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Colorado Contracts & Regulations Final Exam/ Practice
Questions with Correct Verified Answers/ Rated A+
In the residential Contract to Buy and Sell Real Estate, which is TRUE regarding the financing language?
a. A broker may print forms with only the financing terms needed for the transaction
b. All financing provisions must be printed in every contract
c. A broker may omit the financing terms and leave a space for licensees to draft the terms that fit
d. The form may not be computer generated because it would be too easy to change - ANS - a
According to the approved residential Contract to Buy and Sell Real Estate, if a buyer is receiving seller
financing and has provided the seller with the buyer's credit information,
a. only a lender can review this information for the seller
b. the seller must request that the buyer update the information annually
c. the seller must not share the information with others
d. this information can be shared with other parties the seller knows - ANS - c
Which of the following terminates a purchase offer and constitutes a new offer?
a. Counterproposal
b. Seller's Property Disclosure
c. Inspection Resolution
d. Agreement to Amend/Extend contract - ANS – a
Which of the following is NOT true about the Real Property Transfer Declaration form?
a. it is required by statue
b. it provides information for the county assessor
c. it ensures fair assessments
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d. it transfers personal property - ANS - d
An employing broker who leaves town
a. must send written notice of who is supervising the office to the Real Estate Commission
b. can delegate authority, in writing, to a qualified broker
c. must give written notice of no supervision to all the employed brokers
d. must make sure the assistant can sign on the trust account - ANS - b
A broker writes a contract for the purchase of the property and then writes another on the same
property at a higher price to give to the lender. This is
a. standard practice
b. acceptable, if using a down payment assistance program
c. dual contracting and is illegal in Colorado but acceptable in other states
d. dual contracting and is illegal in every state - ANS - d
A broker using computer-generated forms must
a. makes sure that certain sections, as allowed, are fully deleted
b. makes sure the blanks are filled in with bold typeface
c. makes sure the program reproduces the approved language exactly
d. use italics in all blanks - ANS - c
License discipline records maintained by the Real Estate Commission
a. is available only to those who have won a case against the licensee
b. can only be reviewed at the Real Estate Commission office
c. is open to the public and on the Real Estate Commission website
d. is closed after four years - ANS - c
The loan objection deadline was August 5. On August 7, the lender informs the buyer that the buyer
failed to qualify for a loan under the terms requested in the Contract to Buy and Sell Real Estate. What
should the buyer's broker do in this situation?
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a. sends an Amend/Extend Contract form to change the loan objection deadline and then inform the
seller and the listing broker of the buyer's inability to obtain funding
b. informs the buyer that the earnest money will be kept because the loan contingency expired
c. uses the Amend/Extend Contract form to extend the contingency, as verbally agreed to by the seller,
to have the buyer's earnest money returned
d. uses the Notice to Terminate to inform the seller and the listing broker of the termination and request
that the earnest money be returned as required by the contract - ANS – b
Colorado fair housing complaints must be filed within one year with which of the following?
a. Colorado Association of REALTORS
b. Civil Rights Commission
c. HUD
d. Real Estate Commission - ANS - b
The Lead-Based Paint Disclosure for a property built before 1978 must be provided by the
a. buyer's broker when preparing an offer
b. listing broker at the time of listing
c. seller before closing
d. seller before accepting an offer - ANS - d
An unlicensed assistant could do all of the following EXCEPT
a. holds an open house
b. measure a property for square footage
c. sign checks on a trust account
d. shows a property and answer a buyer's questions - ANS - d
A nonresident Colorado broker must do all of the following EXCEPT
a. agrees to accept legal action in Colorado
b. keeps all funds in a Colorado depository
c. has an office in the nonresident broker's home state
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d. has an office in Colorado that is open to the public - ANS - d
The seller and the buyer have reached an agreement on which terms the seller will complete as part of
the buyer's inspection request. Which form should the broker use to document this agreement?
a. Amend/Extend Contract with Broker
b. Inspection Objection
c. Amend/Extend Contract
d. Inspection Resolution - ANS - d
The seller declines at listing to complete the Seller's Property Disclosure. The listing broker should
a. tells the seller that disclosure of material facts is optional
b. tells the seller that the buyer will request the form
c. resigns the listing, since the seller won't complete the form
d. completes the form for the seller - ANS - b
The approved Residential Contract to Buy and Sell Real Estate calls for general property taxes to be
prorated between the
a. seller and buyer as indicated by checking the appropriate box
b. seller and broker on the taxes for the preceding calendar year
c. seller and buyer based on the assessed value and mill levy
d. seller and buyer based on the taxes for the preceding calendar year - ANS - a
A Colorado well permit
a. guarantees a minimum amount of water
b. is issued by the Real Estate Commission to provide water
c. provides permission to drill and maintain a well
d. is real property, but not an appurtenance - ANS - c
Adjudicated water rights may be taken from an owner involuntarily for public use by
Colorado Contracts & Regulations Final Exam/ Practice
Questions with Correct Verified Answers/ Rated A+
In the residential Contract to Buy and Sell Real Estate, which is TRUE regarding the financing language?
