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Colorado Real Estate - Contracts
Questions and Correct Answers/ Latest
Update / Already Graded
vicarious liability
Ans: a principal's liability for an agent's acts performed within
the scope of the agency; specifically excluded by Colorado
statute from a principal's liability unless the act or omission was
approved, directed or ratified. (The employing broker is
responsible to licensees actions)
Sam is an associate broker who wishes to purchase investment
property. What must Sam do when the property is not listed with any
broker?
Ans: Sam must disclose that he has a real estate license and he
should tell his employing broker since the broker needs to know
what is going on as he has potential responsibility in all of
Sam's real estate transactions.
What is typically not negotiable in the Contract to Buy and Sell Real
Estate
Ans: mediation fee
All rights reserved © 2025/ 2026 |
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Employing Broker "reasonable supervision" includes all of the following
EXCEPT
Ans: attending first meeting with client (they do review
contracts, review transaction files and maintain an office policy
manual)
When a license law complaint is made to the Commission against a
licensee, the licensee must:
Ans: Submit a written response to the Commission if requested
If an owner refuses to pay a broker an earned commission, the broker
may properly seek relief by
Ans: An employing broker may sue a seller or buyer for
commission pursuant to an exclusive right contract. Brokers
working in commercial real estate sales or leasing may record
their listing or sales contract with the real estate commission to
assure them of receiving their commission.
A Buyers right to a "specific performance" remedy in the event of a
Seller default in the Contract to Buy and Sell Real Estate:
Ans: Is the default remedy and as such the box need not be
checked on the contract. Seller did not put up earnest mo ney
and thus cannot offer liquidated damages.
All rights reserved © 2025/ 2026 |
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Writ of Attachment
Ans: An encumbrance issued by a court on a property of a
defendant in a pending lawsuit for money damages. A writ of
attachment is a court order to "attach" or seize an asset. It is
issued by a court to a law enforcement officer or sheriff
Lis Pendens
Ans: a pending legal action, or a formal notice of this.
Publishing a foreclosure notice of sale in a newspaper is the duty of
the:
Ans: Public Trustee
If an offer is given that fulfills all the terms of a contact and the seller
rejects that offer - what happens?
Ans: The listing broker is entitled to a commission
According to the Contract to Buy and Sell, who pays for the appraisal?
Ans: Negotiated between buyer and seller
All rights reserved © 2025/ 2026 |
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Which statement is false about unlicensed assistants?
Ans: An unlicensed assistant may be paid a commission by a
licensee, based on the success of the transaction
A seller approached you saying they are unhappy with the broker
currently listing their property and wants you to take it over, you
Ans: Prepare a listing agreement for after the current
agreement expires
Judy Moore, is a licensee in the employ of ABC Real Estate, she may
advertise her listing as:
Ans: Home for Sale. Suburban location. Contact Judy, ABC
Real Estate 303-555-5555
Real estate sales contracts are "express" in that:
Ans: the parties to the contract declare terms, conditions and
their intent in writing
Which of the following can terminate an agency relationship?
Ans: An agency relationship may be terminated by mutual
agreement; revocation by principal; renunciation by agent;
All rights reserved © 2025/ 2026 |
Colorado Real Estate - Contracts
Questions and Correct Answers/ Latest
Update / Already Graded
vicarious liability
Ans: a principal's liability for an agent's acts performed within
the scope of the agency; specifically excluded by Colorado
statute from a principal's liability unless the act or omission was
approved, directed or ratified. (The employing broker is
responsible to licensees actions)
Sam is an associate broker who wishes to purchase investment
property. What must Sam do when the property is not listed with any
broker?
Ans: Sam must disclose that he has a real estate license and he
should tell his employing broker since the broker needs to know
what is going on as he has potential responsibility in all of
Sam's real estate transactions.
What is typically not negotiable in the Contract to Buy and Sell Real
Estate
Ans: mediation fee
All rights reserved © 2025/ 2026 |
, Page |2
Employing Broker "reasonable supervision" includes all of the following
EXCEPT
Ans: attending first meeting with client (they do review
contracts, review transaction files and maintain an office policy
manual)
When a license law complaint is made to the Commission against a
licensee, the licensee must:
Ans: Submit a written response to the Commission if requested
If an owner refuses to pay a broker an earned commission, the broker
may properly seek relief by
Ans: An employing broker may sue a seller or buyer for
commission pursuant to an exclusive right contract. Brokers
working in commercial real estate sales or leasing may record
their listing or sales contract with the real estate commission to
assure them of receiving their commission.
A Buyers right to a "specific performance" remedy in the event of a
Seller default in the Contract to Buy and Sell Real Estate:
Ans: Is the default remedy and as such the box need not be
checked on the contract. Seller did not put up earnest mo ney
and thus cannot offer liquidated damages.
All rights reserved © 2025/ 2026 |
, Page |3
Writ of Attachment
Ans: An encumbrance issued by a court on a property of a
defendant in a pending lawsuit for money damages. A writ of
attachment is a court order to "attach" or seize an asset. It is
issued by a court to a law enforcement officer or sheriff
Lis Pendens
Ans: a pending legal action, or a formal notice of this.
Publishing a foreclosure notice of sale in a newspaper is the duty of
the:
Ans: Public Trustee
If an offer is given that fulfills all the terms of a contact and the seller
rejects that offer - what happens?
Ans: The listing broker is entitled to a commission
According to the Contract to Buy and Sell, who pays for the appraisal?
Ans: Negotiated between buyer and seller
All rights reserved © 2025/ 2026 |
, Page |4
Which statement is false about unlicensed assistants?
Ans: An unlicensed assistant may be paid a commission by a
licensee, based on the success of the transaction
A seller approached you saying they are unhappy with the broker
currently listing their property and wants you to take it over, you
Ans: Prepare a listing agreement for after the current
agreement expires
Judy Moore, is a licensee in the employ of ABC Real Estate, she may
advertise her listing as:
Ans: Home for Sale. Suburban location. Contact Judy, ABC
Real Estate 303-555-5555
Real estate sales contracts are "express" in that:
Ans: the parties to the contract declare terms, conditions and
their intent in writing
Which of the following can terminate an agency relationship?
Ans: An agency relationship may be terminated by mutual
agreement; revocation by principal; renunciation by agent;
All rights reserved © 2025/ 2026 |
