COLORADO REAL ESTATE EXAM
NEWEST 2025 PRACTICE EXAM
QUESTIONS AND DETAILED CORRECT
ANSWERS | A+ GRADE
A licensee has an exclusive-right-to-sell listing with a seller
as a transaction-broker. What must she disclose when a
potential buyer calls on this listing?
A. Nothing until the potential buyer has seen the property.
B. That she represents the seller exclusively and that the
buyer will have no working relationship with her company.
C. Nothing since state law makes her the buyer's
transaction-broker by default.
D. That she works with the seller as a transaction-broker
and will owe the same duties to the buyer in a purchase
transaction.
D
When an out-of-state investor sells a property in Colorado,
which of the following is required of the closing entity?
A. Withhold up to 2% of the selling price as a state
transfer tax.
B. Withhold up to 2% of the selling price as possible
income tax liability.
C. Withhold up to 2% of the net proceeds of the sale as
sales tax.
D. Withhold up to 2% of the proceeds of the sale as
possible income tax.
,B
Which of the following is NOT a closing document?
A. Agent-Seller Agreement
B. Sales Contract
C. Deed of Trust
D. Promissory Note
A
Richard privately owns a single 20-acre parcel of land and
wishes to sell ten acres. Which of the following statements
is TRUE?
A. He is not required to register with the Commission but
must meet local and state requirements for dividing his
land as such.
B. Because he is the private owner, there are no
restrictions or registration requirements.
C. Only a registered subdivider may divide land, thus
Richard as a private owner may not sell part of a single
parcel.
D. Richard can only sell the land to another Colorado
resident.
A
The inspection provision of the Residential Contract to Buy
and Sell allows the buyer to terminate the contract in
which of the following situations?
, A. If the property is unsatisfactory in the buyer's
subjective discretion.
B. If the seller refuses to correct certain defects in which
case the buyer may do so immediately.
C. Only if a licensed inspector determines that there are
significant problems with the property.
D. Only after listing unsatisfactory conditions that cause
the buyer to terminate.
A
The Residential Contract to Buy and Sell includes various
provisions that call for notification to one of the parties
about various events or objections. Which of the following
is TRUE with regard to the wording of the approved form?
A. Notice may be sent to the broker but is effective only
when received by the party.
B. Notice is effective when received by either the party or
the broker working with that party.
C. Notice must be directly to the party and not its broker.
D. Notice to the party must be by "normal channels of
communication," such as telephone, mail, or fax
B
Under Colorado law, which of the following statements
about Home Service Warranty Contracts is FALSE?
A. The contract must set forth the duration of the contract.
B. The contract must list all the items that are excluded
from coverage.
C. The contract must be transferable.
, D. The contract must set forth the procedures for making a
claim.
C
What happens if a defaulting buyer forfeits an earnest
money deposit, according to the Exclusive-Right-to-Sell
Listing Contract form?
A. The seller is entitled to keep the funds.
B. The broker and seller split the funds.
C. The broker receives the funds.
D. The broker and seller submit the funds for mediation.
B
What is the primary difference between the Commission-
approved deed of trust forms?
A. Forms contain different provisions for assumption of
the loan upon sale of the property.
B. Forms are specific for public trustee or private trustee
transactions.
C. Forms are specific for residential, agricultural, and
investment loans.
D. Forms contain different provisions depending on the
loan program to be used for funding the loan.
A
Which of the following is required in the event of a dispute
between the parties relating to the Contract to Buy and
Sell?
NEWEST 2025 PRACTICE EXAM
QUESTIONS AND DETAILED CORRECT
ANSWERS | A+ GRADE
A licensee has an exclusive-right-to-sell listing with a seller
as a transaction-broker. What must she disclose when a
potential buyer calls on this listing?
A. Nothing until the potential buyer has seen the property.
B. That she represents the seller exclusively and that the
buyer will have no working relationship with her company.
C. Nothing since state law makes her the buyer's
transaction-broker by default.
D. That she works with the seller as a transaction-broker
and will owe the same duties to the buyer in a purchase
transaction.
D
When an out-of-state investor sells a property in Colorado,
which of the following is required of the closing entity?
A. Withhold up to 2% of the selling price as a state
transfer tax.
B. Withhold up to 2% of the selling price as possible
income tax liability.
C. Withhold up to 2% of the net proceeds of the sale as
sales tax.
D. Withhold up to 2% of the proceeds of the sale as
possible income tax.
,B
Which of the following is NOT a closing document?
A. Agent-Seller Agreement
B. Sales Contract
C. Deed of Trust
D. Promissory Note
A
Richard privately owns a single 20-acre parcel of land and
wishes to sell ten acres. Which of the following statements
is TRUE?
A. He is not required to register with the Commission but
must meet local and state requirements for dividing his
land as such.
B. Because he is the private owner, there are no
restrictions or registration requirements.
C. Only a registered subdivider may divide land, thus
Richard as a private owner may not sell part of a single
parcel.
D. Richard can only sell the land to another Colorado
resident.
A
The inspection provision of the Residential Contract to Buy
and Sell allows the buyer to terminate the contract in
which of the following situations?
, A. If the property is unsatisfactory in the buyer's
subjective discretion.
B. If the seller refuses to correct certain defects in which
case the buyer may do so immediately.
C. Only if a licensed inspector determines that there are
significant problems with the property.
D. Only after listing unsatisfactory conditions that cause
the buyer to terminate.
A
The Residential Contract to Buy and Sell includes various
provisions that call for notification to one of the parties
about various events or objections. Which of the following
is TRUE with regard to the wording of the approved form?
A. Notice may be sent to the broker but is effective only
when received by the party.
B. Notice is effective when received by either the party or
the broker working with that party.
C. Notice must be directly to the party and not its broker.
D. Notice to the party must be by "normal channels of
communication," such as telephone, mail, or fax
B
Under Colorado law, which of the following statements
about Home Service Warranty Contracts is FALSE?
A. The contract must set forth the duration of the contract.
B. The contract must list all the items that are excluded
from coverage.
C. The contract must be transferable.
, D. The contract must set forth the procedures for making a
claim.
C
What happens if a defaulting buyer forfeits an earnest
money deposit, according to the Exclusive-Right-to-Sell
Listing Contract form?
A. The seller is entitled to keep the funds.
B. The broker and seller split the funds.
C. The broker receives the funds.
D. The broker and seller submit the funds for mediation.
B
What is the primary difference between the Commission-
approved deed of trust forms?
A. Forms contain different provisions for assumption of
the loan upon sale of the property.
B. Forms are specific for public trustee or private trustee
transactions.
C. Forms are specific for residential, agricultural, and
investment loans.
D. Forms contain different provisions depending on the
loan program to be used for funding the loan.
A
Which of the following is required in the event of a dispute
between the parties relating to the Contract to Buy and
Sell?
