Colorado psi real estate practice test Flashcards

Colorado psi real estate practice test Flashcards A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this relationship?Agency coupled with an interest.A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the permission permanent in case he dislikes others who might move next door in the future. What should he give his neighbor?A license.A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when the seller accepts the offer.In an exclusive right-to-sell listing, an owner lists the property for sale with how many brokers?One.A broker is developing a checklist to be used by licensees during the time period between writing a contract and closing. Which of the following items should be included in the "Property Inspections" section?A place to list repairs, who will pay, and when repairs are to be completed.Why was the Jones vs. Mayer decision of 1968 important?By upholding the Civil Rights Act of 1866, the Supreme Court removed all exceptions to racial discrimination in housing.Jake is preparing a Comparative Market Analysis on a 5-year-old vacant two-story, 10,000-square foot office building on a one-acre property. Jake knows that a vacant lot next door of about the same size just sold for $100,000.He also knows that market value for comparable office space today would be $100 per square foot. The owner agrees with Jake that his building has experienced a yearly 3% depreciation of its value. What should Jake recommend as a selling price?

$850,000

A tenant with a triple net lease rents a building that has the

following yearly operating expenses: Property taxes $

5,000 Utilities $ 7,000 Repairs & Maintenance $ 1,500 The tenant would be responsible for how much of these expenses?

$13,500

A broker has signed a listing contract for the sale of a home. Which of the following could make this contract voidable?The seller is heavily under the influence of alcohol at the time of signing A mentally disabled person who has been declared incompetent by a judge wishes to enter into a contract.Under what conditions can such a person do so?The person appointed by the court to act for the disabled person must contract on his or her behalf.

A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The property has just been sold at a foreclosure auction to a speculating investor for $88,000. Assume that all costs of the foreclosure sale are included in these balances. Which of the following statements is FALSE regarding the distribution of funds?

: The second mortgagee receives nothing unless he forced

the foreclosure auction.At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing?Debit seller $300; credit buyer $300.A broker is showing a buyer one of his residential listings.The buyer says he wants to establish a day care center for seniors in the property. The property has been used as a day care center for no more than five children. How should the broker advise this buyer?Provide the buyer with contact information for the local planning and zoning office to confirm the zoning and determine whether it permits his use.When a listing broker is preparing an Offer to Purchase for a buyer customer, contingencies involving inspections or approval by a third party should have short deadlines.A broker hires a salesperson as an independent contractor.In order for the salesperson to be considered an independent contractor for federal income tax purposes, the broker's written contract with the salesperson MUST specify that the salesperson will not be treated as an employee for federal income tax purposes.A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store?Conditional use permit or zoning variance If leased premises become unusable for the purpose state in the lease, the tenant may have the right to abandon the premises. This action is called constructive eviction.A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision.The firm has located several potential buyers and five homes have been sold to purchasers that the firm's agents have contacted. The realty firm has an agency relationship with the builder.Refer to the scenario below.You are hosting an open house. Mr. and Mrs. Charles Martin come into the house.You greet them and show them the house. The Martins tell you the house is exactly what they are looking for and they are very interested in purchasing it. You then give them information showing the various types of financing available with down payment options and projected payments. Mr.Martin tells you they have been working with Mary

Hempstead of XX Realty, a competing real estate company. Before leaving, you thank them for coming and give them your business card.The first thing on Monday morning, Mrs. Martin calls and indicates they have tried to reach Mary and cannot. They indicate they have a written buyer's agent agreement with Mary's broker. They are afraid someone else is going to buy the house. Which of the following should you do?Tell them to call Mary's supervising broker or branch manager.A buyer made an offer on an apartment building. The offer was not acceptable to the seller. When the buyer refused to accept the seller's counteroffer, the seller agreed to accept the original offer. What MUST happen now?Nothing; by making a counteroffer the seller released the buyer from the original offer.An owner lists his home and agrees to pay a 6% commission provided he nets $10,000 after paying the

commission and the balance of his mortgage, which is $75,000. To the nearest dollar, what should the selling price be to net the owner his $10,000?

$90,426