7. On what day does an expired license become inactive? a. 21 b. 31 c. 32 d What is the penalty for allowing a license to expire? a.

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1 Colorado Quiz #1 Duties and Powers of the Real Estate Commission License Requirements and Regulation Chapter 1-2 DORA RE Manual 1. The lowest level of discipline the CREC may take against an agent is a. Fines b. Censure c. Revocation d. Letter of Admonishment 2. What judge hears a case for the CREC? a. Criminal b. Administrative c. Misdemeanor d. Administrative e. Hearing officer 3. What is necessary for the CREC to investigate a complaint? a. It comes to their attention no matter how b. A phone complaint c. A written complaint from the public d. A written complaint from another realtor 4. How many years must a broker maintain his or her records? a. 2 years b. 3 years c. 4 years d. 6 years 5. Broker B has a license that expires on March 1. Today is March 12. What is the status of their license? a. Active b. Inactive c. Conditional d. Void 6. A license is valid for how many days following the expiration date? a. 30 b. 31 c. 60 d. 90

2 7. On what day does an expired license become inactive? a. 21 b. 31 c. 32 d What is the penalty for allowing a license to expire? a. 1 and ½ times the renewal fee is charged b. $100 c. None d. $50 9. Employing broker at ABC Realty moves his offices from one building to another in the same complex without notification to the CREC. What is the status of his license and that of his licensees? a. Active but those licensed under him are inactive b. Inactive but those under him are still active c. He has 31 days to notify the CREC so all are active d. Inactive as well as all licensees under him 10. Who is responsible for notification of the CREC any time a licensee moves her license? a. The employing broker b. The licensee c. Not required d. Both the employing broker and licensee 11. Which of the list below do not have to maintain an active license? a. Employee of a homebuilder b. An agent selling property belonging to another c. An employee working for an apartment complex d. Both a and c 12. How many hours must an agent complete to renew her license under normal conditions? a. 36 b. 21 c. 24 d. 36

3 13. If the annual update and elective hours are used to renew a license, how many hours must be from the annual update? a. 12 b. 20 c. 8 d Assuming a broker takes 4 annual updates in consecutive years, can he or she use all 16 hours towards license renewal? a. Yes, 12 hours will be used for the annual update requirements and 4 will be counted as elective. b. No c. Yes, no other course work is required d. No only 12 hours may be used 15. All continuing education courses counted for renewal must be approved by the CREC. 16. Who is responsible for making sure the course work is approved by the CREC? a. Broker b. Employing Broker c. Independent Broker d. CREC 17. What type of course will likely receive approval from the CREC for CE credit? a. Coursework designed to help brokers find listings b. Coursework to assist brokers in time management c. Coursework to assist non brokers become agents d. Coursework that enhances the service to the public 18. How often must a broker renew her license? a. 4 years b. 3 years c. 2 years d. 6 years 19. Which of the following is not required to become a licensed agent? a. 168 hour license course b. Passing the National and Colorado exams c. A CBI background check d. Being a citizen of the state and country

4 20. All of the following are required to become an independent or employing broker except a. 24 hour Broker Administration Course b. 2 years as a licensee under an employing broker c. A fee paid to the CREC to change your license status d. Pass the Broker Administration Test administered by PSI 21. All active brokers, employing brokers and their agents must carry E&O insurance. 22. A broker with an inactive license does not have to carry E&O insurance. 23. Which of the following entities may be issued a temporary license? a. LLC b. Corp. c. Partnership d. All of the above 24. How long may a temporary license be issued for? a. 120 days b. 4 years c. 60 days d. 90 days and renewed for one additional 90 day period 25. An out of state agent may be paid a referral fee. 26. An out of state agent may conduct business in Colorado if they do all of the list below except a. Hold all funds in a Colorado account b. Agree to any litigation in a Colorado court c. Have an open office in the other state d. Agree to use only Colorado licensed agents 27. A holder of a Colorado real estate license may sell securities.

5 28. If a broker fails to take the required annual update they may take the Colorado license test one time for renewal. 29. Another option to renew is to take the 72 hour Colorado contract and closing course. 30. What is required to obtain a license? a. Take the 168 hour course and pass the license exam b. A background check by CBI c. Be 18 years of age and legally in the United States d. All of the above 31. An attorney that drafts a contract for a client is not required to hold a real estate license. 32. The CREC has how many members? a. 3 b. 5 c. 7 d The purpose of the CREC is to a. Protect brokers b. Protect agents c. Protect the public d. Protect the government 34. Colorado accepts all other states licenses for reciprocal privilege if they have held a license for two years. 35. It is the responsibility of both the employing broker and the licensee to notify the CREC of any change of employment status.

