1 | Page
Colorado Contracts and Regulations
Questions and Answers Latest 2026
Colorado Revised Statutes Ans: Colorado laws
The license law exists to protect the public by setting a
standard for competency and integrity.
A real estate broker Ans: on behalf of another person, for
any form of compensation, negotiates in real estate or
any interest therein.
An option Ans: a speculative, unilateral contract in which
the optionee offers money now for the future right to buy
a certain property.
Persons not needing a real estate license: Ans: Any
person or legal entity acting on its own behalf as a
principal.
Public official performing official duties.
Trustee, administrator, executor, guardian, performing
authorized duties.
A person or legal entity dealing in oil and gas.
An attorney-at-law, but only when representing clients in
the practice of law.
© 2025 All rights reserved
, 2 | Page
A real estate broker licensed in another state who co-
brokers with a Colorado broker
license qualification Ans: A person must be 18 years old
and of good moral character.
Brand new applicant: 168-hour education program or
college degree with a major in real estate.
Previously licensed salesperson: 120 hours in education
programs.
Previously licensed broker: 72 hours in education
programs.
Attorney: 12-hour Trust Accounts, Recordkeeping and
Real Estate Closings course.
associate broker Ans: An inexperienced broker must
practice as an associate broker for two years.
independent brokerage Ans: A broker may apply to
engage in independent brokerage after two years active
licensed experience under a high level of supervision.
employing broker Ans: A broker desiring licensure as an
employing broker, must complete the 24-hour "Brokerage
Administration" course.
license recognition agreements Ans: Colorado
participates in bilateral license recognition agreements
with other states.
© 2025 All rights reserved
, 3 | Page
broker licensing exam Ans: In addition to the education,
applicants must pass a standardized broker licensing
exam (National and Colorado).
Rule A-16: Ans: a set of fingerprints must be submitted
for a criminal history record check.
The Real Estate Commission Ans: Five commissioners
with 3-year terms.
Three must be brokers with at least 5 years' experience.
One is a non-real estate person representing the public.
Failure to renew license Ans: on time automatically
renders a license inactive upon expiration. The law
permits reinstatement of an expired license within 31
days without penalty.
If the employing broker's license expires or revoked, all
employed associate broker licenses become inactive.
Before renewing every 3 years, activating or reinstating a
broker license to active status, each broker requires 24
hours of continuing education.
Violations of the license law include: Ans: Acting for
more than one party without the knowledge of all parties.
Representing more than one employing broker without
consent.
© 2025 All rights reserved
, 4 | Page
Not depositing trust funds with the employing broker as
soon as possible.
Affiliated business arrangement Ans: a provider of
settlement services is related to another provider and
they refer business the selection of providers in favor of
each other.
The law prohibits a licensee from Ans: Requiring the use
of an affiliated business as a condition of using the
licensee's brokerage services
Giving or receiving anything of value for referring clients
to another settlement service provider.
Licensees faced with license revocation Ans: are entitled
to a public hearing conducted by an administrative law
judge. Only the commission may deny, suspend or revoke
a license.
Criminal law (public wrongs) and Tort law (private
wrongs) control Ans: the behavior of individuals for
activities conducted outside the purview of the license
law.
Part 3 - Broker Commissions Ans: When Entitled to a Fee.
Failure to Close due to Title Defect.
When Owner must Perfect Title.
Referral Fee Interference.
© 2025 All rights reserved
Colorado Contracts and Regulations
Questions and Answers Latest 2026
Colorado Revised Statutes Ans: Colorado laws
The license law exists to protect the public by setting a
standard for competency and integrity.
A real estate broker Ans: on behalf of another person, for
any form of compensation, negotiates in real estate or
any interest therein.
An option Ans: a speculative, unilateral contract in which
the optionee offers money now for the future right to buy
a certain property.
Persons not needing a real estate license: Ans: Any
person or legal entity acting on its own behalf as a
principal.
Public official performing official duties.
Trustee, administrator, executor, guardian, performing
authorized duties.
A person or legal entity dealing in oil and gas.
An attorney-at-law, but only when representing clients in
the practice of law.
© 2025 All rights reserved
, 2 | Page
A real estate broker licensed in another state who co-
brokers with a Colorado broker
license qualification Ans: A person must be 18 years old
and of good moral character.
Brand new applicant: 168-hour education program or
college degree with a major in real estate.
Previously licensed salesperson: 120 hours in education
programs.
Previously licensed broker: 72 hours in education
programs.
Attorney: 12-hour Trust Accounts, Recordkeeping and
Real Estate Closings course.
associate broker Ans: An inexperienced broker must
practice as an associate broker for two years.
independent brokerage Ans: A broker may apply to
engage in independent brokerage after two years active
licensed experience under a high level of supervision.
employing broker Ans: A broker desiring licensure as an
employing broker, must complete the 24-hour "Brokerage
Administration" course.
license recognition agreements Ans: Colorado
participates in bilateral license recognition agreements
with other states.
© 2025 All rights reserved
, 3 | Page
broker licensing exam Ans: In addition to the education,
applicants must pass a standardized broker licensing
exam (National and Colorado).
Rule A-16: Ans: a set of fingerprints must be submitted
for a criminal history record check.
The Real Estate Commission Ans: Five commissioners
with 3-year terms.
Three must be brokers with at least 5 years' experience.
One is a non-real estate person representing the public.
Failure to renew license Ans: on time automatically
renders a license inactive upon expiration. The law
permits reinstatement of an expired license within 31
days without penalty.
If the employing broker's license expires or revoked, all
employed associate broker licenses become inactive.
Before renewing every 3 years, activating or reinstating a
broker license to active status, each broker requires 24
hours of continuing education.
Violations of the license law include: Ans: Acting for
more than one party without the knowledge of all parties.
Representing more than one employing broker without
consent.
© 2025 All rights reserved
, 4 | Page
Not depositing trust funds with the employing broker as
soon as possible.
Affiliated business arrangement Ans: a provider of
settlement services is related to another provider and
they refer business the selection of providers in favor of
each other.
The law prohibits a licensee from Ans: Requiring the use
of an affiliated business as a condition of using the
licensee's brokerage services
Giving or receiving anything of value for referring clients
to another settlement service provider.
Licensees faced with license revocation Ans: are entitled
to a public hearing conducted by an administrative law
judge. Only the commission may deny, suspend or revoke
a license.
Criminal law (public wrongs) and Tort law (private
wrongs) control Ans: the behavior of individuals for
activities conducted outside the purview of the license
law.
Part 3 - Broker Commissions Ans: When Entitled to a Fee.
Failure to Close due to Title Defect.
When Owner must Perfect Title.
Referral Fee Interference.
© 2025 All rights reserved
