COLORADO REAL ESTATE LAW & PRACTICE
EXAM with Verified Answers & Rationales
2026 Q&A | Instant Download Pdf
1. Which law primarily governs real estate licensing in Colorado?
A. Colorado Criminal Code
B. Colorado Real Estate Commission Rules
C. Federal Housing Act
D. Uniform Commercial Code
Answer: B
Rationale: The Colorado Real Estate Commission Rules establish
licensing requirements, conduct standards, and enforcement for
real estate professionals in Colorado.
2. A broker acting as a transaction-broker primarily:
A. Represents only the buyer
B. Represents only the seller
C. Assists both parties without fiduciary duties
D. Acts as a dual agent
Answer: C
Rationale: A transaction-broker provides assistance to both
parties in a neutral capacity without creating fiduciary duties.
3. In Colorado, the statute of frauds requires that real estate
contracts be:
A. Oral and witnessed
B. Written and signed
C. Notarized only
, D. Recorded immediately
Answer: B
Rationale: The statute of frauds requires real estate contracts to
be in writing and signed to be enforceable.
4. Which document is required to disclose brokerage relationships in
Colorado?
A. Closing Disclosure
B. Brokerage Disclosure Form
C. Lead-Based Paint Addendum
D. Title Commitment
Answer: B
Rationale: The Brokerage Disclosure Form informs clients about
the broker’s role and relationship type.
5. Which type of ownership includes rights of survivorship?
A. Tenancy in common
B. Joint tenancy
C. Severalty ownership
D. Community property
Answer: B
Rationale: Joint tenancy includes right of survivorship, meaning
ownership passes automatically to surviving owners.
6. The Colorado Real Estate Commission is responsible for:
A. Setting property taxes
B. Licensing and regulating brokers
C. Approving mortgage loans
D. Conducting home inspections
Answer: B
, Rationale: The Commission regulates licensing, education, and
conduct of real estate brokers in Colorado.
7. A listing agreement is primarily a contract between:
A. Buyer and lender
B. Seller and broker
C. Buyer and seller
D. Broker and appraiser
Answer: B
Rationale: A listing agreement establishes the relationship
between a property seller and a broker.
8. Which clause makes a listing agreement enforceable for a specific
period?
A. Escalation clause
B. Duration clause
C. Acceleration clause
D. Contingency clause
Answer: B
Rationale: The duration clause sets the time period for which the
listing agreement is valid.
9. Earnest money is typically held by:
A. Seller
B. Buyer
C. Broker or escrow holder
D. Appraiser
Answer: C
Rationale: Earnest money is held by a neutral broker or escrow
account until closing or contract termination.
EXAM with Verified Answers & Rationales
2026 Q&A | Instant Download Pdf
1. Which law primarily governs real estate licensing in Colorado?
A. Colorado Criminal Code
B. Colorado Real Estate Commission Rules
C. Federal Housing Act
D. Uniform Commercial Code
Answer: B
Rationale: The Colorado Real Estate Commission Rules establish
licensing requirements, conduct standards, and enforcement for
real estate professionals in Colorado.
2. A broker acting as a transaction-broker primarily:
A. Represents only the buyer
B. Represents only the seller
C. Assists both parties without fiduciary duties
D. Acts as a dual agent
Answer: C
Rationale: A transaction-broker provides assistance to both
parties in a neutral capacity without creating fiduciary duties.
3. In Colorado, the statute of frauds requires that real estate
contracts be:
A. Oral and witnessed
B. Written and signed
C. Notarized only
, D. Recorded immediately
Answer: B
Rationale: The statute of frauds requires real estate contracts to
be in writing and signed to be enforceable.
4. Which document is required to disclose brokerage relationships in
Colorado?
A. Closing Disclosure
B. Brokerage Disclosure Form
C. Lead-Based Paint Addendum
D. Title Commitment
Answer: B
Rationale: The Brokerage Disclosure Form informs clients about
the broker’s role and relationship type.
5. Which type of ownership includes rights of survivorship?
A. Tenancy in common
B. Joint tenancy
C. Severalty ownership
D. Community property
Answer: B
Rationale: Joint tenancy includes right of survivorship, meaning
ownership passes automatically to surviving owners.
6. The Colorado Real Estate Commission is responsible for:
A. Setting property taxes
B. Licensing and regulating brokers
C. Approving mortgage loans
D. Conducting home inspections
Answer: B
, Rationale: The Commission regulates licensing, education, and
conduct of real estate brokers in Colorado.
7. A listing agreement is primarily a contract between:
A. Buyer and lender
B. Seller and broker
C. Buyer and seller
D. Broker and appraiser
Answer: B
Rationale: A listing agreement establishes the relationship
between a property seller and a broker.
8. Which clause makes a listing agreement enforceable for a specific
period?
A. Escalation clause
B. Duration clause
C. Acceleration clause
D. Contingency clause
Answer: B
Rationale: The duration clause sets the time period for which the
listing agreement is valid.
9. Earnest money is typically held by:
A. Seller
B. Buyer
C. Broker or escrow holder
D. Appraiser
Answer: C
Rationale: Earnest money is held by a neutral broker or escrow
account until closing or contract termination.
