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Colorado Real Estate Commission Duties and Regulations, Exams of Real Estate Management

The key duties and responsibilities of the colorado real estate commission, including investigating complaints, approving errors and omissions carriers, hearing disputes between brokers, and employing brokers. It also covers the requirements for having an active colorado real estate license, such as renewing the license and errors and omissions insurance, as well as the duties of an employing broker in supervising associate brokers. Real estate commissions, brokerage relationships, trust accounts, closing procedures, and other important regulations for real estate professionals in colorado.

Typology: Exams

2023/2024

Available from 09/13/2024

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Download Colorado Real Estate Commission Duties and Regulations and more Exams Real Estate Management in PDF only on Docsity! COLORADO REAL ESTATE EXAM (QUESTIONS WITH VERIFIED ANSWERS) VERIFIED ANSWERS 100% ALREADY GRADED A+ Duties of the Colorado Real Estate Commission include all of the following EXCEPT A) Investigation of verified written complaints. B) Approving errors and omissions carriers. C) Creating the Annual Commission Update course each year. D) Hearing disputes between brokers. D) Hearing disputed between brokers. A buyer in a closed transaction has filed a complaint with the Colorado Real Estate Commission, claiming the buyer's agent misrepresented the property. The Commission, in responding to a complaint, would A) Use its subpoena power to request records from the agent/broker's brokerage firm. B) Start a lawsuit on behalf of the buyer. C) Seize all the brokerage firm's records. D) Request the agent/broker supply a response in writing. D) Request the agent/broker supply a response in writing. Which of the following could a Colorado real estate broker use toward meeting the 12 hours of required elective continuing education credits? A) An exam prep class taken to prepare for the state portion of the licensing exam B) A brokerage firm's orientation and personal marketing course C) Passing the national portion of the broker licensing exam D) The National Association of REALTORS® ethics course D) The National Association of REALTORS® ethics course Errors and omissions professional liability insurance is required for all of the following EXCEPT A) Inactive licensees. B) Active licensees. C) All license applicants. D) Employing brokers. A) Inactive licensees. A broker completed all of her required continuing education, but 15 days after her anniversary date, she still has not paid renewal fees for her license. What is the current status of her license? A) Inactive and may not sell real estate B) Active but may not sell real estate C) Expired D) Active and may sell real estate if she pays within 30 days B) Active but may not sell real estate All of the following are required to have an active Colorado real estate license EXCEPT A) An attorney who lists and sells property in addition to practicing law. B) A mortgage broker who helps buyers find and buy homes. C) A business opportunity salesperson selling a franchise with a leasehold estate. D) An attorney selling property as part of an estate. D) An attorney selling property as part of an estate. Brokers selling real estate must renew their license and errors and omission insurance every A) Three years for the license and every two years for the errors and omissions insurance. D) A qualified broker in the same office. A) An unlicensed office manager. A broker has been approached by a neighbor to list the neighbor's home. The property is currently listed with another company and the neighbor said she only has two weeks left on the listing contract. The broker should A) List the property but make sure the new listing contract does not start until the expiration of the current listing. B) Explain that the broker cannot speak to her while she is under a listing contract with another broker to avoid violating Rule E-13. C) Determine if the current broker is in breach before proceeding. D) Tell her to wait and the broker will contact her once the current listing has expired. A) List the property but make sure the new listing contract does not start until the expiration of the current listing. The Colorado Real Estate Commission requires all brokerage firms to have a written office policy to give broker associates a full understanding of the firm's operations. Which of these is the only item required by statute to be in writing? A) The brokerage relationships the firm offers and how brokers are designated B) Commission splits between the firm and broker associates C) Marketing fees and office costs charged to broker associates D) The requirements of the employing broker for supervision of broker associates with less than two years' experience A) The brokerage relationships the firm offers and how brokers are designated When the seller offers to assist with the buyer's down payment or gives other concessions, the broker should help safeguard everyone's interest by doing all of the following EXCEPT A) Suggesting the parties seek legal and tax counsel. B) Informing the Colorado Real Estate Commission and title company. C) Listing the information in the MLS. D) Informing the lender and the appraiser. B) Informing the Colorado Real Estate Commission and title company. An unlicensed assistant may do all of the following to support the efforts of a licensed broker EXCEPT A) Hold an open house. B) Measure a property to provide square footage for a property brochure. C) Provide access to a property for buyers. D) Prepare a comparative market analysis and present it to a seller. D) Prepare a comparative market analysis and present it to a seller. A seller received a flyer and a phone call from a broker at XYZ Realty, suggesting that the seller list with the firm and that broker. The