COLORADO CONTRACTS AND REGULATIONS
FINAL EXAM QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS
If the parties submit a dispute to mediation,
A) they agree to the binding resolution given to them by the mediator.
B) they split the costs equally.
C) the loser agrees to pay all fees.
D) they agree to mediate for no more than 60 days. Correct answer-The answer is they split the
costs equally. The contract mediation provision specifies that the parties agree to split the cost of
mediation. Unit 2.
When the broker representing the buyer signs the Contract to Buy and Sell Real Estate, the broker
A) becomes a party to the contract.
B) signs to notify of the brokerage relationship.
C) certifies that the Seller's Property Disclosure is complete and accurate.
D) establishes the right to a commission. Correct answer-The answer is signs to notify of the
brokerage relationship. In the broker acknowledgments section of the Contract to Buy and Sell Real
Estate, both brokers sign to give notice of their brokerage relationship and to notify if they have the
earnest money. Unit 4
A buyer who wants to terminate the contract per the loan objection contingency should use which
document?
A) Notice to Terminate
B) Inspection Resolution
C) Earnest money release
D) Earnest money note Correct answer-The answer is notice to terminate. The Notice to Terminate
is used to terminate contracts, and the earnest money release is used to release the earnest money
once the contract is terminated. Unit 5
To change the closing date, the broker would use
A) a Contract to Buy and Sell Real Estate.
B) an Agreement to Amend/Extend Contract with Broker.
C) a Counterproposal.
D) an Agreement to Amend/Extend Contract. Correct answer-The answer is an Agreement to
Amend/Extend Contract. The closing date is determined by the Contract to Buy and Sell Real Estate.
Contract dates are changed using the approved Agreement to Amend/Extend Contract form. Unit 5
In the Contract to Buy and Sell Real Estate, all of the following are negotiable clauses EXCEPT
A) mediation.
B) cost of appraisal.
C) assignability.
D) seller concessions. Correct answer-The answer is mediation. Mediation is the only clause that is
not negotiable. The others have a check box or blank space to allow the buyer and the seller to
define how the clause will take effect. Unit 3
, The remedy available through a legal proceeding or legal action to enforce the terms of the contract
is known as
A) an attachment.
B) specific performance.
C) a lis pendens.
D) an injunction. Correct answer-The answer is specific performance. A remedy that requires the
defaulting party to perform the terms of the contract as part of a legal action is specific performance.
Unit 4
The Colorado Real Estate Commission would investigate a written complaint regarding all of the
following types of violations EXCEPT
A) ethics.
B) failure to supervise associates.
C) commingling funds.
D) consumer protection act. Correct answer-The answer is ethics. The Real Estate Commission has
no jurisdiction over ethics. All the other answer choices are potential license law violations. Unit 6
Which duty would be appropriate for an agent and NOT for a transaction-broker?
A) Accounting in a timely manner for money and property
B)
Exercising reasonable skill and care
C)
Presenting all offers in a timely manner
D)
Counseling as to material benefits and risks Correct answer-The answer is counseling as to material
benefits and risks. Counseling implies the use of professional knowledge and advocacy for the
benefit of one party, which is limited to agency relationships. Unit 1
The approved Change of Status form is
A) a notification to the seller and/or the buyer that the change agreed to in the listing is now
effective for this transaction.
B) notice that the broker will be a transaction-broker for any transactions following the notice.
C) a new agreement giving the broker permission to change from agency to transaction-broker
status.
D) notice to the seller that the broker will become either a dual agent or a transaction-broker for a
specific transaction. Correct answer-The answer is a notification to the seller and/or the buyer that
the change agreed to in the listing is now effective for this transaction. The seller and/or the buyer in
the listing agreement can agree that the licensee may change from agent to transaction-broker for an
in-company transaction with one broker. The Change of Status form notifies the seller and/or the
buyer that the broker will change status for a particular proposed transaction but not for any other
transactions involving two brokers. Unit 2
The exclusive right-to sell contract must have
A) a beginning and an ending date.
B) signatures of both the buyer and seller.