a. A broker may print forms with only the financing terms needed for the transaction
b. All financing provisions must be printed in every contract
c. A broker may omit the financing terms and leave a space for licensees to draft the terms that fit
d. The form may not be computer generated because it would be too easy to change - ANS - a
According to the approved residential Contract to Buy and Sell Real Estate, if a buyer is receiving seller
financing and has provided the seller with the buyer's credit information,
a. only a lender can review this information for the seller
b. the seller must request that the buyer update the information annually
c. the seller must not share the information with others
d. this information can be shared with other parties the seller knows - ANS - c
Which of the following terminates a purchase offer and constitutes a new offer?
a. Counterproposal
b. Seller's Property Disclosure
c. Inspection Resolution
d. Agreement to Amend/Extend contract - ANS – a
Which of the following is NOT true about the Real Property Transfer Declaration form?
a. it is required by statue
b. it provides information for the county assessor
c. it ensures fair assessments
, 2
d. it transfers personal property - ANS - d
An employing broker who leaves town
a. must send written notice of who is supervising the office to the Real Estate Commission
b. can delegate authority, in writing, to a qualified broker
c. must give written notice of no supervision to all the employed brokers
d. must make sure the assistant can sign on the trust account - ANS - b
A broker writes a contract for the purchase of the property and then writes another on the same
property at a higher price to give to the lender. This is
a. standard practice
b. acceptable, if using a down payment assistance program
c. dual contracting and is illegal in Colorado but acceptable in other states
d. dual contracting and is illegal in every state - ANS - d
A broker using computer-generated forms must
a. makes sure that certain sections, as allowed, are fully deleted
b. makes sure the blanks are filled in with bold typeface
c. makes sure the program reproduces the approved language exactly
d. use italics in all blanks - ANS - c
License discipline records maintained by the Real Estate Commission
a. is available only to those who have won a case against the licensee
b. can only be reviewed at the Real Estate Commission office
c. is open to the public and on the Real Estate Commission website
d. is closed after four years - ANS - c
The loan objection deadline was August 5. On August 7, the lender informs the buyer that the buyer
failed to qualify for a loan under the terms requested in the Contract to Buy and Sell Real Estate. What
should the buyer's broker do in this situation?
, 3
a. sends an Amend/Extend Contract form to change the loan objection deadline and then inform the
seller and the listing broker of the buyer's inability to obtain funding
b. informs the buyer that the earnest money will be kept because the loan contingency expired
c. uses the Amend/Extend Contract form to extend the contingency, as verbally agreed to by the seller,
to have the buyer's earnest money returned
d. uses the Notice to Terminate to inform the seller and the listing broker of the termination and request
that the earnest money be returned as required by the contract - ANS – b
Colorado fair housing complaints must be filed within one year with which of the following?
a. Colorado Association of REALTORS
b. Civil Rights Commission
c. HUD
d. Real Estate Commission - ANS - b
The Lead-Based Paint Disclosure for a property built before 1978 must be provided by the
a. buyer's broker when preparing an offer
b. listing broker at the time of listing
c. seller before closing
d. seller before accepting an offer - ANS - d
An unlicensed assistant could do all of the following EXCEPT
a. holds an open house
b. measure a property for square footage
c. sign checks on a trust account
d. shows a property and answer a buyer's questions - ANS - d
A nonresident Colorado broker must do all of the following EXCEPT
a. agrees to accept legal action in Colorado
b. keeps all funds in a Colorado depository
c. has an office in the nonresident broker's home state
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d. has an office in Colorado that is open to the public - ANS - d
The seller and the buyer have reached an agreement on which terms the seller will complete as part of
the buyer's inspection request. Which form should the broker use to document this agreement?
a. Amend/Extend Contract with Broker
b. Inspection Objection
c. Amend/Extend Contract
d. Inspection Resolution - ANS - d
The seller declines at listing to complete the Seller's Property Disclosure. The listing broker should
a. tells the seller that disclosure of material facts is optional
b. tells the seller that the buyer will request the form
c. resigns the listing, since the seller won't complete the form
d. completes the form for the seller - ANS - b
The approved Residential Contract to Buy and Sell Real Estate calls for general property taxes to be
prorated between the
a. seller and buyer as indicated by checking the appropriate box
b. seller and broker on the taxes for the preceding calendar year
c. seller and buyer based on the assessed value and mill levy
d. seller and buyer based on the taxes for the preceding calendar year - ANS - a
A Colorado well permit
a. guarantees a minimum amount of water
b. is issued by the Real Estate Commission to provide water
c. provides permission to drill and maintain a well
d. is real property, but not an appurtenance - ANS - c
Adjudicated water rights may be taken from an owner involuntarily for public use by
