COLORADO POST STUDY GUID 5 UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS
GRADED A PLUS
Question:
A broker renewing a Colorado license is required to have how many hours of continuing education
over what period of time? A) 36 hours over 4 years B) 24 hours over 3 years C) 8 hours over 2 years
D) 24 hours over 4 years
Answer:
The answer is 24 hours over 3 years. The law requires a total of 24 hours of continuing education, of
which 12 must be from Annual Commission Update courses, with all education completed over 3
years.
Question:
An active broker may fulfill the continuing education requirement for a three-year renewal cycle by
any of the following EXCEPT A) taking 24 hours of approved continuing education courses. B)
taking and passing the state section of the broker licensing exam. C) taking the national section of
the broker licensing exam. D) completing 12 hours of commission updates and 12 elective hours of
approved continuing education.
Answer:
The answer is taking the national section of the broker licensing exam. The broker can take and pass
the state portion of the licensing exam or take 24 hours of continuing education by completing 12
hours of updates and 12 hours of elective courses to meet the continuing education requirement.
Taking the national portion of the licensing exam will not give the broker any credit.
Question:
An inactive broker may do all of the following EXCEPT A) complete a contract form once the
broker has given pricing information. B) prepare a CMA for a licensed broker who will then present
it to the buyer. C) sign checks from a brokerage firm's trust account. D) manage property as an
employee of the landlord.
Answer:
,The answer is complete a contract form once the broker has given pricing information. An inactive
broker may not do anything that requires a license, such as soliciting buyers and sellers, selling
options, or listing property. Inactive brokers may, as any unlicensed person, work as an employee to
manage property under a landlord, work as an unlicensed assistant, complete a CMA for the broker
to present, and be a signer on the firm's trust account.
Question:
Under Colorado real estate license law, which of the following employees must have a real estate
license? The employee who is A) selling real estate options. B) leasing gas rights for the company.
C) reviewing lease agreements as part of the job. D) acting as an on-site property manager.
Answer:
The answer is selling real estate options. Employees who lease or review leases as part of a job are
not required to have a real estate license. On-site property managers are not required to be licensed.
Question:
Brokers must renew their errors and omissions insurance A) no later than the first anniversary of
their license renewal. B) each year on or before June 15. C) when they apply for their license. D) on
or before December 31 of each year.
Answer:
The answer is on or before December 31 of each year. Errors and omissions insurance must be
purchased before applying for a license, and then it must be renewed annually.
Question:
Jane is the employing broker of ABC Realty. All of the following are correct EXCEPT A) both the
brokerage firm and Jane will be required to have errors and omissions insurance. B) as an employing
broker, Jane will only need eight hours of continuing education every three years. C) Jane should
have all of her employed broker associates sign the office policy. D) all newspaper advertising must
include ABC Realty in the ad.
Answer:
The answer is as an employing broker, Jane will only need eight hours of continuing education
every three years. Like all active brokers, employing brokers must complete 24 hours of continuing
education every three years. The firm's name is required on all advertising, and all broker associates
must sign the office policy. The brokerage firm and all brokers of the firm, including the employing
, broker, must have E&O insurance.
Question:
Who could accept referral fees earned in the last six months? A) A licensed broker who was a sole
proprietor and now works for a large firm B) A broker with a license on inactive status for the last
year C) An unlicensed representative selling new homes D) An unlicensed property manager of a
building reporting to the owner
Answer:
The answer is a licensed broker who was a sole proprietor and now works for a large firm. Only
brokers with an active license can accept referral fees.
Question:
All are true of earnest money EXCEPT A) it could be gold or diamonds. B) it must be deposited
three business days after acceptance of the offer. C) it should be entered on the ledger card when
received. D) the seller will keep it if the contract is terminated per a contingency.
Answer:
The answer is the seller will keep it if the contract is terminated per a contingency. The seller would
keep the earnest money only if the buyer is in default. The buyer, having terminated the contract per
the contingency, will receive the earnest money in full. Earnest money may be anything of value the
seller will accept and will be entered on the ledger card once it is deposited.
Question:
The broker is selling her parents' home. The broker is required to disclose her brokerage relationship
and that she could work with the sellers and buyers as A) a transaction-broker for both sides if the
listing contract permits. B) an agent for seller; buyer as a customer. C) an agent or
transaction-broker for both sides. D) an agent for buyer; seller as a customer.
Answer:
The answer is an agent for seller; buyer as a customer. A broker working for her parents will have to
be an agent because of the family relationship. Therefore, if she is to double-end the transaction, she
will have to make any buyer a customer.
