Van Ed Colorado Contracts and
Regulations Final Exam Questions With
Complete Solutions
Can the Real Estate Commission dictate the ethical standards of licensees? -
ANSWER-no, this is false
If payment is made from the recovery fund for a judgment against a licensee, -
ANSWER-The licensee automatically loses his or her license
In order to get a real estate license, you must do all of the following EXCEPT -
ANSWER-Take a total of 160 hours of study from a qualified school
If a broker receives interest in their trust accounts they could do all of the following
except - ANSWER-use the money for covering expenses
If you have a listing agreement with a seller and decide you want to purchase the
property yourself to keep as a rental property, you should - ANSWER-have the seller
release you from the listing, receive no commission, and advise the seller to seek other
representation.
The "Conway-Bogue" decision includes all the following statements except - ANSWER-
that title companies could also fill in blanks on pre-printed forms.
In sales contracts, if a broker initiates the use of a pre-printed or prepared addendum,
the addendum must be prepared by - ANSWER-only the broker's attorney and can be
used more than once.
The Colorado Statute of Frauds states - ANSWER-all contracts for real property must
be in writing
If a broker acts as a transaction-broker which of the following is NOT true? - ANSWER-
The broker must keep all information regarding the transaction confidential, no matter
what.
, It is the obligation for who of the following to verify a buyer's financial ability to purchase
a home? - ANSWER-buyer agent
n the Exclusive Right-to-Sell Listing Contract, if a buyer calls the seller, the seller should
- ANSWER-tell the buyer to call his agent
The following is Not an option for a Buyer who has signed a buyer broker contract -
ANSWER-To have the lender pay the broker's commission
The employing broker... - ANSWER-may designate an employed broker to be a buyer
broker for an in-company sale.
The buyer makes an FHA offer of $101,000 with 5% down and the property does not
appraise - ANSWER-the buyer has the option to add money to the down payment and
proceed with the purchase.
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, - ANSWER-the buyer may terminate the contract (voidable) if the down
payment increases more than the amount inserted in the assumption paragraph.
If possession is on the "day of delivery of deed", - ANSWER-the sellers must remove all
their possessions prior to the possession time.
The buyer specifies in the additional provisions section of the contract that the sale is
conditional upon something specific that must occur within the next 7 days otherwise
contract will terminate. What happens if the specific event does not occur? - ANSWER-
The earnest money is due back to buyer.
If there is a fire in the home prior to closing the following is true EXCEPT - ANSWER-if
the home's damage is less than 10% the contract is voidable by buyer.
Regulations Final Exam Questions With
Complete Solutions
Can the Real Estate Commission dictate the ethical standards of licensees? -
ANSWER-no, this is false
If payment is made from the recovery fund for a judgment against a licensee, -
ANSWER-The licensee automatically loses his or her license
In order to get a real estate license, you must do all of the following EXCEPT -
ANSWER-Take a total of 160 hours of study from a qualified school
If a broker receives interest in their trust accounts they could do all of the following
except - ANSWER-use the money for covering expenses
If you have a listing agreement with a seller and decide you want to purchase the
property yourself to keep as a rental property, you should - ANSWER-have the seller
release you from the listing, receive no commission, and advise the seller to seek other
representation.
The "Conway-Bogue" decision includes all the following statements except - ANSWER-
that title companies could also fill in blanks on pre-printed forms.
In sales contracts, if a broker initiates the use of a pre-printed or prepared addendum,
the addendum must be prepared by - ANSWER-only the broker's attorney and can be
used more than once.
The Colorado Statute of Frauds states - ANSWER-all contracts for real property must
be in writing
If a broker acts as a transaction-broker which of the following is NOT true? - ANSWER-
The broker must keep all information regarding the transaction confidential, no matter
what.
, It is the obligation for who of the following to verify a buyer's financial ability to purchase
a home? - ANSWER-buyer agent
n the Exclusive Right-to-Sell Listing Contract, if a buyer calls the seller, the seller should
- ANSWER-tell the buyer to call his agent
The following is Not an option for a Buyer who has signed a buyer broker contract -
ANSWER-To have the lender pay the broker's commission
The employing broker... - ANSWER-may designate an employed broker to be a buyer
broker for an in-company sale.
The buyer makes an FHA offer of $101,000 with 5% down and the property does not
appraise - ANSWER-the buyer has the option to add money to the down payment and
proceed with the purchase.
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, - ANSWER-the buyer may terminate the contract (voidable) if the down
payment increases more than the amount inserted in the assumption paragraph.
If possession is on the "day of delivery of deed", - ANSWER-the sellers must remove all
their possessions prior to the possession time.
The buyer specifies in the additional provisions section of the contract that the sale is
conditional upon something specific that must occur within the next 7 days otherwise
contract will terminate. What happens if the specific event does not occur? - ANSWER-
The earnest money is due back to buyer.
If there is a fire in the home prior to closing the following is true EXCEPT - ANSWER-if
the home's damage is less than 10% the contract is voidable by buyer.
