Colorado License LawIntermediateColorado Exam
Under Colorado license law, a broker who discovers that a client intends to commit fraud in a transaction must:
AComplete the transaction and report it after closing, in general
BWithdraw from the transaction and refuse to assist in the fraudCorrect
CNegotiate with the client to reduce the fraud
DReport it only if it involves more than $10,000
Why Withdraw from the transaction and refuse to assist in the fraud Is Correct
Answer B: Withdraw from the transaction and refuse to assist in the fraud
A Colorado broker must not assist or participate in fraudulent transactions. If a client intends to commit fraud, the broker must withdraw from the transaction.
Key Colorado License Law Terms in This Question
People Also Study
Related Colorado Questions
- Which of the following is grounds for denial, suspension, or revocation of a Colorado real estate license?Colorado License Law
- A Colorado property owner discovers an old oil drum buried in the backyard. Under CERCLA, potential liability for cleanup costs may fall on:Environmental
- A Colorado broker's license was revoked for fraud. After the revocation, the broker may apply for reinstatement:Colorado License Law
- 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 property manager discovers a potential fair housing violation by a property owner's instructions. The manager should:Property Management
- A Colorado lender who discovers that the appraisal for a property was inflated through fraud (appraisal fraud) may:Finance
- A Colorado buyer's broker discovers a significant sinkhole risk on the property their client is about to buy. The broker must:Agency
- In Colorado, 'wire fraud' in real estate transactions is a growing concern because:Escrow & Title
Key Terms to Know
State-Specific Concepts
License Law
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →