Page 1 of 500
Real Estate Colorado EXAM COMPLETE NEWEST
1000 QUESTIONS AND VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR
QUESTION: All parties are presumed to have the legal capacity to enter into contracts. But
certain persons, for reasons of public policy or some disability, do not have full contractual
capacity. All of these do not have contractual capacity except:
minors
mental impairment
intoxicated persons
a person over eighty years old - ANSWER-a person over eighty years old
QUESTION: When the employing broker of a corporate brokerage is suddenly unable to
continue in that position, to whom may the commission issue a temporary "hardship" license?
Aperson with sufficient ownership interest in the corporation
BColorado licensee approved by the corporate board of directors
Cmember of the board of directors
D officer or director with a broker's license from another state - ANSWER-Colorado licensee
approved by the corporate board of directors
QUESTION: Form 1099-S shall be given to any seller of a transaction to:
report cash received over $10,000
evaluate the proceedings at closing
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, Page 2 of 500
report income from the sale or exchange of property
report fees charged to seller - ANSWER-report income from the sale or exchange of property
QUESTION: An owner has refinanced his primary residence and decided to take cash out of the
loan to buy a fixer-upper. If the closing is scheduled for today (Monday) on the primary
residence, How early can the owner close on the fixer upper?
Right after the closing
Since he will get a check and since that check needs to be cashed, the earliest he can go buy is
Thursday
Since the right of rescission is 3 days, he will not get the check until 3 business days after the
closing which would be Friday
Since the right of rescission is 5 days, he will not get the check 5 days from the closing, the
earliest he can buy is the following Monday - ANSWER-Since the right of rescission is 3 days, he
will not get the check until 3 business days after the closing which would be Friday
QUESTION: Written disclosures regarding agency should be made:
at an open house
during small talk
responding to general factual information
when a licensee elicits or accepts confidential information from a buyer or tenant - ANSWER-
when a licensee elicits or accepts confidential information from a buyer or tenant
QUESTION: Buyer Stanley hired broker Riley, to represent her through the process of
purchasing a newer home. After the offer is written, the broker for Stanley makes a copy of the
earnest money check, but does not deliver the copy or the check with the contract
2
, Page 3 of 500
Stanley has not made a legal offer because no consideration was given
Stanley has made a legal offer and Riley can hold the check without depositing it until the
contract is accepted
Riley need not deliver the check for 2 days regardless of the provisions in paragraph 4
negotiating who will hold the earnest money deposit
Riley is subject to disciplinary action - ANSWER-Stanley has made a legal offer and Riley can
hold the check without depositing it until the contract is accepted
QUESTION: Susan Seller give her agent a 60 days listing to sell her home for $200,000. The
seller specified in the Exclusions section of the listing agreement that her prized Iris plants
would be removed prior to close and the iris bed repaired to eliminate the damage of plant
removal.
Public records indicates the home is 2,400 square feet, has 3 bedrooms, 2 bathrooms, a 90%
finished basement and a two car garage. Last year's taxes were $1,832 and have been paid.
An offer was made and accepted with a sales price of $190,000. . The buyers submitted earnest
money of $3,000 under liquidated damages. The inspection objections must be made by March
27. The survey must be completed by April 10. Review of title must be completed by April 10.
The Sellers indicated in the seller's property disclosure that the water heater had leaked. The
water heater was replaced and all water damage repaired. The sellers further disclosed that th -
ANSWER-Keep the earnest money, there is no recourse in the agreed purchase contract for a
suit for damages
QUESTION: If the transaction does not close:
the broker has the right to unilaterally declare a forfeiture of the earnest money
the broker may only declare a forfeiture of earnest money upon (written) instruction of the
seller
the title company may declare a forfeiture of earnest money
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, Page 4 of 500
the lender may declare a forfeiture of earnest money - ANSWER-the broker may only declare a
forfeiture of earnest money upon (written) instruction of the seller
QUESTION: Broker Needa leaves for vacation. In his absence, associate Wanna will be handling
the escrow accounts. If Wanna errors with the accounting procedures:
broker Needa's license will be revoked
broker Needa's vacation may be permanent as he is ultimately responsible
the Commission will excuse Needa and Wanna; everyone needs a vacation
broker Wanna's solely responsible for her actions - ANSWER-broker Needa's vacation may be
permanent as he is ultimately responsible
Q; Who will not have a copy of the listing agreement?
Seller
Listing broker
Buyer's agent
Listing agent - ANSWER-Buyer's agent
QUESTION: Mr. and Mrs. Snively have a contract to purchase a home for $257,000. A hailstorm
damaged the roof to the tune of $27,500 before closing. What remedy does the buyer have?
