Exam Prep: Rules and Regulations

If an owner fails or refuses to consummate a transaction through no fault or neglect of the purchaser, the broker must .
1. Return the deposit to the purchaser at once
2. Obtain a signed release of earnest money by both parties before returning the earnest money to the buyer
3. Divide the earnest money between the broker and seller as agreed to within the listing contract
4. Ask an attorney representing one of the parties to prepare an earnest money distribution agreement
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Terms in this set (26)
If an owner fails or refuses to consummate a transaction through no fault or neglect of the purchaser, the broker must .
1. Return the deposit to the purchaser at once
2. Obtain a signed release of earnest money by both parties before returning the earnest money to the buyer
3. Divide the earnest money between the broker and seller as agreed to within the listing contract
4. Ask an attorney representing one of the parties to prepare an earnest money distribution agreement
Return the deposit to the purchaser at once
A broker shall provide a "High level of supervision" for .
1. Personal assistants within the office
2. Licensed persons with less than two years experience
3. All licensees
4. Staff personnel handling the trust account(s)
Licensed persons with less than two years experience
An earnest money note .
1. Must be due and payable prior to the closing date
2. May not be for a lesser amount than $1,000.00
3. Must be identified in the sales contract
4. Makes a contract voidable
Must be identified in the sales contract
The additional provisions section of a contract to buy and sell real estate is designated for ____.
1. The commission payable to the brokerage firm
2. Personal disclaimers or exculpatory language of the brokerage firm
3. Items that are transaction specific resulting from the negotiations or instruction of the parties
4. Personal provisions of the brokerage firm
Items that are transaction specific resulting from the negotiations or instruction of the parties
A mortgage company offers the broker $100.00 for placement of a loan. This fee .
1. Is illegal
2. Must be deducted from the agreed upon Real Estate Commission amount
3. Is a violation of Colorado Real Estate Commission rule
4. Is allowed by the Real Estate Commission if the broker fully informs the party who he has a brokerage relationship with and obtains written consent of such party
Is allowed by the Real Estate Commission if the broker fully informs the party who he has a brokerage relationship with and obtains written consent of such party
What law requires a potential buyer to contact law enforcement officials for further information if the presence of a registered sex offender is a concern to the buyer?
1. Megan's Law
2. Colorado Fair Housing
3. Colorado Privacy Act
4. RESPA
Megan's Law
An agent with less than 2 years experience can expect the employing broker to .
1. Co-sign all contracts
2. Be a mentor or assign a mentor
3. Be available to attend closings
4. Provide weekly meetings and educational programs
Be available to attend closings
Any broker using a franchise or trade name owned by another on "for sale" signs on specific property shall clearly and unmistakably include .
1. The name of the listing agent and his or her phone number
2. The Broker's name, as registered with the Commission
3. The address of the real estate company
4. The name of the real estate office in print larger than the listing agents name
The Broker's name, as registered with the Commission
Interest bearing trust accounts .
1. Require the contract to disclose who will benefit from the interest earned
2. With proper notification transfer accumulated interest to the operating account of the broker acting as escrow agent
3. Require any earned interest to be credited to the broker's client
4. Are not permitted by the Colorado Real Estate Commission
Require the contract to disclose who will benefit from the interest earned
In the event of any controversy regarding earnest money held by a broker .
