Colorado Real Estate Exam Preparation: Questions &
Answers : Updated A+ Guide
Vicarious Liability - ANSWERliability the principal has for their broker when those
acts are directed, approved or ratified by the buyer or seller, LL or TT
A broker paid their renewal fee 1 month after expiration What is the status during
that month? - ANSWERexpired
Associate must deliver closing documents to brokerage when? -
ANSWERImmediately after closing
Which of the following is exempt from real estate licensing law in CO? -
ANSWERInvestor who owns more than 6 houses and sells 2 of them to a private
individual (for sale by owner)
Out of state broker not licensed in CO may receive a referral fee only if -
ANSWERthey maintain an office in the other state
A licensee may accept a referral fee from their buyer's lender - ANSWERwith prior
written consent from both buyer and seller
Under what circumstance may a licensee not provide a CMA - ANSWERwhen the
buyer's lender needs an evaluation for a second mortgage
Broker responsibility to provide a high level of supervision applies to -
ANSWERassociates who have been licensed for 2 years or less
REC could use all of the following as a consequence except - ANSWERup to 6 months
in jail
the term 3rd party means - ANSWERcustomer that has no relationship to the broker
Change of status - ANSWERagent to transaction broker
CBS - well rights - ANSWERif a closing agent provides closing services, the closing
agent must send the change of ownership form to the state engineer within 60 days
CBS - if no closing agent is used - ANSWERbuyer is required to file the documents
designated broker - ANSWERlicensee who has been designated to serve as an agent
or TB (does not apply to one person firms)
who should you register wells with? - ANSWERstate engineer, could take 3 months
,cbs - dates and deadlines appear where? - ANSWERdo not appear in contract
sections, rather the sections reference the date and deadline notes in Section 3.1,
CBS - if a date or deadline passes without action - ANSWEReither party has lost a
right or a default has occured
CBS - appraisal deadlines do not apply to - ANSWERFHA insured or VA guarantee
loans
CBS - earnest money release form - ANSWERshould be signed and returned within 3
days of receipt
CBS - earnest money holder - ANSWERmust release the earnest money within 5 days
of receipt of the release form
cbs - (TRID) truth in lending/respa integrated disclosures - ANSWERrequired lenders
to provide a loan estimate within 3 days after loan application
dual-agency and sub-agency - ANSWERnot allowed in CO
cbs - if actual principal balance of the existing loan at closing is less than the
assumption balance - ANSWERthe amount of cash required from buyer at closing is
increased
-Buyer has the right to terminate on or before closing date
if loan balance is lower than anticipated - ANSWERbuyer would have to provide
additional down payment dollars
cbs - financing deadline - ANSWERdate by which the buyer must provide a written
loan commitment
-buyer or seller may terminate due to this deadline
lender may not submit loan application until what is received from borrower -
ANSWERproperty address, estimate of value of the property and mortgage loan
amount requested
new loan terms deadline - ANSWERallows the buyer and seller to terminate the
contract at an early date if the proposed loan terms are not acceptable to buyer
lender property requirements - ANSWERrepairs to property
allows for negotiation or termination between buyer and seller if lender requires
repairs be made to a property before agreeing to finance the buyers purchase
who typically pays for appraisal - ANSWERbuyer, but can be whichever depending on
which box is checked
, when does seller provide association documents? - ANSWERat seller's expense to
buyer on or before the association documents deadline
-buyer has right to terminate on or before association documents termination
deadline based on any unsatisfactory provision in any of the association documents
what happens if association documents are delivered late? - ANSWERbuyer has 10
days from the time of delivery to review and terminate the contract on or before
closing
loan to value ration is determined by - ANSWERlower of the 2 - sales provide or
appraised value
the buyer requests that a security system be included with the property -
ANSWERcheck a box adding the security system
what can provide evidence of marketable title? - ANSWERtitle insurance or an
abstract of title
if the title insurance policy is not issued at closing - ANSWERseller agrees to "cause
the title policy to be issued and delivered as soon as practicable at or after closing"
when should record title deadline occur? - ANSWERearly in the transaction before
inspection, loan, survey or appraisal deadlines
title documents include - ANSWERall documents affecting title including those
related to exceptions to the title commitment such as liens and easements that will
not be released
buyers investigate if the house is in a special tax district by - ANSWERcontacting the
county treasurer's office and/or reviewing the tax certificate provided with the title
commitment
what can affect title - ANSWERrecorded and unrecorded matters (PETE and DELL,
boundary lines and encroachments, set back requirements, area, zoning, building
code violations, easements, leases etc)
surface estate of property - ANSWERmay be owned separately from the undelying
mineral estate and transfer of the surface estate may not necessarily include transfer
of the mineral estate or water rights
ILC (improvement location certificate) - ANSWERdrawing of the property showing
the approximate location of improvements and does not usually include a site visit
by surveyor
ILC does not verify - ANSWERlegal description or lot boundaries
Answers : Updated A+ Guide
Vicarious Liability - ANSWERliability the principal has for their broker when those
acts are directed, approved or ratified by the buyer or seller, LL or TT
A broker paid their renewal fee 1 month after expiration What is the status during
that month? - ANSWERexpired
Associate must deliver closing documents to brokerage when? -
ANSWERImmediately after closing
Which of the following is exempt from real estate licensing law in CO? -
ANSWERInvestor who owns more than 6 houses and sells 2 of them to a private
individual (for sale by owner)
Out of state broker not licensed in CO may receive a referral fee only if -
ANSWERthey maintain an office in the other state
A licensee may accept a referral fee from their buyer's lender - ANSWERwith prior
written consent from both buyer and seller
Under what circumstance may a licensee not provide a CMA - ANSWERwhen the
buyer's lender needs an evaluation for a second mortgage
Broker responsibility to provide a high level of supervision applies to -
ANSWERassociates who have been licensed for 2 years or less
REC could use all of the following as a consequence except - ANSWERup to 6 months
in jail
the term 3rd party means - ANSWERcustomer that has no relationship to the broker
Change of status - ANSWERagent to transaction broker
CBS - well rights - ANSWERif a closing agent provides closing services, the closing
agent must send the change of ownership form to the state engineer within 60 days
CBS - if no closing agent is used - ANSWERbuyer is required to file the documents
designated broker - ANSWERlicensee who has been designated to serve as an agent
or TB (does not apply to one person firms)
who should you register wells with? - ANSWERstate engineer, could take 3 months
,cbs - dates and deadlines appear where? - ANSWERdo not appear in contract
sections, rather the sections reference the date and deadline notes in Section 3.1,
CBS - if a date or deadline passes without action - ANSWEReither party has lost a
right or a default has occured
CBS - appraisal deadlines do not apply to - ANSWERFHA insured or VA guarantee
loans
CBS - earnest money release form - ANSWERshould be signed and returned within 3
days of receipt
CBS - earnest money holder - ANSWERmust release the earnest money within 5 days
of receipt of the release form
cbs - (TRID) truth in lending/respa integrated disclosures - ANSWERrequired lenders
to provide a loan estimate within 3 days after loan application
dual-agency and sub-agency - ANSWERnot allowed in CO
cbs - if actual principal balance of the existing loan at closing is less than the
assumption balance - ANSWERthe amount of cash required from buyer at closing is
increased
-Buyer has the right to terminate on or before closing date
if loan balance is lower than anticipated - ANSWERbuyer would have to provide
additional down payment dollars
cbs - financing deadline - ANSWERdate by which the buyer must provide a written
loan commitment
-buyer or seller may terminate due to this deadline
lender may not submit loan application until what is received from borrower -
ANSWERproperty address, estimate of value of the property and mortgage loan
amount requested
new loan terms deadline - ANSWERallows the buyer and seller to terminate the
contract at an early date if the proposed loan terms are not acceptable to buyer
lender property requirements - ANSWERrepairs to property
allows for negotiation or termination between buyer and seller if lender requires
repairs be made to a property before agreeing to finance the buyers purchase
who typically pays for appraisal - ANSWERbuyer, but can be whichever depending on
which box is checked
, when does seller provide association documents? - ANSWERat seller's expense to
buyer on or before the association documents deadline
-buyer has right to terminate on or before association documents termination
deadline based on any unsatisfactory provision in any of the association documents
what happens if association documents are delivered late? - ANSWERbuyer has 10
days from the time of delivery to review and terminate the contract on or before
closing
loan to value ration is determined by - ANSWERlower of the 2 - sales provide or
appraised value
the buyer requests that a security system be included with the property -
ANSWERcheck a box adding the security system
what can provide evidence of marketable title? - ANSWERtitle insurance or an
abstract of title
if the title insurance policy is not issued at closing - ANSWERseller agrees to "cause
the title policy to be issued and delivered as soon as practicable at or after closing"
when should record title deadline occur? - ANSWERearly in the transaction before
inspection, loan, survey or appraisal deadlines
title documents include - ANSWERall documents affecting title including those
related to exceptions to the title commitment such as liens and easements that will
not be released
buyers investigate if the house is in a special tax district by - ANSWERcontacting the
county treasurer's office and/or reviewing the tax certificate provided with the title
commitment
what can affect title - ANSWERrecorded and unrecorded matters (PETE and DELL,
boundary lines and encroachments, set back requirements, area, zoning, building
code violations, easements, leases etc)
surface estate of property - ANSWERmay be owned separately from the undelying
mineral estate and transfer of the surface estate may not necessarily include transfer
of the mineral estate or water rights
ILC (improvement location certificate) - ANSWERdrawing of the property showing
the approximate location of improvements and does not usually include a site visit
by surveyor
ILC does not verify - ANSWERlegal description or lot boundaries
