Colorado Real Estate Exam – Questions and Answers Already Passed

Colorado Real Estate Exam – Questions and Answers Already Passed Who of the following is exempt from real estate license law? Investors who own 12 investment properties and sell one to an owner-occupant The purpose of the CRE Commission is to... Protect the public of the state of CO in real estate matters If a broker is accused of a violation of license law in a complaint to the commission investigative staff and its determined that the violation probably happened, the commission... May decide to refer the matter to a hearing before an appointed administrative law judge If judge finds broker in violation, penalties include public censure, license suspension, license revocation or fine of no more than $2,500. Commission doesn't have authority to determine damages or order restitution. The real estate commission must investigate... Any verified written complaint. The commission doesn't deal with disputes b/t brokers. In order to be the broker of record for a corporation, a person must hold... A valid active CO broker's license. In March 2001, the law removed the requirement for ownership and office/director status. In the event that the employing broker of a corporate brokerage is suddenly unable to continue in that position, the commission may issue a temporary "hardship" license to any.... CO licensee approved by the corporate board of directors. Licensee can either be a broker or a salesperson. Sole proprietorship has no business entity and much rehire all employed licensees and renegotiate all listings. When the employing broker changes the primary business address... The broker must notify the commission in a manner acceptable to the commission or the brokerage license will become inactive. If a broker fails to notify the commission, all licensees will become inactive until the change is made. One notification services for the broker and all associated licensees. When must CO licenses be renewed? Every three years on the anniversary of licensing. Errors and omissions professional liability insurance is required.... By every active licensee. Inactive brokers do not need E&O insurance and they cannot conduct any RE activity. Employing broker business entities must also have coverage independent of the personal coverage for the broker of record. In order to renew an active CO real estate license, the licensee must complete... 24 hours of approved continuing education or successful completion of the CO portion of the state licensing exam. This includes 4 hours of mandatory courses each year for a total of 12 hours required by commission in a three year period. A person maintaining an inactive CO real estate license... Must complete continuing education for the current renewal cycle before activating the license. Inactive licensees are subject to full control and discipline of the real estate commission. Which of the following is authorized for an independent broker under CO law? Work independently without the supervision of another broker. XYZ Realty is part of a franchise or marketing cooperative with a strong public image. The broker's advertising must indicate this relationship by advertising... Both the franchise name and XYZ Realty with the same level of prominence. The practice helps the public identify the responsible brokerage. Salesperson J-H paid the local telephone company to list her name in the directory under the real estate heading "J-H Real Estate Salesperson, Residential Property By Specialty." Based on the information, J-H must also include... The name of the employing broker. All advertisements must include the employing broker's name. A broker has developed a website advertising the broker's office. What, if anything, does the broker need to include? There is no need for any additional information. As long as the public can clearly identify the brokerage entity, the requirements are satisfied. An associate broker has developed a website. What, if anything, must he or she include? Name and location of the brokerage company that holds the associate's license. This specification isn't specific to just the internet. Listings based on a 'net' "net price" are... Illegal in CO at anytime. This leads to conflicts of interest between seller and broker. In CO, real estate commissions are... Negotiable between the broker and seller or buyer (between principal and agent). Commissions are not determined by law. Commissions earned by a broker in a real estate sales transaction... Are determined by agreement of the broker and his/her principal. Commissions may not be shared with an unlicensed party nor deductible from the earnest money deposit. All earnest money received by a broker on behalf of his or her principal must be deposited in an escrow or trust account within... 3rd business day after the broker learns of acceptance of the offer. Property management funds like rent and security deposits are subject to different time limits. A broker receives an earnest money deposit from a buyer. Under CO law, the broker should... Hold the earnest money deposit in a secure place in the broker's real estate brokerage office until the offer is accepted. Once the offer is accepted, the broker may deposit this buyer's finds into an escrow account containing money from other customers and clients. The account may be interest bearing: either with specific agreement of the beneficiaries or for the interest to go to an approved housing opportunity fund. Broker B received a buyer's earnest money check for $5,000 and immediately chased it. At closing, the broker handed the seller a personal check drawn on the broker's own bank account for $5,300, representing the original earnest money plus 6% interest. The broker... Should have deposited the money in a bank escrow or trust account and should have discussed the interest with the parties. The broker can't commingle deposit with personal funds. If a broker establishes an account to hold money belonging to others, which of the following is correct? All checks, deposit slips, and bank statements must include the word "escrow" or "trust" as part of the account name. They must also include the name of the brokerage entity. The broker's name must be on the account and does not need to be on the checks for a corporate or partnership account. The escrow account may be in the same bank as the broker's personal checking account; both must be clearly identified. A broker manages three properties for the same owner. One property is in need of emergency repairs, but that owner does not have enough money in the management account to cover the cost. The broker must excess funds from the account for the emergency then replaces the funds later with a check from the owner. Which is true? The broker is in violation of regulations for improperly handling escrow funds. In essence, the broker uses other client's funds in this situation. The broker wouldn't use personal funds for such a repair.