay a commission.
An out-of-state seller sells a property in Colorado. The closing company must withhold up to 2
percent of the:
a. selling price as possible income tax liability.
b. selling price as a state transfer tax.
c. net proceeds of the sale as sales tax.
d. net proceeds of the sale as possible income tax liability.
In Colorado, a developer must register with the real estate commission for which of the following
projects?
a. Mini-warehouse development over one hundred units.
b. Condominium office park with 40 warehouse units for sale.
c. Subdivision of 100 acres into 10 sites for residential use.
d. Conversion of an apartment building into 25 residential condominiums.
What disclosure is required when a buyer's agent approaches a for-sale-by-owner on behalf of his
buyer client?
a. No disclosure is required as the seller has elected to be unrepresented.
b. None, so long as the broker attempts to list the property prior to submitting the buyer's offer.
c. Disclosure of the broker's working relationship with the buyer.
d. Disclosure of the buyer's financial ability to complete the transaction.
Under Colorado law, if you do not have a written agreement with a party to a transaction, you are
considered to be a(n):
A. agent for the seller.
B. transaction-broker.
C. agent for the buyer.
D. dual agent.
Some properties may be subject to taxes from a special tax district. If buyers determine that the
property is within a special tax district, they may:
a. terminate the contract by written notice to the seller.
b. demand that the seller pay the indebtedness to such a district.
c. petition to be excluded from the district.
d. terminate the contract by the Off-Record Matters termination date.
An unlicensed office manager may:
a. prepare documents for a client.
b. deliver financial documents requiring signatures.
c. assist in negotiations.
d. discuss the terms of a listing agreement.
An out of state seller calls and wants to list a property in your area for $80,000. They are anxious to
sell. You know similar properties in the area have sold as high as $125,000. You should:
,a. Take a net listing.
b. Follow instructions.
c. Suggest you complete a CMA.
d. List the property for $125,000.
The commission-approved form for the Exclusive Right to Sell Listing Contract is:
a. one form for all types of property, either transaction broker or agency.
b. different forms for different types of real estate.
c. different forms for different relationships.
d. an agency form.
Contracts with original signatures are required:
a. at closing.
b. at the time of acceptance.
c. not later than delivery of title evidence.
d. if requested.
Sally is the broker owner of Ajax Realty which is a trade name registered with the Colorado
Department of Revenue and licensed with the Real Estate Commission as Ajax Realty. Which of the
following is correct?
A. All licensees employed by Sally do business only in the name of Ajax Realty.
B. All newspaper advertising must be in Sally's name as broker.
C. Sally may do business either as Ajax Realty or under her married name or under her birth name.
D. All property signs must show both Sally's full name and the name of the company.
A seller listed his house for sale with a broker on April 1st. The listing agreement was to last for five
months. In June, the seller decided that he no longer was interested in selling. Which of the
following is true?
a. The seller has effectively canceled the listing agreement, and there are no penalties.
b. The seller has withdrawn the broker's authority to sell the property and may be subject to
reimbursing some broker expenses.
c. The seller is required by law to leave his house on the market until the original listing agreement
expires.
d. The real estate commission will decide if the seller's action is justifiable.
You have signed an Exclusive Right-to-Sell Contract (Seller Agency). What additional disclosures
are now required?
a. Disclosure to the Seller of your broker obligations.
b. Disclosure to any buyer of the amount and source of your commission.
c. Disclosure to any prospective buyer of your agency to the seller.
d. Disclosure of all material defects, known or unknown.
When a broker has an Exclusive Right to Sell Agency listing, the broker must disclose to buyers:
a. the listing broker's obligations to the seller.
b. the listing broker's agency to the seller.
c. the amount that the listing brokers commission will be.
d. material defects whether known or unknown.
, When an Earnest Money Promissory Note is used for the earnest money deposit, which additional
condition is required?
a. The buyer must provide financial statements as qualification.
b. The note must be identified in the sales contract including due date of the note.
c. The note must be held by the selling broker until it is honored.
d. The listing broker will sue the buyer if the note is not honored.
When a broker and a buyer enter into an Exclusive Right to Buy contract, the:
a. buyer may have similar agreements with many brokers.
b. broker must be a buyer's agent.
c. broker promises to work with only one buyer at a time.
d. buyer is bound to work with one broker only during the term of the contract.
