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60 Cards in this Set
- Front
- Back
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In order for a contract to be valid and binding, there must be: consideration mutual assent offer and acceptance all of the above |
A: all of the above All three of the choices represent different ways of saying the same thing. |
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Broker K arrives to present an offer to Mrs. G, an invalid, and finds her son and his wife also present. Both individuals persistently urge Mrs. G to accept the offer on her home, though it is much lower than the price she was asking. If Mrs. G signs the offer, she may later claim: that Broker K should not have brought her a low offer that she was under undo duress from her son and daughter-in-law and that the agreement is voidable that Broker K defrauded her by allowing her son and daughter-in-law to see the agreement that her son and his wife have usurped her consumer protection rights |
A: that she was under undo duress from her son and daughter-in-law and that the agreement is voidable Because she is an invalid, and her son and daughter-in-law persisted in their efforts to have Mrs. G sign the terms of the contract. (Under duress) |
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If a broker moves his place of business without advising the Real Estate Commission: His license is suspended but not licensees working for him His license and all associate brokers working for him are inactivated The licenses of all associate brokers under him are cancelled The licenses of all sales persons under him are cancelled |
A: His license and all associate brokers working for him are inactivated From chapter in real estate manual on License Law § 12-61-109, C.R.S. Change of license status – inactive – cancellation. (1) Immediate notice shall be given in a manner acceptable to the commission by each licensee of any change of business location or employment. A change of business address or employment without notification to the commission shall automatically inactivate the licensee’s license. § 12-61-110, C.R.S (5) The suspension, expiration, or revocation of a real estate broker’s license shall automatically inactivate every real estate broker’s license where the holder of such license is shown in the commission records to be in the employ of the broker whose license has expired or has been suspended or revoked pending notification to the commission by the employed licensee of a change of employment. |
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Who pays the Colorado Use Tax on the transfer of furniture, personal property, equipment: Buyer Seller Split equally between buyer and seller Seller''s broker |
A: Buyer The Colorado Use Tax, (39-26-Part 2, C.R.S.) is a form of sales tax, payable on the transfer of furniture, equipment, etc. in income producing properties. The buyer is obligated to pay this tax by statute. The broker has the duty to inform the buyer of this obligation. |
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The "Additional Provisions" section of the Contract to Buy and Sell Real Estate may include: Personal provisions of the listing broker on the client''s behalf Confirmation of the commission split to the cooperating brokerage firm Exculpatory language protecting the brokerage firm Transaction specific items resulting from negotiations or instructions of the parties to the contract |
A: Transaction specific items resulting from negotiations or instructions of the parties to the contract The additional provisions sections is a blank area in which Brokers have broad discretion to enter any necessary language. However, the clauses inserted must be a product of the buyers and sellers negotiation and not language, for example, benefiting the Broker. Reference Commission Rule F |
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If a Seller is in default of the terms of the Contract to Buy & Sell: The buyer may cancel or sue for specific damages Buyer may sue to get the earnest money back Buyer may terminate by forfeiting the earnest money Buyer's remedy is determined by which box is checked |
A: The buyer may cancel or sue for specific damages If the Seller defaults the options are with the Buyer,they can cancel, sue for specific performance, or damages, or both. |
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A broker is required to disclose any psychologically stigmatizing factors actually known by the broker when he is acting as: a single agent a buyer’s agent a transaction broker never |
A: never The Colorado Real Estate Commission's position on psychologically stigmatized properties is events that would cause this are NOT TO BE disclosed and agents are protected from legal actions resulting from nondisclosure. Stigmatized property is a controversial term used in the real estate business for a property which buyers or tenants may shun for reasons that are unrelated to its physical condition or features. These can include events involving murder or suicide or AIDS in addition to a belief that a house may be haunted. Material facts such as the foundation is bad or the house tested high for Radon ARE required to be disclosed.Nondisclosure of Information Psychologically Impacting Real Property§ 38-35.5-101, C.R.S. Circumstances psychologically impacting real property – no duty for broker or salesperson to disclose. (1) Facts or suspicions regarding circumstances occurring on a parcel of property which could psychologically impact or stigmatize such property are not material facts subject to a disclosure requirement in a real estate transaction. Such facts or suspicions include, but are not limited to, the following: (a) That an occupant of real property is, or was at any time suspected to be, infected or has been infected with human immunodeficiency virus (HIV) or diagnosed with acquired immune deficiency syndrome (AIDS), or any other disease which has been determined by medical evidence to be highly unlikely to be transmitted through the occupancy of a dwelling place; or (b) That the property was the site of a homicide or other felony or of a suicide. (2) No cause of action shall arise against a real estate broker or salesperson for failing to disclose such circumstance occurring on the property which might psychologically impact or stigmatize such property. |
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You are called to list a piece of land in the mountains. The sellers of the land have had their attorney prepare a listing agreement. Your response is: because Colorado contract law requires you to use the Real Estate Commission-approved form, you decline the listing you accept the listing on their attorney-prepared form you use their form, but alter it to include familiar language from the standard contract you use the Colorado-approved form, but alter it to include all the language that their attorney used |
A: you accept the listing on their attorney-prepared form Brokers are required to use Colorado real estate commissions approved forms; or contracts prepared by legal counsel of the parties to the contract. |
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If a property owner tells you the land only flooded during the "great flood" over 100 years ago, a licensees obligation to a potential buyer is.... provide them with necessary documentation and assure them that there''s nothing to worry about direct them towards the public records which would specify whether the land is in a flood zone assure them there is nothing to worry about because the flooding only occurs every 100 years recommend the install necessary infrastructure to avoid future flooding. |
A: direct them towards the public records which would specify whether the land is in a flood zone Recognizing when you are out of your area of expertise and knowing how to deal with it, is an important skill and required by the Real Estate Commission. Recommending a review of public records to determine if the property is in a flood zone demonstrates that skill. The other three have the agent stepping out of their area of expertise. |
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On the Commission-approved purchase and sale agreement, if no box is checked what is the defaut: the seller will have to be content with liquidated damages the liquidated damages clause is automatically in effect the buyer cannot sue for specific performance the seller can sue for specific performance |
A: the liquidated damages clause is automatically in effect On the commission approved purchase and sale agreement form; if the specific performance box is not checked the liquidated damages clause is automatically in effect. |
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The Licensee Buyout Addendum informs the Seller of all EXCEPT: Seller is responsible for marketing and closing expenses Seller acknowledges that in entering into the Contract, Buyer is exposed to possible losses and expenses. The Contract may be terminated at any time by Seller upon written notice to Buyer. Any termination of the Contract shall not affect the listing contract for the Property (Listing Contract). |
A: Seller is responsible for marketing and closing expenses A is the only verbiage listed NOT in the Licensee Buyout Addendum. |
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A bilateral contract is one in which: only one of the parties is bound to act the promise of one party is given in exchange for the promise of the other party a restriction is placed, by one party, to limit the actuarial performance by the other party something is to be done by one party only |
A: the promise of one party is given in exchange for the promise of the other party A bilateral agreement requires each of the parties to do something for the other. |
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An option: requires the buyer to complete a purchase keeps an offer open for a specified time gives buyer an easement on the property makes seller liable for a commission to broker if buyer does not exercise option |
A: keeps an offer open for a specified time An option is a unilateral contract, in essence an offer to make an offer. |
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From whom may the buyer's sales agent receive payment for their services? Anyone, so long as it's disclosed Their employing broker only The listing agent's broker Their client |
A: Their employing broker only All contracts are with the company, not the agent. The company receives payment from the client and then compensates the agent. An associate broker may only receive their commission from their broker. |
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A seller hired broker N under the terms of an open listing. While that listing was still in effect, the seller without informing broker N, hired broker K under an exclusive right-to-sell listing for the same property. If broker N produces a buyer for the property whose offer the seller accepts, then the seller must pay a: full commission only to broker N full commission only to broker K full commission to both broker N and broker K half commission to both broker N and broker K |