FINAL EXAM QUESTIONS WITH ALL
CORRECT & VERIFIED ANSWERS
If the parties submit a dispute to mediation,
A) they agree to the binding resolution given to them by the mediator.
B) they split the costs equally.
C) the loser agrees to pay all fees.
D) they agree to mediate for no more than 60 days. Correct answer-The answer is they split the
costs equally. The contract mediation provision specifies that the parties agree to split the cost of
mediation. Unit 2.
When the broker representing the buyer signs the Contract to Buy and Sell Real Estate, the broker
A) becomes a party to the contract.
B) signs to notify of the brokerage relationship.
C) certifies that the Seller's Property Disclosure is complete and accurate.
D) establishes the right to a commission. Correct answer-The answer is signs to notify of the
brokerage relationship. In the broker acknowledgments section of the Contract to Buy and Sell Real
Estate, both brokers sign to give notice of their brokerage relationship and to notify if they have the
earnest money. Unit 4
A buyer who wants to terminate the contract per the loan objection contingency should use which
document?
A) Notice to Terminate
B) Inspection Resolution
C) Earnest money release
D) Earnest money note Correct answer-The answer is notice to terminate. The Notice to Terminate
is used to terminate contracts, and the earnest money release is used to release the earnest money
once the contract is terminated. Unit 5
To change the closing date, the broker would use
A) a Contract to Buy and Sell Real Estate.
B) an Agreement to Amend/Extend Contract with Broker.
C) a Counterproposal.
D) an Agreement to Amend/Extend Contract. Correct answer-The answer is an Agreement to
Amend/Extend Contract. The closing date is determined by the Contract to Buy and Sell Real Estate.
Contract dates are changed using the approved Agreement to Amend/Extend Contract form. Unit 5
In the Contract to Buy and Sell Real Estate, all of the following are negotiable clauses EXCEPT
A) mediation.
B) cost of appraisal.
C) assignability.
D) seller concessions. Correct answer-The answer is mediation. Mediation is the only clause that is
not negotiable. The others have a check box or blank space to allow the buyer and the seller to
define how the clause will take effect. Unit 3
, The remedy available through a legal proceeding or legal action to enforce the terms of the contract
is known as
A) an attachment.
B) specific performance.
C) a lis pendens.
D) an injunction. Correct answer-The answer is specific performance. A remedy that requires the
defaulting party to perform the terms of the contract as part of a legal action is specific performance.
Unit 4
The Colorado Real Estate Commission would investigate a written complaint regarding all of the
following types of violations EXCEPT
A) ethics.
B) failure to supervise associates.
C) commingling funds.
D) consumer protection act. Correct answer-The answer is ethics. The Real Estate Commission has
no jurisdiction over ethics. All the other answer choices are potential license law violations. Unit 6
Which duty would be appropriate for an agent and NOT for a transaction-broker?
A) Accounting in a timely manner for money and property
B)
Exercising reasonable skill and care
C)
Presenting all offers in a timely manner
D)
Counseling as to material benefits and risks Correct answer-The answer is counseling as to material
benefits and risks. Counseling implies the use of professional knowledge and advocacy for the
benefit of one party, which is limited to agency relationships. Unit 1
The approved Change of Status form is
A) a notification to the seller and/or the buyer that the change agreed to in the listing is now
effective for this transaction.
B) notice that the broker will be a transaction-broker for any transactions following the notice.
C) a new agreement giving the broker permission to change from agency to transaction-broker
status.
D) notice to the seller that the broker will become either a dual agent or a transaction-broker for a
specific transaction. Correct answer-The answer is a notification to the seller and/or the buyer that
the change agreed to in the listing is now effective for this transaction. The seller and/or the buyer in
the listing agreement can agree that the licensee may change from agent to transaction-broker for an
in-company transaction with one broker. The Change of Status form notifies the seller and/or the
buyer that the broker will change status for a particular proposed transaction but not for any other
transactions involving two brokers. Unit 2
The exclusive right-to sell contract must have
A) a beginning and an ending date.
B) signatures of both the buyer and seller.
