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Colorado Real Estate Exam Prep
Questions and Answers Latest 2026
An out-of -state investor sells a property in Colorado. The
closing entity must withhold up to 2 percent of the Ans:
selling price as possible income tax liability
The Closing Instructions form Ans: must be part of every
contract
According to statue, "good funds," include a Ans: tellers
check from savings and loan
All of the following must be disclosed to a tenant by a
property manager EXCEPT: Ans: Disclose the name and
address of the landlord
According to the Contract to Buy and Sell Real Estate - all
prorations are: Ans: final as of the closing date
Which of these acts could result in license suspension or
revocation? Ans: Conviction of a forgery crime, Accepting
compensation from more than one party in a transaction
without full disclosure, Advertising in the name of
another broker
As per the Contract to Buy/Sell Real Estate Mediation
shall terminate in the event the entire dispute is not
resolved within how many days of written notice
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requesting mediation delivered by one party to the other
at the party's last known address? Ans: 30 days
One of the requirements of a valid deed is that the deed
be: Ans: signed by the grantor
The Colorado Real Estate Commission was formed to:
Ans: protect the public
A loan origination fee appears on a settlement statement
as a: Ans: Debit to the buyer
It is illegal for a broker to work with both seller and
buyer when: Ans: the seller is not aware of such action,
all parties to the transaction are not aware of such action,
the agent collects a commission from both buyer and
seller without the knowledge and consent of both
Commissions earned by a broker in a real estate sales
transaction Ans: are determined by agreement of the
broker and his or her principal.
When a seller decides to counter an offer presented to
him, which is true? Ans: Seller should sign only the
counter offer
A broker has an Exclusive Right-to-Buy contract with a
principal. Who is to be their customer? Ans: Seller
What if anything is required by the broker to be included
on his/her Web site. Ans: Name of licensee's brokerage
firm
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Regarding delivery of Earnest Money: Ans: If other than
at the time of tender of this contract it must be delivered
no later than the Alternative Earnest Money Deadline
In the section on Purchase Price and Terms in a
Residential Contract to Buy and Sell, which of the
following is true concerning the entry for cash at closing?
Ans: It does not include the buyer's closing costs, such as
loan fees.
Which of the following statements is true concerning
agency? Ans: Written agreement establishes agency
The Colorado Contract to Buy & Sell states that "time is of
essence hereof". This statement means that: Ans: Dates
and deadlines will be strictly interpreted
When making a counter offer by using the approved
Counterproposal form - how do you change dates? Ans:
Change only the dates that needed to be changed
The Colorado Statute of Frauds mandates that Ans:
Contracts for the sale of real estate must be in writing
A real estate license, or license for a broker who is
working for another broker, may be issued: Ans: To a
woman using her birth name
If an employing broker leaves a real estate brokerage,
what happens to the transaction records? Ans: the
brokerage retains the records as the company is
responsibile for maintenance
© 2025 All rights reserved
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Before a purchaser is shown homes built prior to 1978:
Ans: they are to be given a copy of the EPA booklet
"Protect Your Family From Lead In Your Home"
The maximum amount of days that can be specified in
the Holdover Period in the Listing Contract is: Ans:
negotiable by Seller and Broker
A real estate broker shall NOT engage in any of the
following acts: Ans: preparing legal documents as a
courtesy for the seller of a for a sale by owner
transaction
An oral contract for the sale of real estate is: Ans:
unenforceable
A note for earnest money: Ans: Must be indicated in the
Contract to Buy and Sell
When a broker terminates his affiliation with an
employing broker what must be done? Ans: The broker
and the employing broker have joint responsibility to
assure that the real estate commission is notified.
