CO State Exam UPDATED ACTUAL
Questions and CORRECT Answers
Colorado Use Tax would apply to: - CORRECT ANSWER✔✔- The transfer of personal
property in a business or income residence.
According to CO Fair Housing laws, a complaint must be filed with the Civil Rights
Commission: - CORRECT ANSWER✔✔- Within one year of the violation
Security Deposits held in property management escrow accounts must be deposited within: -
CORRECT ANSWER✔✔- 5 days following receipt. (3 days for earnest money)
One half of the general property tax has been paid by February 28th; by what date must the
balance be paid to avoid any penalty? - CORRECT ANSWER✔✔- June 15th. 1/2 by end of
Feb, 1/2 by end of June or 100% by end of April.
Who is responsible for determining the mill levy used to determine taxes? - CORRECT
ANSWER✔✔- The county commissioners by setting the mill levy
After closing, a managing broker should pay commissions due to company associates: -
CORRECT ANSWER✔✔- From the company operating funds
According to statute, "good funds" include a: - CORRECT ANSWER✔✔- Title insurance
corporate check (verifiable).
The buyer and seller are in dispute about the earnest money. According to the Contract to Buy
and Sell, the earnest money holder: - CORRECT ANSWER✔✔- must interplead earnest
money into a court of competent jurisdiction.
An in-company transaction is not one in which a broker: - CORRECT ANSWER✔✔- has an
agency listing, and the cooperating broker is a transaction broker.
, What is the primary difference between the commission approved deed of trust forms? -
CORRECT ANSWER✔✔- Forms contain different provisions for assumption of the loan in
the event of a sale of the property.
When is the listing company responsible for a guaranteed buyout agreement under the
License Buyout Addendum to the Contract to Buy and Sell? - CORRECT ANSWER✔✔- If
the employing broker signs at the bottom of the addendum.
Who is exempt from real estate license law? - CORRECT ANSWER✔✔- An investor who
owns more than three investment properties and sells one to an owner occupant.
The Certificate of Taxes is: - CORRECT ANSWER✔✔- assurance from the county of any
taxes due.
A licensee is working with a buyer in a transaction on another broker's listing. What must the
licensee do with the personal check the buyers use as an earnest money deposit? - CORRECT
ANSWER✔✔- Make a copy for the licensee's broker and turn it over to the listing broker.
MEC as used in the Contract to Buy and Sell means the - CORRECT ANSWER✔✔- Latest
date upon which both parties have signed.
The seller agrees to replace the furnace prior to closing. The furnace is replaced, and the deal
closes, but the seller failed to pay the contractor. The contractor files a mechanics lien. Who
is responsible to pay the lien? - CORRECT ANSWER✔✔- The seller (but could be the
buyer). The seller signs affidavit of Title guaranteeing no liens.
The Colorado Real Estate Commission requires that all addenda that a broker wants added to
a Contract to Buy and Sell be: - CORRECT ANSWER✔✔- prepared by an attorney
In Colorado, a deed of trust may be used to provide security for a real estate loan. If the deed
trust is set up with a private trustee: - CORRECT ANSWER✔✔- any foreclosure will be
handles by the appropriate court.
When a sole proprietor has his or her license suspended for two years, what effect does this
have on the associate brokers affiliated with the sole proprietor? - CORRECT ANSWER✔✔-
Questions and CORRECT Answers
Colorado Use Tax would apply to: - CORRECT ANSWER✔✔- The transfer of personal
property in a business or income residence.
According to CO Fair Housing laws, a complaint must be filed with the Civil Rights
Commission: - CORRECT ANSWER✔✔- Within one year of the violation
Security Deposits held in property management escrow accounts must be deposited within: -
CORRECT ANSWER✔✔- 5 days following receipt. (3 days for earnest money)
One half of the general property tax has been paid by February 28th; by what date must the
balance be paid to avoid any penalty? - CORRECT ANSWER✔✔- June 15th. 1/2 by end of
Feb, 1/2 by end of June or 100% by end of April.
Who is responsible for determining the mill levy used to determine taxes? - CORRECT
ANSWER✔✔- The county commissioners by setting the mill levy
After closing, a managing broker should pay commissions due to company associates: -
CORRECT ANSWER✔✔- From the company operating funds
According to statute, "good funds" include a: - CORRECT ANSWER✔✔- Title insurance
corporate check (verifiable).
The buyer and seller are in dispute about the earnest money. According to the Contract to Buy
and Sell, the earnest money holder: - CORRECT ANSWER✔✔- must interplead earnest
money into a court of competent jurisdiction.
An in-company transaction is not one in which a broker: - CORRECT ANSWER✔✔- has an
agency listing, and the cooperating broker is a transaction broker.
, What is the primary difference between the commission approved deed of trust forms? -
CORRECT ANSWER✔✔- Forms contain different provisions for assumption of the loan in
the event of a sale of the property.
When is the listing company responsible for a guaranteed buyout agreement under the
License Buyout Addendum to the Contract to Buy and Sell? - CORRECT ANSWER✔✔- If
the employing broker signs at the bottom of the addendum.
Who is exempt from real estate license law? - CORRECT ANSWER✔✔- An investor who
owns more than three investment properties and sells one to an owner occupant.
The Certificate of Taxes is: - CORRECT ANSWER✔✔- assurance from the county of any
taxes due.
A licensee is working with a buyer in a transaction on another broker's listing. What must the
licensee do with the personal check the buyers use as an earnest money deposit? - CORRECT
ANSWER✔✔- Make a copy for the licensee's broker and turn it over to the listing broker.
MEC as used in the Contract to Buy and Sell means the - CORRECT ANSWER✔✔- Latest
date upon which both parties have signed.
The seller agrees to replace the furnace prior to closing. The furnace is replaced, and the deal
closes, but the seller failed to pay the contractor. The contractor files a mechanics lien. Who
is responsible to pay the lien? - CORRECT ANSWER✔✔- The seller (but could be the
buyer). The seller signs affidavit of Title guaranteeing no liens.
The Colorado Real Estate Commission requires that all addenda that a broker wants added to
a Contract to Buy and Sell be: - CORRECT ANSWER✔✔- prepared by an attorney
In Colorado, a deed of trust may be used to provide security for a real estate loan. If the deed
trust is set up with a private trustee: - CORRECT ANSWER✔✔- any foreclosure will be
handles by the appropriate court.
When a sole proprietor has his or her license suspended for two years, what effect does this
have on the associate brokers affiliated with the sole proprietor? - CORRECT ANSWER✔✔-
