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Colorado Law and Practice - Practice
Test Questions and complete solutions
(verified Answers)
Property management agreements should include the following: - ✔️ ✔️ Description of trust accounts.
If a borrower must pay one discount point on a $250,000 loan, the charge will be: - ✔️ ✔️ $2,
A competent and impartial person authorized by another person to sign a contract of sale is most likely a(n): - ✔️ ✔️ Attorney in fact.
A perperty management agreement would have all EXCEPT: - ✔️ ✔️ statement of lessee's purpose.
Which BEST describes the role of a fiduciary? - ✔️ ✔️ A fiduciary relationship is established when a property manager agrees to represent an owner in leasing the owner's property.
The benefit, interest or value that induces a promise in a contract is a(n): - ✔️ ✔️ consideration.
The terms of an agreement in which a seller withdraws his property from the market for a specified time and a certain price, but grants a person the right to purchase at a fixed sale price, would best be accomplished through a(n) - ✔️ ✔️ Option.
When appraising a residential property, an appraiser would be LEAST concerned with: - ✔️ ✔️ the cost to replace the building.
The Rural Economic and Community Development is: - ✔️ ✔️ A and B only.
Obedience of the agent to the principal means that: - ✔️ ✔️ the agent must follow those instructions regardless of personal feelings about them, as long as they do not violate the state or federal laws.
The broker who has listed a property for sale, has the obligation to __________ - ✔️ ✔️ do whatever the owner has instructed him to do legally.
Two brokers agree to use the same listing fees to stop undercutting each other's profit margins. Such an agreement - ✔️ ✔️ violates the Sherman Anti-Trust Act.
Agency may be established: - ✔️ ✔️ by implication (what you might say or do) without a written contract
The essential elements of a contract include all of the following EXCEPT: - ✔️ ✔️ Notarized signatures.
Under the Federal Fair Housing Amendments of 1998, which of the following is the BEST example of the familial status protected class? - ✔️ ✔️ A single person seeking legal guardianship of a 15 year old.
At the moment of mutual execution of a sales contract, the buyer - ✔️ ✔️ acquires equitable title.
The leasehold estate most commonly used by property managers is an estate: - ✔️ ✔️ for years.
All of the following statements about property management are correct EXCEPT: - ✔️ ✔️ a property manager is always paid 10% of the rental income.
Which is NOT true about a joint tenancy? - ✔️ ✔️ Different amounts of interest may be given to the individual grantees.
Riparian rights are along: - ✔️ ✔️ A running flow of water.
An involuntary transfer of title is: - ✔️ ✔️ All of the above.
Under the Statute of Frauds, a lease must be in writing to be valid if it is for more than: - ✔️ ✔️ One year.
After listing a home with a broker, the seller told the broker NOT to disclose a major structural defect in the house. What should the broker do? - ✔️ ✔️ Tell the buyer of the defect prior to the writing of an offer or refuse the listing.
Which principle of value BEST applies to a home whose value is maintained by being enveloped by similar-type homes? - ✔️ ✔️ Conformity.
If a buyer agent writes an offer on a property listed by another brokerage firm, what is the relationship between the two brokers? - ✔️ ✔️ There is no relationship.
Which is not an economic characteristic of land? - ✔️ ✔️ Immobility.
An exclusive agency listing differs from an exclusive right-to-sell listing in that the exclusive agency listing: - ✔️ ✔️ Preserves the principal's right to sell his or her own home without owing a commission.
A buyer agent is discussing a new listing with a client who belongs to a protected class. The buyer wants to see the property immediately but the owner has instructed the broker not to show the house during the owner's two-week absence. The buyer insists on viewing the property. The buyer agent should: - ✔️ ✔️ Abide by the seller's instructions.
A seller instructs the listing broker to refrain from advertising in the largest circulation newspaper in the region. This instruction: - ✔️ ✔️ Is valid and must be obeyed.
As the money supply for mortgages tightens: - ✔️ ✔️ Interest rates tend to increase.
Which type of deed offers the maximum number of warranties and covenants? - ✔️ ✔️ General Warranty Deed.
If a wheelchair-bound person rents an apartment, the landlord may legally: - ✔️ ✔️ evict the tenant for excessive noise.
In correlating the three approaches to value, the appraiser: - ✔️ ✔️ accords more weight to the method most suited to the type of property.
The term "effective age" when applied to an industrial building means: - ✔️ ✔️ the observed age of the property in relation to its actual age.
A broker lists a property as agent of the seller for $280,000. The broker later encourages a prospective buyer to submit a low offer because the seller is desperate. The buyer offers $248,000 and the seller accepts. In this case, the broker: - ✔️ ✔️ violated the fiduciary relationship.