The HUD pamphlet Protect Your Family from Lead in Your Home must be provided to buyers of
pre-1978 residences by:
a. HUD.
b. the lender.
c. the seller.
d. the broker.
The effect of a Transaction-Broker Seller listing is to do all EXCEPT?
a. Remove broker's fiduciary duty.
b. Remove broker's obligation to investigate a potential buyer.
c. Remove broker's obligation to disclose material defects.
d. Remove broker's obligation to communicate buyer confidential information.
What is the purpose of the Square Footage Disclosure?
a. Assist the loan approval
b. Assist in the valuation
c. Provide exact square footage
d. For marketing
A broker's trust account at a solvent credit union:
a. does not offer the proper insurance protection to the account beneficiaries.
b. is allowable if it is established in accordance to commission rules.
c. pays a higher rate of interest to the broker than commercial bank accounts.
d. has the required federal deposit insurance from the FDIC.
A broker moves his office to the building next door and neglects to inform the real estate
commission. What is the status of the brokerage license?
A. The license is revoked.
B. The license is cancelled and only the employed licensees may conduct business.
C. The license is unaffected so long as the broker informs the commission within thirty days.
D. The license is inactive along with the licenses of employed licensees.
Vicarious Liability is best defined as the liability:
a. you have for your conduct on the job.
After signing the Exclusive Right to Sell Contract, the listing broker must also disclose:
a. the broker obligations to the seller.
b. the amount and source of listing commission to any buyer.
c. to all prospective buyers the listing broker's relationship to the seller.
d. all material defects, known or unknown.
The seller learns that the offer is from a buyer with kids. The seller tells the broker that he only
wants to sell to buyers with no kids. What can the listing broker do?
a. Follow the seller's instructions.
b. Advertise the home as "Ideal for Singles".
c. Refer the seller to a firm that specializes in sales to singles.
d. File a fair housing complaint and claim the commission as damages.
According to the Exclusive Right To Sell Listing, the broker need NOT perform which duties?
a. Present all offers.
b. Inform sellers about risks of transaction.
c. Work to get an offer at an acceptable price.
d. Verify accuracy about property condition.
A broker with a Transaction-Broker Exclusive Right-to-Sell listing agreement could cooperate with
all the following brokers EXCEPT a:
a. seller's subagent.
b. buyer's agent.
c. buyer's Transaction-Broker.
d. broker with no formal relationship with the buyer.
Which behavior most clearly makes you an agent?
a. Advocating the interests of your principal.
b. Disclosing material defects to a customer.
c. Interposition, advisement and communication for a party.
d. Thorough accounting for money and property entrusted to you.
When the Counterproposal form is used, the person making the counterproposal would:
a. start with a new contract.
b. sign only the counterproposal.
c. sign the contract and initial the counterproposal.
d. sign the original offer and the counterproposal.
Under an Exclusive Right-to-Buy Contract (Transaction-Broker) the:
a. broker owes Buyer utmost good faith, loyalty and fidelity.
,b. broker owes Seller utmost good faith, loyalty and fidelity.
c. buyer may be required to pay the broker a commission.
d. buyer may work with other brokers and not pay a commission.
An out-of-state seller sells a property in Colorado. The closing company must withhold up to 2
percent of the:
a. selling price as possible income tax liability.
b. selling price as a state transfer tax.
c. net proceeds of the sale as sales tax.
d. net proceeds of the sale as possible income tax liability.
In Colorado, a developer must register with the real estate commission for which of the following
projects?
a. Mini-warehouse development over one hundred units.
b. Condominium office park with 40 warehouse units for sale.
c. Subdivision of 100 acres into 10 sites for residential use.
d. Conversion of an apartment building into 25 residential condominiums.
What disclosure is required when a buyer's agent approaches a for-sale-by-owner on behalf of his
buyer client?
a. No disclosure is required as the seller has elected to be unrepresented.
b. None, so long as the broker attempts to list the property prior to submitting the buyer's offer.
c. Disclosure of the broker's working relationship with the buyer.
d. Disclosure of the buyer's financial ability to complete the transaction.
Under Colorado law, if you do not have a written agreement with a party to a transaction, you are
considered to be a(n):
A. agent for the seller.
B. transaction-broker.
C. agent for the buyer.
D. dual agent.
Some properties may be subject to taxes from a special tax district. If buyers determine that the
property is within a special tax district, they may:
a. terminate the contract by written notice to the seller.
b. demand that the seller pay the indebtedness to such a district.
c. petition to be excluded from the district.
d. terminate the contract by the Off-Record Matters termination date.
