1 | Page
Unit 5: Colorado Forms and Contracts
Questions and Answers Latest 2026
What is the purpose of Rule F? Ans: To assist brokers in
complying with Conway Bogue (limited right to practice
law) by allowing them to use standard or approved
forms.
T/F - If a form is approved, a broker must use it. Ans: T -
broker's are required to use approved forms. A brokerage
firm's attorney may not draft a document for general use
in the RE firm.
T/F - Attorney's may draft transaction-specific contracts
for the party they represent. Ans: T - This is the attorney
for that particular party (buyer or seller); not the
brokerage firm's attorney.
What is allowed in the additional provisions section of a
contract? Ans: Only transaction-specific provisions
negotiated between the parties.
T/F - The broker may fill in the forms before discussing
with the parties. Ans: F - discussion and negotiation with
all parties must take place prior to filling in forms.
Contract forms generated by computer must... Ans: 1)
Reproduce language exactly as approved
© 2025 All rights reserved
, 2 | Page
2) Have SW security to prevent language from being
changed or deleted
3) Differentiate (format differently) any language added
in the blanks from the approved language
All of the following can create an addendum, except....the
attorney for the principal (buyer/seller), attorney for the
brokerage firm, or the broker associate Ans: The broker
associate may NEVER create an addendum.
When does Rule F not apply? Ans: 1) Contracts for new
homes with warranties
2) Contracts prepared by subdivision developers or new
home builders
T/F - Mediation is negotiable. Ans: F - Mediation is
standard in all CO contracts and is not negotiable.
How long do parties have to submit any dispute about
the contract? Ans: 30 days
T/F - Mediation is binding Ans: F - Mediation is not
binding. Cost of mediation is always split. If both parties
don't agree on the resolution, then litigation/arbitration
can be pursued.
T/F - A mediation resolution signed by both parties is
binding. Ans: True.
What duties do agents owe when representing someone?
Ans: OLD CAR - Obedience, Loyalty, Disclosure,
© 2025 All rights reserved
, 3 | Page
Confidentiality (Benefits & Risks), Accounting, Reasonable
Skill & Care
T/F - A written agreement is required to have agency.
Ans: True.
T/F - The agent must put the principal's interest above all
else. Ans: True.
What duties does a transaction broker owe? Ans:
Representation relationship. Not an advocate for either
party. Owe DCAR - Disclosure (risks only),
Confidentiality, Accounting, Reasonable Care & Skill
What are other names for a listing contract? Ans:
Exclusive right to buy or exclusive right to sell
How is transaction broker representation created? Ans:
Written contract (check transaction broker box at top) or,
by default, using a written disclosure to buyer or seller
What items must a transaction broker keep confidential?
Ans: PTM - Price, Terms, and Motivation must be kept
confidential.
T/F - A transaction broker may not represent both sides
at the same time. Ans: F - This is allowed as a transaction
broker for one property. But dual agency is not allowed
(being an agent for both sides).
How does the brokerage firm assign you as a broker to
represent a member of the public? Ans: Through a
written and signed office manual.
© 2025 All rights reserved
Unit 5: Colorado Forms and Contracts
Questions and Answers Latest 2026
What is the purpose of Rule F? Ans: To assist brokers in
complying with Conway Bogue (limited right to practice
law) by allowing them to use standard or approved
forms.
T/F - If a form is approved, a broker must use it. Ans: T -
broker's are required to use approved forms. A brokerage
firm's attorney may not draft a document for general use
in the RE firm.
T/F - Attorney's may draft transaction-specific contracts
for the party they represent. Ans: T - This is the attorney
for that particular party (buyer or seller); not the
brokerage firm's attorney.
What is allowed in the additional provisions section of a
contract? Ans: Only transaction-specific provisions
negotiated between the parties.
T/F - The broker may fill in the forms before discussing
with the parties. Ans: F - discussion and negotiation with
all parties must take place prior to filling in forms.
Contract forms generated by computer must... Ans: 1)
Reproduce language exactly as approved
© 2025 All rights reserved
, 2 | Page
2) Have SW security to prevent language from being
changed or deleted
3) Differentiate (format differently) any language added
in the blanks from the approved language
All of the following can create an addendum, except....the
attorney for the principal (buyer/seller), attorney for the
brokerage firm, or the broker associate Ans: The broker
associate may NEVER create an addendum.
When does Rule F not apply? Ans: 1) Contracts for new
homes with warranties
2) Contracts prepared by subdivision developers or new
home builders
T/F - Mediation is negotiable. Ans: F - Mediation is
standard in all CO contracts and is not negotiable.
How long do parties have to submit any dispute about
the contract? Ans: 30 days
T/F - Mediation is binding Ans: F - Mediation is not
binding. Cost of mediation is always split. If both parties
don't agree on the resolution, then litigation/arbitration
can be pursued.
T/F - A mediation resolution signed by both parties is
binding. Ans: True.
What duties do agents owe when representing someone?
Ans: OLD CAR - Obedience, Loyalty, Disclosure,
© 2025 All rights reserved
, 3 | Page
Confidentiality (Benefits & Risks), Accounting, Reasonable
Skill & Care
T/F - A written agreement is required to have agency.
Ans: True.
T/F - The agent must put the principal's interest above all
else. Ans: True.
What duties does a transaction broker owe? Ans:
Representation relationship. Not an advocate for either
party. Owe DCAR - Disclosure (risks only),
Confidentiality, Accounting, Reasonable Care & Skill
What are other names for a listing contract? Ans:
Exclusive right to buy or exclusive right to sell
How is transaction broker representation created? Ans:
Written contract (check transaction broker box at top) or,
by default, using a written disclosure to buyer or seller
What items must a transaction broker keep confidential?
Ans: PTM - Price, Terms, and Motivation must be kept
confidential.
T/F - A transaction broker may not represent both sides
at the same time. Ans: F - This is allowed as a transaction
broker for one property. But dual agency is not allowed
(being an agent for both sides).
How does the brokerage firm assign you as a broker to
represent a member of the public? Ans: Through a
written and signed office manual.
© 2025 All rights reserved
