Colorado Real Estate Exam Flashcards

Colorado Real Estate Exam Flashcards All of the following are true of Colorado Commission-approved real estate forms EXCEPTA) If a form is approved, all active, licensed brokers must use it.B) Brokers may use a standard form if they like it better, even if there is an approved form.C) Attorneys representing a brokerage firm cannot draft a purchase contract for the firm to use, even if it is for a specific transaction.D) Attorneys may draft any transaction-specific real estate forms or contracts for the parties they represent.

• Brokers may use a standard form if they like it better,

even if there is an approved form.The brokerage firm that has designated a broker to represent a seller as part of an Exclusive Right-to-Sell Listing ContractA) Owns the contract but does not represent the seller.B) Has a brokerage relationship with the seller and the designated broker.C) Has no responsibility to the seller once the designated broker is named.D) Would not be able to retain the seller if the designated broker left the company.

• Owns the contract but does not represent the seller.

The Contract to Buy and Sell states that if faxed or electronic signatures are used during negotiations and the executory contract stage, the original signatures must be providedA) Only upon mutual request of both parties.B) Never because current law recognizes all facsimile and electronic signatures as valid.C) Within three business days following closing, if not requested earlier.D) At closing, or earlier upon request of any party.

• At closing, or earlier upon request of any party.

A buyer in a closed transaction has filed a complaint with the Colorado Real Estate Commission, claiming the buyer's agent misrepresented the property. The Commission, in responding to a complaint, wouldA) Use its subpoena power to request records from the agent/broker's brokerage firm.B) Start a lawsuit on behalf of the buyer.C) Seize all the brokerage firm's records.D) Request the agent/broker supply a response in writing.

• Request the agent/broker supply a response in writing.

The Colorado Real Estate Commission requires all brokerage firms to have a written office policy to give broker associates a full understanding of the firm's operations. Which of these is the only item required by statute to be in writing?A) The brokerage relationships the firm offers and how brokers are designatedB) Commission splits between the firm and broker associatesC) Marketing fees and office costs charged to broker associatesD) The

requirements of the employing broker for supervision of broker associates with less than two years' experience

• The brokerage relationships the firm offers and how

brokers are designated If an associate broker agrees to manage rental properties for a friend, the associate broker mustA) Have a written agreement with the property owner clearly establishing the associate's responsibilities.B) Set up the appropriate trust accounts for funds belonging to others to avoid commingling property management funds.C) Agree to split

the management fees with the employing broker.D) Have the employing broker sign a management agreement and establish the trust accounts for the management assignment.

• Have the employing broker sign a management

agreement and establish the trust accounts for the management assignment.A Colorado broker associate referred her client to a broker in Florida. The Florida broker called to tell her that the buyer's property in Florida will close soon and she wants to

know where to send the referral fee. Which of the following is TRUE about this referral fee?A) The broker associate must deposit the fee into a trust account for holding until after closing.B) The fee must be made payable to the brokerage firm.C) The broker associate does not need to inform anyone of the fee and can deposit it into her personal account.D) The broker associate needs to split the fee 50/50 with the brokerage.

• The fee must be made payable to the brokerage firm.

In a new loan closing, the settlement worksheet will show an entry for a tax reserve that indicates the new lender isA)