A Colorado broker tells a buyer a property has never flooded when the broker actually doesn't know. This could constitute:
Why Innocent or negligent misrepresentation that may expose the broker to liability Is Correct
Answer B: Innocent or negligent misrepresentation that may expose the broker to liability
Exam Tip: Agency
Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.
People Also Study
Related Colorado Questions
- A Colorado property manager who fails to return a security deposit within the required time period without a valid written deduction statement may be liable for:Property Management
- Under Colorado law, a person who practices real estate without a license may face:Colorado License Law
- A Colorado lease agreement can limit the tenant's occupancy to only the named tenants. Permitting additional occupants without the landlord's consent may constitute:Property Management
- Under Colorado law, a broker's duty to disclose material facts continues until:Agency
- In Colorado, a broker's obligation to 'disclose all known material facts' applies to:Agency
- In Colorado, an agent's 'duty of disclosure' requires disclosing all material facts to:Agency
- A Colorado broker convicted of making a fraudulent misrepresentation to a client may be ordered to pay restitution to the victim and may also have their license:Colorado License Law
- A Colorado homeowner makes extra principal payments of $200/month on their 30-year, $350,000 mortgage. Approximately how much sooner will they pay off the loan compared to making regular payments only? (Assume the extra payments reduce the term significantly.)Real Estate Math
Key Terms to Know
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Study This Topic
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →