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Colorado Real Estate State Exam Part
1 Questions and Answers Latest 2026
According to the Exclusive-Right-To-Sell Listing Contract,
what happens to the earnest money if the buyer defaults?
a.The seller and listing broker evenly split the funds
b.The mediator decides who receives the funds
c.The seller gets the funds
d.The buyer receives the funds back Ans: c.The seller
gets the funds
Buyer is in default
If a broker moves his place of business without advising
the Real Estate Commission:
A. His license is inactivated but not licensees working for
him
B. His license and all associate brokers working for him
are inactivated
C. The licenses of all associate brokers under him are
inactivated Ans: B. His license and all associate brokers
working for him are inactivated
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Buyer Jones makes a full price offer to purchase, to seller
Smith, who rejects the offer outright. What recourse does
Jones have?
A. Sue Smith for damages
B. Sue Smith for specific performance
C. Sue for damages and specific performance
D. Buyer Jones cannot sue Ans: D. Buyer Jones cannot
sue
When a seller wishes to counter an offer made by a
purchaser, which of the following documents should be
signed by the seller?
A. The purchase and sale contract
B. The counter offer
C. The purchase and sale contract and the counter offer
D. The purchase and sale contract after the appropriate
changes have been stricken or changed and initialed Ans:
B. The counter offer
An agent sells a mobile home. Its purpose will be a
residence, with the transfer of real property. What kind of
license is needed?
A. Motor vehicle license
© 2025 All rights reserved
, 3 | Page
B. Real estate license
C. Mobile home dealer's license
D. Mobile home vehicle license Ans: B. Real estate license
The sale of real property requires a real estate license.
The authority to carry out eviction of a delinquent tenant
from rented property is held by:
A. a landlord
B. the sheriff
C. any of the above Ans: B. the sheriff
The short version is this - a landlord may request an
eviction, but only a sheriff has the authority to physically
perform one.
A broker's license may be automatically suspended for:
A. Commingling
B. Fraud
C. Theft
D. Nothing there must always be a hearing before Ans: D.
Nothing there must always be a hearing before
© 2025 All rights reserved
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Regardless of the crime there must always be a hearing
prior to suspension of a license. A court may issue an
injunction to cease any action dangerous to the public.
Title insurance endorsements appear on a closing
statement as a:
A. Credit to the seller
B. Debit to the seller
C. Debit to the broker
D. Credit to the broker Ans: D. Credit to the broker
The Title Company or broker, whoever is doing the
closing, collects title insurance endorsements as a credit,
then sends a check when all funds are disbursed.
If the seller finds out he is not being transferred and
defaults on the sales contract:
A. It depends if specific performance or liquidated
damages was checked
B. The listing agent can force the sale
C. Neither agent is entitled to a commission since the
deal never closed
D. The buyer can sue him for specific performance and
damages Ans: D. The buyer can sue him for specific
performance and damages
© 2025 All rights reserved
Colorado Real Estate State Exam Part
1 Questions and Answers Latest 2026
According to the Exclusive-Right-To-Sell Listing Contract,
what happens to the earnest money if the buyer defaults?
a.The seller and listing broker evenly split the funds
b.The mediator decides who receives the funds
c.The seller gets the funds
d.The buyer receives the funds back Ans: c.The seller
gets the funds
Buyer is in default
If a broker moves his place of business without advising
the Real Estate Commission:
A. His license is inactivated but not licensees working for
him
B. His license and all associate brokers working for him
are inactivated
C. The licenses of all associate brokers under him are
inactivated Ans: B. His license and all associate brokers
working for him are inactivated
© 2025 All rights reserved
, 2 | Page
Buyer Jones makes a full price offer to purchase, to seller
Smith, who rejects the offer outright. What recourse does
Jones have?
A. Sue Smith for damages
B. Sue Smith for specific performance
C. Sue for damages and specific performance
D. Buyer Jones cannot sue Ans: D. Buyer Jones cannot
sue
When a seller wishes to counter an offer made by a
purchaser, which of the following documents should be
signed by the seller?
A. The purchase and sale contract
B. The counter offer
C. The purchase and sale contract and the counter offer
D. The purchase and sale contract after the appropriate
changes have been stricken or changed and initialed Ans:
B. The counter offer
An agent sells a mobile home. Its purpose will be a
residence, with the transfer of real property. What kind of
license is needed?
A. Motor vehicle license
© 2025 All rights reserved
, 3 | Page
B. Real estate license
C. Mobile home dealer's license
D. Mobile home vehicle license Ans: B. Real estate license
The sale of real property requires a real estate license.
The authority to carry out eviction of a delinquent tenant
from rented property is held by:
A. a landlord
B. the sheriff
C. any of the above Ans: B. the sheriff
The short version is this - a landlord may request an
eviction, but only a sheriff has the authority to physically
perform one.
A broker's license may be automatically suspended for:
A. Commingling
B. Fraud
C. Theft
D. Nothing there must always be a hearing before Ans: D.
Nothing there must always be a hearing before
© 2025 All rights reserved
, 4 | Page
Regardless of the crime there must always be a hearing
prior to suspension of a license. A court may issue an
injunction to cease any action dangerous to the public.
Title insurance endorsements appear on a closing
statement as a:
A. Credit to the seller
B. Debit to the seller
C. Debit to the broker
D. Credit to the broker Ans: D. Credit to the broker
The Title Company or broker, whoever is doing the
closing, collects title insurance endorsements as a credit,
then sends a check when all funds are disbursed.
If the seller finds out he is not being transferred and
defaults on the sales contract:
A. It depends if specific performance or liquidated
damages was checked
B. The listing agent can force the sale
C. Neither agent is entitled to a commission since the
deal never closed
D. The buyer can sue him for specific performance and
damages Ans: D. The buyer can sue him for specific
performance and damages
© 2025 All rights reserved
