COLORADO REAL ESTATE EXAM 2024

COLORADO REAL ESTATE EXAM 2024

QUESTIONS AND DETAILED CORRECT

ANSWERS (VERIFIED ANSWERS) |

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A transaction broker is most like a(n)

• advocate.
• agent.
• facilitator.
• coach. Correct Answer C) facilitator.

A broker acting as an advocate has which form of representation?

• A transaction broker
• An agent
• A facilitator
• A designated broker Correct Answer B) An agent

A seller might get a faster sale by offering seller financing in what type of market?

• An average market with average interest rates
• Anytime rates are average or low
• A fast market with low interest rates
• A slow market with high interest rates Correct Answer D) A

slow market with high interest rates

An independent contractor real estate broker can expect which of the following from her employing broker?

• Withholding of social security and other income taxes from

commission checks

• Supervision and review of all her contracts and transaction files
• An office and desk assigned for her use only 1 / 4

• Vacation and sick pay along with a retirement plan Correct

Answer B) Supervision and review of all her contracts and transaction files

Once a closing is completed, the broker associate

• must make copies for her file and review prior to submitting.
• authorize the closing entity to return the documents as soon as

they can.

• must return all closing documents to the employing broker

immediately.

• has a minimum 24 hours to return all the closing documents.

Correct Answer C) must return all closing documents to the employing broker immediately.

The amount of earnest money requested in a listing is set by the

• employing broker of the listing brokerage.
• seller in the listing contract.
• buyer and seller in the listing contract.
• listing broker Correct Answer B) seller in the listing contract.

All of the following would be considered closing documents

EXCEPT

• closing statements for the buyer and seller and a bill of sale.
• a tax certificate, contract to buy and sell, and deeds.
• a Real Property Transfer Declaration and closing instructions.
• a listing agreement and brokerage relationship disclosure.

Correct Answer D) a listing agreement and brokerage relationship disclosure.

An inactive real estate broker working as an onsite property manager

• must have errors and omissions insurance.
• must renew her license every three years.
• must maintain her continuing education requirements. 2 / 4

• may negotiate leases with tenants. Correct Answer B) must

renew her license every three years.

When transferring ownership of a property that has a well permit, which of the following must be notified?

• The state engineer
• The local water board
• The title company
• The Real Estate Commission Correct Answer A) The state

engineer

A seller offered the buyer a 90% loan and $5,000 in concessions.The listing broker will need to

• recommend what deed of trust the seller should use.
• make sure the seller knows the concessions may be tax

deductible.

• list all items in the MLS sale records.
• help the seller decide what terms to offer. Correct Answer C)

list all items in the MLS sale records.

In the Contract to Buy and Sell, if a broker inserted the correct legal description but made an error in the street address can the property title still be conveyed?

• No, the title is clouded and will need to have a correction deed

filed before closing.

• No, the broker will need to complete an addendum to correct

the address so the deed will be correct.

• Yes, since the street address is simply a reference and the title

is conveyed by the legal description.

• Yes, if the title work has the correct address there is no reason

to worry since they will use that address, not the legal description, in the deed. Correct Answer C) Yes, since the street address is simply a reference and the title is conveyed by the legal description.

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A broker who is exercising loyalty and obedience on behalf of representing their buyer or seller, means the buyer or seller are considered to be a

• vendor.
• grantee.
• customer.
• principal. Correct Answer D) principal.

In reviewing the seller's listing and what is to be included in the sale of the property, the seller tells the buyer she wants to include the built-in appliances and exclude all personal property including the stove and refrigerator. In this case, the broker

• will need to exclude the stove and refrigerator or they will

convey at closing.

• should list all exclusions and inclusions on the seller's list in the

appropriate section.

• must make sure all items named by the seller are on the bill of

sale.

• does not need to make any changes to the listing contract.

Correct Answer D) does not need to make any changes to the listing contract.

An associate broker has been asked to provide property management services for a friend, in this case the broker associate may provide the service as long as the

• broker has obtained a property management license.
• employing broker signs the management agreement and

handles all trust funds.

• broker does not negotiate leases.
• broker does not hold the security deposit. Correct Answer B)

employing broker signs the management agreement and handles all trust funds.

A broker who is working as a single agent

• must disclose if a suicide has taken place in the property.
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