A: full commission to both broker N and broker K In an open listing who ever sells the property receives the commission. In an exclusive right to sell listing, no matter who sells the property, the broker who listed the property will receive a commission. Therefore the seller would be responsible to pay both brokers a commission. |
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When a license law complaint is made to the Commission against a licensee, the licensee must: Pay a fine and give up license Appear before the Commission within 30 days Submit a written response to the Commission if requested Temporarily give up license |
A: Submit a written response to the Commission if requested Rule E-21. Licensee must respond to complaint or audit notice in writing When a licensee has received written notification from the Commission that a complaint has been filed against the licensee, the licensee has been selected for an audit, or that an audit has identified record keeping or trust account deficiencies, such licensee shall submit a written answer to the Commission. Failure to submit a written answer within the time set by the Commission in its notification shall be grounds for disciplinary action unless the Commission has granted an extension of time for the answer in writing and regardless of the question of whether the underlying complaint warrants further investigation or subsequent action by the Commission. The licensee’s written answer shall contain the following: (a) A complete and specific answer to the factual recitations, allegations or averments made in the complaint filed against the licensee, whether made by a member of the public, on the Commission’s own motion or by an authorized representative of the Commission. (b) A complete and specific response to any additional questions, allegations or averments presented in the notification letter. (c) Any documents or records requested in the notification letter. (d) Any further information relative to the complaint that the licensee believes to be relevant or material to the matters addressed in the notification letter. Reference Rule E-21 |
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Should the lessor die after the lease has been signed by all parties; what happens to the lease? Rescinded Renegotiated Unchanged Cancelled |
A: Unchanged The lease remains in force if the landlord or lessor dies. |
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Those exempted from the obtaining a real estate license are: any person who purchases property or a business opportunity for his own account or in any way disposes of the same any authorized attorney in fact or attorney at law while acting in that capacity any escrow agent, receiver, trustee in bankruptcy, executor, administrator, guardian, or any person acting under a court order all of the above |
A: all of the above A license is required when an individual receives compensation for the sale of property for others. |
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When completing the Exclusive Right to Sell Listing Contract, which monetary encumbrances does the seller list? All that the seller will not pay off All to be assumed by the buyer Only those of public record All known to the seller |
A: All known to the seller The listing should show all encumbrances known to the seller |
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If a purchaser asks questions regarding a brokerage relationship that a broker does not offer, the broker is: obligated to provide a written definition of all types of relationships obligated to offer that type of relationship to this particular buyer obligated to explain why he has chosen not to offer that type of relationship none of the above |
A: obligated to provide a written definition of all types of relationships A broker is obligated to provide information regarding all types of relationships. A broker is not required to offer all types of relationships. |
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What license is required to deal in real estate options? Option license None needed Dealer’s license Real estate broker's license |
A: Real estate broker's license A real estate license is required to sell, lease list, or dealer real estate options. There is no such thing as an option license. |
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A owner lost their home due to foreclosure. The house sold for $700,000 with $40,000 left over from the foreclosure sale of the property. They thought they were free and clear from financial obligations until they received a letter in the mail saying they owed more money. Why would they owe more money? lis pendens mechanics lien taxes judgment |
A: taxes The IRS views a foreclosure sale as a normal sale of the property. The $40,000 left over from the sale of the foreclosed property, after all obligations were settled, would have been returned to the foreclosed owners. The owners would need to consider the tax consequences of the sale as the $40,000 may be viewed by the IRS as a capital gain and thus subject to capital gain taxes. |
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If a Lead-Based Paint Disclosure form is not executed at the time of the sale of a dwelling built prior to 1978, the purchaser: may sue the seller for damages is not obligated under the terms of the contract is entitled to an inspection paid for by the seller may suffer damages as a result of caveat emptor |