Any excess funds above those required to pay off
encumbrances realized at a foreclosure sale belong to:
Ans: The mortgagor
The approved Agreement to Amend/Extend contract
form is used: Ans: To get mutual agreement of the
parties to any change in a deadline
© 2025 All rights reserved
Colorado Real Estate Exam Prep
Questions and Answers Latest 2026
An out-of -state investor sells a property in Colorado. The
closing entity must withhold up to 2 percent of the Ans:
selling price as possible income tax liability
The Closing Instructions form Ans: must be part of every
contract
According to statue, "good funds," include a Ans: tellers
check from savings and loan
All of the following must be disclosed to a tenant by a
property manager EXCEPT: Ans: Disclose the name and
address of the landlord
According to the Contract to Buy and Sell Real Estate - all
prorations are: Ans: final as of the closing date
Which of these acts could result in license suspension or
revocation? Ans: Conviction of a forgery crime, Accepting
compensation from more than one party in a transaction
without full disclosure, Advertising in the name of
another broker
As per the Contract to Buy/Sell Real Estate Mediation
shall terminate in the event the entire dispute is not
resolved within how many days of written notice
© 2025 All rights reserved
, 2 | Page
requesting mediation delivered by one party to the other
at the party's last known address? Ans: 30 days
One of the requirements of a valid deed is that the deed
be: Ans: signed by the grantor
The Colorado Real Estate Commission was formed to:
Ans: protect the public
A loan origination fee appears on a settlement statement
as a: Ans: Debit to the buyer
It is illegal for a broker to work with both seller and
buyer when: Ans: the seller is not aware of such action,
all parties to the transaction are not aware of such action,
the agent collects a commission from both buyer and
seller without the knowledge and consent of both
Commissions earned by a broker in a real estate sales
transaction Ans: are determined by agreement of the
broker and his or her principal.
When a seller decides to counter an offer presented to
him, which is true? Ans: Seller should sign only the
counter offer
A broker has an Exclusive Right-to-Buy contract with a
principal. Who is to be their customer? Ans: Seller
What if anything is required by the broker to be included
on his/her Web site. Ans: Name of licensee's brokerage
firm
© 2025 All rights reserved
, 3 | Page
Regarding delivery of Earnest Money: Ans: If other than
at the time of tender of this contract it must be delivered
no later than the Alternative Earnest Money Deadline
In the section on Purchase Price and Terms in a
Residential Contract to Buy and Sell, which of the
following is true concerning the entry for cash at closing?
Ans: It does not include the buyer's closing costs, such as
loan fees.
Which of the following statements is true concerning
agency? Ans: Written agreement establishes agency
The Colorado Contract to Buy & Sell states that "time is of
essence hereof". This statement means that: Ans: Dates
and deadlines will be strictly interpreted
When making a counter offer by using the approved
Counterproposal form - how do you change dates? Ans:
Change only the dates that needed to be changed
The Colorado Statute of Frauds mandates that Ans:
Contracts for the sale of real estate must be in writing
A real estate license, or license for a broker who is
working for another broker, may be issued: Ans: To a
woman using her birth name
If an employing broker leaves a real estate brokerage,
what happens to the transaction records? Ans: the
brokerage retains the records as the company is
responsibile for maintenance
© 2025 All rights reserved
, 4 | Page
Before a purchaser is shown homes built prior to 1978:
Ans: they are to be given a copy of the EPA booklet
"Protect Your Family From Lead In Your Home"
The maximum amount of days that can be specified in
the Holdover Period in the Listing Contract is: Ans:
negotiable by Seller and Broker
A real estate broker shall NOT engage in any of the
following acts: Ans: preparing legal documents as a
courtesy for the seller of a for a sale by owner
transaction
An oral contract for the sale of real estate is: Ans:
unenforceable
A note for earnest money: Ans: Must be indicated in the
Contract to Buy and Sell
When a broker terminates his affiliation with an
employing broker what must be done? Ans: The broker
and the employing broker have joint responsibility to
assure that the real estate commission is notified.
Any excess funds above those required to pay off
encumbrances realized at a foreclosure sale belong to:
Ans: The mortgagor
The approved Agreement to Amend/Extend contract
form is used: Ans: To get mutual agreement of the
parties to any change in a deadline
© 2025 All rights reserved
