Colorado Real Estate Practical 7 – Flashcards
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When a broker terminates his affiliation with an employing broker what must be done?
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The broker and the employing broker have joint responsibility to assure that the real estate commission is notified.
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Loan fraud can have the following results to a real estate licensee except:
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no action taken
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When there is a contingency on the sale of the purchasers property prior to closing, the:
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listing agent should advise the seller of potential risks to the contract
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Real estate closing fees customarily appear on a settlement statement as a:
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A. Charge that is shared equally by the buyer and seller in the case of a conventional loan
B. Charge to the seller in the case of a VA loan
C. Charge that may be shared equally by the buyer and seller in the case of an FHA loan
CORRECT : All of the foregoing is true
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If a client asks whether it would be beneficial to add a second bathroom to increase profit on the sale of the home, what would be the appropriate response?
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I would be happy to do some research or analysis and speak to a construction expert on costs to determine if it''s worth it
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The three major evidences of title are:
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abstract and opinion, title insurance, Torrens certificate
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Which of the following is not a Commission approved Deed of Trust:
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1% increase
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An appraisal is always required by:
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it is not required
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Title insurance companies guarantee against a loss because of defects existing:
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at or before the date of the policy
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Which is not true regarding the Counterproposal form:
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The only changes allowed are purchase price and earnest money
Explanation
Whoever creates the counterproposal can make any change they want.
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To comply with the dates in the contract to purchase:
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the listing agent should order the title commitment as soon as all the parties accept the contract
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What kind of license must be held to sell options in real estate?
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An Associate Broker's license
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When completing the Exclusive Right to Sell Listing Contract, which monetary encumbrances does the seller list?
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All known to the seller
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When a contingency is tied to a date in the contract, it is the responsibility to follow up on that date.
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listing or selling brokers
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Interpretation of the title commitment should be done by:
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either an attorney or the title company
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A buyer is concerned that new construction a mile away could have a negative environmental impact on the home they are considering purchasing. Can they make the Contract to Buy/Sell contingent on the result of an environmental impact report?
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Yes, you can make a contract contigent on anything
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In reviewing the documents, it is wise to:
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verify all relevant information
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In order for the appraiser to obtain access to the property, he or she must first obtain permission from the:
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listing agent
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The time and place of closing is generally scheduled by the listing agent, however it should:
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be mutually agreed to by the parties
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A real estate appraiser means:
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any person who provides for a fee or a salary an estimate of the nature, quality, value, or utility of an interest in, or aspect of, identified real estate and includes one who estimates value and who possesses the necessary qualifications
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An agent and buyer enter into an Exclusive Right to Buy Contract, the
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Buyer is bound to work with only one broker during the term of the contract
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When a purchaser is deciding whether or not to do an inspection it is advisable that:
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buyers should always be advised to consult a professional inspector or engineer
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Recording fees may appear on a closing statement as a:
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A. Debit to the buyer
B. Debit to the seller
C. Credit to the broker
Correct ->D. All of the above
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If scheduling a closing on the last day of the month, it is wise to:
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schedule the closing as soon as possible, as the times fill up fast
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If the buyer does not provide written notice of any unsatisfactory conditions by the date specified under the inspection clause, the:
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physical condition of the property and inclusions shall be deemed to be satisfactory to the buyer
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The approved Agreement to Amend/Extend contract form is used:
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To get mutual agreement of the parties to any change in a deadline
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A home inspection may include all of the following except:
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soil testing
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Which does the buyer have to disclose to the seller when using the Licensee Buyout Addendum?
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A.That the Buyer stands to make a profit
B. That the Buyer is exposed to possible losses and expenses
C. That the property may be immediately sold by the Buyer
Correct D. All of the above are required disclosures
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If the purchase price exceeds the property's appraisal:
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the buyer shall have the sole option and election to terminate the contract
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A contract may be renegotiated after acceptance, if the:
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inspection reveals several items that need repair
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An associate broker terminates with a broker. The employing broker refuses to turn the license over to the Commission. Which of the following is true?
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The Employing Broker may be subject to disciplinary action
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When scheduling a closing, the following parties need notification:
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the buyer, the seller, the lender and the title company
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A buyer submits an offer contingent upon the successful closing of their present home.
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the listing agent should fully disclose all information to the seller
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A final walk-through is:
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agreed to by contract
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During the processing of the loan, it is:
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the buyer's responsibility to follow up with the lender