An unlicensed office manager may:
a. prepare documents for a client.
b. deliver financial documents requiring signatures.
c. assist in negotiations.
d. discuss the terms of a listing agreement.
An out of state seller calls and wants to list a property in your area for $80,000. They are anxious to
sell. You know similar properties in the area have sold as high as $125,000. You should:
,a. Take a net listing.
b. Follow instructions.
c. Suggest you complete a CMA.
d. List the property for $125,000.
The commission-approved form for the Exclusive Right to Sell Listing Contract is:
a. one form for all types of property, either transaction broker or agency.
b. different forms for different types of real estate.
c. different forms for different relationships.
d. an agency form.
Contracts with original signatures are required:
a. at closing.
b. at the time of acceptance.
c. not later than delivery of title evidence.
d. if requested.
Sally is the broker owner of Ajax Realty which is a trade name registered with the Colorado
Department of Revenue and licensed with the Real Estate Commission as Ajax Realty. Which of the
following is correct?
A. All licensees employed by Sally do business only in the name of Ajax Realty.
B. All newspaper advertising must be in Sally's name as broker.
C. Sally may do business either as Ajax Realty or under her married name or under her birth name.
D. All property signs must show both Sally's full name and the name of the company.
A seller listed his house for sale with a broker on April 1st. The listing agreement was to last for five
months. In June, the seller decided that he no longer was interested in selling. Which of the
following is true?
a. The seller has effectively canceled the listing agreement, and there are no penalties.
b. The seller has withdrawn the broker's authority to sell the property and may be subject to
reimbursing some broker expenses.
c. The seller is required by law to leave his house on the market until the original listing agreement
expires.
d. The real estate commission will decide if the seller's action is justifiable.
You have signed an Exclusive Right-to-Sell Contract (Seller Agency). What additional disclosures
are now required?
a. Disclosure to the Seller of your broker obligations.
b. Disclosure to any buyer of the amount and source of your commission.
c. Disclosure to any prospective buyer of your agency to the seller.
d. Disclosure of all material defects, known or unknown.
When a broker has an Exclusive Right to Sell Agency listing, the broker must disclose to buyers:
a. the listing broker's obligations to the seller.
b. the listing broker's agency to the seller.
c. the amount that the listing brokers commission will be.
d. material defects whether known or unknown.
, When an Earnest Money Promissory Note is used for the earnest money deposit, which additional
condition is required?
a. The buyer must provide financial statements as qualification.
b. The note must be identified in the sales contract including due date of the note.
c. The note must be held by the selling broker until it is honored.
d. The listing broker will sue the buyer if the note is not honored.
When a broker and a buyer enter into an Exclusive Right to Buy contract, the:
a. buyer may have similar agreements with many brokers.
b. broker must be a buyer's agent.
c. broker promises to work with only one buyer at a time.
d. buyer is bound to work with one broker only during the term of the contract.
The HUD pamphlet Protect Your Family from Lead in Your Home must be provided to buyers of
pre-1978 residences by:
a. HUD.
b. the lender.
c. the seller.
d. the broker.
The effect of a Transaction-Broker Seller listing is to do all EXCEPT?
a. Remove broker's fiduciary duty.
b. Remove broker's obligation to investigate a potential buyer.
c. Remove broker's obligation to disclose material defects.
d. Remove broker's obligation to communicate buyer confidential information.
What is the purpose of the Square Footage Disclosure?
a. Assist the loan approval
b. Assist in the valuation
c. Provide exact square footage
d. For marketing
A broker's trust account at a solvent credit union:
a. does not offer the proper insurance protection to the account beneficiaries.
b. is allowable if it is established in accordance to commission rules.
c. pays a higher rate of interest to the broker than commercial bank accounts.
d. has the required federal deposit insurance from the FDIC.
A broker moves his office to the building next door and neglects to inform the real estate
commission. What is the status of the brokerage license?
A. The license is revoked.
B. The license is cancelled and only the employed licensees may conduct business.
C. The license is unaffected so long as the broker informs the commission within thirty days.
D. The license is inactive along with the licenses of employed licensees.
Vicarious Liability is best defined as the liability:
a. you have for your conduct on the job.
