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Colorado Real Estate Exam Questions
and Answers Latest 2026
Colorado Real Estate License law was enacted to protect
brokers Ans: False
The Real Estate Commission must investigate every
complaint against a licensee Ans: False
If a licensee violates the license law, the Commission may
levy a fine of up to $2,500 Ans: True
Colorado Real Estate Brokers are allowed to prepare any
type of legal document Ans: False. Brokers may prepare
legal documents for real estate transactions if they use
standard or approved forms
The Real Estate Commission's discipline of licensees may
include a fine, public censure, license suspension, or
license revocation Ans: True
The Real Estate Commission holds a public hearing to
determine if a licensee is guilty of violating the license
law Ans: False. The hearing is held in court by an
administrative law judge
The Real Estate Commission will investigate a complaint
regarding the failure of a licensee to disclose stigmatized
property Ans: False. Stigma is not a material fact
© 2025 All rights reserved
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The Real Estate Commission has the authority to grant
and revoke licenses Ans: True
The Real Estate Commission will investigate a violation of
the Consumer Protection act Ans: True
The Real Estate Commission has authority over ethical
conduct Ans: False. The National Association of
REALTORS has a code of ethics for its members
An inactive broker may solicit buyers and sellers to sign
listing agreements Ans: False. An inactive broker may not
do anything that requires a license
A broker with an inactive license needs errors and
omissions insurance Ans: False. Only active brokers or
those applying for an active license need errors and
omissions insurance
To sell options in real estate, one needs a securities
license Ans: False. A real estate license is required
An inactive broker does NOT need to maintain an office
open to the public Ans: True
All active brokers must have errors and omissions
insurance Ans: True
Errors and omissions insurance is required only for
brokerage firms Ans: False. E&O is mandatory for every
active licensed broker and brokerage firm
© 2025 All rights reserved
Colorado Real Estate Exam Questions
and Answers Latest 2026
Colorado Real Estate License law was enacted to protect
brokers Ans: False
The Real Estate Commission must investigate every
complaint against a licensee Ans: False
If a licensee violates the license law, the Commission may
levy a fine of up to $2,500 Ans: True
Colorado Real Estate Brokers are allowed to prepare any
type of legal document Ans: False. Brokers may prepare
legal documents for real estate transactions if they use
standard or approved forms
The Real Estate Commission's discipline of licensees may
include a fine, public censure, license suspension, or
license revocation Ans: True
The Real Estate Commission holds a public hearing to
determine if a licensee is guilty of violating the license
law Ans: False. The hearing is held in court by an
administrative law judge
The Real Estate Commission will investigate a complaint
regarding the failure of a licensee to disclose stigmatized
property Ans: False. Stigma is not a material fact
© 2025 All rights reserved
, 2 | Page
The Real Estate Commission has the authority to grant
and revoke licenses Ans: True
The Real Estate Commission will investigate a violation of
the Consumer Protection act Ans: True
The Real Estate Commission has authority over ethical
conduct Ans: False. The National Association of
REALTORS has a code of ethics for its members
An inactive broker may solicit buyers and sellers to sign
listing agreements Ans: False. An inactive broker may not
do anything that requires a license
A broker with an inactive license needs errors and
omissions insurance Ans: False. Only active brokers or
those applying for an active license need errors and
omissions insurance
To sell options in real estate, one needs a securities
license Ans: False. A real estate license is required
An inactive broker does NOT need to maintain an office
open to the public Ans: True
All active brokers must have errors and omissions
insurance Ans: True
Errors and omissions insurance is required only for
brokerage firms Ans: False. E&O is mandatory for every
active licensed broker and brokerage firm
© 2025 All rights reserved