seller's home is actively listed with ABC Realty. Is there any issue with XYZ Realty's solicitation? A) Yes, they may not advertise to active listings until at least 10 days after the listing expires. B) No, this is a standard practice and is acceptable. C) Yes, the brokerage may send flyers with a disclaimer but may not make phone calls. D) No, as long as the seller's phone number is not on the do-not-call list, the broker is fine. C) Yes, the brokerage may send flyers with a disclaimer but may not make phone calls. The minimum right-to-cure period for non-agricultural and agricultural property in Colorado is A) 215 days for non-agricultural and 230 days for agricultural. B) 110 days for non-agricultural and 215 days for agricultural. C) 100 days for non-agricultural and 110 days for agricultural. D) 200 days for non-agricultural and 215 days for agricultural. B) 110 days for non-agricultural and 215 days for agricultural. Which of the following is NOT true regarding Colorado property taxes? A) Property taxes create a lien as of January 1. B) If taxpayers choose to make one payment, they must continue to make only single payments for as long as they own the property. C) Property taxes not paid in two halves in February and June accrue interest as of March 1. D) Property taxes not paid in full on April 15 accrue interest as of May 1. B) If taxpayers choose to make one payment, they must continue to make only single payments for as long as they own the property. All of the following are true about Colorado fair housing law EXCEPT A) The state law adds marital status and sexual orientation to the federal protected classes. B) Owners of multiple units are expected to make reasonable accommodations for disabled tenants, such as reserved parking, without charging the tenant. C) Disabled tenants must make a request to the owner or management company in order to make reversible changes to their unit. D) Both residential and commercial property are covered, while the federal law applies only to residential property. C) Disabled tenants must make a request to the owner or management company in order to make reversible changes to their unit. If an associate broker agrees to manage rental properties for a friend, the associate broker must A) Have a written agreement with the property owner clearly establishing the associate's responsibilities. B) Set up the appropriate trust accounts for funds belonging to others to avoid commingling property management funds. C) Agree to split the management fees with the employing broker. D) Have the employing broker sign a management agreement and establish the trust accounts for the management assignment. B) The seller may refuse to provide the disclosure but must still give a written list of all known material defects of the property. C) It is required by law to be given to the buyer as part of the Contract to Buy and Sell. D) Brokers should never fill out this form because it is the seller's disclosure. C) It is required by law to be given to the buyer as part of the Contract to Buy and Sell. The holdover clause in the approved Exclusive Right-to-Sell Listing Contract form protects the broker's commission for certain disclosed buyers A) For up to six months after the listing expires. B) For a negotiated time unless the seller lists the property with another broker after expiration. C) For a negotiated time even if the seller lists the property with another broker after expiration. D) Only during the term of the listing and any extensions. B) For a negotiated time unless the seller lists the property with another broker after expiration. 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. 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. 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. 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. A) The buyer, the seller, or the listing broker. A listing broker, using the Exclusive Right-to-Sell Listing Contract or Exclusive Right-to-Buy 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. 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. 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. 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. B) Immediately return the earnest money to the buyer. D) Should notify the seller within 24 hours of receiving the inspection report. B) May terminate the contract with written notice immediately. A leased security system was sold as part of residential property. Leased items included in the sale of real property A) Are not an issue because fixtures will automatically transfer with the deed and require the seller to clear any liens. B) Should be noted in the Contract to Buy and Sell because the buyer may have obligations and liabilities if the lease is assumed. C) Will not transfer with the property because leased items are considered to be personal property. D) Are not allowed to be included in the MLS or the Contract to Buy and Sell because the seller must terminate the lease prior to closing. B) Should be noted in the Contract to Buy and Sell because the buyer may have obligations and liabilities if the lease is assumed. A brokerage firm acquired a contracts software program for use in the firm. After a month of use, a broker associate discovers that one of the approved forms is missing a section. Per rule F, who is responsible for the error? A) The brokerage firm B) The software company C) Each broker using the software D) The employing broker, all brokers, and the software company C) Each broker using the software Under an Exclusive Right-to-Sell Listing Contract, a listing broker is required to do all of the following EXCEPT A) Present all offers in a timely manner. B) Keep the seller or buyer fully informed of all issues in the transaction. C) Verify that all statements made by the seller and the buyer are complete and accurate. D) Visually inspect the property to check for material facts. C) Verify that all statements