Colorado Final Exam #1 Questions and
Answers(A+ GRADED/Correct)
A lender has filed a "Notice of Election and Demand".
The sale must take place:
No more than 60 days
No less than 45 days
75 days
No more than 125 days unless agricultural land - ANSWER-No more than 125 days
unless agricultural land
Lead‐based paint disclosure is required:
For property in known high lead areas
For all residential sales
For residential property in which a building permit was issued before January 1, 1978
For residential property built before January 1, 1978 - ANSWER-For residential property
in which a building permit was issued before January 1, 1978
An "In‐Company Transaction" means:
The Broker is representing the seller and the buyer in the same transaction
The Broker is representing the seller, and the buyer is a customer
Both the Listing Broker and the Selling Broker, both work for the same firm.
The Broker has a listing agreement and the cooperating broker is a transaction broker -
ANSWER-Both the Listing Broker and the Selling Broker, both work for the same firm.
A benefit of seller financing is that the buyer and seller can avoid paying:
,Title insurance premiums
Recording fees
State deed tax
Discount points and loan origination fees - ANSWER-Discount points and loan
origination fees
At closing, the recording charges for the warranty deed would normally be charged to:
Seller
Lender
Broker
Buyer - ANSWER-Buyer
What percentage of mortgage broker ownership interest in a settlement service
provider's business, would trigger the need to provide an "Affiliate Business
Arrangement Disclosure" ?
5.00%
10.00%
15.00%
1.00% - ANSWER-1.00%
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 ?
There is no proration, buyer owes seller $200.00, thus Buyer debit of $200, Seller credit
of $200
$6.67 debit the buyer, credit the seller
$6.67 credit the buyer, debit the seller
, There is no proration, seller owes buyer $200.00 - ANSWER-There is no proration,
buyer owes seller $200.00, thus Buyer debit of $200, Seller credit of $200
How long must an independent broker keep his transaction files ?
4 years
7 years
Must be sent to the commission for safe keeping
Must be kept 30 after closing - ANSWER-4 years
A "Special Tax or Special Assessment" is shown on the Certificate of Taxes due in the
amount of $834.00 for a curb and gutter project. The tax is payable over 10 years with
annual interest of 5%. If the buyer has agreed to assume this property obligation, how
will it show on the settlement worksheet ?
$834 debit to the seller, $834 credit to the broker
$834 plus prorated interest debit to the seller and credit to the buyer.
$834 debit to the seller, $834 credit to the buyer
It will not show up since it has no financial effect on the closing - ANSWER-It will not
show up since it has no financial effect on the closing
If an earnest money check is not honored by the buyer's bank, the broker should:
Deposit it again
Notify the seller and ask what the seller wishes to do next
Do nothing
Cancel the contract - ANSWER-Notify the seller and ask what the seller wishes to do
next
Five years ago, Unit 5B in a condominium community was the site of a brutal and highly
publicized murder. The unit was sold to an elderly woman who contracted the AIDS
virus in a blood transfusion and died in the unit last year. As the agent for the woman's
estate, what are your disclosure responsibilities to prospective purchasers of Unit 5B in
this situation ?
Answers(A+ GRADED/Correct)
A lender has filed a "Notice of Election and Demand".
The sale must take place:
No more than 60 days
No less than 45 days
75 days
No more than 125 days unless agricultural land - ANSWER-No more than 125 days
unless agricultural land
Lead‐based paint disclosure is required:
For property in known high lead areas
For all residential sales
For residential property in which a building permit was issued before January 1, 1978
For residential property built before January 1, 1978 - ANSWER-For residential property
in which a building permit was issued before January 1, 1978
An "In‐Company Transaction" means:
The Broker is representing the seller and the buyer in the same transaction
The Broker is representing the seller, and the buyer is a customer
Both the Listing Broker and the Selling Broker, both work for the same firm.
The Broker has a listing agreement and the cooperating broker is a transaction broker -
ANSWER-Both the Listing Broker and the Selling Broker, both work for the same firm.
A benefit of seller financing is that the buyer and seller can avoid paying:
,Title insurance premiums
Recording fees
State deed tax
Discount points and loan origination fees - ANSWER-Discount points and loan
origination fees
At closing, the recording charges for the warranty deed would normally be charged to:
Seller
Lender
Broker
Buyer - ANSWER-Buyer
What percentage of mortgage broker ownership interest in a settlement service
provider's business, would trigger the need to provide an "Affiliate Business
Arrangement Disclosure" ?
5.00%
10.00%
15.00%
1.00% - ANSWER-1.00%
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 ?
There is no proration, buyer owes seller $200.00, thus Buyer debit of $200, Seller credit
of $200
$6.67 debit the buyer, credit the seller
$6.67 credit the buyer, debit the seller
, There is no proration, seller owes buyer $200.00 - ANSWER-There is no proration,
buyer owes seller $200.00, thus Buyer debit of $200, Seller credit of $200
How long must an independent broker keep his transaction files ?
4 years
7 years
Must be sent to the commission for safe keeping
Must be kept 30 after closing - ANSWER-4 years
A "Special Tax or Special Assessment" is shown on the Certificate of Taxes due in the
amount of $834.00 for a curb and gutter project. The tax is payable over 10 years with
annual interest of 5%. If the buyer has agreed to assume this property obligation, how
will it show on the settlement worksheet ?
$834 debit to the seller, $834 credit to the broker
$834 plus prorated interest debit to the seller and credit to the buyer.
$834 debit to the seller, $834 credit to the buyer
It will not show up since it has no financial effect on the closing - ANSWER-It will not
show up since it has no financial effect on the closing
If an earnest money check is not honored by the buyer's bank, the broker should:
Deposit it again
Notify the seller and ask what the seller wishes to do next
Do nothing
Cancel the contract - ANSWER-Notify the seller and ask what the seller wishes to do
next
Five years ago, Unit 5B in a condominium community was the site of a brutal and highly
publicized murder. The unit was sold to an elderly woman who contracted the AIDS
virus in a blood transfusion and died in the unit last year. As the agent for the woman's
estate, what are your disclosure responsibilities to prospective purchasers of Unit 5B in
this situation ?
