CRE: Final Focus – Flashcards

Publishing a foreclosure notice of sale in a newspaper is the duty of the: County Treasurer Public Trustee Lender County Assessor

A buyer is assuming a loan and the loan balance has turned out to be less than the assumption balance provided by the seller. How would this be handled according to the Residential Contract to Buy and Sell ? The seller must reduce the price of the property to compensate for the difference. The buyer may terminate the contract by written notice if the difference causes the buyer's cash at closing to increase by a stated amount. The contract is automatically terminated by the seller's misrepresentation. Depending on how the form is completed, either the buyer may terminate the contract or the seller could reduce the price to make up for the difference.

Which of the following is correct according to the Colorado Real Estate Commission Position Statement regarding Rule F? Exculpatory language limiting a broker's liability may not appear in listings or buyer relationship agreements. Brokers may not add exculpatory language limiting their liability to any contract to which they are not a party such as the Contract to Buy and Sell. Exculpatory language limiting the broker's liability may be added to the Contract to Buy and Sell only in addenda, not in additional provisions. Brokers may not add exculpatory language to any commission-approved contract.

A broker acting as a transaction broker for a buyer, with no written agreement needs: nothing. This is the default representation in Colorado to provide the buyer with a copy of the "Brokerage Disclosure to Buyer" with the broker's signature showing the date it was given to the Buyer. a signed Exclusive agreement in order to show the buyer property. a signed disclosure form from the Buyer.

For a VA loan - how will the Buyer's Loan Processing Fee be shown on a settlement sheet Debit Buyer Debit Seller Debit Broker Not indicated on settlement sheet

If the homestead exemption is not waived, the owner is protected: unsecured debt secured debt only only ownership was acquire through a homestead from any debt

How are court costs and legal fees handled if a dispute over the Residential Contract to Buy and Sell goes to court? They are split evenly between the parties. They are awarded to the winning party. They are awarded to the broker. They are awarded to the losing party.

The information a broker must keep about a deposit into an escrow account does not include: address of affected parties address of affected property confirmation of electronic transfer amount of deposit

Which does NOT fall under Rule F? Contract to Buy/Sell (Commercial) Contract to Buy/Sell (Land) Deed of Trust Contract to purchase newly constructed home with warranties

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? yes, an additional bathroom will always add more value than it costs to add it in no, the additional bathroom will never add more value than it costs to put in I cannot answer this. I am a real estate broker not a construction expert and as I do not have the expertise to answer this question I cannot answer it. 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

If a licensee is also a licensed appraiser, can the licensee offer to appraise a home if they intend to be the listing agent for that same property in the future? No, that would be a conflict of interest Yes, as long as it is disclosed to all parties Yes, as the listing is in the future no disclosure requirements apply No, according to Federal law licensed real estate brokers cannot hold an appraisers license

Broker attends client closing. What must he/she do with signed closing documents? deliver to client within 2 business days deliver to title/closing company deliver immediately to Employing Broker deliver to Managing Broker within 3 business days

What does not need to be placed into an escrow account? withholding taxes security deposits short-term rental deposits earnest money

In addition to Federal law the Colorado Fair Housing Act added as a protected class: Marital status Sexual orientation Both sexual orientation and marital status Students

Recording Fee of Warranty Deed most typically would appear on the settlement statement as: debit buyer debit seller debit broker debit 1/2 seller and 1/2 buyer

The title company may be hired by the listing broker: to prepare legal documents and may charge the buyer and/or seller for the preparation of legal documents to act as scrivener for the transaction and has ultimate responsibility for the accuracy of legal documents

A broker representing a seller advertises that she will "rebate" a part of her commission to the buyer at closing. To be legal the broker must: This is not legal as the buyer is not licensed Disclose and get approval from the seller Give the seller the same rebate Disclose and get approval from the buyer''s broker

Broker Price Opinions (BPO) are created by real estate licensees not appraisers. These "estimates of value" cannot be used: for tax purposes for court testimony to set a listing price to obtain financing

A Single Party listing: does not require a contract has no holdover clause does not fall under the Statute of Frauds requires two agents

If any of the title documents are not delivered to the buyer on or before the date specified in the contract. The contract can be: terminated voided no effect canceled

What is the maximum amount of interest a Seller can charge for a seller financed loan? 9% 12% 20% 35%

The maximum time allowed for the sale of a residential property, through the Public Trustee's office after filing of the notice of election and demand (NED) to foreclose is: 45 days 90 days 125 days 230 days

The maximum time allowed for the sale of an agricultural property, through the Public Trustee's office after filing of the notice of election and demand (NED) to foreclose is: 45 days 90 days 125 days 230 days

John Bargas of Buywell Realty wants to place a listing in the phone book. At a minimum he must list: John Bargas, Buywell Realty John Bargas Buywell Realty John Bargas, Buywell Realty, Each Branch Independently Owned and Operated

An Exclusive Agency Addendum to the Exclusive Right-To-Sell Listing Contract: Engages the licensee as the Exclusive Agent for the property Engages the licensee as the Exclusive Agent who will receive a commission upon any sale of the property Allows a second broker to represent the seller under dual agency Allows the seller to not pay a commission to the listing broker if the seller should procure a buyer

The Colorado Real Estate Commission can decide on their own to investigate all of the following EXCEPT: a broker depositing salaries into her trust account failure to disclose stigmatizing property violating the Colorado Consumer Protection Act broker failing to disclose licensed status to seller while buying a property for personal use

The Colorado Fair Housing Law prohibits descrimination based on: age sexual orientation military status marital status

Select the correct statement about a lease in Colorado: Every lease contains an implied warrant of habitability and quiet enjoyment Only residential leases have an implied warrant of habitability Every lease contains an implied warrant of habitability

Who pays the Colorado Use Tax on the transfer of furniture, personal property, equipment: Buyer Seller Split equally between buyer and seller Seller''s broker

When creating the listing agreement, the sellers informs you that they will not be filling out a Seller's Property Disclosure form. What is your best response: Inform the sellers that most buyers want the form Inform the sellers that you will fill out the form for them Decline the listing Inform the sellers as the form is optional there are no repercussions to not filling it out

If a landlord fails to refund the security deposit within one month (up to 60 days if specified in the lease) of the tenant surrendering the property, the landlord: is liable for the entire deposit is liable for treble the amount wrongfully withheld may be liable for double damages may extend the deposit return period for an additional 10 days if good cause exists

A seller providing financing may be exempt from attaining a lender's license if they have completed: a seller providing financing always needs a mortgage license less than 3 transactions in the past 12 months less than 5 transactions in the past 12 months less than 5 transactions is the past 15 months.

An Employing Broker designates one seller agent and one buyer's agent. The Employing Broker has: agency with seller, not buyer limited agency agency with buyer, not seller no agency

Can a broker in Colorado give a referral fee to an out-of-state broker? Yes, if they have a Colorado trust account No Yes, if the out-of-state broker resides and maintains an office in the other state Yes, if they have a Colorado license in addition to their out-of-state license

Who can not prepare an addendum to the Contract to Buy and Sell Real Estate? buyer or seller employing broker's attorney attorney for buyer buyer's broker

Out of state seller sold a property for $489,000. The property was highly leveraged resulting in cash proceeds to the seller of $5,500. How much should be withheld subject to the Colorado Department of Revenue Income Tax? $9780 $5500 $110 $978

After the Sellers 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

What is the debit/credit entry when a buyer assumes a loan from the seller? debit broker, credit buyer debit seller, credit buyer debit buyer, credit seller debit seller, credit broker

When advertising, which is the correct way? Joseph Magnum, Associate Broker Joseph Magnum, Associate Broker, Hot Properties Real Estate Team Joseph Magnum, ABC Realty Inc. Joseph Magnum, Associate Broker, (303) 999-5555

Which class is protected under under Colorado Fair Housing and not the Federal Fair Housing? Marital Status Race Familial Status National Origin

Which of the following is not a Commission approved Deed of Trust: due on sale not due on sale/transfer creditworthy 1% increase

The maximum amount of days that can be specified in the Holdover Period in the Listing Contract is: 30 days 60 days 90 days negotiable by Seller and Broker

What must appear in the title of a trust account? Company name Employing broker's name Company name and employing broker's name Responsible broker's name

True/False - According to Commission Position 40 on Teams, Real estate brokers that function as teams should not advertise teams using the terms "realty", "real estate", "company", "corporation", "corp.", "inc.", "LLC" or other similar language that would indicate a company other than the employing brokerage firm.

