Colorado psi real estate practice test.pdf file:///C:/Users/HP/Desktop/TYPA%20NEW/Colorado%20psi%20r
COLORADO PSI REAL ESTATE PRACTICE TEST
1. Legal descriptions using the government survey system are NOT generally used in
ANS the original 13 states
.
2. Real property can be converted to personal property by
ANS severance
3. 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?
ANS A license.
4. 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 spec- ify
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ANS that the salesperson will not be treated as an employee for federal income tax purposes.
5. The main difference between tenancy in common and joint tenancy is that with
tenancy in common, when a co-owner dies,
ANS his undivided interest passes to his heirs.
6. 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?
ANS
The second mortgagee receives nothing unless he forced the foreclosure auction.
7. 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?
ANS Provide the buyer with contact information for the local planning and zoning office to
confirm the zoning and determine whether it permits his use.
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8. 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?
ANS Conditional use permit or zoning variance
9. If conditions for property use are included in a deed and these conditions are violated,
what is the most severe potential penalty?
ANS A court may order the return of the property to the original owner.
10. New sidewalks installed only on one particular street will probably be paid for by
ANS a special assessment.
11. An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than
ANS $250,000.
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