CCR Colorado Contracts Regulations Flashcards

CCR Colorado Contracts & Regulations Flashcards Based on the approved Exclusive Right-to-Sell (agency)

listing form, the broker is a:a. general agent for seller.b.

agent for seller and TB for any unrepresented buyer.c.limited agent for the seller.d. agent for both seller and buyer in a personal transaction.C Acting as a real estate broker without a license or with a

suspended license is a:A. violation of license law

punishable by a fine of up to $2,500.B. misdemeanor punishable by six months in jail and/or fine up to $500.C.violation of license law punishable by license revocation.D.misdemeanor for which a corporation may be fined up to $10,000 per offense.B A buyer submitting an offer on an approved Contract to Buy and Sell wishes liquidated damages in case of buyer default.a. Proper language must be inserted in Additional Provisions.b. No action is required as the Contact defaults to liquidated damages.c. This is the seller's choice and may not be specified by the buyer.d. The buyer always has this remedy if the seller defaults.B An out-of-state broker, not licensed in Colorado, may

receive a referral fee from a Colorado broker only if:A. they

maintain an office in the other state.B. the out-of-state broker maintains an office in Colorado.C. they do not reside in the state in which they are licensed.D. all earnest monies are deposited in the out-of-state brokers escrow account.A Which of the following would NOT be proper for an unlicensed on-site manager of an apartment complex?A.Showing apartments that are available to rent.B. Filling in a lease and collecting a tenant's deposit.C. Negotiating a rent reduction for a long-term tenant.D. Explaining the lease terms and rules and regulations of the complex.C As a broker, you list a property in Sink Hole Estates, an area well known for mine shafts underground and unstable surface conditions. The sellers say they know nothing about these problems and have had no problems on their

property. Your duty is to:A. disclose the area history along

with the seller's statement.B. rely on seller's statements and do not disclose irrelevant area history.C. require the sellers to get a soil engineer's report.D. ignore a potential problem because it is too technical for your expertise.A

If the buyer wants to have the property appraised and makes the sale contingent on an appraised value at least

as high as the purchase price:a. write this in Additional

Provisions.b. the new loan provision takes care of this request.c. the Buyer can only do this if a new loan is used for financing.d. include dates or deadlines in Section 3.D According to the approved Contract to Buy and Sell Real

Estate, if a seller is in default, the:a. buyer may either

terminate the contract or sue for specific performance.b.buyer's remedy is determined by which box is checked in the remedies.c. buyer may terminate by forfeiting the earnest money.d. buyer must sue to get the earnest money back.A The employing Broker's responsibility to provide a high

level of supervisions applies to:A. all associates.B. only

Independent brokers.C. all associates who have not completed at least 10 transactions.D. associates who have been licensed for two years or less.D Under what circumstances may a licensee NOT provide a CMA?A. If a buyer does not know how much they should offer the seller.B. When a lender is trying to establish the value of REO property.C. When the buyer's lender needs an evaluation for a second mortgage.D. If a prospective seller is uncertain about a prospective list price.B Which of the following is exempt from the real estate licensing law in Colorado?A. An attorney-at-law who lists a client's house for sale for a 5% sales commission.B. A son selling his father's property under a proper power of attorney and receiving a fee of 2% of the selling price.C. An investor who owns more than six houses and sells two of them to a private individual.D. An inactive licensee helping a co-worker fill out a purchase offer on a for sale by owner property and not collecting a fee.C When a broker's in-company policy is practicing only Transaction-Broker, which of the following is true?A. All company listings must be taken using the listing contract and checking the Transaction-Broker box.B. The broker is only a Transaction-Broker by default.C. The broker may take an agency listing with a Transaction-Broker Addendum attached and by checking the proper box, may remain an agent until the other party signs a Transaction-Broker agreement or addendum.D. The broker will always be an agent to the party employing him/her and a Transaction-Broker to the other party.A