1. He or she may divide the money equally between the parties
2. The parties may seek arbitration from the Real Estate Commission
3. He or she may await written instructions from buyer and seller
4. He or she may give the earnest money to an attorney for safe keeping
He or she may await written instructions from buyer and seller
The Commission's position concerning Megan's Law is all of the following EXCEPT . 1. The chief of police is the designated place of registration for offenders residing within any city, town or city and county 2. All real estate licensees should inform a potential buyer of a home of the location of a registered sex offender within that neighborhood 3. The office of the county sheriff is the designated place of registration for those living outside any city, town or city and county 4. Per statute the CBI is to post on the internet identifying information, including a picture of each sex offender sentenced as a sexually violent predator or convicted of a sexual offense involving childrenAll real estate licensees should inform a potential buyer of a home of the location of a registered sex offender within that neighborhooddiscuss and negotiate the terms upon which to take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing when . 1. The broker's attorney approves the prospective listing 2. The broker is contacted by the current seller 3. The broker contacts a seller and the seller agrees to future dealings 4. The broker contacts the current listing broker and receives permission to seek the seller's future businessThe broker is contacted by the current sellerA check given as earnest money . 1. Must be in the form of "Good Funds" 2. May be held in the broker's safe for safe keeping 3. Must be identified as a check in the sales contract 4. May not be a business checkMust be identified as a check in the sales contractA Change of Status form is . 1. Used and signed with each agency listing agreement 2. Used and signed by brokers and submitted to MLS for property information changes 3. Used at the time a broker changes the brokerage relationship from an agency relationship to a transaction- broker relationship 4. Used and signed with each transaction-broker listing agreementUsed at the time a broker changes the brokerage relationship from an agency relationship to a transaction- broker relationshipConfidential information does not include disclosure of . 1. Seller's willingness to accept less that listed price 2. Buyer's motivating factors to purchase 3. Facts that may stigmatize a property 4. Adverse material latent defects within a propertyAdverse material latent defects within a propertyWhich of the following would be an inappropriate source of square footage would be? 1. Prior appraisal 2. Building plans 3. Assessor's office 4. Seller measurementsSeller measurementsA listing licensee is responsible to . 1. Accurately represent any source of square footage 2. Measure the square footage of all residential listings taken 3. Measure the square footage of residential listings when representing a buyer 4. Use the square footage provided by the County Assessor's officeAccurately represent any source of square footageWhen acting in a licensed capacity or when a licensee sells or buys real property on the licensee's own account, such licensee shall NOT have a continuing duty . 1. To disclose any known material defect in the property 2. To use a "Licensee Buy Out Addendum" 3. To disclose the fact that they are a real estate licensee 4. To disclose any known conflict of interest that may arise in the course of the transactionTo use a "Licensee Buy Out Addendum"Which of the following is NOT required of the broker to assess and receive broker mark-ups and/or other compensation for services performed by any third party or affiliated business entity? 1. Retain records that verify disclosure and consent 2. Fully account for the amounts or percentages of compensation assessed 3. Use the appropriate form to notify the Real estate commission 4. Obtain prior written consentUse the appropriate form to notify the Real estate commission"Licensee Buyout Addendum" is not required when a licensee: 1. Enters into a contract to purchase a property from an owner but continues to market that property on behalf of the owner under an existing listing contract 2. Enters into a contract to purchase a property as an inducement or to facilitate the property owner's purchase of another property, the purchase or sale of which will generate a commission or fee to the licensee 3. Enters into a contract to purchase a property concurrent with the listing of such property 4. Desires to acquire a listed property solely for personal use or future resaleDesires to acquire a listed property solely for personal use or future resaleThe title company you delegated to close your transaction charges for the preparation of legal documents. Their fee is the responsibility of . 1. Your Broker 2. The Buyer 3. The parties designated in the sales contract or closing instructions 4. The sellerYour BrokerA broker may . 1. Place an earned commission in his or her trust account 2. Rebate a portion of his or her commission to the seller to secure the listing 3. On the same transaction represent the Seller as a Sellers' Agent and assist the buyer as a transaction-broker 4. Accept a fee from a title insurance company for directing business to themRebate a portion of his or her commission to the seller to secure the listingA buyer's agent is unable to attend the closing. Another licensee has been designated to attend the closing in the buyer agent's absence. Who is responsible for the accuracy, completeness, review, and delivery of the closing documents? 1. The additional licensee 2. The buyer's agent and the employing broker 3. The buyer's agent 4. The buyer's agent, additional licensee, and employing brokerThe buyer's agent, additional licensee, and employing brokerA preprinted contract addendum that does not result from the negotiations of the parties may be ____. . 1. Attached only to listing (employment) agreements 2. Inserted anywhere in the body of a commission approved form 3. Attached to any real estate commission form as appropriate 4. Inserted into the Additional Provisions section of a buy/sell contractAttached to any real estate commission form as appropriateIn the case of seller assisted down payments, you should work with all of the following to avoid inaccurate sold data EXCEPT . 1. A title company or closing agent 2. MLS services 3. A tax consultant 4. The appraiserA tax consultantA broker may discuss and negotiate the terms upon which to take a future listing or, alternatively, may take a listing to become effective upon expiration of any existing exclusive listing when . 1. The broker is contacted by the current seller 2. The broker contacts the current listing broker and receives permission to seek the seller's future business 3. The broker contacts a seller and the seller agrees to future dealings 4. The broker's attorney approves the prospective listingThe broker is contacted by the current seller