GRADED A PLUS
Question:
A broker renewing a Colorado license is required to have how many hours of continuing education
over what period of time? A) 36 hours over 4 years B) 24 hours over 3 years C) 8 hours over 2 years
D) 24 hours over 4 years
Answer:
The answer is 24 hours over 3 years. The law requires a total of 24 hours of continuing education, of
which 12 must be from Annual Commission Update courses, with all education completed over 3
years.
Question:
An active broker may fulfill the continuing education requirement for a three-year renewal cycle by
any of the following EXCEPT A) taking 24 hours of approved continuing education courses. B)
taking and passing the state section of the broker licensing exam. C) taking the national section of
the broker licensing exam. D) completing 12 hours of commission updates and 12 elective hours of
approved continuing education.
Answer:
The answer is taking the national section of the broker licensing exam. The broker can take and pass
the state portion of the licensing exam or take 24 hours of continuing education by completing 12
hours of updates and 12 hours of elective courses to meet the continuing education requirement.
Taking the national portion of the licensing exam will not give the broker any credit.
Question:
An inactive broker may do all of the following EXCEPT A) complete a contract form once the
broker has given pricing information. B) prepare a CMA for a licensed broker who will then present
it to the buyer. C) sign checks from a brokerage firm's trust account. D) manage property as an
employee of the landlord.
Answer:
,The answer is complete a contract form once the broker has given pricing information. An inactive
broker may not do anything that requires a license, such as soliciting buyers and sellers, selling
options, or listing property. Inactive brokers may, as any unlicensed person, work as an employee to
manage property under a landlord, work as an unlicensed assistant, complete a CMA for the broker
to present, and be a signer on the firm's trust account.
Question:
Under Colorado real estate license law, which of the following employees must have a real estate
license? The employee who is A) selling real estate options. B) leasing gas rights for the company.
C) reviewing lease agreements as part of the job. D) acting as an on-site property manager.
Answer:
The answer is selling real estate options. Employees who lease or review leases as part of a job are
not required to have a real estate license. On-site property managers are not required to be licensed.
Question:
Brokers must renew their errors and omissions insurance A) no later than the first anniversary of
their license renewal. B) each year on or before June 15. C) when they apply for their license. D) on
or before December 31 of each year.
Answer:
The answer is on or before December 31 of each year. Errors and omissions insurance must be
purchased before applying for a license, and then it must be renewed annually.
Question:
Jane is the employing broker of ABC Realty. All of the following are correct EXCEPT A) both the
brokerage firm and Jane will be required to have errors and omissions insurance. B) as an employing
broker, Jane will only need eight hours of continuing education every three years. C) Jane should
have all of her employed broker associates sign the office policy. D) all newspaper advertising must
include ABC Realty in the ad.
Answer:
The answer is as an employing broker, Jane will only need eight hours of continuing education
every three years. Like all active brokers, employing brokers must complete 24 hours of continuing
education every three years. The firm's name is required on all advertising, and all broker associates
must sign the office policy. The brokerage firm and all brokers of the firm, including the employing
, broker, must have E&O insurance.
Question:
Who could accept referral fees earned in the last six months? A) A licensed broker who was a sole
proprietor and now works for a large firm B) A broker with a license on inactive status for the last
year C) An unlicensed representative selling new homes D) An unlicensed property manager of a
building reporting to the owner
Answer:
The answer is a licensed broker who was a sole proprietor and now works for a large firm. Only
brokers with an active license can accept referral fees.
Question:
All are true of earnest money EXCEPT A) it could be gold or diamonds. B) it must be deposited
three business days after acceptance of the offer. C) it should be entered on the ledger card when
received. D) the seller will keep it if the contract is terminated per a contingency.
Answer:
The answer is the seller will keep it if the contract is terminated per a contingency. The seller would
keep the earnest money only if the buyer is in default. The buyer, having terminated the contract per
the contingency, will receive the earnest money in full. Earnest money may be anything of value the
seller will accept and will be entered on the ledger card once it is deposited.
Question:
The broker is selling her parents' home. The broker is required to disclose her brokerage relationship
and that she could work with the sellers and buyers as A) a transaction-broker for both sides if the
listing contract permits. B) an agent for seller; buyer as a customer. C) an agent or
transaction-broker for both sides. D) an agent for buyer; seller as a customer.
Answer:
The answer is an agent for seller; buyer as a customer. A broker working for her parents will have to
be an agent because of the family relationship. Therefore, if she is to double-end the transaction, she
will have to make any buyer a customer.
