CORE Exam - 5

When must the earnest money be deposited in the trust account? - Answer- Within 72 hours after the notice of acceptance How long must an independent broker keep his transaction files? - Answer- 4 years A broker received an earnest money deposit from a buyer. Under Colorado law, the broker should: - Answer- Hold the earnest money deposit in a secure place in the broker's real estate brokerage office until the offer is accepted Who is responsible to investigate the property's inclusion in a special taxing district? - Answer- Buyer If the real estate taxes for last year were $3,685, what would the prorated tax entry be for this year's taxes for a September 11 closing? - Answer- $2,554.26 debit to the seller, $2,554.26 credit to the buyer Real estate practice in Colorado assumes that which type of deed will convey residential property, unless otherwise provided? - Answer- Special warranty deed A four-plex has 2 units renting for $550 each and 2 units renting for $650 each per month. Rent was paid on September 1st in advance. Closing is scheduled for September 17. Who owes whom and how much do they owe? - Answer- $1120 debit the seller, credit to buyer $1120 Lead‐based paint disclosure is required: - Answer- For residential property in which a building permit was issued before January 1,1978 The closing is April 1 and the HOA monthly assessment of $200.00 has been paid by the seller. Who owes whom and how much? - Answer- There is no proration, buyer owe