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66 Cards in this Set
- Front
- Back
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If the seller defaults, what remedies are provided for the buyer by the Contract to Buy & Sell Real Estate (Residential)? |
Under the Contract to Buy & Sell, if the seller defaults, the buyer has the option of recovering such damages as may be proper, including return of the earnest money, or may pursue the seller in a suit for specific performances/damages. |
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Under the Contract to Buy & Sell, who bears the risk of damage by fire or other casualty prior to the time of closing? |
In the event of damage by fire or other casualty prior to closing, in an amount not more than 10% of the purchase price, the seller is obligated to repair the damage before closing.
In the event the damage cannot be repaired before closing, or if the damage exceeds 10% of the purchase price, the contract can be cancelled at the option of the purchaser. |
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Does the death of either party automatically terminate the buy & sell contract? May this contract be assigned? |
Death of either the buyer or seller does not terminate the buy & sell contract. The contract may not be assigned by the purchaser without prior, written approval of the seller unless the box is checked in the contract making the contract assignable. |
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What evidence of title will be provided according to the Contract to Buy and Sell?
Who provides, chooses and pays for the title policy? |
Evidence of title might be either an abstract of title, or a commitment for and a title insurance policy.
Either the buyer or seller will choose the title company and pay for the policy. |
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When must a developer register with the Colorado Real Estate Commission? |
A developer must register with the Real Estate Commission before negotiating to sell, lease or transfer any subdivision or part thereof which constitutes 20 or more building sites, not intended for commercial or industrial use, which are contiguous or which were formerly part of an undivided parcel. |
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What does the sales contract provide with regard to the failure of fixtures or services after the contract has been signed but before closing? |
If any fixtures or services fail between the date of the contract & the date of possession or date of closing, whichever is earlier, the seller is responsible for either: the repair or replacement of such fixtures or services with a unit of similar size, age & quality; or an equivalent credit. |
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An application for license must be filed within what time period after passing both portions of the licensing examination? |
A licensing application must be filed within one year after passing the license exam.
If only one part of the exam is passed on the first attempt, the one year period begins after the second part of the exam has passed. |
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When must the original license be renewed?
When must it be renewed thereafter? |
The original license is issued for a three year period & must be renewed three years from the date of licensure.
Licenses must then be renewed every three years thereafter.
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Is a water right real or personal property? |
A water right is considered real property, it is subject to taxation as real property, and it may be mortgaged with or apart from the land where it is located. In Colorado, it is presumed that a party to a conveyance of land does not intend a water right to be passed as an appurtenance, if not mentioned in the deed. A purchaser might overcome this presumption by evidence of different intent. |
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When the indebtedness secured by a trust deed has been paid, what procedure is followed to procure a release of the deed of trust? |
The procedure to procure a release of a deed of trust is: The beneficiary must execute (1) a request for a release of deed of trust & present it to the public trustee, together with (2) the original cancelled note, and (3) the deed of trust, whereupon the public trustee will execute the release of the deed of trust upon payment of his fee. |
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Who appoints public trustees in Colorado? |
In larger counties, the public trustee is appointed by the Governor, and in smaller counties the county treasurer serves as public trustee. |
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Before property in a subdivision can be sold or leased, what must be obtained? |
Unless exempt, before property in a subdivision can be sold or leased, a subdivision shall register with the Real Estate Commission. |
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If a licensee has received written notification from the Real Estate Commission that a complaint has been filed against him, what must the licensee do? |
The licensee must submit a written response to the Real Estate Commission. |
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Must every listing contract have a definite termination date? |
A definite termination date must be provided in every written listing. |
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May a real estate licensee deal with an owner who has given an exclusive listing to another licensee? |
A real estate licensee may not negotiate directly with an owner if he knows that the owner is under a written, unexpired exclusive agreement to sell or lease.
If the licensee is contacted by the owner, the licensee may negotiate the terms upon which a future listing may be taken, or take a listing to be effective upon the expiration of a current listing. |
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When may a licensed Colorado broker pay a finder's fee, or a share of the commission, to a broker who is licensed in another state but is not licensed in Colorado? |
A licensed Colorado broker may share compensation with an out of state broker provided; The out of state broker resides & maintains an office in the other state; all advertising, negotiations, contracting & conveyancing done in Colorado are performed in the name of the Colorado broker; and all money collected prior to the closing is deposited in the name of the licensed Colorado Broker in a Colorado trust account. |
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Assumption of Sellers Loan |
Debit Seller / Credit Buyer for accrued interest |
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Treasurer's Deed |
If property is sold due to foreclosure & owner fails to redeem the bidder gets a Treasurer's Deed |
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Is a condo a proprietary lease?
