COLORADO REAL ESTATE PREP EXAM QUESTIONS AND 100% CORRECT ANSWERS|LATEST 2025/2026|GUARANTEED A+

QUESTIONS AND 100% CORRECT
ANSWERS|LATEST 2025/2026|GUARANTEED


Purpose of the Law - ANSWER- B B B B B



To protect the public of the state of CO in real estate matters
B B B B B B B B B B B B




Conway-Bogue Decision - ANSWER- B B B



Landmark decision confirming a licensee's right to a limited practice of law
B B B B B B B B B B B




Under Conway-Bogue, licensees - ANSWER-
B B B B



A. Must be connected to the transaction, B. Must use standard and approved forms C.
B B B B B B B B B B B B B B B



May not assess a separate fee for preparing documents
B B B B B B B B




According to the Denver and CO Bar Ass V. Title Guaranty Company & the Record Abstract & Ti
B B B B B B B B B B B B B B B B B



tle Company, A Title Insurance Company - ANSWER-
B B B B B B B



May not prepare legal documents, may prepare settlement sheets and acts a s scrivene
B B B B B B B B B B B B B



r of the real estate listing broker, who is responsible for all documents produced by the title co
B B B B B B B B B B B B B B B B B



mpany.



According to the Denver and CO Bar Ass V. Title Guaranty Company & the Record Abstract & Ti
B B B B B B B B B B B B B B B B B



tle Company, a broker is responsible for - ANSWER-
B B B B B B B B



payment for the legal documents the broker requests from the title company-
B B B B B B B B B B B



B deeds and bills of sale for example
B B B B B B




Regarding the relationship between brokers and title companies - ANSWER-
B B B B B B B B B



Brokers may not accept referral fees or inducements from title companies; and a broke
B B B B B B B B B B B B B



r who is a partner or affiliated with a title company may, with written disclosure of the broker's
B B B B B B B B B B B B B B B B B



Brelationship to the title company, refer a member of the public to the broker's title company.
B B B B B B B B B B B B B B B




1
Wicky

, What are the requirements for licensing in CO - ANSWER-
B B B B B B B B B



Candidates must complete 168 hours of education, pass the licensing exam, have valid B B B B B B B B B B B B B



proof they are US citizens and be at least 18 years old.
B B B B B B B B B B B




The Commission, upon its own motion, and upon a verified written complaint, must investigat
B B B B B B B B B B B B B



e licensees who might be guilty of: - ANSWER-
B B B B B B B B



False advertising, violating the colorado consumer protection act, failing to properly ha
B B B B B B B B B B B



ndle and manage trust monies, failing to properly handle and manage trust monies, failing to
B B B B B B B B B B B B B B B



provide a closing statement, failing to provide a closing statement, failing to keep documents f
B B B B B B B B B B B B B B



or 4 years, paying a commision to an unlicensed person for work requiring a license, dual contr
B B B B B B B B B B B B B B B B



acting- loan fraud, nondisclosure B B B




Define Dual contracting- loan fraud - ANSWER-
B B B B B B



Dual contracting is a form of loan fraud in which a fraudulent loan application is suppor
B B B B B B B B B B B B B B B



ted by a false purchase contract, usually for a sales price higher than the price actually agreed
B B B B B B B B B B B B B B B B B



upon between the buyer and seller. If the property appraises for the higher price, this applicati
B B B B B B B B B B B B B B B



on can result in a loan for a higher amount than the lender's normal loan-to-
B B B B B B B B B B B B B B



value ratio ** Dual contracting is criminal and can result in legal action, license discipline, and
B B B B B B B B B B B B B B B B



disbarment from federally related loan programs. B B B B B




Define Nondisclosure - ANSWER- B B B



Licensees should disclose immediately, to a member of the public, if they have an inter
B B B B B B B B B B B B B B



est in buying a property or if they are a principal in the sale of a property.Brokers must disclose
B B B B B B B B B B B B B B B B B B



their license status in writing in any contract.
B B B B B B B B




The Commission can audit a broker's escrow account at any time, without notice, to verify tha
B B B B B B B B B B B B B B B



t the broker has - ANSWER-
B B B B B



Maintained records for 4 years, not commingled funds; and provided all purchasers an B B B B B B B B B B B B



d sellers with proper closing statements.
B B B B B




The Commission has no authority and will not investigate - ANSWER-
B B B B B B B B B B



ethics violations; disputes between brokers; or criminal violations. **Criminal violation
B B B B B B B B B



s are handled by criminal courts**
B B B B B




2
Wicky