Colorado State Exam Questions with
correct answers
In Colorado, the absence of a contrary understanding. It is understood that the seller will deliver a -
CORRECT ANSWER-✔✔✅General Warranty Deed
The Seller's Property Disclosure said the built-in oven was " in working condition," yet it broke a week
before closing. According to the Residential Contract to Buy and Seller the seller - CORRECT ANSWER-
✔✔✅May replace the oven with a working one of similar age, condition and functionality
Adverse Possession matures into title after open, notorious and hostile, possession for - CORRECT
ANSWER-✔✔✅18 years (with color of title)
In a new loan closing, sometimes a lender may make some of the payouts, such as recording fees, survey
and reserve taxes, in order to protect its interest as the holder of the 1st lien. Net loan proceeds are
entered on the settlement worksheet a - CORRECT ANSWER-✔✔✅debit to the broker, single entry
Acceptance of an offer must be - CORRECT ANSWER-✔✔✅signed by all parties, acceptance must be
communicated, within time limits (in order to have a valid contract and before contract deadlines
The Colorado Real Estate Commission has approved - CORRECT ANSWER-✔✔✅Closing Instruction and
Earnest Money receipt, earnest money promissory note, agency/ subagency disclosure
The alternative dispute resolution, mediation clause, in the exclusive .right to buy contract for the
purpose of - CORRECT ANSWER-✔✔✅limiting the time period for disputes to 30 days, encouraging
alternatives to litigation, reduce the cost of resolving disputes
Straight line deprecation is a formula utilizing - CORRECT ANSWER-✔✔✅depreciation deductions in
equal amounts over a number of years
By signing an exclusive buyer-agency contract - CORRECT ANSWER-✔✔✅broker is not automatically
entitled to a commission
, A broker needs $5950 to pay her IRS tac lien. She has the opportunity to list a property at fair market
value of $85000. What would her listing commission rate need to be in order to pay her debt of (2.8% to
the selling broker - CORRECT ANSWER-✔✔✅0.098 (5950/85000 = 7% + 2.8% = 9.8%
When a licensee runs a newspaper ad, which of the following is permissible - CORRECT ANSWER-
✔✔✅Ask for Bob to see 1234 Main Street; Call Jones Realty 135-9876
Last tears real estate taxes were $3685, closing is September 11, how would the entry be shown on the
settlement sheet? - CORRECT ANSWER-✔✔✅Debit seller $2564.36, credit buyer $2,564.36
The inclusions and exclusions sections of the Residential form of the Contract to Buy and Sell calls for
mandatory inclusion of a number of items. Which of the following are included only if checked? -
CORRECT ANSWER-✔✔✅Lease Security Systems
If your Contract to Buy and Sell does not need the Seller or Private Financing Section, you as broker may
do all of following - CORRECT ANSWER-✔✔✅crossing out the section, putting n/a in all blank fields in
the section, remove the section text leaving the title and the words "omitted as not applicable"
The Colorado Real Estate Commission can decide on their own to investigate all - CORRECT ANSWER-
✔✔✅a broker depositing salaries into trust account, violating the Colorado Consumer Protection Act,
broker failing to disclose licensed status to seller while buying a property for personal use
If the buyer is assuming an 8.5% loan with a balance of $127.538.00 at closing on July 11, what is the
interest proration? - CORRECT ANSWER-✔✔✅291.42 debit to the seller, credit to the buyer
(127538*.085 = 10840.73/12 = 903.394/31 = 29.14*10 = 291.42)
Who is responsible for an accurate and complete closing statement? - CORRECT ANSWER-✔✔✅real
estate broker attending closing (Rules E-4 and E-5 to provide copies)
Title insurance endorsements appear on a closing statement as - CORRECT ANSWER-✔✔✅credit to the
broker
(whoever is doing the closing collects the endorsements)
correct answers
In Colorado, the absence of a contrary understanding. It is understood that the seller will deliver a -
CORRECT ANSWER-✔✔✅General Warranty Deed
The Seller's Property Disclosure said the built-in oven was " in working condition," yet it broke a week
before closing. According to the Residential Contract to Buy and Seller the seller - CORRECT ANSWER-
✔✔✅May replace the oven with a working one of similar age, condition and functionality
Adverse Possession matures into title after open, notorious and hostile, possession for - CORRECT
ANSWER-✔✔✅18 years (with color of title)
In a new loan closing, sometimes a lender may make some of the payouts, such as recording fees, survey
and reserve taxes, in order to protect its interest as the holder of the 1st lien. Net loan proceeds are
entered on the settlement worksheet a - CORRECT ANSWER-✔✔✅debit to the broker, single entry
Acceptance of an offer must be - CORRECT ANSWER-✔✔✅signed by all parties, acceptance must be
communicated, within time limits (in order to have a valid contract and before contract deadlines
The Colorado Real Estate Commission has approved - CORRECT ANSWER-✔✔✅Closing Instruction and
Earnest Money receipt, earnest money promissory note, agency/ subagency disclosure
The alternative dispute resolution, mediation clause, in the exclusive .right to buy contract for the
purpose of - CORRECT ANSWER-✔✔✅limiting the time period for disputes to 30 days, encouraging
alternatives to litigation, reduce the cost of resolving disputes
Straight line deprecation is a formula utilizing - CORRECT ANSWER-✔✔✅depreciation deductions in
equal amounts over a number of years
By signing an exclusive buyer-agency contract - CORRECT ANSWER-✔✔✅broker is not automatically
entitled to a commission
, A broker needs $5950 to pay her IRS tac lien. She has the opportunity to list a property at fair market
value of $85000. What would her listing commission rate need to be in order to pay her debt of (2.8% to
the selling broker - CORRECT ANSWER-✔✔✅0.098 (5950/85000 = 7% + 2.8% = 9.8%
When a licensee runs a newspaper ad, which of the following is permissible - CORRECT ANSWER-
✔✔✅Ask for Bob to see 1234 Main Street; Call Jones Realty 135-9876
Last tears real estate taxes were $3685, closing is September 11, how would the entry be shown on the
settlement sheet? - CORRECT ANSWER-✔✔✅Debit seller $2564.36, credit buyer $2,564.36
The inclusions and exclusions sections of the Residential form of the Contract to Buy and Sell calls for
mandatory inclusion of a number of items. Which of the following are included only if checked? -
CORRECT ANSWER-✔✔✅Lease Security Systems
If your Contract to Buy and Sell does not need the Seller or Private Financing Section, you as broker may
do all of following - CORRECT ANSWER-✔✔✅crossing out the section, putting n/a in all blank fields in
the section, remove the section text leaving the title and the words "omitted as not applicable"
The Colorado Real Estate Commission can decide on their own to investigate all - CORRECT ANSWER-
✔✔✅a broker depositing salaries into trust account, violating the Colorado Consumer Protection Act,
broker failing to disclose licensed status to seller while buying a property for personal use
If the buyer is assuming an 8.5% loan with a balance of $127.538.00 at closing on July 11, what is the
interest proration? - CORRECT ANSWER-✔✔✅291.42 debit to the seller, credit to the buyer
(127538*.085 = 10840.73/12 = 903.394/31 = 29.14*10 = 291.42)
Who is responsible for an accurate and complete closing statement? - CORRECT ANSWER-✔✔✅real
estate broker attending closing (Rules E-4 and E-5 to provide copies)
Title insurance endorsements appear on a closing statement as - CORRECT ANSWER-✔✔✅credit to the
broker
(whoever is doing the closing collects the endorsements)
