Colorado Real Estate Practice Exam Questions March 2023

Colorado Real Estate Practice Exam Questions (March 2023) Flashcards Colorado Real Estate Law mandates agents have errors and omissions insurance. What is the purpose of the insurance?The purpose is to protect clients against fraud.The purpose is to protect clients against falsifying claims.The purpose is to protect agents against real estate error claims.The purpose is to protect agents against claims of inadequate work or negligent actions.The purpose is to protect agents against claims of inadequate work or negligent actions.Errors and omissions insurance is a type of professional liability insurance that protects agents against claims of inadequate work or negligent actions. Colorado Real Estate Law mandates agents have errors and omissions insurance.An employing broker must comply with the Commission Rule on affiliated business relationships by disclosing the names of all affiliated business arrangements the employing broker is in. How often must they do this?AnnuallySemi-annuallyQuarterlyMonthly Annually"On and after July 1, 2006, an employing broker, in a form and manner acceptable to the commission, shall at least annually disclose the names of all affiliated business arrangements to which the employing broker is a party. The disclosure shall include the physical location of the affiliated businesses." Per 12-61-113.2, C.R.S.Affiliated business arrangements - definitions - disclosures

• enforcement and penalties - reporting - rules -

investigation information shared with the division of insurance Per Colorado Law, a person who willingly fails or neglects to appear and testify required by subpoena is guilty of what?A MisdemeanorA FelonyA FineIt depends A MisdemeanorA person who willingly fails or neglects to appear and testify required by subpoena is guilty of a misdemeanor if convicted per Colorado Law.Per Colorado Law, every home warranty service contract shall contain the following information except what?A statement as to the time period, following notification to the company, within which the requested repairs will be made or replacements will be provided.A specific listing of all other limitations in coverage, including the exclusion of preexisting conditions if applicable.The procedure that is required to be followed in order to obtain repairs or replacements.A statement specifying that the coverage must be transferable.A statement specifying that the coverage must be transferable."A real estate broker has the duty to perform the terms of the employment agreement, including exerting reasonable effort to accomplish the sale or purchase of the property. If the broker does not perform, the owner is justified in voiding the contract. It is a violation of the listing agreement and license law for a broker to "sit" on a listing, that is, take a listing and make no attempt to sell or acquire the property." Per Colorado Division of Real Estate Chapter 15 Listings Complete the statement to make it factually accurate. "Any broker engaging in activities that require a real estate

license must be:in the capacity of either a single agent,

transaction broker, or dual agent."in the capacity of either a single agent or transaction broker."in the capacity of a transaction broker."in the capacity of a single agent." in the capacity of either a single agent or transaction broker."Colorado statute requires that any broker engaging in activities that require a real estate license must be in the capacity of either a single agent or transaction broker. This just means that an agency must be established, and it must be a legal form of agency. In CO, the two legal forms of agency for real estate agents are single agents and transaction brokers.How often is continuing education required for Colorado real estate brokers?Every yearEvery two yearsEvery three

yearsEvery four years Every three yearsThree years. "For each three-year license cycle, all active real estate brokers must complete 24 hours

of continuing education." Per Colorado Division of Real Estate The Colorado Fair Housing Act like the Federal Fair Housing Act prohibits discrimination. Which of the following is an additional class the Colorado Fair Housing Act protects?DisabilityColorReligionCreed/belief system Creed/belief systemDisability, Color, and Religion are all included as part of the Federal Fair Housing Act. The Colorado Fair Housing Act protects Creed and/or Belief System.Per Colorado Law, what is the penalty imposed on a PERSON for a FIRST-time offense acting as a broker without first obtaining a license?A misdemeanorA fineImprisonmentPotentially all of the above A misdemeanor"Any natural person, firm, partnership, limited liability company, association, or corporation violating the provisions of this part 2 by acting as real estate broker in this state without having obtained a license or by acting as real estate broker after the broker's license has been revoked or during any period for which the license may have been suspended commits a class 2

misdemeanor." Per Chapter 1: Colorado Real Estate

Broker License Law 12-10-223, C.R.S. Violations.The Colorado Fair Housing Act like the Federal Fair Housing Act prohibits discrimination. Which of the following is an additional class the Colorado Fair Housing Act protects?SexSexual orientationNational originFamilial status Sexual orientationSex, National Origin, and Familial Status are all included as part of the Federal Fair Housing Act.The Colorado Fair Housing Act protects Sexual Orientation.Which of the statements is most accurate and true, regarding the Licensing Section of the Colorado Division of Real Estate and its responsibilities?The Section issues license histories, reviews, processes all incoming applications, enters data, and upkeeps licensing records.The Section issues license histories, reviews, and processes all incoming applications but does not handle the upkeep of licensing records.The Section is responsible for all fees agents pay during their licensing periods.The Section does not handle application reviews.The Section issues license histories, reviews, processes all incoming applications, enters data, and upkeeps licensing records.The Colorado Division of Real Estate Licensing Section issues license histories, reviews, processes all incoming applications, and enters data and upkeep licensing records. Per Division of Real Estate An escrow account can also be called what?A trust accountA commission accountAn expense accountAn expense and commission account A trust accountThe term "trust account" is synonymous with "escrow account." This is important to understand because trust/escrow accounts have specific rules and can not function like a personal or expense account in Colorado.The Colorado Director of the Division of Real Estate is responsible for which of the following?Establishing rules for real estate agents, inspectors, and mortgage officers of ColoradoEstablishing rule-making meetings for real estate related matters in ColoradoExecuting the directives of the Colorado Realtor AssociationExecuting the directives of the Commission Executing the directives of the Commission"The director of the Division is an administrative officer who executes the directives of the Commission and is given statutory authority in all matters delegated by the Commission." Per

Chapter 1: Real Estate Broker License Law III. The

Commission Office The federal Fair Housing Act and the Colorado Fair Housing Act have some differences. Which of the following is a difference between the two Acts?The Colorado Fair Housing Act covers commercial and residential

propertyThe Federal Fair Housing Act does not cover raceThe Federal Fair Housing Act does not cover national originThe Federal Fair Housing Act covers commercial and residential property The Colorado Fair Housing Act covers commercial and residential propertyThe Federal Fair Housing Ac covers residential property only and the Colorado Fair Housing Act covers both commercial and residential property. All the