Adverse possession matures into title after open, notorious and hostile possession for:
- 18 years; 17 years with color of title
- 7 years; 18 years with color of title
- 18 years
- 7 years
18 years
- Without color of title it's 18 years with color of title it's 7 years
An agent is working for the buyer; which of the following would be true?
- The agent has a fiduciary responsibility to the seller
- The buyer's agent may never receive a commission from the seller
- The agent need only give oral notice of his agency
- The agent can receive his compensation from the seller
The agent can receive his compensation from the seller
- The listing broker can compensate the buyer’s agent out of the listing commission if the seller authorizes such payment.
A broker is working with a person who wants to subdivide her condo into 52 separate time-shares. The timeshare plan must be registered with:
- Colorado Secretary of State
- Colorado Land Use Commission
- HUD
- Colorado Real Estate Commission
Colorado Real Estate Commission
- Subdividing any residential property into 20 or more units for sale, transfer, lease or timeshares must be registered with the Colorado Real Estate Commission.
Real property is closing on May 15. The buyer is assuming the seller’s mortgage. As of closing the balance is $65,325. The annual interest rate is 8%. How should the interest on the loan be prorated based on a banker’s year (360 days in a year, 30 days in a month)
- Debit the buyer $232.32
- Debit the seller $232.32
- Debit the buyer $217.75
- Debit the seller $217.75
You have a listing with a couple who hold title in joint tenancy. A broker brings you an offer and the couple indicates that they will probably accept the offer, but they want to think it over for a few hours. During those few hours they are involved in a traffic accident and one of them is killed. What would be the status of the listing?
- the listing agreement is enforceable against the surviving spouse
- the listing agreement is cancelled
- the offer to purchase is void
- the offer to purchase is still valid
the listing agreement is enforceable against the surviving spouse
The licensee is holding an Exclusive Right to Sell Listing contract, s/he:
- must sell the seller's property to comply with the contract
- Agrees to work exclusively with this seller and no others at the same time
- Cannot work with buyers who might be interested in the property
- has permission to work with other sellers
has permission to work with other sellers
- One of the Brokerage Duties listed in the listing contract specifically allows the broker to work with other sellers. The term "Exclusive" in the title of the agreement means the seller is working "Exclusively" with the brokerage in the sale of the home, not that the brokerage is working "Exclusively" with the seller and thus has no other listing clients.
The Exclusive Right-to-Sell listing contract gives the listing broker the right to:
- sign the purchase agreement for the seller
- collect deposits from the purchasers
- assign the listing agreement to another broker
- all of the above
collect deposits from the purchasers
- The listing broker on behalf of the brokerage firm is authorized by the seller to collect and hold earnest money as a neutral escrow agent.
Licensees are NOT required to use the Licensee Buyout Addendum to Contract to Buy and Sell under which of the following circumstances?
- When the licensee enters into a contract to purchase a property concurrent with the listing of such property
- When the licensee enters into a contract to purchase a property as an inducement or to facilitate the seller’s purchase of another property
- When a licensee enters into a contract to purchase a property from the owner but continues to market it for that owner under an existing listing agreement
- When an agent decides to purchase a property listed by another broker
When an agent decides to purchase a property listed by another broker
- The licensee buyout addendum must only be used when the licensee is purchasing his/her own listing. 4 is correct. 4 is the only verbiage listed NOT in the Licensee Buyout Addendum.
Under the liquidated damages clause, in the Contract To Buy and Sell Real Estate, if the buyer defaults the seller has what options?
- take earnest money
- return earnest money
- specific performance
- court costs, and additional damages
take earnest money
- The seller’s sole and only remedy is to take the earnest money. To have recourse to the courts for damages, the Specific Performance option must have been chosen in the contract.
According to the rules and regulations of the Colorado Real Estate Commission, a broker is REQUIRED to recommend that:
- the buyer have title reviewed by legal counsel
- the buyer have an appraisal by a licensed appraiser
- the buyer have an inspection by a certified house inspector
- all of the above
the buyer have title reviewed by legal counsel
Which of the following is true if a broker negotiates a Success Fee under the Exclusive-Right-to-Buy Contract?
- The listing broker must pay the negotiated fee at closing.
- The buyer will pay the fee at closing.
- The buyer will indicate who is to pay the fee
- The seller always pays the fee
The buyer will indicate who is to pay the fee
When a contract is rejected by the Seller, the seller should:
- not sign or return the contract
- write "rejected" across the front of the contract
- check the appropriate box and initial on the indicated line
- indicate a rejection on the appropriate box and complete a counteroffer
not sign or return the contract
- Notify the buyer that the offer is rejected. Do not sign the contract as that would constitute acceptance and there is no need to return the rejected offer.
