MODERN REAL ESTATE PRACTICE
COLORADO LAW AND PRACTICE
FINAL EXAM WITH CORRECT
ANSWERS
A couple is buying a house together. One of the partners wants his children from a
previous marriage to inherit his share of the property. The couple should hold title as
- Answer-tenants in common.
The property owner has given a potential buyer the right to buy the property at a set
price for a set period; this is, a(n) - Answer-option.
The sellers are not sure whether to renovate the kitchen before selling their home.
The principle of value that will determine whether the renovation is financially
feasible is - Answer-contribution
A buyer and a seller sign a contract for the sale of real property. A few days later,
they decide to change many terms of the contract, while retaining the basic intent to
buy and sell. The process by which the new contract replaces the old one is called -
Answer-novation.
In order for a broker to be paid on an open listing, the broker must - Answer-be the
procuring cause of the sale.
An example of specific performance for breaching a real property purchase contract
is - Answer-a court action to force compliance with the contract.
Which deed offers only two covenants or warranties? - Answer-Special warranty
In a special warranty deed, the grantor promises - Answer-to defend the title against
any encumbrances during the grantor's period of ownership.
A land use that has been grandfathered in is known as a - Answer-nonconforming
use.
The owner of a parcel of land has been allowed to build improvements into the
setback area. This is an example of a - Answer-variance
When appraisers use the expression "most probable price," they are referring to a
property's - Answer-market value.
Title insurance will cover title defects found - Answer-after closing.
A lender charges four points on a $150,000 loan. The points are used to - Answer-
increase the lender's yield.
, When conveying interests in real estate using a quitclaim deed, the extent of
promises given by the grantor to the grantee are - Answer-none.
Whose signature must appear on the offer to purchase real estate for it to become a
contract? - Answer-Buyer's and seller's
A system of legal description that uses meridian, townships, and sections is -
Answer-government survey.
All of the following will terminate an offer to purchase real estate EXCEPT - Answer-
revocation after acceptance.
Conveyance of title occurs the moment a deed is - Answer-delivered and accepted.
A prospective buyer signs an offer to purchase a residential property. All of the
following circumstances would automatically terminate the offer EXCEPT - Answer-
the seller received a better offer from another buyer.
A grantee who wants to obtain merchantable title via a valid deed should make sure
the deed has all of the following EXCEPT - Answer-a recording stamp after closing.
A buyer acquired a property with three acres. How many square feet does the
property have? - Answer-130,680
A seller signed an exclusive agency contract with a brokerage firm. If the seller finds
a suitable buyer with no assistance, the firm is entitled to - Answer-no compensation
from the seller.
In a PITI loan payment, the funds collected to pay for the taxes and insurance that
are held in the lender's reserve or escrow account belong to the - Answer-borrower.
A buyer purchased a home under a land contract. In this form of seller-carry lending,
the seller - Answer-holds the deed to the home until final payment.
A seller who chooses to sue a buyer in default has what remedy in the purchase
contract? - Answer-Specific performance
All of the following are true about a plat map EXCEPT - Answer-it uses meridian and
sections.
Encapsulation is often a better solution than removal of which hazardous material? -
Answer-Asbestos
A buyer who owns the property in equity has a(n) - Answer-executory contract.
The city wants to acquire private land for a park. The city can obtain the land by
paying fair value under the right of - Answer-eminent domain.
All of the following are essential elements of a contract EXCEPT - Answer-words of
conveyance.
COLORADO LAW AND PRACTICE
FINAL EXAM WITH CORRECT
ANSWERS
A couple is buying a house together. One of the partners wants his children from a
previous marriage to inherit his share of the property. The couple should hold title as
- Answer-tenants in common.
The property owner has given a potential buyer the right to buy the property at a set
price for a set period; this is, a(n) - Answer-option.
The sellers are not sure whether to renovate the kitchen before selling their home.
The principle of value that will determine whether the renovation is financially
feasible is - Answer-contribution
A buyer and a seller sign a contract for the sale of real property. A few days later,
they decide to change many terms of the contract, while retaining the basic intent to
buy and sell. The process by which the new contract replaces the old one is called -
Answer-novation.
In order for a broker to be paid on an open listing, the broker must - Answer-be the
procuring cause of the sale.
An example of specific performance for breaching a real property purchase contract
is - Answer-a court action to force compliance with the contract.
Which deed offers only two covenants or warranties? - Answer-Special warranty
In a special warranty deed, the grantor promises - Answer-to defend the title against
any encumbrances during the grantor's period of ownership.
A land use that has been grandfathered in is known as a - Answer-nonconforming
use.
The owner of a parcel of land has been allowed to build improvements into the
setback area. This is an example of a - Answer-variance
When appraisers use the expression "most probable price," they are referring to a
property's - Answer-market value.
Title insurance will cover title defects found - Answer-after closing.
A lender charges four points on a $150,000 loan. The points are used to - Answer-
increase the lender's yield.
, When conveying interests in real estate using a quitclaim deed, the extent of
promises given by the grantor to the grantee are - Answer-none.
Whose signature must appear on the offer to purchase real estate for it to become a
contract? - Answer-Buyer's and seller's
A system of legal description that uses meridian, townships, and sections is -
Answer-government survey.
All of the following will terminate an offer to purchase real estate EXCEPT - Answer-
revocation after acceptance.
Conveyance of title occurs the moment a deed is - Answer-delivered and accepted.
A prospective buyer signs an offer to purchase a residential property. All of the
following circumstances would automatically terminate the offer EXCEPT - Answer-
the seller received a better offer from another buyer.
A grantee who wants to obtain merchantable title via a valid deed should make sure
the deed has all of the following EXCEPT - Answer-a recording stamp after closing.
A buyer acquired a property with three acres. How many square feet does the
property have? - Answer-130,680
A seller signed an exclusive agency contract with a brokerage firm. If the seller finds
a suitable buyer with no assistance, the firm is entitled to - Answer-no compensation
from the seller.
In a PITI loan payment, the funds collected to pay for the taxes and insurance that
are held in the lender's reserve or escrow account belong to the - Answer-borrower.
A buyer purchased a home under a land contract. In this form of seller-carry lending,
the seller - Answer-holds the deed to the home until final payment.
A seller who chooses to sue a buyer in default has what remedy in the purchase
contract? - Answer-Specific performance
All of the following are true about a plat map EXCEPT - Answer-it uses meridian and
sections.
Encapsulation is often a better solution than removal of which hazardous material? -
Answer-Asbestos
A buyer who owns the property in equity has a(n) - Answer-executory contract.
The city wants to acquire private land for a park. The city can obtain the land by
paying fair value under the right of - Answer-eminent domain.
All of the following are essential elements of a contract EXCEPT - Answer-words of
conveyance.
