Session 7: Colorado Test Prep Questions 1 38 (rev. 01/2017)

Transcription

1 Session 7: Colorado Test Prep Questions 1 38 (rev. 01/2017) 1. What is the Conway-Bogue decision and what are the major outcomes of this decision? (Section 3, p. 20) 2. What may the Real Estate Commission investigate? (Section 1, p. 7) 3. What are three possible outcomes of an investigation? (Section 1, p. 8) 4. What are the possible outcomes in a hearing? (Section 1, p. 8) 5. Who has authority over these types of violations: ethical, license law, and criminal? (Section 1, p. 8) 6. What is E&O insurance and who must carry it? (Section 2, p. 14) DREAM ( ) Page 1 Session 7 (rev. 01/2017)

2 7. What are the three levels of real estate licensure? (Section 2, p. 10) 8. How does one move from Broker Associate to Employing Broker? (Section 2, p. 10) 9. What are the requirements for initial licensure? (Section 2, p. 13) 10. How often do you have to renew a license? When does it expire? (Section 2, p. 11) 11. What continuing education must be taken during your renewal cycle? What are your options if you fail to meet the requirement? (Section 2, p ) 12. Are there reinstatement fees for inactive and expired licensees? (Section 2, p. 12) DREAM ( ) Page 2 Session 7 (rev. 01/2017)

3 13. How can a license become inactive? (Section 2, p ) 14. Who must have a license? (Section 2, p. 11) 15. Who does not need a license? (Section 2, p. 11) 16. Why must a broker include the name of the brokerage on ALL advertising? (Section 3, p. 16) 17. What are the requirements of an employing broker with the management of broker associates with less than two years experience? (Section 3, p. 17) 18. What can an unlicensed personal assistant do and not do? (Section 3, p. 21) DREAM ( ) Page 3 Session 7 (rev. 01/2017)

4 19. What is sign-crossing? (Section 3, p. 21) 20. How long must a broker keep past records? (Section 3, p. 19) 21. Who owns the listing contract? Who owns the relationship with the client? (Section 3, p. 20) 22. To whom can temporary licenses be issued by the CREC? (Section 2, p. 11) 23. Must an employing broker attend a new broker associate s first closing? (Section 3, p. 17) 24. Will the CREC investigate disputes between a broker associate and his employing broker? (Section 1, p. 8) 25. What must an office manual contain? (Section 3, p. 17) DREAM ( ) Page 4 Session 7 (rev. 01/2017)

5 26. Is a rebate to buyer or seller from his agent legal? (Section 3, p. 18) 27. Is a listing contract without a termination date considered to be valid? (Section 3, p. 20) 28. Are there any rules for licensees when they want to purchase or sell their own properties? (Section 3, p. 19) 29. How often does E&O Insurance need to be renewed? (Section 2, p. 14) 30. What is the purpose of real estate license law? (Section 1, p. 7) 31. What are some examples of actions the Real Estate Commission cannot take? (Section 1, p. 8) 32. What rules must brokers who live in other states follow? (Section 2, p. 10) DREAM ( ) Page 5 Session 7 (rev. 01/2017)

6 33. What did the court case Denver and Colorado Bar Association vs. Title Guarantee Company conclude? (Section 3, p. 20) 34. What does RESPA say about brokers receiving referral fees or inducements from title companies?) (Section 3, p. 18) 35. May a broker with an affiliate or ownership interest in a title company refer a client to that title company? (Section 3, p. 18) 36. May the Real Estate Commission audit a broker s trust account at any time and without notice to verify that the broker is retaining record for four years, there is no commingling of funds, and that buyers and sellers are receiving proper documentation from the broker? (Section 3, p. 18) 37. How soon after closing must a broker associate return all closing documents to his employing broker? (Section 3, p. 19) 38. What are the requirements of an employing broker with the management of broker associates with more than two years experience? (Section 3, p. 17) DREAM ( ) Page 6 Session 7 (rev. 01/2017)

