Exam (elaborations)
COLORADO PSI REAL ESTATE PRACTICE TEST
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COLORADO PSI REAL ESTATE PRACTICE TEST
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COLORADO PSI REAL ESTATE PRACTICE TESTLegal descriptions using the government survey system are NOT generally used in -
Answers -the original 13 states.
Real property can be converted to personal property by - Answers -severance
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT
want to make the permission permanent in case he dislikes others who might move next
door in the future. What should he give his neighbor? - Answers -A license.
A broker hires a salesperson as an independent contractor. In order for the salesperson
to be considered an independent contractor for federal income tax purposes, the
broker's written contract with the salesperson MUST specify - Answers -that the
salesperson will not be treated as an employee for federal income tax purposes.
The main difference between tenancy in common and joint tenancy is that with tenancy
in common, when a co-owner dies, - Answers -his undivided interest passes to his
heirs.
A property is encumbered by a first mortgage of $60,000 and a second mortgage of
$23,500. The property has just been sold at a foreclosure auction to a speculating
investor for $88,000. Assume that all costs of the foreclosure sale are included in these
balances. Which of the following statements is FALSE regarding the distribution of
funds? - Answers -: The second mortgagee receives nothing unless he forced the
foreclosure auction.
A broker is showing a buyer one of his residential listings. The buyer says he wants to
establish a day care center for seniors in the property. The property has been used as a
day care center for no more than five children. How should the broker advise this
buyer? - Answers -Provide the buyer with contact information for the local planning and
zoning office to confirm the zoning and determine whether it permits his use.
A landowner wishes to build a neighborhood grocery store on a busy street in an area
zoned for residential use. Which of the following would MOST likely be used to obtain
permission for this store? - Answers -Conditional use permit or zoning variance
If conditions for property use are included in a deed and these conditions are violated,
what is the most severe potential penalty? - Answers -A court may order the return of
the property to the original owner.
New sidewalks installed only on one particular street will probably be paid for by -
Answers -a special assessment.
A realty firm has just entered into an agreement to represent a home builder in the sale
of a new subdivision. The firm has located several potential buyers and five homes have
, been sold to purchasers that the firm's agents have contacted. The realty firm has an
agency relationship with - Answers -the builder.
In an exclusive right-to-sell listing, an owner lists the property for sale with how many
brokers? - Answers -One.
A real estate salesperson is representing only the buyer in a transaction. Which of the
following actions would be a violation of the salesperson's agency duties to the client? -
Answers -disclosing the highest price the buyer is willing to pay
A broker supplies the financing for a project to build condominiums with the stipulation
that he has the exclusive right to sell the completed condos. Which of the following
BEST describes this relationship? - Answers -Agency coupled with an interest.
The real estate agency relationship is best described as the - Answers -broker's
representing the principal.
A licensee has an agency representation agreement with a buyer. When showing
another company's listing, what obligation does the licensee have to the seller and the
listing broker at the other company? - Answers -Disclose the agency relationship when
arranging the showing and disclose material information about the buyer if presenting
an offer.
The day after a broker's listing on a house expired, it was listed with another broker and
offered in the MLS. Several days later, a third licensee called the first broker and asked
for the key to show the home. The broker should inform the caller that - Answers -he is
no longer the listing agent.
Which of the following would generally be included in the Phase I assessment of a
parcel where hazardous substances may have been disposed? - Answers -an on-site
visual inspection
A manufacturer under contract with a broker is seeking a 30,000-square-foot building to
house his factory. The broker is showing him one that has only been used as a junk
warehouse for the past fifty years. As they look around, near the ceiling they see old
brown metal drums seemingly wired into the electrical system. How should the broker
proceed - Answers -He should inform the client of the possibility that hazardous
chemicals are present and recommend a baseline environmental assessment of the
property as a contingency of the purchase.
While touring a new listing a broker detects a very pronounced moldy odor. Upon
inspection, the broker finds that all closets located on a particular wall in the vacant
residence are extremely moldy. The mold growths are heavy, multi-colored and cover
the lower back walls and part of the side walls and flooring of the closets, and the other
associates on the tour are experiencing sneezing and watering eyes. The broker has
already accepted the listing. What immediate action should the broker take regarding
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