Agency
In Colorado, a seller's broker who inadvertently discovers that the buyer's lender has a lower pre-approval amount than the contract price should:
AA. Immediately terminate the contract on the seller's behalf
BB. Discuss the situation with the seller and help evaluate options, as this is information that may affect the seller's decision to proceed✓ Correct
CC. Keep this information confidential
DD. Contact the buyer's lender directly without informing the seller
Explanation
Information about the buyer's financing that could affect the transaction is relevant to the seller's decision-making. A seller's broker should discuss any known financing concerns with their client and help evaluate options — such as requiring proof of funds, requesting a corrected approval, or weighing the risk of proceeding. The broker should not independently terminate the contract without the seller's direction.
Related Colorado Agency Questions
- A Colorado broker who is advertising a property for sale must include which information under Commission rules?
- A Colorado transaction broker is assisting both the buyer and seller in a transaction. The broker's primary obligation is to:
- In Colorado, a broker representing a buyer who discovers the seller is a licensed real estate broker should:
- A Colorado buyer who purchases a home using a buyer's broker and then contacts the listing broker directly to negotiate repairs after the inspection should:
- A Colorado buyer's agent who knows the seller is going through a divorce and is motivated to sell quickly should:
- In Colorado, an agent's 'duty of obedience' means the agent must:
- In Colorado, a 'seller's agent' owes the buyer which of the following duties?
- A listing agent in Colorado learns that the home's basement floods every spring. The seller asks the agent not to mention it. The agent should:
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →