COLORADO PRACTICE TEST FOR PSI |
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
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,If a broker wishes to be the only broker involved in a represent both parties as a transaction broker. Dual Agency in Colorado is not allowed.
transaction, thereby "double ending" this sale, she may Dual agency occurs when real estate agents from the same firm claim to represent both
the buyer and the seller in the same transaction.
A. represent both parties as a transaction broker.
B. treat both parties as customers.
C. represent one party as an agent and the other as a
transaction broker.
D. act as an agent to each party.
An inactive broker has been asked by a friend to list her house B. may activate her license prior to listing the home. The answer is may activate her
in six months. In this case, the broker license prior to listing the home. In order to take the listing, the broker must activate her
license by meeting all requirements, including obtaining E&O insurance. Inactive brokers
A. must pay her errors and omissions insurance, which will may not receive a referral fee. Listing the home as a FSBO and acting as a broker is illegal.
activate the license.
B. may activate her license prior to listing the home.
C. should list the house as a FSBO so the broker won't have to
activate her license.
D. must refer the potential seller (friend) to an active licensee
and receive a referral fee.
A buyer is assuming a loan at a closing on October 25. The B. $806.45 credit
loan balance after the October 1 payment is $125,000 and the The answer is $806.45 credit. To solve this problem, take the total amount times the
interest rate is 10%. How will the interest proration appear on interest rate, then divide by 12 to find monthly interest:
the buyer's closing statement? $125,000 x .1 = $12,500 ÷ 12 = $1,041.67 monthly interest
Now, divide that answer by the number of days in October and multiply that by the
A. $235.22 credit number
B. $806.45 credit of days the buyer must pay for:
C. $236.82 debit $1,041.67 ÷ 31 X 24 = $806.45 prorated amount
D. $1041.67 debit Interest on assumed loans is always a buyer credit and seller debit because interest is
paid in arrears, and the buyer did not own the property at that time.
,All of the following are true of the six-column worksheet B. it replaces the buyer and seller closing statements. The six-column worksheet does not
EXCEPT replace the buyer and seller closing statements.
A. it is a tool for tracking who pays what.
B. it replaces the buyer and seller closing statements.
C. it is not given to parties.
D. the information on it is transferred to the buyer and seller
closing statements.
All of the following are true of the brokerage firm's office A. it must include the license numbers and name of each broker associate. The answer is
policy requirements EXCEPT it must include the license numbers and name of each broker associate. A list of the
brokerage firm's associate brokers would not be included in the office policy.
A. it must include the license numbers and name of each
broker associate.
B. if the Commission audits the firm, the employing broker
must be able to produce the policy.
C. the only required element is a statement on designated
brokerage.
D. each broker associate must read and sign a copy of the
policy.
A transaction broker is most likely a(n) C. facilitator A transaction broker facilitates or coordinates the transaction, in a neutral
way, to completion. An agent has fiduciary obligations, as illustrated by a coach or
A. coach advocate.
B. agent
C. facilitator
D. advocate
, 8. Colorado law requires buyers to be notified of the source D. Seller's Property Disclosure or Water Addendum
of water for residential properties, how does the buyer
receive this notice? The Contract to Buy and Sell gives the buyer notice to review the seller's property
disclosure or source of potable water addendum to verify the water supply is adequate
A. The buyer's listing contract prior to closing.
B. The water department sends a notice after closing
C. Contract to Buy and Sell or listing contract
D. Seller's Property Disclosure or Water Addendum
9. A general agent acting for a principal B. has limited authority to bind her principal. General agents are allowed to bind their
principal based upon a signed agreement. Special agents have no power to bind, and a
A. has no authority to bind her principal universal agent has unlimited power to bind the principal.
B. has limited authority to bind her principal.
C. has unlimited authority to bind her principal.
D. must have a power of attorney.
10. The brokerage relationship between a seller and listing B. A listing contract Brokerage relationships, agency or transaction-broker, are defined in
broker is created by the the listing contract.
