Colorado Practice Test for PSI Flashcards

Colorado Practice Test for PSI Flashcards

• A general agent acting for a principalA. has no authority

to bind her principalB. has limited authority to bind her principal.C. has unlimited authority to bind her principal.D.must have a power of attorney.

• has limited authority to bind her principal. General

agents are allowed to bind their principal based upon a signed agreement. Special agents have no power to bind, and a universal agent has unlimited power to bind the principal.

• To hire the title company as a scrivener using the

closing instructions, the parties areA. seller, buyer, and brokers.B. seller and buyer.C. listing broker and title company.D. seller, buyer, title company, and listing broker.

• listing broker and title company. This section of the form

is between these two parties only.A transaction broker is most likely a(n)A. coachB. agentC.facilitatorD. advocate

• facilitator A transaction broker facilitates or coordinates

the transaction, in a neutral way, to completion. An agent has fiduciary obligations, as illustrated by a coach or advocate.

• A new broker attending her first closing found an error

in the amount her buyer was owed. The broker shouldA.stop the closing and call her employing broker to find out what to do.B. pay the buyer the difference once she gets her commission check.C. say nothing since she is most likely wrong, being new to the business.D. bring the error to the attention of the closer to determine the next step.

• bring the error to the attention of the closer to determine

the next step. The answer is bring the error to the attention of the closer to determine the next step. Any error should be brought to the attention of all parties at the closing.

• Once a closing is completed, the broker associateA.

must return all closing documents to the employing broker immediately.B. must make copies for her file and review prior to submitting.C. authorize the closing entity to return the documents as soon as they can.D. has a minimum 24 hours to return all the closing documents.

• must return all closing documents to the employing

broker immediately. A broker associate could make copies for her files and review prior to submitting, but that is not required. It is the broker associate's responsibility to return the documents to the employing broker, not the closing entity.

• In the Contract to Buy and Sell, if a broker inserted the

correct legal description but made an error in the street address can the property title still be conveyed?A. No, the title is clouded and will need to have a correction deed filed before closing.B. Yes, since the street address is simply a reference and the title is conveyed by the legal description.C. Yes, if the title work has the correct address there is no reason to worry since they will use that address, not the legal description, in the deed.D. No, the broker will need to complete an addendum to correct the address so the deed will be correct

• Yes, since the street address is simply a reference and

the title is conveyed by the legal description. The broker may want to alert all parties to the error and correct it since the address is used in a number of documents but the title is conveyed by legal description so there is not an issue with the deed conveying the property.

• A taxpayer can redeem property sold at a property tax

sale:A. only with permission of the county assessor.B. if

they pay twice the amount of the taxes.C. if the property is occupied.D. up to three years after the sale.

• up to three years after the sale. Per Colo. Rev. Stat. §

39-11-120, Colorado property tax redemption is three years after the sale.

• Which of the following Commission rules keeps brokers

in compliance with Conway-Bogue?A. Rule CB. Rule E-35C. Rule A-8D. Rule F

• Rule F This rule contains the Commission rules and

regulations for approved forms. If there is an approved form brokers must use it, allowing a limited license to practice law as created by Conway-Bogue (fill in the blank). Rule E-35 creates the requirements for Brokerage Relationship Disclosure.

• The seller has given the buyer a counterproposal which

the listing broker attached to the Contract to Buy and Sell and sent to the buyer's broker and buyer. This means theA.original offer is terminated, but terms not changed in the counter are still part of the agreement.B. terms of the original offer, along with the changes, are incorporated into the counter so the contract should not be attachedC. listing broker is out of compliance since the counterproposal stands alone.D. seller should have signed the contract and attached only the signature page to the counter

• original offer is terminated, but terms not changed in the

counter are still part of the agreement. The seller signs the counter, not the contract, and the counter is attached to the original offer since any terms not changed in the counter will carry forward.

• The Change of Status form is usedA. when moving

from an attorney to a broker.B. is attached to each agency listing so the designated broker can act as a transaction broker.C. when moving from a transaction broker to an agent.D. when moving from an agent to a transaction broker.

• when moving from an agent to a transaction broker. This

form is used as a disclosure not as permission to change, which is granted in the listing agreement. Representation is negotiated between seller/buyer and broker, not the Change of Status form.

• The parties to the closing instructions areA. seller,

buyer, and title company.B. seller, buyer, and brokers.C.seller and buyer.D. seller, buyer, title company, and listing broker.

• seller, buyer, and title company. The closing instructions

are used by the seller and buyer to hire the title company to close the transaction so these are the only three parties to the agreement.

• When dealing with the complex paperwork a broker

must complete for consumers in a real estate sale, the broker's number one concern in handling documents should be thatA. the brokerage commission has been fully agreed to and the paperwork for payment is complete.B. all parties fully understand all terms and conditions of any document they are signing.C. all disclosures have been signed so the broker cannot be sued.D. the highest price is being paid so the broker can earn more commission.

• all parties fully understand all terms and conditions of

any document they are signing. The number one job of a real estate broker is to bring clarity to the process and make sure all parties understand what is being signed or speak to appropriate counsel if needed.

• A securities license is required forA. residential and

commercial real estate brokers.B. all commercial real estate brokers.C. brokers selling real estate securities.D.brokers selling real estate options.

• brokers selling real estate securities. The key word is

securities, which require a securities license not a real estate license to sell. The other choices require a real estate license.

• The purpose of Rule 6.15 regarding sign crossing is to

protect whom?A. Sellers and buyersB. Brokers with expired listingsC. Brokers with active listingsD. Sellers

• Brokers with active listings The purpose of Chapter 4 of

the Code of Colorado Regulations, Section 725-1-6.15 regarding sign crossing is to protect brokers with active listings from other brokerage firms trying to list the property.Part A of the rule reads "Brokers will not negotiate a Listing Contract directly with a Consumer for compensation from

said Consumer if such Broker knows the Consumer has an unexpired Listing Contract with another Brokerage Firm granting said Brokerage Firm an exclusive contract."

• The Real Property Transfer Declaration is completed at

closing and sent to theA. County Assessor's office.B. state engineer.C. Real Estate Commission.D. Department of

Revenue

• County Assessor's office. The answer is the County

Assessor's office. This is used by the assessor to ensure fair and uniform property tax assessments.