1. When holding an open house for a seller, a prospective buyer shows real interest and asks detailed questions of the broker. The first question the broker should ask is:
A. Have you ever purchased a home before?
B. Will you have to sell another home in order to purchase this one?
C. Do you have a written, unexpired contract that grants to another licensee an exclusive right-to-buy?
D. What would it take to get you to make an offer on this home today?
2. If a licensee desires to reinstate an expired real estate broker license 18 months after expiration, the cost of the reinstated license will be:
A. the regular license fee plus a 25% penalty.
B. the regular fee plus a penalty equal to the regular 3 yr. license renewal fee.
C. the regular license fee.
D. a license cannot be reinstated that long after expiration.
3.A licensee who intends to purchase one of his own listings must:
A. continue to serve the seller-owner under the terms of the listing agreement.
B. renounce any right to a commission on the sale.
C. add the cost of his own commission to the purchase price.
D. the Commission to place his license on inactive status.
4.When a promissory note is received as earnest money, the seller must be informed by identifying the note in the contract and _____ .
A. attaching a “Disclosure of Promissory Note” to the contract.
B. recording the note in the county office.
C. giving the seller a post-dated check drawn on the buyer’s account.
D. stating the due date in the contract or attaching a copy of the note.
5. In order for a broker to operate as a seller’s limited agent, _____ .
A. the seller must check the transaction brokerage box on the Exclusive B. right to Sell form.
B. the broker must sign as a principal on the Exclusive Right to Sell form.
C.the seller must check the seller agency box on the Exclusive Right to Sell form.
D.the seller must give verbal permission to the broker to so act.
6.In Colorado, a broker must retain transaction records for Commission inspection for:
A.36 months.
B.48 months.
C.60 months.
D.72 months.
7.The commission-approved Square Footage Disclosure is used to:
A. show the square footage the broker obtained when measuring the house.
B. prove that the square footage measurement is accurate.
C. state that real estate agents do not measure square footage.
D. disclose the source, date, and standards used for any square footage represented.
8.Failure by either party to pay “cash at closing” at the time of closing under a Contract to Buy and Sell Real Estate shall:
A. render that party in default.
B. delay closing until the funds are available.
C. be prima facie evidence of broker’s failure to properly anticipate problems in the transaction.
D. automatically trigger the mediation clause of the contract.
9.The listing period on a commercial property listing agreement:
A. must have a definite termination date.
B. be stated as “until sold.”
C. is not required (space may be left blank).
D. is set by state law.
10. Errors and Omissions insurance is:
required for every individual and entity licensee in the state.
optional for new licensees in the first year of their original license.
unnecessary in Colorado because of the commission’s self-insurance program.
unnecessary and redundant in Colorado because of the Real Estate Recovery Fund.
10.Errors and Omissions insurance is:
A.required for every individual and entity licensee in the state.
B. optional for new licensees in the first year of their original license.
C. unnecessary in Colorado because of the commission’s self-insurance program.
D. unnecessary and redundant in Colorado because of the Real Estate Recovery Fund.
11.Under the inspection resolution deadline clause in the Contract to Buy and Sell Real Estate, the contract terminates if the parties cannot agree in writing to settle the buyer’s objections:
A. immediately.
B..on or before the inspection resolution deadline.
C.on the day both parties receive the inspection report.
D.one day following seller receipt of buyer’s notice to terminate.
12.If the Colorado Real Estate Commission takes disciplinary action that is confirmed by an administrative law judge in a public hearing, a broker has how many days to file written objections to that disciplinary action before it becomes final?
A.10 days
B.20 days
C.30 days
D.60 days
13.Failure of an employing broker to renew his or her individual broker license prior to expiration:
A. has no effect on employed licensees.
B.automatically inactivates every employed broker’s license and creates a gap in everyone’s E&O coverage.
C. automatically generates a fine against every employed broker.
D. requires a $200 renewal penalty plus $10 for every licensee employed.
14.Of the following, which information should NOT be divulged in the presence of other brokers in the same office?
A buyer’s inability to qualify for a mortgage loan
B. seller couple’s decision to file for divorce
C. The list price of the property
D. That the basement leaks only during heavy rains
15.If a seller’s broker rebates a portion of earned commission to his or her seller client, _____ .
A.it is NOT a violation of the license law.
B.it is always a violation of the license law.
C,it violates the license law unless the buyer gives permission.
D.it violates the license law unless an equal rebate is given to the buyer.
16.According to the Contract to Buy and Sell Real Estate, personal property is conveyed by the:
A.financing statement.
B.bill of sale or other applicable legal instrument.
C.deed of trust.
D.chattels security agreement.
17. The requirement for electronic or paperless transactions is that they must be:
A.generated on computers using Windows® operating systems.
B.maintained on computers that are networked if more than one PC is in an office.
C.backed up daily with backups stored off-site.
D.in a format that can be legibly printed on Commission request.
18.Under an Exclusive Right-to-Sell Listing Contract, if a seller is contacted directly by a prospective buyer or buyer’s agent, the seller is obligated to:
A.schedule a showing, but not discuss any confidential information.
B.refer the buyer or agent to the listing broker.
C.immediately avoid any form of communication with prospective buyer or agent.
D.answer questions as thoroughly as possible and report the contact to the listing broker.
19.The purpose of the Colorado license law is to:
A.create fees and charges for real estate transactions.
B.protect the public.
C.insure coordination among lending, appraising, and brokerage industries.
D.control real estate transactions.
20.Notification to the Colorado Real Estate Commission of termination of employment between an employing broker and an associate is the responsibility of the:
A.both the employing broker and the associate.
B.the employing broker alone.
C.the terminating associate alone.
D.the brokerage firm’s registered owner alone.