Under what conditions is it permissible for a broker to pay a referral fee to a person who does not possess a Colorado real estate license? Under no conditions When the duties performed by that person would not normally require a real estate license Only if the unlicensed person is in the employ of and under the direct The unlicensed person may perform any duty deemed acceptable by the broker and receive a referral fee, if permission is granted by all interested parties, and so stipulated in writing

A broker has put together a team consisting of a title representative, a lender and an inspector to assist the broker in building her business. Each settlement service provider reimburses the broker monthly for the cost of lead generation. The reimbursement covers all the broker's cost for generating the leads. In this instance this practice is: not acceptable as a broker may not receive any money from a title company but acceptable for the other team members. Acceptable since the team members may also get a lead and the broker is not using just one settlement provider but three. Not acceptable as broker may not receive any fees for lead generation from any settlement service provider Acceptable as long as it is documented and the broker will accept other settlement providers on her team.

Broker is allowed to facilitate safeguards for seller assisted financing by adherence to the following EXCEPT: Advise buyers and sellers to consult legal and tax counsel for advice Cooperate with appraisers as they perform their due diligence in asking questions about sales Advise seller as to the impact of any seller paid costs Notify Real Estate Commission of true selling price of home

How many days after notice of discrimination does someone have to file a complaint under Colorado Fair Housing Laws with the Colorado Civil Rights Commission? 30 days 60 days 6 months 1 year

When must the "Change of Status" form be signed? before eliciting or receiving confidential information when changing brokerage relationship from transaction broker to agent when changing brokerage relationship from agent to transaction broker when taking a listing

The furnace breaks down before closing, but after the buyer has taken possession. Who is responsible for the cost of replacement? Seller Buyer depends on how the appropriate box is checked in the Contract to Buy and Sell not addressed by the Contract to Buy and Sell

If your Contract to Buy and Sell does not need the Seller or Private Financing Section, you as broker may do all of the following except: crossing out the section cleanly putting n/a in all blank fields in the section remove the section in its entirety as it is not applicable remove the paragraph text leaving the title and the words "omitted as not applicable"

It is not appropriate for a listing broker to: solicit sellers listing price accept a listing at a higher price, knowing your can reduce it later list a property at a lower price for a quick sale

Any excess funds above those required to pay off encumbrances realized at a foreclosure sale belong to: The State General Fund The mortgagee The mortgagor The Lender

A note for earnest money: Must be indicated in the Contract to Buy and Sell Makes a Purchase Contract void A promissory note for Earnest Money is not allowable A promissory note for Earnest Money must be redeemed withing 24 hours of contract acceptance

Beatrice a listing agent who has received two similar offers to purchase. She has made an appointment with the sellers to present the offers, but meanwhile another offer comes in from an associate in the same company. In this situation, which should Beatrice present? the older offers first since that is why she made the appointment; if neither is accepted, she could present the in-company offer at this appointment all three offers for simultaneous review the in-company offer first as a courtesy to her associate; if it is not accepted, she should present the other two offers the offers in order received; she should ask for a decision on each before moving on to the next

Employing Broker "reasonable supervision" includes all of the following EXCEPT: reviewing all contracts review transaction files maintaining an office policy manual attending first meeting with client

The fee to notarize a Warranty Deed is charged on the settlement statement to: the buyer the listing broker the seller the buyer and seller

The Licensee Buyout Addendum informs the Seller of all EXCEPT: Seller is responsible for marketing and closing expenses Seller acknowledges that in entering into the Contract, Buyer is exposed to possible losses and expenses. The Contract may be terminated at any time by Seller upon written notice to Buyer. Any termination of the Contract shall not affect the listing contract for the Property (Listing Contract)

A Buyers right to a specific performance remedy in the event of a Seller default in the Contract to Buy and Sell Real Estate: Is the default remedy and as such need not be selected Buyer default remedy is liquidated damages Not addressed in the contract Depends on which box is checked

The Real Estate Commission has the authority to: audit or investigate a licensee and files at any time without advance notice audit or investigate a licensee and files at any time with advance notice audit or investigate a licensee only when a complaint has been filed

Which of the following is one of the primary reasons that the real estate commission has approved a broad variety of forms and made their use mandatory by licensees? allows the commission to discipline brokers for improper contracting protects the public by requiring the same forms for all real estate transactions in Colorado assists attorneys and the public in following commission rules when contracting assures the broker's compliance with the Conway-Bogue decision of the Colorado Supreme Court