Colorado Contracts Forms Practice Questions Flashcards

Colorado Contracts & Forms Practice Questions Flashcards A broker must use the Licensee Buy-Out

Addendum:A)When purchasing property from a "for sale by

owner."B)When purchasing property from a seller who has listed with him.C)When buying a property from another licensee.D)When purchasing a property concurrently with listing as a result of an agreement to induce a seller to list with him.

• When purchasing a property concurrently with listing as

a result of an agreement to induce a seller to list with him.An inspection notice as provided for in the approved Colorado sales contract does not allow the buyer

to:A)Request repairs.B)Withdraw the notice.C)Change the

resolution deadline.D)Terminate the contract.C)Change the resolution deadline.*** If no provisions are made for the payment of closing cost form preparation, who is responsible for the fee?A)The buyer.B)The seller.C)The buyer and seller jointly.D)The broker.D)The broker.In terms of the Commission approved Residential Sales

Contract, the liability for the appraisal fee is:A)Paid by the

buyer.B)Shared equally by the buyer and seller.C)Paid by the seller.D)Negotiable.D)Negotiable.The Colorado-approved Residential Sales Contract

provides a final walk-through. The purpose of this is:A)To

show the property to relatives.B)To find new defects and be able to terminate the contract.C)To verify that the physical condition of the property and inclusions are in compliance with the contract.D)To give the seller an opportunity to remove exclusions.C)To verify that the physical condition of the property and inclusions are in compliance with the contract.The Colorado approved sale contract provides that if the

buyer and seller cannot resolve a dispute:A)The seller is

responsible for the mediation costs.B)The unsuccessful party is responsible for the mediation costs.C)The broker must secure an independent mediator of his choice.D)The buyer and seller share the mediator's costs.D)The buyer and seller share the mediator's costs.When earnest money is subject to a dispute, the

broker:A)Must interplead.B)Must submit to

arbitration.C)May hold the disputed earnest money pending any proceedings.D)Must obtain permission from a mediator to pay out any earnest money.C)May hold the disputed earnest money pending any proceedings.Prior to signing the contract of sale, Colorado Law provides that a lead-based paint disclosure signed by the seller and

the licensee must be handed to the buyer:A)If the building

was built prior to January, 1978.B)If a building permit was

issued prior to January, 1978.C)If the property is intended for any residential use and a building permit was issued prior to January, 1978.D)If the property is intended for any residential use.Question 4 C)If the property is intended for any residential use and a building permit was issued prior to January, 1978.An agreement to amend and extent a contract with a broker

can be used to:A)Extend a listing.B)Only if buyer and seller

in sale contract agree in writing.C)Extend a seller's property disclosure deadline.D)To change a closing date.A)Extend a listing.

In terms of the Residential Contract to Buy and Sell Real

Estate, the buyer is:A)Required to provide written notice to

the seller before the Loan Objection Deadline to avoid default and forfeiture of any earnest money.B)Obligated to inform the seller in writing that a loan commitment has been secured before the Loan Commitment Deadline and attach a copy of the commitment to such notice.C)Required to obtain a loan commitment in writing and will be released from the contract if it is not obtained.D)Entitled to withdraw the loan or assumption application at any time and give written notice to the seller that the contract is terminated.A)Required to provide written notice to the seller before the Loan Objection Deadline to avoid default and forfeiture of any earnest money.The License Buy-Out Addendum must be used if the listing

broker:A)Offers to sell his property to his employing

broker.B)Offers to sell his property to a buyer who has employed him as an agent.C)Offers to purchase the listed property and continues to market the property.D)Offers to purchase a property listed by another broker.C)Offers to purchase the listed property and continues to market the property.In terms of the approved contract of sale (residential), who pays the costs of closing?A)By agreement between the seller and buyer.B)The seller.C)The buyer and seller equally.D)The buyer.A)By agreement between the seller and buyer.In the Colorado approved Residential Sales Contract, how many days does the buyer have to withdraw a notice to correct after the resolution deadline?A)The buyer cannot withdraw a notice to correct.B)1 day.C)No time; it is an automatic termination.D)2 days.C)No time; it is an automatic termination.After an unresolved closing dispute involving earnest

money, the broker may:A)Interplead to court.B)Sue the

buyer and seller jointly as well as severally.C)Retain the earnest money as earned commission.D)Demand conclusion of closing before any party may leave.A)Interplead to court In a Colorado approved sales contract, which of the following is true?A)The closing tax prorations are always based upon the last year's taxes.B)The buyer will always be liable for liquidated damages if there is a default.C)The liability for an appraisal fee is determined by negotiation.D)The mediation fee is determined by negotiation.C)The liability for an appraisal fee is determined by negotiation.The Colorado approved sales contract provides that if the

buyer and seller cannot resolve their dispute:A)The buyer

and seller proceed to mediation and share the mediator's cost.B)The broker must secure an independent mediator of his choice.C)The unsuccessful party is responsible for the mediation costs.D)The seller is not responsible for the mediation costs.A)The buyer and seller proceed to mediation and share the mediator's cost.