7 Session 8: Colorado Test Prep Questions (rev. 01/2017) 39. Are water rights real property or an appurtenance tied to real property? (Section 4, p ). 40. What is the homestead exemption in Colorado? (Section 4, p. 28) 41. Does an owner of subsurface rights have the right to enter the property to extract minerals? (Section 4, p. 24) 42. Can a licensee be an agent for a buyer and seller in a single agency? (Section 5, p ) 43. What are the two relationships a licensee can have with the public? (Section 5, p. 30) 44. How are property taxes handled in Colorado? (Section 4, p. 24) DREAM ( ) Page 1 Session 8 (rev. 01/2017)

8 45. What is a deed of trust and who are the parties to the deed of trust? (Section 4, p. 27) 46. What is the Notice of Election and Demand (NED) and what are its timelines? (Section 4, p. 27) 47. What is a deficiency judgment and who is responsible for paying it? (Section 4, p. 27) 48. What is Equity Skimming? (Section 4, p. 27) 49. When does the Colorado Foreclosure Act apply? (Section 4, p. 27) 50. What is a tax lien certificate? (Section 4, p. 25) DREAM ( ) Page 2 Session 8 (rev. 01/2017)

9 51. How is the Colorado Fair Housing Act different from the Federal Fair Housing Act? (Section 4, p. 25) 52. When must a tenant s deposit be returned? (Section 4, p. 23) 53. What are the month-to-month, tenancy at will, and estate for years termination deadlines? (Section 4, p. 23) 54. What does prior appropriation mean? (Section 4, p. 23) 55. What governmental office manages the transfer of well permits and what general acreage is needed to get a well permit? (Section 4, p. 24) 56. Explain the difference between transaction broker and agency? (Section 5, p ) DREAM ( ) Page 3 Session 8 (rev. 01/2017)

10 57. What does it mean to say that the transaction broker is the default relationship in Colorado? (Section 5, p. 33) 58. Explain how a designated brokerage allows two licensees at the same company to represent their clients as agents. (Section 5, p. 35) 59. If you can t be a dual agent (agent for both the seller and buyer in the same transaction), what are your options in this situation? (Section 5, p. 34) 60. How many units in a subdivision are required to trigger registration with CREC? (Section 4, p. 28) 61. What are some exemptions for subdivision registration? (Section 4, p. 28) DREAM ( ) Page 4 Session 8 (rev. 01/2017)

11 62. Why would a licensee need a Power of Attorney? (Section 4, p. 28) 63. When does a licensee need to disclose the relationships they may have with the public? (Section 5, p. 31) 64. What should a licensee do if a member of the public won t sign a Broker Disclosure form? (Section 5, p. 32) 65. How do property managers comply with Fair Housing laws? (Section 4, p. 26) 66. What is the two percent non-resident seller income tax withholding? (Section 4, p. 25) 67. What is the difference between a public trustee and a private trustee? (Section 4, p. 27) DREAM ( ) Page 5 Session 8 (rev. 01/2017)

12 68. What form is needed to work with a member of the public as a customer? (Section 5, p. 31) 69. What is the purpose of the Definitions of Working Relationships form? (Section 5, p. 30) 70. When is the Definitions of Working Relationships form required? (Section 5, p. 30) 71. What s the best way to verify a property s legal description? (Section 4, p. 27) 72. Who is usually the designated broker for a transaction? (Section 5, p. 35) 73. If the brokerage firm owns the listing contract, who is responsible for the relationship? (Section 5, p. 35) DREAM ( ) Page 6 Session 8 (rev. 01/2017)

13 Session 9: Colorado Test Prep Questions (rev. 01/2017) 74. How is personal property transferred at closing? 75. What does the Colorado Common Interest Ownership Act say? 76. How does a contract terminate? 77. May a licensee omit language in the contract to buy and sell if it is not relevant to the specific transaction? What is an example? 78. What does the Mediation clause in the Exclusive Right to Sell listing contract say? 79. What happens with an earnest money dispute between buyer and seller? DREAM ( ) Page 1 Session 9 (rev. 01/2017)

