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Colorado POST Exam
Test Bank 1 | Questions with Correct
Answers | Fully Verified Law
Enforcement Study Guide
After closing, a buyer discovered that a suicide had recently occurred on the
property. The buyer submitted a complaint to the Colorado Real Estate
Commission against the listing broker for failing to disclose this fact. The
Commission will
A) Dismiss the complaint because stigmatization of property is not considered a
material fact.
B) immediately suspend the license of the broker while awaiting a hearing.
C) investigate the complaint, submit it to a hearing, and may revoke the license of
the listing broker.
D) void the sale and award the buyer money from the Recovery Fund.
ANSWER: The answer is dismiss the complaint because stigmatization of property
is not considered a material fact. The Colorado Real Estate Commission will not
investigate a broker in this situation because stigmatized property law protects the
broker from disclosure of these facts.
The Colorado Real Estate Commission would investigate a complaint
A) from an associate broker over a dispute regarding commissions with the
employing broker.
B) about a broker not supplying closing statements at closing.
C) from a buyer regarding a broker not disclosing that someone was murdered on
the property.
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D) by the public involving a broker's ethics.
ANSWER: The answer is about a broker not supplying closing statements at
closing. The Colorado Real Estate Commission must investigate any situation in
which a broker is guilty of breaking the law. Brokers are required to provide
closing statements at closing. The Commission does not handle ethics violations or
disputes between buyers, and stigmatized property law protects the broker from
disclosing a murder.
A broker renewing a Colorado license is required to have how many hours of
continuing education over what period of time?
A) 36 hours over 4 years
B) 24 hours over 3 years
C) 8 hours over 2 years
D) 24 hours over 4 years
ANSWER: The answer is 24 hours over 3 years. The law requires a total of 24
hours of continuing education, of which 12 must be from Annual Commission
Update courses, with all education completed over 3 years.
An active broker may fulfill the continuing education requirement for a three-
year renewal cycle by any of the following EXCEPT
A) taking 24 hours of approved continuing education courses.
B) taking and passing the state section of the broker licensing exam.
C) taking the national section of the broker licensing exam.
D) completing 12 hours of commission updates and 12 elective hours of approved
continuing education.
ANSWER: The answer is taking the national section of the broker licensing exam.
The broker can take and pass the state portion of the licensing exam or take 24
hours of continuing education by completing 12 hours of updates and 12 hours of
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elective courses to meet the continuing education requirement. Taking the national
portion of the licensing exam will not give the broker any credit.
An inactive broker may do all of the following EXCEPT
A) complete a contract form once the broker has given pricing information.
B) prepare a CMA for a licensed broker who will then present it to the buyer.
C) sign checks from a brokerage firm's trust account.
D) manage property as an employee of the landlord.
ANSWER: The answer is complete a contract form once the broker has given
pricing information. An inactive broker may not do anything that requires a
license, such as soliciting buyers and sellers, selling options, or listing property.
Inactive brokers may, as any unlicensed person, work as an employee to manage
property under a landlord, work as an unlicensed assistant, complete a CMA for
the broker to present, and be a signer on the firm's trust account.
Under Colorado real estate license law, which of the following employees must
have a real estate license? The employee who is
A) selling real estate options.
B) leasing gas rights for the company.
C) reviewing lease agreements as part of the job.
D) acting as an on-site property manager.
ANSWER: The answer is selling real estate options. Employees who lease or
review leases as part of a job are not required to have a real estate license. On-site
property managers are not required to be licensed.
Brokers must renew their errors and omissions insurance
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A) no later than the first anniversary of their license renewal.
B) each year on or before June 15.
C) when they apply for their license.
D) on or before December 31 of each year.
ANSWER: The answer is on or before December 31 of each year. Errors and
omissions insurance must be purchased before applying for a license, and then it
must be renewed annually.
Jane is the employing broker of ABC Realty. All of the following are correct
EXCEPT
A) both the brokerage firm and Jane will be required to have errors and omissions
insurance.
B) as an employing broker, Jane will only need eight hours of continuing education
every three years.
C) Jane should have all of her employed broker associates sign the office policy.
D) all newspaper advertising must include ABC Realty in the ad.
ANSWER: The answer is as an employing broker, Jane will only need eight hours
of continuing education every three years. Like all active brokers, employing
brokers must complete 24 hours of continuing education every three years. The
firm's name is required on all advertising, and all broker associates must sign the
office policy. The brokerage firm and all brokers of the firm, including the
employing broker, must have E&O insurance.
Who could accept referral fees earned in the last six months?