made by the seller and the buyer are complete and accurate. A broker's trust account must comply with all of the following EXCEPT A) Be maintained in the name of the licensed brokerage. B) Have only the broker authorized to withdraw funds. C) Be insured by an agency of the federal government. D) Be reconciled regularly to guard against commingling. B) Have only the broker authorized to withdraw funds. How many trust accounts may a brokerage firm have? A) At least one B) A minimum of three C) There is no limit D) No more than four C) There is no limit A broker received an earnest money deposit with an offer from a buyer. Under Colorado law, the broker should A) Open a separate trust account that will contain funds for this transaction only. B) Deposit the money in an existing special non-interest bearing trust account in which all earnest money received from buyers may be held at the same time. C) Immediately deposit the earnest money in the broker's personal interest-bearing checking or savings account. D) Hold the earnest money deposit in a secure place until acceptance. D) Hold the earnest money deposit in a secure place until acceptance. How much of the broker's own money may be in the trust account? A) Enough to maintain the account B) None C) No more than $100 D) No more than $200 A) Enough to maintain the account If a sole proprietor establishes an account to hold money belonging to others, which of the following is TRUE? A) The names of all authorized signers must be on the checks. B) All checks, deposit slips, and bank statements must include the word trust as part of the account name. C) The account cannot be in the same bank as the broker's personal checking account. D) An individual account is required for each transaction. B) All checks, deposit slips, and bank statements must include the word trust as part of the account name. A loan being assumed by the buyer has what effect at closing? A) Debit seller, credit broker B) Credit seller, debit buyer C) Debit seller, credit buyer D) Credit seller, debit broker C) Debit seller, credit buyer If the buyer is assuming an 8.5% loan with a balance of $127,538 at a closing on July 11, what is the interest proration entry? A) The Colorado Department of Revenue. A flat-rate water bill of $37.50 that is paid in advance for the month has not been paid. For a closing on June 16, which is the correct entry on the closing statements? A) Debit buyer $18.75, credit seller $18.75 B) Credit seller $18.75 C) Debit seller and buyer $18.75 D) Debit seller $18.75, credit buyer $18.75 C) Debit seller and buyer $18.75 At closing, the notary fee for the warranty deed would be entered on the settlement worksheet as A) Debit seller and credit broker. B) Debit seller and credit buyer. C) Debit buyer and credit broker. D) Debit buyer and credit seller. A) Debit seller and credit broker. Under designated brokerage, the brokerage relationship is between A) The designated broker and the employing broker if they receive confidential information. B) Only an agent and the principal. C) The designated broker and the party or parties the broker was designated to represent. D) A designated broker and the principal, unless the broker changes status to a transaction-broker. C) The designated broker and the party or parties the broker was designated to represent. If the designated broker for an agency listing changes brokerage firms, A) The listing agreement will be transferred to the new firm. B) The employing broker may appoint a new designated broker to the listing. C) The listing agreement will be terminated. D) The commission still belongs to the original designated broker. B) The employing broker may appoint a new designated broker to the listing. The brokerage firm that has designated a broker to represent a seller as part of an Exclusive Right-to-Sell Listing Contract A) Owns the contract but does not represent the seller. B) Has a brokerage relationship with the seller and the designated broker. C) Has no responsibility to the seller once the designated broker is named. D) Would not be able to retain the seller if the designated broker left the company. A) Owns the contract but does not represent the seller. An agent would owe _________ to the principal, but a transaction-broker would not. A) Confidentiality B) Disclosure of material facts C) Disclosure of benefits and risks D) An accounting C) Disclosure of benefits and risks Which of the following is NOT true about designated brokerage? A) The employing broker designates the broker to provide the services. B) Designation must be in writing. C) Designation may be from a policy statement. D) The designated broker "owns" the listing. D) The designated broker "owns" the listing. To work as a designated broker for both the buyer and the seller and represent them in the same transaction, a broker must A) Understand agency responsibilities. B) Have the buyer and the seller sign a dual agency agreement. C) Act as a transaction-broker for both parties. D) Not disclose non-material information. C) Act as a transaction-broker for both parties. A broker is a principal buying a For Sale by Owner (FSBO) and the seller is NOT represented. What will the brokerage relationship be? A) The buyer is an agent; the seller is a customer. B) The buyer is a customer; the seller is the principal. C) The broker is a transaction-broker to both parties. D) The employing broker is an agent for the seller. A) The buyer is an agent; the seller is a customer. Under Colorado's real estate law, which of the following is NOT true? A) All agency agreements must be in writing. B) An agent who is representing the sale of his own property can act as a transaction-broker to the buyer. C) The type of brokerage relationship the firm offers is, by law, required to be in writing. D) A real estate agent is a single agent. B) An agent who is representing the sale of his own property can act as a transaction-broker to the buyer.