After the Seller's columns on a Settlement sheet have been subtotaled, to balance the two debit and credit columns, a credit to the Seller and a debit to the broker would represent:
- money due to the buyer
- money due to the seller
- money owed by the seller
- money owed by the buyer
money owed by the seller
- When the Seller's credit column is less than the debit column you need to add a credit to make them both equal. This means the credit column (containing the sale price) is less than the debits (containing among items - money owed on the property). This Seller is "upside-down." This credit ends up representing money the Seller must bring to the Closing and give to the Broker to pay off debts. (A Broker Debit is a deposit into the escrow account and a check that has to be written).
As per the Mediation clause in the Contact to Buy/Sale Real Estate: "The mediation, unless otherwise agreed, will terminate in the event the entire dispute is not resolved within _________ days of the date written notice requesting mediation is delivered by one party to the other at the party’s last known address
- 30
- 45
- 60
- 90
As per the Mediation clause in the Contact to Buy/Sale Real Estate: "The mediation, unless otherwise agreed, will terminate in the event the entire dispute is not resolved within _________ days of the date written notice requesting mediation is delivered by one party to the other at the party’s
- no, it is impossible to determine the negative impact of construction a mile away
- yes, you can make a contract contigent on anything
yes, you can make a contract contigent on anything.
- This is a matter of negotiation between the buyer and seller. The law has no jurisdiction on matters of negotiation between a buyer and seller.
under license law which of the following is the lowest form of discipline the Commission may give a licensee
- censure
- revocation
- letter of admonishment
- suspension
which of the following transactions require a real estate license?
- the public trustee selling property at a foreclosure auction
- inactive license receiving a finder's fee for assisting a neighbor to seller her home.
- an attorney selling her private home and advertising it in social and print media
- a government employee buying right of ways for road construction
inactive licensee receiving a finder's fee for assisting a neighbor to sell her home
a colorado broker renewing her license could use which of the following to meet the requirements of license law
- 24 hours of any electives over three years
- 4 annual commission updates, one per year, and 8 hours of electives
- take and pass the state portion of the license exam
- 3 annual commission updates, and a NAR marketing class
take and pass the state portion of the license exam
a non resident broker in Colorado
- must have an office open to the public
- must agree to return to Colorado if sued
- may keep Colorado trust funds in their out of state trust account
- must have an employing broker level license
must agree to return to Colorado if sued
- they must have an office in their home state, keep trust funds in a Colorado trust acount and agree to return to Colorado if sued.
the listing broker has requested the seller lower the listing price. the seller agrees to lower the price if the listing broker will lower her commission by 1%. Under license law this is
- not allowed as only the employing broker may lower commissions
- allowed and considered to be a commission rebate
- an inducement and is not allowed
- allowed only if the MLS co-op fee is also reduced
allowed and considered to be a commission rebate
a broker has been approached by her neighbor who has her home listed with another firm. the neighbor is not happy with the current firm and would like to hire the broker. In this case the broker
- may inform the current firm they are fired and take the listing
- must wait until the listing terminates to list the property
- may take a listing that starts upon termination of the current listing
- may not discuss the listing until the neighbor has terminated the current listing
may take a listing that starts upon the termination of the current listing
the employing broker has been called out of the country, in this case the management of the firm
- can continue to be handled by the broker if she has cellphone service
- may be turned over to the unlicensed office manager who has 20 years experience
- could be turned over to a qualified broker from a different firm, if no one is qualified in the brokers firm
- may be turned over to anyone the employing broker feels qualified
could be turned over to a qualified broker from a different firm, if no one is qualified in the broker's firm
the right to cure foreclosure period for nonagricultural property is
- 215 to 230 days
- 110 to 215 days
- 125 to 230 days
- 110 to 125 days
110 to 125 days
- agriculture property has 215 to 230 days
All of the following are Commission approved forms except
- promissory notes
- contract to buy and sell- New construction
- Real property transfer declaration
- amend/extend contract
contract to buy and sell-new construction
- there are no approved forms for new construction
A buyer's agent is worried the home the buyer is looking at may have mold issues which she would be sued over if they are not disclosed. The broker has drafted an addendum to the Contract to buy and sell for the seller and the buyer to sign, which details that mold may be present. In this case the broker
- is protecting and advocating for both the buyer and the seller which is required under Colorado agency law
- has a fiduciary obligation to the parties to warn them, since there is not approved form
- can practice limited law due to the severity of the issue
- may not draft the addendum since she is not a party to the contract
may not draft the addendum since she is not a party to the contract
- brokers are not parties to the contract to buy and sell
mediation in Colorado contracts
- is for a period negotiated by the parties
- does not allow litigation or arbitration
- is binding even if no resolution is reached
- requires the party to mediate for up to 30 days
requires the party to mediate for up to 30 days
The employing broker has asked the firms attorney to draft an addendum to all the companys representation contracts disclosing and clarifying issues the broker is concerned about. In this case the forms are
- in violation of Rule F since they are not approved
- informational only and can't be used in court
- allowed since the firm and associates are a party to the contract
- not allowed as only approved forms may be used.
allowed since the firm and associates are a party to the contract.
a buyer wants the freestanding stove and refrigerator included. What does the buyer's broker need to do to make sure the buyer gets these items?