A) A licensed broker who was a sole proprietor and now works for a large firm
B) A broker with a license on inactive status for the last year
Colorado POST Exam
Test Bank 1 | Questions with Correct
Answers | Fully Verified Law
Enforcement Study Guide
After closing, a buyer discovered that a suicide had recently occurred on the
property. The buyer submitted a complaint to the Colorado Real Estate
Commission against the listing broker for failing to disclose this fact. The
Commission will
A) Dismiss the complaint because stigmatization of property is not considered a
material fact.
B) immediately suspend the license of the broker while awaiting a hearing.
C) investigate the complaint, submit it to a hearing, and may revoke the license of
the listing broker.
D) void the sale and award the buyer money from the Recovery Fund.
ANSWER: The answer is dismiss the complaint because stigmatization of property
is not considered a material fact. The Colorado Real Estate Commission will not
investigate a broker in this situation because stigmatized property law protects the
broker from disclosure of these facts.
The Colorado Real Estate Commission would investigate a complaint
A) from an associate broker over a dispute regarding commissions with the
employing broker.
B) about a broker not supplying closing statements at closing.
C) from a buyer regarding a broker not disclosing that someone was murdered on
the property.
,2
D) by the public involving a broker's ethics.
ANSWER: The answer is about a broker not supplying closing statements at
closing. The Colorado Real Estate Commission must investigate any situation in
which a broker is guilty of breaking the law. Brokers are required to provide
closing statements at closing. The Commission does not handle ethics violations or
disputes between buyers, and stigmatized property law protects the broker from
disclosing a murder.
A broker renewing a Colorado license is required to have how many hours of
continuing education over what period of time?
A) 36 hours over 4 years
B) 24 hours over 3 years
C) 8 hours over 2 years
D) 24 hours over 4 years
ANSWER: The answer is 24 hours over 3 years. The law requires a total of 24
hours of continuing education, of which 12 must be from Annual Commission
Update courses, with all education completed over 3 years.
An active broker may fulfill the continuing education requirement for a three-
year renewal cycle by any of the following EXCEPT
A) taking 24 hours of approved continuing education courses.
B) taking and passing the state section of the broker licensing exam.
C) taking the national section of the broker licensing exam.
D) completing 12 hours of commission updates and 12 elective hours of approved
continuing education.
ANSWER: The answer is taking the national section of the broker licensing exam.
The broker can take and pass the state portion of the licensing exam or take 24
hours of continuing education by completing 12 hours of updates and 12 hours of
,3
elective courses to meet the continuing education requirement. Taking the national
portion of the licensing exam will not give the broker any credit.
An inactive broker may do all of the following EXCEPT
A) complete a contract form once the broker has given pricing information.
B) prepare a CMA for a licensed broker who will then present it to the buyer.
C) sign checks from a brokerage firm's trust account.
D) manage property as an employee of the landlord.
ANSWER: The answer is complete a contract form once the broker has given
pricing information. An inactive broker may not do anything that requires a
license, such as soliciting buyers and sellers, selling options, or listing property.
Inactive brokers may, as any unlicensed person, work as an employee to manage
property under a landlord, work as an unlicensed assistant, complete a CMA for
the broker to present, and be a signer on the firm's trust account.
Under Colorado real estate license law, which of the following employees must
have a real estate license? The employee who is
A) selling real estate options.
B) leasing gas rights for the company.
C) reviewing lease agreements as part of the job.
D) acting as an on-site property manager.
ANSWER: The answer is selling real estate options. Employees who lease or
review leases as part of a job are not required to have a real estate license. On-site
property managers are not required to be licensed.
Brokers must renew their errors and omissions insurance
, 4
A) no later than the first anniversary of their license renewal.
B) each year on or before June 15.
C) when they apply for their license.
D) on or before December 31 of each year.
ANSWER: The answer is on or before December 31 of each year. Errors and
omissions insurance must be purchased before applying for a license, and then it
must be renewed annually.
Jane is the employing broker of ABC Realty. All of the following are correct
EXCEPT
A) both the brokerage firm and Jane will be required to have errors and omissions
insurance.
B) as an employing broker, Jane will only need eight hours of continuing education
every three years.
C) Jane should have all of her employed broker associates sign the office policy.
D) all newspaper advertising must include ABC Realty in the ad.
ANSWER: The answer is as an employing broker, Jane will only need eight hours
of continuing education every three years. Like all active brokers, employing
brokers must complete 24 hours of continuing education every three years. The
firm's name is required on all advertising, and all broker associates must sign the
office policy. The brokerage firm and all brokers of the firm, including the
employing broker, must have E&O insurance.
Who could accept referral fees earned in the last six months?
A) A licensed broker who was a sole proprietor and now works for a large firm
B) A broker with a license on inactive status for the last year
