Colorado Real Estate Exam Questions And
Well Elaborated Solutions. Verified 100%
Correct
All of the following may draft a specific contract to buy and sell EXCEPT
A) The listing brokerage firm's attorney.
B) The seller's attorney.
C) The seller or the buyer.
D) The buyer's attorney. - ANSWER A) The listing brokerage firm's attorney.
Colorado-approved contracts contain a clause that states the parties agree to mediate
if they have a dispute. All of the following are true of the clause EXCEPT A) It is not a
negotiable choice.
B) The parties will jointly agree on a mediator and split the cost equally.
C) A signed resolution will be binding on all parties.
D) If the parties mediate, they may not proceed to arbitration or litigation. - ANSWER D)
If the parties mediate, they may not proceed to arbitration or litigation.
Which of the following is TRUE of a broker who attaches an addendum he drafted, but
was not negotiated by the parties, to a purchase contract?
A) The contract would be voidable.
B) This is not an issue if the broker's attorney reviewed the addendum.
C) The broker is in violation of Rule F.
D) The broker should have used a commission-approved form. - ANSWER C) The
broker is in violation of Rule F.
A broker has a signed Exclusive Right-To-Buy Listing Contract. The broker may get her
commission from
A) The buyer, the seller, or the listing broker.
B) Only from the listing broker or the seller; the buyer is under no obligation to pay.
C) The listing broker who must pay the negotiated fee at closing.
D) The buyer who must pay the fee at closing. - ANSWER A) The buyer, the seller, or
the listing broker.
A listing broker, using the Exclusive Right-to-Sell Listing Contract or Exclusive Right-
toBuy Listing Contract, would be obligated as part of the Brokerage Services and
Uniform
Duties to do all of the following EXCEPT
A) Account in a timely manner for all money and property received.
B) Advise the seller or the buyer to obtain expert advice.
,C) Verify the accuracy or completeness of the sellers' or the buyers' statements.
D) Close the property if the listing expires but there is an active Contract to Buy and
Sell. - ANSWER C) Verify the accuracy or completeness of the sellers' or the buyers'
statements.
The Commission has approved a form for use as of January 1. Brokers must use the
new form no later than
A) January 1.
B) 30 days after the deadline.
C) As soon as the computer software is updated.
D) Any time within the first six months. - ANSWER A) January 1.
Regarding the Contract to Buy and Sell's section on common interest community
documents, all of the following are true EXCEPT
A) The section creates a contingency, which, with proper written notice, the buyer
may use to terminate the contract.
B) The seller or the seller's representative is obligated to deliver the CIC documents
to the buyer before the date listed in the contract.
C) The seller will have until the CIC document resolution deadline to resolve any
CIC document issues the buyer finds.
D) The buyer's broker should recommend that the buyer have an attorney and/or an
accountant review the CIC documents during the contingency period. - ANSWER C)
The seller will have until the CIC document resolution deadline to resolve any CIC
document issues the buyer finds.
A buyer has sent a Notice to Terminate to the listing broker based upon the buyer's
inspection of the property. The notice was sent at 11:00 p.m. on the date listed under
the inspection objection deadline in the Contract to Buy and Sell. What is the next step
the listing broker should take?
A) Request that all parties, including the buyer's broker, sign an earnest money release
form.
B) Immediately return the earnest money to the buyer.
C) Tell the seller that they will have until the inspection resolution deadline to request
that the buyer give them a list of repairs so the contract can close.
D) Split the money with the seller because the buyer is in default. - ANSWER B)
Immediately return the earnest money to the buyer.
A broker and a seller agree orally to extend the term of an exclusive listing agreement.
The seller is bound by the extended dates
A) As long as the broker gets a written agreement to amend/extend before the revised
expiration date.
B) Because the statute of frauds permits oral modifications to written contracts.
, C) If the written agreement to amend/extend is signed before the original expiration
date.
D) Only if the broker gets a completely new listing agreement with the new date. -
ANSWER C) If the written agreement to amend/extend is signed before the original
expiration date.
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
provided
A) 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. - ANSWER D) At closing, or earlier
upon request of any party.
All of the following are true about the Lead-Based Paint Disclosure EXCEPT A)
It pertains to properties with building permits prior to January 1, 1978.
B) It is only the obligation of the seller and must be given to the buyer before
acceptance of an offer.
C) It is the obligation of the seller and all of the brokers.
D) The seller, listing broker, buyer, and selling broker should all sign the disclosure. -
ANSWER C) It is the obligation of the seller and all of the brokers.
The Square Footage Disclosure
A) Is used to determine valuation or financing.
B) Requires the listing and buyer brokers to give the source of a measurement.
C) Is used to disclose how residential property is measured.
D) Is used when marketing to disclose the square footage and is required for all types of
property. - ANSWER C) Is used to disclose how residential property is measured.
According to the financing obligations section of the approved Contract to Buy and Sell,
a seller providing seller financing for a transaction may do all of the following EXCEPT
A) Require the buyer to provide a credit report at the buyer's expense.
B) Verify the buyer's current employment.
C) Terminate the contract if the seller doesn't like the buyer's credit information by
written notice to the buyer.
D) Share the buyer's credit information with other potential lenders. - ANSWER D)
Share the buyer's credit information with other potential lenders.
The approved Licensee Buyout Addendum provides for all of the following EXCEPT A)
The buyer is a licensed broker and can qualify to make the purchase.
B) All losses or profits after closing will be the responsibility of the buyer.