Snively's can be entitled to credit for half the insurance proceeds resulting from the damage
Snively's broker can wait until the roof is repaired then make a decision whether they want to
continue with the contract
Snively's can demand that the roof be replaced prior to closing
Snively's have an option of whether they will or will not proceed with this contract - ANSWER-
Snively's have an option of whether they will or will not proceed with this contract
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Real Estate Colorado EXAM COMPLETE NEWEST
1000 QUESTIONS AND VERIFIED SOLUTIONS
LATEST UPDATE THIS YEAR
QUESTION: All parties are presumed to have the legal capacity to enter into contracts. But
certain persons, for reasons of public policy or some disability, do not have full contractual
capacity. All of these do not have contractual capacity except:
minors
mental impairment
intoxicated persons
a person over eighty years old - ANSWER-a person over eighty years old
QUESTION: When the employing broker of a corporate brokerage is suddenly unable to
continue in that position, to whom may the commission issue a temporary "hardship" license?
Aperson with sufficient ownership interest in the corporation
BColorado licensee approved by the corporate board of directors
Cmember of the board of directors
D officer or director with a broker's license from another state - ANSWER-Colorado licensee
approved by the corporate board of directors
QUESTION: Form 1099-S shall be given to any seller of a transaction to:
report cash received over $10,000
evaluate the proceedings at closing
1
, Page 2 of 500
report income from the sale or exchange of property
report fees charged to seller - ANSWER-report income from the sale or exchange of property
QUESTION: An owner has refinanced his primary residence and decided to take cash out of the
loan to buy a fixer-upper. If the closing is scheduled for today (Monday) on the primary
residence, How early can the owner close on the fixer upper?
Right after the closing
Since he will get a check and since that check needs to be cashed, the earliest he can go buy is
Thursday
Since the right of rescission is 3 days, he will not get the check until 3 business days after the
closing which would be Friday
Since the right of rescission is 5 days, he will not get the check 5 days from the closing, the
earliest he can buy is the following Monday - ANSWER-Since the right of rescission is 3 days, he
will not get the check until 3 business days after the closing which would be Friday
QUESTION: Written disclosures regarding agency should be made:
at an open house
during small talk
responding to general factual information
when a licensee elicits or accepts confidential information from a buyer or tenant - ANSWER-
when a licensee elicits or accepts confidential information from a buyer or tenant
QUESTION: Buyer Stanley hired broker Riley, to represent her through the process of
purchasing a newer home. After the offer is written, the broker for Stanley makes a copy of the
earnest money check, but does not deliver the copy or the check with the contract
2
, Page 3 of 500
Stanley has not made a legal offer because no consideration was given
Stanley has made a legal offer and Riley can hold the check without depositing it until the
contract is accepted
Riley need not deliver the check for 2 days regardless of the provisions in paragraph 4
negotiating who will hold the earnest money deposit
Riley is subject to disciplinary action - ANSWER-Stanley has made a legal offer and Riley can
hold the check without depositing it until the contract is accepted
QUESTION: Susan Seller give her agent a 60 days listing to sell her home for $200,000. The
seller specified in the Exclusions section of the listing agreement that her prized Iris plants
would be removed prior to close and the iris bed repaired to eliminate the damage of plant
removal.
Public records indicates the home is 2,400 square feet, has 3 bedrooms, 2 bathrooms, a 90%
finished basement and a two car garage. Last year's taxes were $1,832 and have been paid.
An offer was made and accepted with a sales price of $190,000. . The buyers submitted earnest
money of $3,000 under liquidated damages. The inspection objections must be made by March
27. The survey must be completed by April 10. Review of title must be completed by April 10.
The Sellers indicated in the seller's property disclosure that the water heater had leaked. The
water heater was replaced and all water damage repaired. The sellers further disclosed that th -
ANSWER-Keep the earnest money, there is no recourse in the agreed purchase contract for a
suit for damages
QUESTION: If the transaction does not close:
the broker has the right to unilaterally declare a forfeiture of the earnest money
the broker may only declare a forfeiture of earnest money upon (written) instruction of the
seller
the title company may declare a forfeiture of earnest money
3
, Page 4 of 500
the lender may declare a forfeiture of earnest money - ANSWER-the broker may only declare a
forfeiture of earnest money upon (written) instruction of the seller
QUESTION: Broker Needa leaves for vacation. In his absence, associate Wanna will be handling
the escrow accounts. If Wanna errors with the accounting procedures:
broker Needa's license will be revoked
broker Needa's vacation may be permanent as he is ultimately responsible
the Commission will excuse Needa and Wanna; everyone needs a vacation
broker Wanna's solely responsible for her actions - ANSWER-broker Needa's vacation may be
permanent as he is ultimately responsible
Q; Who will not have a copy of the listing agreement?
Seller
Listing broker
Buyer's agent
Listing agent - ANSWER-Buyer's agent
QUESTION: Mr. and Mrs. Snively have a contract to purchase a home for $257,000. A hailstorm
damaged the roof to the tune of $27,500 before closing. What remedy does the buyer have?
Snively's can be entitled to credit for half the insurance proceeds resulting from the damage
Snively's broker can wait until the roof is repaired then make a decision whether they want to
continue with the contract
Snively's can demand that the roof be replaced prior to closing
Snively's have an option of whether they will or will not proceed with this contract - ANSWER-
Snively's have an option of whether they will or will not proceed with this contract
4
