COLORADO REAL ESTATE FINAL PAPER
2026 PRACTICE EXAM QUESTIONS WITH
VERIFIED ANSWERS
⩥ What are discount points? Answer: A form of prepaid interest that
mortgage borrowers can purchase to lower the interest rate on monthly
payments. They are a one time fee paid upfront. One discount point will
cost you 1% of your loan amount and will lower your interest rate by
2.5%
⩥ An employing broker's reasonable supervision includes? Answer:
Having the licensee receive read and sign a copy of the written office
policy
⩥ Lead based paint must be signed by sellers and real estate licensee if
building permit was.... Answer: Issued prior to Jan 1, 1978
⩥ Negative property manager ledger balances usually indicate Answer:
Commingling
⩥ A broker on a team in a brokerage firm must disclose which of the
following in all advertisements.? Answer: Employing brokers name
⩥ A Certificate of Tax is.... Answer: County assurance of total tax due
,⩥ When a licensee advertises a property for sale using a franchise name,
it must contain... Answer: The business name of the employing broker &
employing brokerage
⩥ The MINIMUM disciplinary action by the Real Estate Commission is
Answer: Letter of Admonishment
⩥ An out-of-state client has 15 rental units in Colorado and wants a
broker associate to manage them for a fee. In this case, the broker
associate should Answer: Ask the employing broker to obtain a property
management agreement and to set up a proper escrow account
⩥ Which of the following instruments are not governed by the real estate
commission Answer: Contracts for new builds
⩥ A real estate licensee is required to perform... Answer: Represent the
buyer and seller of a real estate transaction-
⩥ In Colorado, unless a broker has a written agency agreement the
broker is considered a violation of Answer: Transaction broker
⩥ A broker is an agent by buyer A and seller B. Buyer A decided to buy
seller b's home. The broker must.... Answer: Switch to a transaction
broker
,⩥ The contract to buy and sell real estate states that if an unresolved
conflict arises between the buyers and seller the parties agree to...
Answer: Mediation before arbitration
⩥ A licensee forgets to. renew a license prior to the expiration date but
submits an offer 32 days later. What else must the licensee do to
reinstate the license Answer: The licensee must both pay the renewal fee
and a reinstatement fee. Additionally, they might be required to retake
the licensing exam
⩥ High level of supervision includes Answer: attending closings
⩥ Following an inspection, a seller agrees to pay for installation for a
new circuit panel prior to closing. The seller installs the panel as agreed
but fails to pay the electrician. Which of the following is correct?
Answer: a mechanics lien may be filed against the property AFTER
closing
⩥ Broker H who is a licensed broker associate is leaving ABC realty and
will join XYZ realty. Who is responsible for retained the closed
transaction records of Broker H? Answer: ABC Realty and Broker H
⩥ A broker can facilitate safeguards in relation to seller assisted down
paymenrs in all of the following ways except..... Answer: Notifying the
RE commission of the true price of the property. residential
, ⩥ Which of the following transfer of property provisions is not found in
a Colorado Real Estate Deed of Trust? Answer: 1% interest increase
⩥ A licensee is in the process of presenting an offer to a seller. The
buyer calls and wants to withdraw the offer. Which of the following is
true? Answer: The buyer can withdraw before the seller accepts
⩥ Which of the following taxes are relevant to Colorado residential real
estate transactions? Answer: special assessments
⩥ Colorado E35 requires disclosure of a brokerage relationship when?
Answer: Before any primary assistant or before the receipt of
confidential information
⩥ E & O (Errors and Omissions) insurance is required for which of the
following? Answer: Commercial broker
⩥ An employing broker who designates one associate broker to work as
a sellers agent and one to work as a buyers agent has what sort of agency
relationship Answer: dual agency
⩥ According to the contract to buy and sell real estate, in order to protect
the buyer's earnest money, the buyer must obtain a written loan
2026 PRACTICE EXAM QUESTIONS WITH
VERIFIED ANSWERS
⩥ What are discount points? Answer: A form of prepaid interest that
mortgage borrowers can purchase to lower the interest rate on monthly
payments. They are a one time fee paid upfront. One discount point will
cost you 1% of your loan amount and will lower your interest rate by
2.5%
⩥ An employing broker's reasonable supervision includes? Answer:
Having the licensee receive read and sign a copy of the written office
policy
⩥ Lead based paint must be signed by sellers and real estate licensee if
building permit was.... Answer: Issued prior to Jan 1, 1978
⩥ Negative property manager ledger balances usually indicate Answer:
Commingling
⩥ A broker on a team in a brokerage firm must disclose which of the
following in all advertisements.? Answer: Employing brokers name
⩥ A Certificate of Tax is.... Answer: County assurance of total tax due
,⩥ When a licensee advertises a property for sale using a franchise name,
it must contain... Answer: The business name of the employing broker &
employing brokerage
⩥ The MINIMUM disciplinary action by the Real Estate Commission is
Answer: Letter of Admonishment
⩥ An out-of-state client has 15 rental units in Colorado and wants a
broker associate to manage them for a fee. In this case, the broker
associate should Answer: Ask the employing broker to obtain a property
management agreement and to set up a proper escrow account
⩥ Which of the following instruments are not governed by the real estate
commission Answer: Contracts for new builds
⩥ A real estate licensee is required to perform... Answer: Represent the
buyer and seller of a real estate transaction-
⩥ In Colorado, unless a broker has a written agency agreement the
broker is considered a violation of Answer: Transaction broker
⩥ A broker is an agent by buyer A and seller B. Buyer A decided to buy
seller b's home. The broker must.... Answer: Switch to a transaction
broker
,⩥ The contract to buy and sell real estate states that if an unresolved
conflict arises between the buyers and seller the parties agree to...
Answer: Mediation before arbitration
⩥ A licensee forgets to. renew a license prior to the expiration date but
submits an offer 32 days later. What else must the licensee do to
reinstate the license Answer: The licensee must both pay the renewal fee
and a reinstatement fee. Additionally, they might be required to retake
the licensing exam
⩥ High level of supervision includes Answer: attending closings
⩥ Following an inspection, a seller agrees to pay for installation for a
new circuit panel prior to closing. The seller installs the panel as agreed
but fails to pay the electrician. Which of the following is correct?
Answer: a mechanics lien may be filed against the property AFTER
closing
⩥ Broker H who is a licensed broker associate is leaving ABC realty and
will join XYZ realty. Who is responsible for retained the closed
transaction records of Broker H? Answer: ABC Realty and Broker H
⩥ A broker can facilitate safeguards in relation to seller assisted down
paymenrs in all of the following ways except..... Answer: Notifying the
RE commission of the true price of the property. residential
, ⩥ Which of the following transfer of property provisions is not found in
a Colorado Real Estate Deed of Trust? Answer: 1% interest increase
⩥ A licensee is in the process of presenting an offer to a seller. The
buyer calls and wants to withdraw the offer. Which of the following is
true? Answer: The buyer can withdraw before the seller accepts
⩥ Which of the following taxes are relevant to Colorado residential real
estate transactions? Answer: special assessments
⩥ Colorado E35 requires disclosure of a brokerage relationship when?
Answer: Before any primary assistant or before the receipt of
confidential information
⩥ E & O (Errors and Omissions) insurance is required for which of the
following? Answer: Commercial broker
⩥ An employing broker who designates one associate broker to work as
a sellers agent and one to work as a buyers agent has what sort of agency
relationship Answer: dual agency
⩥ According to the contract to buy and sell real estate, in order to protect
the buyer's earnest money, the buyer must obtain a written loan