Well Elaborated Solutions. Verified 100%
Correct
All of the following may draft a specific contract to buy and sell EXCEPT
A) The listing brokerage firm's attorney.
B) The seller's attorney.
C) The seller or the buyer.
D) The buyer's attorney. - ANSWER A) The listing brokerage firm's attorney.
Colorado-approved contracts contain a clause that states the parties agree to mediate
if they have a dispute. All of the following are true of the clause EXCEPT A) It is not a
negotiable choice.
B) The parties will jointly agree on a mediator and split the cost equally.
C) A signed resolution will be binding on all parties.
D) If the parties mediate, they may not proceed to arbitration or litigation. - ANSWER D)
If the parties mediate, they may not proceed to arbitration or litigation.
Which of the following is TRUE of a broker who attaches an addendum he drafted, but
was not negotiated by the parties, to a purchase contract?
A) The contract would be voidable.
B) This is not an issue if the broker's attorney reviewed the addendum.
C) The broker is in violation of Rule F.
D) The broker should have used a commission-approved form. - ANSWER C) The
broker is in violation of Rule F.
A broker has a signed Exclusive Right-To-Buy Listing Contract. The broker may get her
commission from
A) The buyer, the seller, or the listing broker.
B) Only from the listing broker or the seller; the buyer is under no obligation to pay.
C) The listing broker who must pay the negotiated fee at closing.
D) The buyer who must pay the fee at closing. - ANSWER A) The buyer, the seller, or
the listing broker.
A listing broker, using the Exclusive Right-to-Sell Listing Contract or Exclusive Right-
toBuy Listing Contract, would be obligated as part of the Brokerage Services and
Uniform
Duties to do all of the following EXCEPT
A) Account in a timely manner for all money and property received.
B) Advise the seller or the buyer to obtain expert advice.
,C) Verify the accuracy or completeness of the sellers' or the buyers' statements.
D) Close the property if the listing expires but there is an active Contract to Buy and
Sell. - ANSWER C) Verify the accuracy or completeness of the sellers' or the buyers'
statements.
The Commission has approved a form for use as of January 1. Brokers must use the
new form no later than
A) January 1.
B) 30 days after the deadline.
C) As soon as the computer software is updated.
D) Any time within the first six months. - ANSWER A) January 1.
Regarding the Contract to Buy and Sell's section on common interest community
documents, all of the following are true EXCEPT
A) The section creates a contingency, which, with proper written notice, the buyer
may use to terminate the contract.
B) The seller or the seller's representative is obligated to deliver the CIC documents
to the buyer before the date listed in the contract.
C) The seller will have until the CIC document resolution deadline to resolve any
CIC document issues the buyer finds.
D) The buyer's broker should recommend that the buyer have an attorney and/or an
accountant review the CIC documents during the contingency period. - ANSWER C)
The seller will have until the CIC document resolution deadline to resolve any CIC
document issues the buyer finds.
A buyer has sent a Notice to Terminate to the listing broker based upon the buyer's
inspection of the property. The notice was sent at 11:00 p.m. on the date listed under
the inspection objection deadline in the Contract to Buy and Sell. What is the next step
the listing broker should take?
A) Request that all parties, including the buyer's broker, sign an earnest money release
form.
B) Immediately return the earnest money to the buyer.
C) Tell the seller that they will have until the inspection resolution deadline to request
that the buyer give them a list of repairs so the contract can close.
D) Split the money with the seller because the buyer is in default. - ANSWER B)
Immediately return the earnest money to the buyer.
A broker and a seller agree orally to extend the term of an exclusive listing agreement.
The seller is bound by the extended dates
A) As long as the broker gets a written agreement to amend/extend before the revised
expiration date.
B) Because the statute of frauds permits oral modifications to written contracts.
, C) If the written agreement to amend/extend is signed before the original expiration
date.
D) Only if the broker gets a completely new listing agreement with the new date. -
ANSWER C) If the written agreement to amend/extend is signed before the original
expiration date.
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
provided
A) 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. - ANSWER D) At closing, or earlier
upon request of any party.
All of the following are true about the Lead-Based Paint Disclosure EXCEPT A)
It pertains to properties with building permits prior to January 1, 1978.
B) It is only the obligation of the seller and must be given to the buyer before
acceptance of an offer.
C) It is the obligation of the seller and all of the brokers.
D) The seller, listing broker, buyer, and selling broker should all sign the disclosure. -
ANSWER C) It is the obligation of the seller and all of the brokers.
The Square Footage Disclosure
A) Is used to determine valuation or financing.
B) Requires the listing and buyer brokers to give the source of a measurement.
C) Is used to disclose how residential property is measured.
D) Is used when marketing to disclose the square footage and is required for all types of
property. - ANSWER C) Is used to disclose how residential property is measured.
According to the financing obligations section of the approved Contract to Buy and Sell,
a seller providing seller financing for a transaction may do all of the following EXCEPT
A) Require the buyer to provide a credit report at the buyer's expense.
B) Verify the buyer's current employment.
C) Terminate the contract if the seller doesn't like the buyer's credit information by
written notice to the buyer.
D) Share the buyer's credit information with other potential lenders. - ANSWER D)
Share the buyer's credit information with other potential lenders.
The approved Licensee Buyout Addendum provides for all of the following EXCEPT A)
The buyer is a licensed broker and can qualify to make the purchase.
B) All losses or profits after closing will be the responsibility of the buyer.
