CO CHAPTER EXAM UPDATED ACTUAL
Exam Questions and CORRECT Answers
In the Contract to Buy and Sell Real Estate, a buyer must notify the seller in writing of any
dissatisfaction with the proposed loan interest rate, payments, etc., or forfeit the earnest money
before the: loan application deadline. - CORRECT ANSWER - Loan objection deadline
Which of the following information can a buyer agent reveal without violating fiduciary loyalty
to the buyer? - CORRECT ANSWER - The buyer's failure to qualify for financing on a
previous purchase offer
What is the withholding rate for state income tax purposes on a sale of more than $100,000 when
a seller of Colorado property will not be a Colorado resident after the closing? - CORRECT
ANSWER - 2% of the sale price or the entire net proceeds, whichever is less
In order for a broker to operate as a seller's limited agent, _____ . - CORRECT
ANSWER - the seller must give verbal permission to the broker to so act.
The seller's property disclosure form: - CORRECT ANSWER - establishes whether an
item is included or excluded from the sale.
A Colorado broker is allowed to all of the following EXCEPT: explain the difference between
joint and common tenancy. explain the legal effect of buyer agency. prepare sale documents for
the broker's own client. prepare a deed for a person who is not the broker's client. - CORRECT
ANSWER - Prepare a deed for a person who is not the brokers client.
Under a Colorado Contract to Buy and Sell Real Estate, when there is arbitration or litigation
related to the contract after the closing date, the responsibility for paying the costs and attorney
fees depends on: the amount of the costs and fees. - CORRECT ANSWER - Which party
prevails.
, Rule-F allows brokers to make which of the following modifications to a commission-approved
form? Change the language of any clause - CORRECT ANSWER - Pre-print the firm
name.
When prospecting for potential real estate listings, a broker may make contact with currently
listed property owners: - CORRECT ANSWER - with the listing broker's permission.
A seller and real estate broker must disclose known previous use of a residential property as a
methamphetamine laboratory unless: - CORRECT ANSWER - The property was
remediated to state standards.
An applicant for an initial Colorado broker license: - CORRECT ANSWER - must post a
security bond in lieu of having an employing broker.
Electronic advertising of a property for sale must clearly and unmistakably include the: -
CORRECT ANSWER - brokerage firm's name as registered with the commission.
Who decides how the buyer will take title to a property that is the subject of a Contract to Buy
and Sell Real Estate? - CORRECT ANSWER - The buyer
According to Colorado Real Estate License Law, how long is an agent responsible for
maintaining client confidentiality? - CORRECT ANSWER - forever, unless the principal
approves disclosure or the information becomes public knowledge.
Under Colorado case law, title insurance companies that prepare legal documents in connection
with providing closing services are acting as: - CORRECT ANSWER - scriveners of the
broker. independent contractors.
Absent a written Commission-approved employment agreement with the "Agent" box checked,
Colorado real estate license law presumes a licensee is acting in a transaction as a _____ . -
CORRECT ANSWER - Transaction Broker
Exam Questions and CORRECT Answers
In the Contract to Buy and Sell Real Estate, a buyer must notify the seller in writing of any
dissatisfaction with the proposed loan interest rate, payments, etc., or forfeit the earnest money
before the: loan application deadline. - CORRECT ANSWER - Loan objection deadline
Which of the following information can a buyer agent reveal without violating fiduciary loyalty
to the buyer? - CORRECT ANSWER - The buyer's failure to qualify for financing on a
previous purchase offer
What is the withholding rate for state income tax purposes on a sale of more than $100,000 when
a seller of Colorado property will not be a Colorado resident after the closing? - CORRECT
ANSWER - 2% of the sale price or the entire net proceeds, whichever is less
In order for a broker to operate as a seller's limited agent, _____ . - CORRECT
ANSWER - the seller must give verbal permission to the broker to so act.
The seller's property disclosure form: - CORRECT ANSWER - establishes whether an
item is included or excluded from the sale.
A Colorado broker is allowed to all of the following EXCEPT: explain the difference between
joint and common tenancy. explain the legal effect of buyer agency. prepare sale documents for
the broker's own client. prepare a deed for a person who is not the broker's client. - CORRECT
ANSWER - Prepare a deed for a person who is not the brokers client.
Under a Colorado Contract to Buy and Sell Real Estate, when there is arbitration or litigation
related to the contract after the closing date, the responsibility for paying the costs and attorney
fees depends on: the amount of the costs and fees. - CORRECT ANSWER - Which party
prevails.
, Rule-F allows brokers to make which of the following modifications to a commission-approved
form? Change the language of any clause - CORRECT ANSWER - Pre-print the firm
name.
When prospecting for potential real estate listings, a broker may make contact with currently
listed property owners: - CORRECT ANSWER - with the listing broker's permission.
A seller and real estate broker must disclose known previous use of a residential property as a
methamphetamine laboratory unless: - CORRECT ANSWER - The property was
remediated to state standards.
An applicant for an initial Colorado broker license: - CORRECT ANSWER - must post a
security bond in lieu of having an employing broker.
Electronic advertising of a property for sale must clearly and unmistakably include the: -
CORRECT ANSWER - brokerage firm's name as registered with the commission.
Who decides how the buyer will take title to a property that is the subject of a Contract to Buy
and Sell Real Estate? - CORRECT ANSWER - The buyer
According to Colorado Real Estate License Law, how long is an agent responsible for
maintaining client confidentiality? - CORRECT ANSWER - forever, unless the principal
approves disclosure or the information becomes public knowledge.
Under Colorado case law, title insurance companies that prepare legal documents in connection
with providing closing services are acting as: - CORRECT ANSWER - scriveners of the
broker. independent contractors.
Absent a written Commission-approved employment agreement with the "Agent" box checked,
Colorado real estate license law presumes a licensee is acting in a transaction as a _____ . -
CORRECT ANSWER - Transaction Broker