A. disclosure to buyer or seller.
B. A listing contract
C. common law.
D. Contract to Buy and Sell.
COMPREHENSIVE EXAM PREP, PRACTICE
QUESTIONS, CORRECT ANSWERS AND
STUDY GUIDE
| GRADED A+ | GUARANTEED SUCCESS
Updated 2026 Questions and Answers
100% Verified Exam Prep
,If a broker wishes to be the only broker involved in a represent both parties as a transaction broker. Dual Agency in Colorado is not allowed.
transaction, thereby "double ending" this sale, she may Dual agency occurs when real estate agents from the same firm claim to represent both
the buyer and the seller in the same transaction.
A. represent both parties as a transaction broker.
B. treat both parties as customers.
C. represent one party as an agent and the other as a
transaction broker.
D. act as an agent to each party.
An inactive broker has been asked by a friend to list her house B. may activate her license prior to listing the home. The answer is may activate her
in six months. In this case, the broker license prior to listing the home. In order to take the listing, the broker must activate her
license by meeting all requirements, including obtaining E&O insurance. Inactive brokers
A. must pay her errors and omissions insurance, which will may not receive a referral fee. Listing the home as a FSBO and acting as a broker is illegal.
activate the license.
B. may activate her license prior to listing the home.
C. should list the house as a FSBO so the broker won't have to
activate her license.
D. must refer the potential seller (friend) to an active licensee
and receive a referral fee.
A buyer is assuming a loan at a closing on October 25. The B. $806.45 credit
loan balance after the October 1 payment is $125,000 and the The answer is $806.45 credit. To solve this problem, take the total amount times the
interest rate is 10%. How will the interest proration appear on interest rate, then divide by 12 to find monthly interest:
the buyer's closing statement? $125,000 x .1 = $12,500 ÷ 12 = $1,041.67 monthly interest
Now, divide that answer by the number of days in October and multiply that by the
A. $235.22 credit number
B. $806.45 credit of days the buyer must pay for:
C. $236.82 debit $1,041.67 ÷ 31 X 24 = $806.45 prorated amount
D. $1041.67 debit Interest on assumed loans is always a buyer credit and seller debit because interest is
paid in arrears, and the buyer did not own the property at that time.
,All of the following are true of the six-column worksheet B. it replaces the buyer and seller closing statements. The six-column worksheet does not
EXCEPT replace the buyer and seller closing statements.
A. it is a tool for tracking who pays what.
B. it replaces the buyer and seller closing statements.
C. it is not given to parties.
D. the information on it is transferred to the buyer and seller
closing statements.
All of the following are true of the brokerage firm's office A. it must include the license numbers and name of each broker associate. The answer is
policy requirements EXCEPT it must include the license numbers and name of each broker associate. A list of the
brokerage firm's associate brokers would not be included in the office policy.
A. it must include the license numbers and name of each
broker associate.
B. if the Commission audits the firm, the employing broker
must be able to produce the policy.
C. the only required element is a statement on designated
brokerage.
D. each broker associate must read and sign a copy of the
policy.
A transaction broker is most likely a(n) C. facilitator A transaction broker facilitates or coordinates the transaction, in a neutral
way, to completion. An agent has fiduciary obligations, as illustrated by a coach or
A. coach advocate.
B. agent
C. facilitator
D. advocate
, 8. Colorado law requires buyers to be notified of the source D. Seller's Property Disclosure or Water Addendum
of water for residential properties, how does the buyer
receive this notice? The Contract to Buy and Sell gives the buyer notice to review the seller's property
disclosure or source of potable water addendum to verify the water supply is adequate
A. The buyer's listing contract prior to closing.
B. The water department sends a notice after closing
C. Contract to Buy and Sell or listing contract
D. Seller's Property Disclosure or Water Addendum
9. A general agent acting for a principal B. has limited authority to bind her principal. General agents are allowed to bind their
principal based upon a signed agreement. Special agents have no power to bind, and a
A. has no authority to bind her principal universal agent has unlimited power to bind the principal.
B. has limited authority to bind her principal.
C. has unlimited authority to bind her principal.
D. must have a power of attorney.
10. The brokerage relationship between a seller and listing B. A listing contract Brokerage relationships, agency or transaction-broker, are defined in
broker is created by the the listing contract.
A. disclosure to buyer or seller.
B. A listing contract
C. common law.
D. Contract to Buy and Sell.