A: is not obligated under the terms of the contract Penalties for failure to comply with Federal Lead-Based Paint Disclosure Laws include treble damages, attorney fees, costs and a penalty up to $10,000 for each violation. A buyer is not obligated under the terms of a contract until the lead-based disclosure has been executed. |
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A broker has an Exclusive Right-to-Buy contract with a principal. Who is to be their customer? Buyer Broker Seller Client |
A: Seller The Exclusive Right to Buyer is also know as the Buyer Agency agreement. It is the contract a buyer signs to engage a broker as a buyer's agent. Since the buyer is the principal, the only possible customer is a seller. |
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A broker acting as a transaction broker for a buyer, with no written agreement needs: nothing. This is the default representation in Colorado to provide the buyer with a copy of the “Brokerage Disclosure to Buyer” with the broker’s signature showing the date it was given to the Buyer. a signed Exclusive agreement in order to show the buyer property. a signed disclosure form from the Buyer. |
A: to provide the buyer with a copy of the “Brokerage Disclosure to Buyer” with the broker’s signature showing the date it was given to the Buyer. Even though the broker has no written agreement - the broker is still required to make a written disclosure as to their relationship. Absent a written agreement - the default relationship is transaction broker. |
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An inaccurate county tax certificate failed to indicate the correct taxes due. Additional tax money due would be the responsibility of the: Title Company Buyer's Agent Seller Country Treasurer |
A: Country Treasurer The fault lies with the County Treasurer |
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The covenant implied in a lease that ensures that the tenant will not be evicted by someone claiming prior ownership to that of the lessor is the: covenant of quiet enjoyment covenant of warranty forever covenant against encumbrances |
A: covenant of quiet enjoyment A tenant has the exclusive right to possess real property because of the implied covenant of quiet enjoyment. |
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When a buyer learns that the seller introduced into the contract fraudulent terms; the contract is: Void Valid Voidable by seller Voidable by buyer |
A: Voidable by buyer Only the buyer can void the contract, but it is not automatically voided. |
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An ad in the newspaper must appear under the name of: the branch office the broker of record the listing licensee none of the above |
A: the broker of record All advertising must contain the name of the employing broker. |
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The license laws of Colorado require a licensee to inform the seller that he has a real estate license if: the licensee is buying a home in which he will live the licensee is buying property for investment the licensee is selling a property which he owns all of the above |
A: all of the above An active licensee must disclose in both advertising and the contract that he is licensed. An inactive licensee must disclose in the contract that he is licensed. |
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When the license of an employing broker is suspended or revoked, his/hers licensees must: transfer existing contracts to a new employer continue listing and selling pending an appeal stop listing and selling obtain an independent broker’s license |
A: stop listing and selling A licensee must be affiliated with an approved active broker to practice real estate. |
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As per the Assignability and Inurement clause in the Contract to Buy/Sell Real Estate: Checking the "Is Not" box means the contract is not assignable Checking the "Is Not" box means the contract is not assignable without the seller's prior written consent |
A: Checking the "Is Not" box means the contract is not assignable without the seller's prior written consent Assignability and Inurement. This Contract ___ Is ___ Is Not assignable by Buyer without Seller’s prior written consent. |
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The most likely source of information for what water rights exist for a property with a well would be: An attorney County Clerk and Recorder County Planning Department State Engineer - Colorado Department of Natural Resources |
A: State Engineer - Colorado Department of Natural Resources For more information see the optional "Listing Firms Well Checklist" |
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When making a counter offer by using the approved Counterproposal form - how do you change dates? Add an addendum Mark through the old dates and enter new ones. Do nothing, a verbal notification is sufficient. Change only the dates that needed to be changed |
A: Change only the dates that needed to be changed The only dates which are changed in the original Contract to Buy/Sell Real Estate are those specified as changed in the Counterproposal form. All other dates are assumed to not have been affected. |
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Lily listed her house for sale with a broker on February 1st. The listing agreement was to last for five months but in April she decided that the house was no longer for sale. Which of the following statements is true? Lily is required by law to leave her house on the market until June. Lily has withdrawn the broker's authority to sell the property and may be subject to reimbursing some broker expenses. Lily has cancelled the agreement and there are no penalties. The real estate commission will decide if Lily' s action was justified. |
