Colorado Real Estate - Contracts Flashcards

Colorado Real Estate - Contracts Flashcards According to Rule F what sections may be omitted from the

contract to buy and sell real estate:A. Non-applicable

financing conditionsB. Recommendation of legal and tax counselC. MediationD. Assignability and inurementE.Evidence of title

• Non-applicable financing conditionsF= Forms. All of the

contracts, what you can do, delete, etc are all under F.Must ALWAYS recommend legal and tax councelMediation is ALWAYS required for conflict first.Assignment and inurement is in any kind of contractAlways want evidence of title in a contract.As per the Real Estate Commission position regarding

Megan's Law:A. the Listing Broker must make this

disclosureB. this is a material factC. The Buyer's broker should research thisD. If important to the buyer, the buyer should check with local law enforcement.

• If important to the buyer, the buyer should check with

local law enforcement.This is a commission position from 1999 (CP 29) - We are not allowed to disclose, unless it's important to buyer. In that case, we point them to local law enforcement.According to the Contract to Buy and Sell, if a dispute

occurs, the parties shall first:A. Go to arbitrationB. Go to

small claims courtC. Go to mediationD. Go to Real Estate Commission

• Go to mediation

"MEC" in a contract means:A. Mutual Execution of

ContractB. Must Exit ContractC. Multiple Element ContingencyD. Multiple Easement Criteria

• Mutual Execution of ContractIn Contract to Buy and Sell

Real Estate. Means date upon which both parties have executed contract. MEC +1 would be the date in which both parties sign, plus one day. Typically used in commercial world but not frequently in residential agreements.Provisions inserted into the blanks of real estate approved

contracts must:A. Be prepared by an Employing Broker or

AttorneyB. Not be hand written, they must be typedC. Have same font and size as the approved formD. Use a different font than the printed part of the section

• Use a different font than the printed part of the

sectionBrokers can fill out, can hand write, but must be differentiated from the typed portion.A Residential Contract to Buy and Sell does NOT require inclusion of which of the following?A. fireplace screens and gratesB. leased security systemsC. parking and storage facilities as described in a condominium communityD.window coverings on the property on the date of the sales contract

• leased security systemsItems in bold with check boxes

are optional. As listing broker, you need to be careful to learn if these are leased through a service and indicate that on the contract. Is it assumable? What's the cost? Etc.The clauses in the Additional Provisions section of any

approved form must:A. Be written by legal counsel from

one of the partiesB. Be negotiated by the parties to the formC. Contain clauses approved by the real estate commissionD. Cannot be altered in any way

• Be negotiated by the parties to the form

When using a Counterproposal form, the client submitting

the counterproposal would:A. sign the original offer and

check the "is countered" boxB. sign only the counterproposalC. generate a new contract to purchaseD.

sign the original offer, check the "is countered" box and sign the counterproposal

• sign only the counterproposalTechnically you would also

check the counter proposal box on the original and initial.You might also draw a line through the signature spot on the original too just to be sure but do not sign original.

Regarding the Colorado Homestead Exemption, as indicated in the approved Deed of Trust forms, the buyer

agrees that:A. The homestead exemption is not addressed

in the deed of trust formsB. That the homestead exemption is not waivedC. The trustor waives the right to the homestead exemptionD. The trustee waives the right to the homestead exemption

• The trustor waives the right to the homestead

exemptionHomestead exemption says if you default, you still get $45,000 (number changes periodically). Any deed of trust, will have some form of waiver that states buyer waives right of homestead.Trustor - borrower because they are the one executing the lien on the houseTrustee - public trustee because they hold the trust.Beneficiary - lender

A Single Party listing:A. Does not require a contractB. Has

no holdover clauseC. Does not fall under the Statute of FraudsD. Requires two agents

• Has no holdover clauseSingle party listing just focuses

on one potential buyer. Commission position 13. Used when you have a good potential buyer for this property and you want to still get paid. Ask if they'll pay you a commission if you bring this person to them. You put together a listing agreement with conditions in additional provision that says the provisions shall apply only in the event the sale is made to ____. Should not be extended by the holdover period.The event of a sale by the broker or owner, anyone outside this contract would void the contract. Short contract for day or two.Which form should not be used to disclosure your

brokerage relationship:A. Definitions of brokerage

relationshipsB. Brokerage disclosure to tenantC. Brokerage disclosure to Seller (FSBO)D. Exclusive Right to Sell (All Types)

• Definitions of brokerage relationshipsDefinitions of

brokerage relationships is used when someone asks, for example, "what is a transaction broker?" You can youse this form to show real estate commission approved definitions. This form does NOT disclose YOUR relationship.Brokerage relationship to tenant, to seller, and Exclusive right to sell all are brokerage disclosures or have them built into them.If an FHA or VA appraisal comes in less than the purchase

price of a home, a buyer:A. Can terminate the contract and

get earnest money backB. Can terminate the contract, but will lose earnest moneyC. Must pay the differenceD. Must get seller to reduce price or terminate the contract

• Can terminate the contract and get earnest money back

What recourse do the buyers have if they determine that the property they have contracted to purchase is within a special taxing district?A. They may demand that the seller pay the indebtedness of such a district.B. They may petition to be excluded from the district.C. They may terminate the contract automatically on the Off-Record Matters date.D. They may terminate the contract by written notice to the seller.

• They may terminate the contract by written notice to the

seller.Get earnest money back. and must be written notice.Must be before off record matters date.According to the Contract to Buy and Sell Real Estate

earnest money is held on behalf of:A. SellerB. BuyerC.

Buyer and SellerD. Seller and Broker

• Buyer and Seller

Which of the following requires the use of the Licensee Buyout Addendum to the Contract to Buy & Sell?A. A listing associate's offer to purchase a listing immediately after it

expiresB. A broker is offering a guarantee as an inducement to list with his companyC. An associate in the brokerage wishes to purchase another associates listingD.A broker wishes to acquire a property he has listed to use as an investment

• A broker is offering a guarantee as an inducement to list

with his companyUse licenses buyout agreement when:-

listing broker is buying their listing - they are the only broker