6 36. If an employing broker s license is revoked or inactivated, every broker working under the employing broker s license is inactive as well. a. False b. True 37. Any agent with an affiliated relationship with a title company or other entity must disclose in writing the relationship to the client. 38. All licensed agents must notify the CREC of any criminal arrest or conviction and failure to do so may result in revocation. a. False b. True 39. An agent may accept a commission and payment from a. Only her employing broker b. Any other employing broker c. A client d. Another broker 40. A broker acting on behalf of a client without a written contract shall be a a. Buyers agent b. Sellers agent c. Transaction broker d. Dual agent 41. In a multiple person firm agents may be designated as the agent for the buyer or seller. This is an example of a. Designated brokerage in an in-house or in-company transaction b. Illegal activity c. Wrongful designation d. Dual agency violation 42. Once agents have been delegated, will the employing broker have fiduciary or agency relationship extended to them as well? a. Yes b. No

7 43. In order for a seller to be vicariously liable for an act by his or her agent, the act must be a. Approved b. Ratified c. Directed d. All of the above 44. Unless directed in writing, a broker must present all offers to the seller regardless of a current contract for sale being in place and accepted. 45. When acting as a sellers agent the agent will not disclose a. The seller will accept less b. Stigma with regard to the property c. The seller will accept other finance terms than listed d. Any information not required for disclosure e. All of the above 46. A listing broker may rely on the word of the seller and is not required to conduct any independent investigation or inspections. a. False b. True 47. A selling agent must disclose a. The buyers ability to financially complete the sale b. The buyers intention to occupy the residence as a principal residence c. The buyers motivations for buying d. Both a and b above 48. Dual agency is a. Illegal in Colorado b. Legal in Colorado c. Not a factor d. Sometimes allowed 49. A transaction broker is not an agent for either party. 50. Payment is required to establish agency relationships.

8 51. How many change of status forms are needed if an agent wants to become a transaction broker due to a relationship with both parties? a. 1 b. 2 c. 3 d All employing and independent brokers must have an office in Colorado that is open and available to the public. a. False b. True 53. No person or entity may be licensed under more than how many trade names? a. Two b. Three c. Four d. One 54. The minimum E&O coverage shall be a. $100,000/300,000 b. None c. More than $1,000,000 d. $250,000/300, With regard to trust accounts, if a branch office is used they must keep a separate records account. 56. Trust accounts must have the trade name or brokers name in the account name. 57. How many trust accounts may a broker maintain? a. 7 b. 4 c. 3 d. 0 or as many as needed

9 58. If a broker is managing less than single family units, they may deposit all funds in the sales escrow account. a. 8 b. 7 c. 4 d All funds required for deposit in a trust account for deposits or rent must be deposited within a. Five days b. Ten days c. Three days d. Two days 60. All funds for earnest money must be deposited in a trust account within a. Five days b. Ten days c. Three days d. Two days 61. If a managing broker leaves the relationship all the original records should be given to the owners, and the broker shall keep and maintain a copy of all records for four years. 62. The is responsible for the proper closing of the sale regardless of the use of a third party. a. Sellers agent b. Buyers agent c. Title company d. Both the seller and buyers agents 63. Upon closing, the closing documents must be returned to the office of the employing broker a. Within ten days b. Within five days c. Immediately upon closing d. Within 12 hours

10 64. If a licensee is unable to attend closing and asks another to attend in his or her place, responsibility will be with a. Only the licensee attending b. Only the original broker c. Both the attendee and the original broker d. Nobody is responsible 65. According to rule E-8 all advertising must contain the following: a. Trade name and broker name b. Trade name and phone number c. Broker name and address d. Trade name, broker name, address and phone 66. According to Rule E-13 sign crossing, an agent may not solicit another if that person is under a current contract to another agent for the services being considered. They may a. Ask them to drop their current agent b. Ask them to keep it a secret c. Negotiate a future listing if contacted by the seller first d. Call and ask that they terminate their current contract and sign with you 67. Can a licensee accept a fee from a mortgage lender? a. Never b. No, unless nobody else knows c. Yes, with full disclosure d. Yes, if nobody else knows 68. Who sets the listing price of the property? a. Listing agent b. Buyer c. NAR d. The owner of the property 69. An employing broker owes a new agent a high degree of supervision to include a. Being reasonably available for questions b. Supervise the writing of contracts c. Specific training on office policy and procedures d. Be available for closing e. All of the above

11 70. An employing broker may delegate the supervision of new licensees to a qualified broker with two or more years of experience. 71. Rule E-35 requires that we disclose our relationship with a seller prior to a. Small talk b. Giving open house information c. Speaking with the client d. Gaining confidential information from the customer 72. An office policy must describe all broker relationships and be signed by the agent upon beginning work as an agent for the office. 73. Rule E-42 requires the notice this evaluation was provided by a real estate agent not an appraiser any time the BPO or CMA is to be used for purposes other than buying or selling real estate. a. False b. True 74. Rule E-43 requires that if the licensee does not measure the property themselves they must a. Disclose the source of the measurement b. They must measure the property themselves c. Disclose they did not measure the property d. Use an appraiser to measure. 75. Under Rule E-45 a supervising broker can receive confidential information from the broker under their supervision without extending the agency agreement to the supervising broker. 76. Rule F allows a broker to fill out commission approved forms. When doing so they must be sure to use a. Different font b. Different size c. Different color d. Any of a, b or c

12 77. An addenda to the contract must be prepared by a. An attorney b. The parties themselves c. A licensed agent d. A or B 78. According to Rule E-11 all listing agreements must have a termination date. 79. All of these questions come from Chapters one and two of the Colorado Real Estate online manual, available online from DORA or a full manual online is available from Bradford Publishing. Each chapter is required reading for the class. 80. The minimum score for this exam is 74/80 or 80% however it is recommended you retake the exam and re-read the chapters until a score of 90% is achieved.