A broker, under an Exclusive Right to Buy Contract

(agency), agrees to:a. buy a property on behalf of the

buyer.b. keep confidential material facts she knows about the property.c. show the buyer at least 14 properties meeting the description given by buyer.d. promote the interests of buyer with utmost good faith, loyalty and fidelity.D The buyer is terminating the contract because he cannot obtain a suitable loan to finance the purchase. Included with the termination notice the buyer delivers written mutual instructions regarding the earnest money to the seller.When must the seller sign and return the written mutual instructions to the buyer?a. Within two business days after termination.b. Written mutual instruction are not required.c.Five days after termination.d. Within three days of receipt.D Which is NOT prorated in a normal condominium closing?a. General property taxesb. Association reserve funds previously collectedc. Association regular assessment for the current periodd. Water and sewer charges B The commission-approved form for the Exclusive Right to

Sell Listing Contract is:a. one form for all types of property,

either transaction broker or agency.b. different forms for different types of real estate.c. different forms for different relationships.d. an agency form.A Two joint tenants sign a listing with your company. What is the minimum number of duplicate originals needed?a. 2b.4c. 3d. 5 C What legal duties does a seller's agent owe to an unrepresented buyer?A. Loyalty, fidelity, and disclosure of material facts about the property.B. No specific duties - agency duties are to the principal.C. Fair and honest dealing and disclosure of material facts about the property.D. Honest dealing and full disclosure of anything the broker knows about the transaction.C The buyer requests that the security system be included

with the property. In preparing the offer the broker should:a.

add the security system in additional provisions.b. check a box adding the security system.c. delete the security system from the Exclusion section.d. negotiate for the security system separately with the seller.B Which of the following would NOT be an adverse material fact that must be disclosed to all buyers?a. Facts regarding seller motivation.b. Facts regarding title.c. Facts regarding physical condition.d. Facts regarding material defects.A

An unlicensed personal assistant may do all of the

following EXCEPT:A. distribute information on listed

properties.B. prepare a market analysis for a buyer or seller.C. type a contract to buy and sell at the direction of the broker.D. start negotiations with a buyer until a licensed person is available.D What is the purpose of the Square Footage Disclosure?a.Assist the loan approvalb. Assist in the valuationc. Provide exact square footaged. For marketing D

The Appraisal Deadline:a. does not apply to FHA

transactions.b. should be two to three days after the New Loan Termination Deadline.c. gives the Buyer the right to terminate the contract.d. would not apply if the Buyer pays cash for the house.A Under the mediation provision of the brokerage relationship

forms, the parties must:a. agree that a mediator's judgment

is binding.b. submit to binding arbitration before a lawsuit is permitted.c. agree to submit a dispute to mediation before litigation.d. settle out of court to avoid legal fees.C Which of the following could qualify for a temporary "hardship" broker license for a corporation?A. A corporate director with an out-of-state broker license.B. A corporate officer with an out-of-state salesperson's license.C. A corporate employee with a Colorado salesperson's license.D. Only a current Colorado licensee.D In listing a property, a broker will do all the following

EXCEPT:a. use a commission approved form.b. explain the

uniform duties.c. inform the seller that it is their responsibility to pay the cooperating brokers.d. negotiate the commission that the company directs the broker to charge.C When a buyer is buying a property with a new loan and the Contract to Buy and Sell Real Estate is used, the broker

should explain to the buyer that:a. the buyer's lender must

produce a loan commitment letter to the seller by a specific date.b. the buyer is required to give a copy of the written loan commitment to the seller by a specific date.c. if the lender fails to fund the loan in a timely manner the buyer will be in default.d. if the lender fails to fund the loan in a timely manner the seller must extend the contract.C The Licensee Buy Out Addendum to the Contract to Buy

and Sell Real Estate:a. is not a good idea because you

might be stuck with an overpriced property.b. is required when a licensee desires to purchase a property for his or her own use.c. must be signed by the Employing or