- make sure they are listed on the deed at closing
- nothing, since they are fixtures and automatically transfer
- include them in the sales contract to be transferred at closing
- add a note in additional provisions these items are to be included in the deed.
include them in the sales contract to be transferred at closing
all of the are true of the Seller's property disclosure except
- the form is not required by law, but the contract to buy and sell requests the form
- the seller does not have to use the approved form but must give a written disclosure
- the seller not the broker should complete the form
- the form is required by law and must be completed before an offer is excepted.
the form is required by law and must be completed before an offer is excepted.
who is responsible for making sure the buyer is given a lead based paint disclosure and the required EPA booklet?
- listing brokers
- buyers broker
- seller
- lender
The responsibilities of the brokers on properties requiring a Lead Based paint disclosure are to
- complete the disclosure and make sure all parties sign it
- make sure the seller and the buyer are in compliance with the law
- require the seller have the property tested and remove any Lead paint
- have the seller complete the disclosure, the buyer's broker must give the buyer the required EPA booklet
make sure the seller and the buyer are in compliance with the law
The party responsible for supplying the Square footage disclosure for residential property is the
- appraiser
- seller
- listing broker
- buyers broker
all of the following are TRUE regarding the Square footage disclosure Except
- the listing broker may use a reliable, named source of the measurement
- the square footage is not to be used by an appriaser or for financing
- both the listing and buyers broker are responsible for accuracy of the square footage
- the listing broker must have the property measured and describe the method
the listing broker must have the property measured and describe the method
the party who has the choice to offer liquidated damages or specific performance in case they default, is the
- buyer
- lender
- seller
- broker
buyer
- the buyer may choose to offer either liquidated damages or specific performance as a remedy should the buyer default. The seller has no choice and must offer specific performance as a remedy
A seller signs an offer prior to acceptance time and date. Before the buyer's broker receives notice, the buyer calls and withdraws the offer This offer is:
- binding on all parties as it has already been signed prior to the acceptance time and date
- terminated and not binding as it was withdrawn before notice of acceptance to the buyer
- terminated but the buyer is in default and will forfeit earnest money
- binding, the withdrawal must be in writing.
terminated and not binding as it was withdrawn before notice of acceptance to the buyer
in the contract to buy and sell the party who selects and pays for title insurance is
- the seller
- either the seller or buyer
- the buyer selects the seller pays
- the buyer
a brokerage firm can have how many trust accounts
- five if selling and leasing property
- as many as needed
- no more than one per owner
The purpose of the Real Property transfer declaration (TD-1000) is to
- transfer real property in Colorado, including water rights
- tax all personal property and fixtures transferred at closiong
- transfer and declare all real and personal property
- create fair and uniform property assessments
create fair and uniform property assessments
net loan proceeds are
- money from the lender and show as a debit to the broker
- funds given to the buyer for purchase and are a buyer credit
- money the seller uses to pay off the existing loan
- funds used to pay the buyers bills and show as a credit to the broker
money from the lender and show as a debit to the broker
which of the following would show as a debit to the buyer on the closing statement
- the amount of a seller carry loan
- the tenants security deposit
- prorated rents
- prorated water the seller paid in advanve
prorated water the seller paid in advance
The buyer has agreed to assume and pay the special assessment on the property. how will this be treated at closing?
- the buyer's closing statement will show the P.O.C next to it
- it will not appear on the closing statement
- the seller will have a credit for the amount and the buyer an equal debit
- the buyer will have a single entry debit for the amount
it will not appear on the closing statements
Per commission rule E 35 when must a listing broker disclose to a potential buyer the brokers working relationship with the seller
- in writing before any conversation
- orally before writing a contract and in writing before closing
- in writing before receiving or eliciting confidential information
- in writing at the time, the purchase contract is signed
in writing before receiving or eliciting confidential information
When a broker uses the brokerage disclosure to buyer form
- the broker is creating an agency relationship
- the buyer is not required to sign the form
- the buyer must sign showing that she has received and understands the form
- the broker is making the buyer a customer in the transaction
the buyer is not required to sign the form
Agents in Colorado
- must have a signed disclosure form
- must represents both parties with loyalt
- if acting for the seller will have to treat all buyers as a customers
- must have a written representation contract
must have a written representation contract
The main difference between an agent and transaction broker is
- the agents have uniform duties while a transaction broker does not
- agents advocate, transaction brokers give options
- transaction brokers advocate while agents advise and represent
- agents represent consumers and transaction brokers do not
agents advocate, transaction brokers give options
All of the following are TRUE of a customer in Colorado Real estate transactions except
- she may be represented by an attorney but not a real estate broker
- the real estate broker is an agent representing the seller or buyer in the transaction
- the broker can become a transaction agent if the customer allows it
- the broker owes the customer disclosure of material facts, accounting of funds and honesty.
the broker can become a transaction agent if the customer allows it