14 80. What is the bulk sales use fee? 81. What are the remedies for the seller or buyer in case of default? 82. Why does the selling agent sign the bottom of the contract to buy and sell? 83. What happens if the buyer and seller do not come to an agreement on inspection matters by the inspection resolution deadline? 84. According to UCC how many transactions constitute a lender, and what are the associated maximum interest rates that can be charged without it being usury? 85. Should a seller sign an offer if he wishes to make a counterproposal? DREAM ( ) Page 2 Session 9 (rev. 01/2017)

15 86. What is dual contracting and why is it illegal? 87. What is a counterproposal contract? 88. What is the Change of Status form? 89. What is the Closing Instructions form? 90. What is a Licensee Buy-out addendum? DREAM ( ) Page 3 Session 9 (rev. 01/2017)

16 91. What is an Amend/Extend? 92. How may approved contracts be modified by licensees? 93. What is a single party listing? 94. What is the Source of Water addendum? 95. What is the Seller s Property Disclosure? 96. How must a listing broker advise a seller who does not want to complete a Seller s Property Disclosure? DREAM ( ) Page 4 Session 9 (rev. 01/2017)

17 97. What is the Lead Based Paint Disclosure? 98. What is the status of a contract if a buyer does not receive the Lead Base Paint Disclosure with or before the contract to buy and sell? 99. What is the Square Footage Disclosure? 100. Who can prepare or create an addendum? 101. What is exculpatory language? May an agent include it in the additional provisions section of a contract to buy and sell? DREAM ( ) Page 5 Session 9 (rev. 01/2017)

18 Session 11: Colorado Test Prep Questions (rev. 01/2017) 102. What documents should the designated listing broker keep and for how long? (Section 7, p. 106) 103. What is conversion of funds? (Section 7, p. 109) 104. What type of trust account is required for a broker who manages ten rentals? (Section 7, p. 107) 105. Who must hold the security deposits if the lease does not state this information? (Section 7, p. 108) 106. What is a trust account and who may have them? (Section 7, p. 106) 107. What are the types of trust accounts and how many may a broker have? (Section 7, p. 107) DREAM ( ) Page 1 Session 11 (rev. 01/2017)

19 108. How do brokers protect the integrity of trust accounts? (Section 7, p. 107) 109. What has to be on a trust account? (Section 7, p ) 110. When must earnest money be deposited into a trust account? (Section 7, p. 108) 111. When must property management funds be deposited into a trust account? (Section 7, p. 108) 112. What happens if a broker cannot attend closing and asks another broker to take his place? (Section 8, p. 115) 113. What are the proration rules on the Colorado side of the state exam? (Section 8, p. 112) 114. What is the proration posting for property taxes with an August 20 th closing when last year s taxes were $892? (Section 8, p. 113) DREAM ( ) Page 2 Session 11 (rev. 01/2017)

20 115. What is the credit/debit entry for the buyer s new loan? (Section 8, p. 115) 116. What is the credit/debit entry for earnest money? 117. What is the credit/debit entry for the lender s title insurance policy? 118. What is the document fee? 119. What is the debit/credit between buyer and seller for security deposits at closing? 120. What are Good Funds? (Section 8, p ) 121. What is the Certificate of Taxes Due? (Section 8, p. 120) DREAM ( ) Page 3 Session 11 (rev. 01/2017)

21 122. What is the difference between a Settlement Statement and a six-column worksheet? (Section 8, p ) 123. What are the Broker s columns for in a six-column worksheet? (Section 8, p. 116) 124. What is the Real Property Transfer Declaration? (Section 8, p. 120) 125. What should a broker do if he sees an error in a Settlement Statement that benefits his client? (Section 8, p. 115) DREAM ( ) Page 4 Session 11 (rev. 01/2017)