A: Lily has withdrawn the broker's authority to sell the property and may be subject to reimbursing some broker expenses. Lily may cancel the agreement but she may be responsible for some expenses. The real estate commission will not be involved. |
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Which is not true regarding the Counterproposal form: The purchase contract should not be signed by the person creating the counterproposal The date and deadlines table can be omitted if not used If a date or deadline is left blank it means "no change" The only changes allowed are purchase price and earnest money |
A: The only changes allowed are purchase price and earnest money Whoever creates the counterproposal can make any change they want. |
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The law that requires real estate contracts to be in writing to be enforceable is the statute of frauds. statute of limitations. law of descent and distribution. parole evidence rule. |
A: statute of frauds Under the Statute of Frauds, contracts for sale of real property must be in writing to be enforceable -- this is to prevent FRAUD from occurring |
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If mineral rights are not listed in the deed, and not previously transferred, the rights are: retained by grantor not owned not transferred transferred to the grantee |
A: transferred to the grantee In Colorado, all mineral rights except water are transferred with the property unless otherwise indicated in the deed or if the rights were transferred (i.e sold or given away) by a previous deed. The Seller is the "Grantor" (the creator of the deed), the Buyer is the "Grantee" (receives the deed) |
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If a landlord fails to refund the security deposit within one month (up to 60 days if specified in the lease) of the tenant surrendering the property, the landlord: is liable for the entire deposit is liable for treble the amount wrongfully withheld may be liable for double damages may extend the deposit return period for an additional 10 days if good cause exists |
A: is liable for treble the amount wrongfully withheld Reference CRS 38-12-103 (3) (a) |
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An associate broker may operate from: his home any branch office of his broker the address on his license any office the broker designates |
A: the address on his license Your license must be in your broker’s office, where you work. |
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A listing contract in which the broker’s commission is contingent upon the broker’s producing a buyer, before the property is sold by the owner or another broker is a(n): open listing net listing option listing exclusive right-to-sell listing |
A: open listing Only an open listing can be given to more than one broker. |
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An apartment owner signed an agency agreement with a broker to collect the rents on his apartments. All rents were due on the first of the month. On July 1, the broker had collected all of the rents, except from one tenant. On July 2, the owner died. The broker called the remaining tenant on July 3, but the tenant refused to pay the rent to the broker, saying that the death of the owner had revoked the broker’s right to collect. The tenant: was right could not refuse as the broker’s authority continued until the appointment of an executor or administrator could not refuse, because rent was due on July 1 has to pay the rent until notified by the owner or his representative not to |
A: was right The death of either the agent or the principal cancels any agency agreement. Since the owner died on July 2, the agency between the owner and the broker ceased, and the broker is no longer permitted to act on the behalf of the deceased. This does not mean that the rent is not due to the heirs of the deceased, it means the broker cannot collect it on behalf of the estate. |
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When a lessor dies the lease is affected in which of the following ways? It is terminated it is void it is not affected in any way It can be terminated by the lessee |
A: it is not affected in any way The death of the lessor does not affect the lease in any way and it can not be terminated or renegotiated. |
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The sellers have agreed to give the buyers an allowance to recarpet the living room. They will allow $22.95 per square yard for carpet plus $6.00 per square yard for pad and installation. If the living room is 21 feet x 12 feet, how much will it cost the sellers? $642.60 $810.60 $1,927.80 None of the above |
A: $810.60 21 feet x 12 feet = 252 square feet. 252 square feet divided by 9 = 28 square yards. The carpet is $22.95 x 28 = $642.60. The pad and instalation is $6.00 x 28 = $168. $642.60 + $168 = $810.50 total cost. |
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Ordinances that specify construction standards when repairing or erecting buildings are known as: equipment codes building codes variances permits |
A: building codes This is a definition of building codes. |
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A broker purchases software for contract printing. If there is an error in the contract wording: the Software Company is legally liable for any errors in the package the broker is liable for the contract’s accuracy the Software Company must be on the Real Estate Commission’s "approved" list of preparers he must send it to his attorney for review before using the software |
A: the broker is liable for the contract’s accuracy A broker is ultimately responsible for the accuracy of all contracts and closings, unless legal counsel of one of the parties to the transaction prepares them. |
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Richard and Jan Minard purchase a house for $85,000 from Mearl and Eunice Miley. They sign an installment land contract (aka land contract), and a $3,000 down payment is made. After only four months Richard and Jan are unable to make their payments, and are in default. All the following are true except: the Minards may have to forfeit all of the money they have paid, as well as the house this loan can be foreclosed as though it were a mortgage the Mileys may take the Minards to court and sue for payment as many times as the Minards are in default over the life of the loan the Minards have no opportunity to redeem their equity in this property |
A: this loan can be foreclosed as though it were a mortgage As this is an installment land contract (AKA land contract or contract for deed), there is no mortgage as the buyers have no title to this property. In this kind of contract the buyers have right of possession ,while the sellers retain legal title. It is not until the buyers have made all payments that they recieve legal title. Legally, they have no greater standing than renters. They may be in breach of this contract, but the sellers (Miley's) do not have to foreclose to take ownership of something to which they already have title. There is no foreclosure on an installment land contract. In this case, the buyers lose everything. |
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If an offer was made on a house in which the buyer intended to be have a a hair salon in the basement, but found out a few days prior to closing that the zoning wouldn't allow it, can they cancel the agreement without penalty? Yes No, the buyer must perform this due diligence prior to submitting an offer Yes, but only if they terminate in writing prior to the Record Title Objection Deadline Yes, as long as they file an objection in writing prior to Closing |
A: Yes, but only if they terminate in writing prior to the Record Title Objection Deadline Zoning is a matter of Title. Buyers have the right to terminate the contact without penalty if any aspect of Title is unsatisfactory to them. However, they must due so in writing prior to either the Off-Record Title Objection Deadline or the Record Title Objection Deadline. From the Contract to Buy/Sell: Title Advisory. The Title Documents affect the title, ownership and use of the Property and should be reviewed carefully. Additionally, other matters not reflected in the Title Documents may affect the title, ownership and use of the Property, including, without limitation, boundary lines and encroachments, area, zoning, unrecorded easements and claims of easements, leases and other unrecorded agreements, and various laws and governmental regulations concerning land use, development and environmental matters. The surface estate may be owned separately from the underlying mineral estate, and transfer of the surface estate does not necessarily include transfer of the mineral rights or water rights. Third parties may hold interests in oil, gas, other minerals, geothermal energy or water on or under the Property, which interests may give them rights to enter and use the Property. Such matters may be excluded from or not covered by the title insurance policy. Buyer is advised to timely consult legal counsel with respect to all such matters as there are strict time limits provided in this Contract [e.g., Record Title Objection Deadline (§ 3) and Off-Record Title Objection Deadline |
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The Colorado Real Estate Commission believes that Rule E-13 allows an agent to: advise a seller in the cancellation of an active listing negotiate terms for a future listing or take a listing effective upon the expiration of a current listing so long as the owner initiates contact with the licensee contact a seller, who is dissatisfied with the services of the broker with whom they have a listing and wish to cancel negotiate terms for a current listing |
A: negotiate terms for a future listing or take a listing effective upon the expiration of a current listing so long as the owner initiates contact with the licensee Sign crossing, going behind the sign (contacting the owner of a property that you know is already listed) is a violation, unless the owner contacted you. |
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In a condominium, what must the declaration allocate to each unit? Air space equivalent to the ownership interest in the community A percentage of the undivided interests in the common elements A percentage of the undivided interests in the income of the association A position on the board of directors |
A: A percentage of the undivided interests in the common elements A condominium is an estate in real property consisting of an individual interior in an apartment or commercial unit and an undivided common interest in the common areas in the condo project. |
