Exam (elaborations)
COLORADO REAL ESTATE TERMS
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COLORADO REAL ESTATE TERMS
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COLORADO REAL ESTATE TERMSThe Amend/Extend Contract With Broker is used to change : - Answers -Any contract to
which the broker is a party
According to Rule F on Commission Approved Contracts what sections may be omitted
from the Contract to Buy and Sell Real Estate: - Answers -non-applicable financing
conditions
In preparing a Contract to Buy/Sell, a broker can not put exculpatory language into: -
Answers -Additional Provisions of a commission approved contract
"MEC" in a contract means: - Answers -Mutual Execution of Contract
As per the Real Estate Commission position regarding Megan's Law: - Answers -If
important to the buyer, the buyer should check with law enforcement officials.
Which of the following is not an approved form or contract: - Answers -Property
Management Agreement
Which form should not be used to disclose your brokerage relationship: - Answers -
Definitions of Working Relationships
On The Contract to Buy and Sell Real Estate, if the buyer is in default and the seller
remedy is specific performance: - Answers -The seller gets the earnest money and may
sue.
The Agreement to Amend\Extend is used to change the terms of: - Answers -An
accepted purchase and sale contract
The contract to Buy and Sell Real Estate has a Dates and Deadlines section. Should
these dates be ignored: - Answers -The Time of Essence clause would come into effect
Approved contracts and forms are regulated by the Colorado Real Estate Commission
Rule F. It: - Answers -Enables brokers to comply with the conditions of Conway-Bogue
When an associate broker makes a disclosure using the Square Footage Disclosure
form. The broker is disclosing: - Answers -The methodology and/or source of the
measurements
The listing broker, AAA Realty, shows a house to the Smiths two days before the listing
expires. The listing has a 30-day holdover period, no box is checked in the clause. The
buyers call the broker back four days after seeing the house and want to buy it. The
sellers have listed the house with another broker, Rogers Realty. The sellers accept the
offer of the Smith's to buy the house.Which of the following is true? - Answers -AAA
,gets the Buyers commission (for representing the buyer) and Rogers Realty gets the
listing commission (for representing the seller).
The new listing terminated the holdover period. Therefore AAA cannot claim a listing
side commission, Rogers Realty is going to receive the listing commission. However,
since AAA is now representing the buyer, they will be entitled to the buy side
commission. There is a check box in the Holdover Clause which would have allowed the
Holdover clause to survive re-listing the property. Since this box was not checked, the
default is that the Clause would not survive re-listing the home.
The Holdover Period says that a listing broker may be entitled to a commission after the
expiration of a listing contract for the period of time specified in the clause if: 1) the
broker negotiated with the buyer during the listing period and 2) the broker submitted
the name of this buyer in writing to the seller. Although the protection is for a negotiated
time after the listing expires; it can terminate early if the property is re-listed by another
agent and the "Shall Not" box is checked, meaning the old listing agent "shall not" be
owed a commission if another brokerage firm has earned one. If neither the "Shall" or
"Shall Not" be owned a commission" box is checked - the default is "Shall Not". See
"Holdover Period" in the "When Earned" clause of an Exclusive Right to Sell listing
agreement.
True/False - According to Commission Position 22 on Handling of Confidential
Information, a designated broker is permitted to share confidential information with a
supervising broker without changing or extending the brokerage relationship beyond the
designated broker. - Answers -True. A designated broker is permitted to share
confidential information with a supervising broker without changing or extending the
brokerage relationship beyond the designated broker. Brokers may want to consult legal
counsel regarding the necessity of securing the authorization of the party to whom the
information is confidential before the designated broker shares that confidential
information with the supervising broker. Such advice could include modifications to the
listing agreement or buyer agreement that create such authorization.
All unpaid ad valorem taxes become delinquent on: - Answers -June 16th
The seller's property disclosure indicates the condition of all but which of the following?
Appliances
Title
Heating and Cooling
Electrical system - Answers -The title to the property is addressed in the Exclusive Right
to Buy Sell Real Estate (AKA the Purchase Contract)
A house is closed on May 15. HOA dues are $108 per month and are due and payable
on the first day of each month. The HOA dues will appear on the closing statement as a:
- Answers -$59 credit to the seller.
, days = $3.4839 per day. $3.4839 x 17 days = $59.23 credited to the seller.
An agency relationship may be established by: - Answers -a written agreement, as
agency relationships must be in writing.
A Purchase and Sale Contract may be prepared by: - Answers -buyer or seller's
attorney-The attorney of the buyer or the seller may prepare a purchase and sale
contract; the broker's attorney may not.
All of the following are normally associated with a transaction involving an installment
land contract except:
-The deed is normally placed in escrow
-The buyer can place a 2nd mortgage on the property
-The buyer has the right of possession
-The seller retains legal title of the property - Answers -The buyer can place a 2nd
mortgage on the property.
-Since the seller has title to the property the buyer is not allowed to place a 2nd
mortgage on the property.
If a licensee fails to complete the continuing education requirements by the renewal
date: - Answers -the license is placed on inactive status.
What was decided in the Conway-Bogue decision?
-Must recommend to client that it is always advisable to have a contract reviewed by an
attorney
-Real estate agents are practicing law without a license
-Must use pre-approved commission forms
-All of the above - Answers -All the above.
Conway-Bogue court decision did rule that agents were practicing law without a license
but are permitted to do so provided Commission approved forms are used.
When must an employing broker keep a ledger? - Answers -When accepting money
belonging to others.
The Real Estate Commision does not require a ledger when an Employing Broker is
only managing company money. However, if s/he accepts money belonging to others
both an escrow account and a ledger for that account is required.
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