1 | Page
Colorado Real Estate State Portion
Exam Prep 2018 Questions and
Answers Latest 2026
True or False? Colorado real estate license law was
enacted to protect brokers? Ans: FALSE-The law protects
the public in dealing with licensed brokers.
True or False? The Real Estate Commission must
investigate every complaint against a license. Ans: FALSE-
Only written complaints must be investigated.
True or False?If a licensee violates the license law, the
Commission may levy a fine of up to $2,500. Ans: TRUE
True or False? Colorado Brokers are allowed to prepare
any type of legal document. Ans: FALSE-Brokers may
prepare legal documents for real estate transactions if
they use standard or approved forms.
True or False? The Real Estate Commission's discipline of
licensees may include a fine, public censure, license
suspension, or license revocation. Ans: TRUE
True or False? The Real Estate Commission holds a public
hearing to determine if a licensee is guilty of violating
license law. Ans: FALSE- The hearing is held in court by
an Administrative Law Judge.
© 2025 All rights reserved
, 2 | Page
True or False? The Real Estate Commission will
investigate a violation of the Consumer Protection Act.
Ans: TRUE
True or False? The Real Estate Commission will
investigate a complaint regarding the failure of a licensee
to disclose stigmatized property Ans: FALSE- Stigma is
not considered a material fact under Colorado law, and
the listing broker may not disclose it without the concent
of the seller
True or False? The Real Estate Commission has authority
over ethical conduct. Ans: FALSE- The National
Association of Realtors has a code of ethics for its
members.
True or False? The Real Estate Commission has the
authority to grant and revoke licenses. Ans: TRUE
True or False? A Securities license is required to sell
options in real estate. Ans: FALSE- A real estate license is
required to sell real estate options.
True or False? HUD can revoke a broker's license for a
violation of Fair Housing. Ans: FALSE- Only the Real
Estate Commission can revoke a real estate license.
True or False? A broker's license allows the licensee to
sell real estate securities. Ans: FALSE- A securities license
is needed to sell securities.
© 2025 All rights reserved
, 3 | Page
True or False? A Broker must be connected to the
transaction to recieve payment. Ans: TRUE- Conway
Bogue
True or False? The Real Estate Commission (REC) will use
a subpeona to request that a licensee respond to a
complaint. Ans: FALSE- A licensee must respond in
writing to the Commission.
True or False? The brokerage firm must retain records for
7 years. Ans: FALSE- 4 years
True or False? The Real Estate Commission will file a
lawsuit and take the firm's records when they recieve a
complaint against a licensee. Ans: FALSE- The
commission requests a response in writing first.
True or False? The first step i a complaint is for the Real
Estate Commission to ask for a written response. Ans:
TRUE
True or False? The listing broker is responsible to pay for
the eed and other legal docuyments they order from the
title company. Ans: TRUE- Closing instructions and the
law state broker must pay for the legal documents they
order.
True or False? A partner in a title company, who is alao
acting as a broker, may have the parties use that title
company if the broker gives the parties a written
disclosure. Ans: TRUE
© 2025 All rights reserved
Colorado Real Estate State Portion
Exam Prep 2018 Questions and
Answers Latest 2026
True or False? Colorado real estate license law was
enacted to protect brokers? Ans: FALSE-The law protects
the public in dealing with licensed brokers.
True or False? The Real Estate Commission must
investigate every complaint against a license. Ans: FALSE-
Only written complaints must be investigated.
True or False?If a licensee violates the license law, the
Commission may levy a fine of up to $2,500. Ans: TRUE
True or False? Colorado Brokers are allowed to prepare
any type of legal document. Ans: FALSE-Brokers may
prepare legal documents for real estate transactions if
they use standard or approved forms.
True or False? The Real Estate Commission's discipline of
licensees may include a fine, public censure, license
suspension, or license revocation. Ans: TRUE
True or False? The Real Estate Commission holds a public
hearing to determine if a licensee is guilty of violating
license law. Ans: FALSE- The hearing is held in court by
an Administrative Law Judge.
© 2025 All rights reserved
, 2 | Page
True or False? The Real Estate Commission will
investigate a violation of the Consumer Protection Act.
Ans: TRUE
True or False? The Real Estate Commission will
investigate a complaint regarding the failure of a licensee
to disclose stigmatized property Ans: FALSE- Stigma is
not considered a material fact under Colorado law, and
the listing broker may not disclose it without the concent
of the seller
True or False? The Real Estate Commission has authority
over ethical conduct. Ans: FALSE- The National
Association of Realtors has a code of ethics for its
members.
True or False? The Real Estate Commission has the
authority to grant and revoke licenses. Ans: TRUE
True or False? A Securities license is required to sell
options in real estate. Ans: FALSE- A real estate license is
required to sell real estate options.
True or False? HUD can revoke a broker's license for a
violation of Fair Housing. Ans: FALSE- Only the Real
Estate Commission can revoke a real estate license.
True or False? A broker's license allows the licensee to
sell real estate securities. Ans: FALSE- A securities license
is needed to sell securities.
© 2025 All rights reserved
, 3 | Page
True or False? A Broker must be connected to the
transaction to recieve payment. Ans: TRUE- Conway
Bogue
True or False? The Real Estate Commission (REC) will use
a subpeona to request that a licensee respond to a
complaint. Ans: FALSE- A licensee must respond in
writing to the Commission.
True or False? The brokerage firm must retain records for
7 years. Ans: FALSE- 4 years
True or False? The Real Estate Commission will file a
lawsuit and take the firm's records when they recieve a
complaint against a licensee. Ans: FALSE- The
commission requests a response in writing first.
True or False? The first step i a complaint is for the Real
Estate Commission to ask for a written response. Ans:
TRUE
True or False? The listing broker is responsible to pay for
the eed and other legal docuyments they order from the
title company. Ans: TRUE- Closing instructions and the
law state broker must pay for the legal documents they
order.
True or False? A partner in a title company, who is alao
acting as a broker, may have the parties use that title
company if the broker gives the parties a written
disclosure. Ans: TRUE
© 2025 All rights reserved