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A tenant's, written, estate for years lease will expire on May 1. In order to obtain possession on May 1, the landlord must give the tenant: 30 days' notice 60 days' notice no notice notice on April 30 |
A: no notice An estate for years lease requires no notice for termination. |
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The Real Estate Commission approved Colorado Power of Attorney form creates a limited agency agreement is required in foreclosure sales creates a universal agency agreement may be used in place of a buyer agency agreement |
A: creates a limited agency agreement The Colorado Real Estate Commission approved Power of Attorney form is designed to establish a limited agency agreement sufficient to designate someone to sign on behalf of another for a real estate transaction. It is not designed to establish broader legal authority to act outside this limited legal scope. |
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Under Commission Rule F, all of the following are approved forms except: Contract to Exchange Real Estate Agreement to Amend/Extend Contract Business Opportunity Agreement Change of Status |
A: Business Opportunity Agreement Because of the diverse and complex agreements associated with business opportunities, they must be prepared by an attorney. |
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Which of the following is true with regard to the Seller's Property Disclosure form that is mentioned in an Exclusive-Right-to-Sell listing form? The seller is required by law to provide this form to every buyer. The seller may check the "as is" box, making the buyer responsible to find any defects. The seller may decline to provide the disclosure but still must disclose latent material defects. The seller may refuse to provide the disclosure and avoid disclosure of material defects. |
A: The seller may decline to provide the disclosure but still must disclose latent material defects. The seller has the choice whether to provide the disclosure form, but is nevertheless responsible for disclosure of hidden material defects |
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Chuck is a licensee who has listed the Carson's' home as a seller's agent and it is now under contract. The Carson's ask Chuck to also work with them to find and purchase a new home. What will be Chuck's role in the purchase transaction? he may be either an agent or transaction-broker depending on the mutual agreement he does not have to decide until the Carson's decide what home they want he will be agent for the seller of their next home and must disclose that he will continue to be their agent for all transactions with them |
A: he may be either an agent or transaction-broker depending on the mutual agreement In this other transaction, the Carson's may hire Chuck as either an agent or a transaction broker; this is not related to the previous relationship. Chuck must be aware that the Carson's may expect "agency" service even if the agreement is for transaction-broker representation. |
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Brokers should provide safeguards on seller-assisted down payments on: Commercial transactions Land transactions Time share transactions Residential transactions |
A: Residential transactions As per Commission Position Statement 30 (CP-30) "The Colorado Real Estate Commission and the Colorado Board of Real Estate Appraisers have issued this Joint Position Statement to address mutual concerns pertaining to practices of real estate brokers and real estate appraisers with regard to residential sales transactions involving seller assisted down payments, seller concessions, personal property transferred with real property and other items of value included in the sale of residential real property. A residential real estate transaction has a life well beyond closing and possession of the property. Accurate sales data is crucial for appraisals and comparative market analysis (CMA) work products. Both appraisers and real estate brokers can effectively work together to maintain the safeguards that accurate sold data affords." |
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For a VA loan - how will the Buyer's Loan Processing Fee be shown on a settlement sheet Debit Buyer Debit Seller Debit Broker Not indicated on settlement sheet |
A: Debit Seller The VA assigns this expense to the Seller. The Buyer can not pay it. |
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"The act of conducting the business or affairs for a property owner, including leasing, collecting rents, and supervising repairs and employees for a fee" is a definition of: property management financing brokerage agency |
A: property management Property management is the business of managing the affairs of a property owner. |
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A Corporation, LLC, Partnership must have E&O insurance for entity and employing broker. True False, only the employing broker requires E&O insurance False, only the legal entity requires E & O insurance False, only the individual licensee''s require E&O insurance |
A: True Rule D-14 Errors and omissions (E&O) insurance Every active real estate licensee, including licensed real estate companies, shall have in effect a policy of errors and omissions insurance to cover all acts requiring a license. |
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What is the maximum commission rate that a buyer may be charged pursuant to an exclusive right-to-buy contract? 0.028 0.03 0.07 none of the above |
A: none of the above Anti-trust laws prohibit price fixing. There is no maximum. |
