COLORADO CONTRACTS AND REGULATIONS MIDTERM EXAM REVIEW QUESTIONS AND ANSWERS, 100% ACCURATE, VERIFIED.| latest update 2024/25|

COLORADO CONTRACTS AND REGULATIONS MIDTERM EXAM REVIEW QUESTIONS AND ANSWERS, 100% ACCURATE, VERIFIED. At closing of a property, who is most likely to pay the discount points and loan origination fees? A) Buyer and seller equally B) Seller C) Buyer D) Lender - -The answer is buyer. The buyer typically pays these fees. The seller may have given the buyer some funds as a concession; however, since the fees show on the buyer's settlement as a debit, they are considered to be a buyer obligation. The buyer must receive a Lead-Based Paint Disclosures if the A) property improvements were completed prior to January 1, 1978. B) fixtures were attached prior to January 1, 1978. C) building permit was issued prior to January 1, 1978. D) certificate of occupancy was issued prior to January 1, 1978. - -The answer is building permit was issued prior to January 1, 1978. The federal law requires the disclosure if the property was built before January 1, 1978. Colorado law further defines the federal requirement to disclose lead-based paint by defining the date for compliance as building permits prior to January 1, 1978. What form(s) may earnest money take? A) Cash or good funds only B) Cash or check only C) Cash, check, or promissory note D) Any form the seller will accept - -The answer is any form the seller will accept. The seller may accept an offer with any form of earnest money (or none at all). In the residential Contract to Buy and Sell Real Estate, which is TRUE regarding the financing language? A) A broker may omit the financing terms and leave a space for licensees to draft the terms that fit. B) All financing provisions must be printed in every contract. C) The form may not be computer generated because it would be too easy to change. D) A broker may print forms with only the financing terms needed for the transaction. - -The answer is a broker may print forms with only the financing terms needed for the transaction. Rule F-2 permits a broker to omit the financing terms that do not apply to the contract the broker is preparing. The broker is not required to print all financing provisions and only needs to include the header of the section if omitting the language in that section. A broker acting as a transaction-broker, listing agent, buyer's agent, or single agent would owe the consumer all of the following EXCEPT A) advising the buyer or seller regarding the transaction. B) advocating for the best interest of the party being represented. C) keeping all parties fully informed regarding the transaction. D) disclosure of all known material facts about the property. - -The answer is advocating for the best interest of the party being represented. Advocating or promoting is one of the three additional duties of an agent under the uniform duties in the seller and buyer listing contracts. Which of the following terminates a purchase offer and constitutes a new offer? A) Seller's Property Disclosure B) Counterproposal C) Inspection Resolution D) Agreement to Amend/Extend Contract - -The answer is counterproposal. A Counterproposal has the legal effect of rejecting or terminating the initial offer. It constitutes a new offer even though it borrows many terms from the initial offer. At listing, the seller declines to complete the Seller's Property Disclosure. The listing broker should A) tell the seller that the buyer will request the form. B) complete the form for the seller. C) tell the seller that disclosure of material facts is optional. D) resign the listing since the seller won't complete the form. - -The answer is tell the seller that the buyer will request the form. By law, the seller is not required to complete the property disclosure. However, the Contract to Buy and Sell Real Estate requests it for the buyer. The seller would have to counter the buyer's offer to remove the request.