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No! |
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Who does the money held in escrow for payment of taxes belong to? |
The Borrower |
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Insurance |
is a fixed expense |
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Increased Demand |
= Seller's Market
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A-B for life of C and then D If B dies while C is alive who does the estate go to? |
The heirs |
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MAI |
Appraiser Designation |
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What would a title search not reveal? |
Encroachments |
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External Obsolescence |
4 lane highway |
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Essential Parts of a Contract |
-Offer & Acceptance - Competent Parties - Legal Purpose
not Acknowledgment |
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Seller Carry Back Loan |
Debit Seller |
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$2400 taxes paid in advance closing Nov 15th |
Credit Seller $300 Debit Buyer
(b/c paid in advance) |
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Title Insurance Policy |
Covers losses due to past title defects that are unkown |
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Non-Conforming Use |
Renewed annually |
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Sign Crossing Rule |
Licensee cannot negotiate a sale or listing if he knows another licensee has been granted an exclusive right to sell listing. However, if the licensee has been contacted by the owner & not initiated the discussion, the licensee may negotiate terms on which he might take a future listing effective upon expiration of the previous listing |
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You cannot make it to your closing. Who is responsible? |
Employing Broker Broker who initiates transaction Broker who attends |
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Procuring or attempting to procure a license by fraud or misrepresentation |
.....is subject to disciplinary action
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Holdover Agreement |
applies only to those with whom the broker negotiated during the term of the agreement and whose names were submitted in writing during the term of the agreement |
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CMA or BPO cannot be used for ..... |
......purposes of financing |
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Square Footage |
Disclosure is required if square footage is included in marketing materials.
Applies to residential only
Must disclose methodology
Responsible for obvious mismeasurement of others |
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TD 1000 |
Ensures property transfers at a fair & equitable value
Used to insure equal taxation |
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What must a broker do if suggests using a title company he has an interest in? |
Disclose in writing |
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Who is responsible for paying the Colorado Use Tax when there is a sale of a business that includes personal property? |
Buyer |
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Licensee Buyout Addendum |
The buyer may not charge back expenses to the seller |
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Continuing education would not apply to |
completing 3 years without a complaint to the REC |
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What information is needed for moneys entered into a sales escrow account? |
Name Address Date Check # Balance Deposit Receipt Amount |
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Termination of Tenancy |
Security deposit must be returned within 60 days in spite of agreement to the contrary |
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All provided in Licensee Buyout Addendum except |
Seller to pay all holding and selling expense |
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When may a licensee receive a referral fee? |
For services actually rendered according to the CREC |
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Assumed Loan on settlement sheet |
Debit Seller / Credit Buyer |
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Inspection Provision in the contract to buy & sell allows the buyer to.... |
terminate no later than the deadline |
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How are general taxes prorated by the buyer & seller? |
by checking the appropriate box |
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Change your listing status |
by indicating on the appropriate form |
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Brokerage Disclosure to Buyer (form) |
Correct Disclosure form when buyer wants to work with you |
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Broker working with a buyer without a written agreement |
Transaction Broker |
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Good Funds at Closing |
Available for immediate withdrawal as a matter of right in which funds have been deposited or
Available for immediate withdrawal as a matter of consequence of an agreement of a financial institution |
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Additional Provisions |
A broker who is not a party to the contract (to buy & sell) he may not insert personal provisions or exculpatory language |
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Commission Approved Form Reproduction |
Brokers who generate forms thru the use of a computer shall ensure security software is utilized to prevent inadvertent change or prohibited modification |
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Brokers may not hire legal counsel to..... |
draft an alternative form when a commission approved form is available |
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Estoppel Statement |
Verification of lease terms by tenant for buyer |
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Vicarious Liability |
The legal liability one party has for the actions of another |
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Transaction Broker |
Neutral
Default brokerage relationship (with disclosure) |
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In Company Transaction |
employing broker may designate a single agent for the seller & a different broker to work with the buyer in the same transaction |
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In Company Personal Transaction |
Transaction Broker to both buyer & seller OR Agent for seller & buyer is customer (or vice versa) |
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Referral Fees
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Only if reasonable cause exists:
- actual introduction of business - contractual referral fee relationship - contractual cooperative brokerage relationship |
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RESPA prohibits |
....the payment or receipt of referral fees & kickbacks which unnecessarily increase the cost of settlement services |
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A broker would not facilitate these safeguards by adherence to which of the following? |
Disclose the true sales price to the Real Estate Commission |
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Everything listing includes: |
- type of listing - the brokerage relationship - who pays commission
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Parol Evidence |
Entire Agreement - entire contract between parties & any prior agreements that have been merged & integrated into the seller listing contract |
