COLORADO FORMS AND CONTRACTS QUESTIONS & ANSWERS, 100% ACCURATE.| latest update 2024/25|

COLORADO FORMS AND CONTRACTS QUESTIONS & ANSWERS, 100% ACCURATE. What is the purpose of Rule F? - -To assist brokers in complying with Conway Bogue (limited right to practice law) by allowing them to use standard or approved forms. T/F - If a form is approved, a broker must use it. - -T - broker's are required to use approved forms. A brokerage firm's attorney may not draft a document for *general* use in the RE firm. T/F - Attorney's may draft transaction-specific contracts for the party they represent. - -T - This is the attorney for that particular party (buyer or seller); not the brokerage firm's attorney. What is allowed in the additional provisions section of a contract? - -Only transaction-specific provisions negotiated between the parties. T/F - The broker may fill in the forms before discussing with the parties. - -F - discussion and negotiation with all parties must take place prior to filling in forms. Contract forms generated by computer must... - -1) Reproduce language exactly as approved 2) Have SW security to prevent language from being changed or deleted 3) Differentiate (format differently) any language added in the blanks from the approved language All of the following can create an addendum, except....the attorney for the principal (buyer/seller), attorney for the brokerage firm, or the broker associate - -The broker associate may NEVER create an addendum. When does Rule F not apply? - -1) Contracts for new homes with warranties 2) Contracts prepared by subdivision developers or new home builders T/F - Mediation is negotiable. - -F - Mediation is standard in all CO contracts and is not negotiable. How long do parties have to submit any dispute about the contract? - -30 days T/F - Mediation is binding - -F - Mediation is not binding. Cost of mediation is always split. If both parties don't agree on the resolution, then litigation/arbitration can be pursued. T/F - A mediation resolution signed by both parties is binding. - -True. What duties do agents owe when representing someone? - -OLD CAR - Obedience, Loyalty, Disclosure, Confidentiality (Benefits & Risks), Accounting, Reasonable Skill & Care T/F - A written agreement is required to have agency. - -True. T/F - The agent must put the principal's interest above all else. - -True. What duties does a transaction broker owe? - -Representation relationship. Not an advocate for either party. Owe DCAR - Disclosure (risks only), Confidentiality, Accounting, Reasonable Care & Skill What are other names for a listing contract? - -Exclusive right to buy or exclusive right to sell How is transaction broker representation created? - -Written contract (check transaction broker box at top) or, by default, using a written disclosure to buyer or seller What items must a transaction broker keep confidential? - -PTM - Price, Terms, and Motivation must be kept confidential. T/F - A transaction broker may not represent both sides at the same time. - -F - This is allowed as a transaction broker for one property. But dual agency is not allowed (being an agent for both sides). How does the brokerage firm assign you as a broker to represent a member of the public? - -Through a written and signed office manua