Colorado Real Estate Practice Exam
Questions (March 2023)/ 2024 With 100%
Verified Answers
How long are the terms for members of the Colorado Real Estate Commission?
Six Years
Three Years
Four Years
Five Years - ANSWER-Three Years
"The Division has a five-member Commission that meets bi-monthly to conduct
rulemaking hearings, make policy decisions, consider licensing matters, review
complaints and take disciplinary action against real estate brokers. The five
Commission members consist of three real estate brokers, one of whom has substantial
experience in property management, and two members of the public. The Commission
members serve a three-year term." Per Colorado Division of Real Estate
Is commingling legal in Colorado?
No.
Yes, under the Colorado Timeshare Act.
Sometimes, only with permission from the buyer's agent and their broker.
Sometimes, only with permission from the seller's agent and their broker. - ANSWER-
No.
No, it is not. "A Broker's or Brokerage Firm's personal or business operating funds must
not be commingled with Money Belonging to Others." Per 4 Colo. Code Regs. § 725-1-
5.10
According to Colorado license law, which of the following fees are permitted at closing?
Fees for a brokerage firm's attorney to prepare documents.
Fees for in-house transactions without legal written authorization.
,Fees charged by a broker for preparation of legal documents.
Fees to an attorney representing the parties. - ANSWER-Fees to an attorney
representing the parties.
Fees for an attorney representing the parties to a transaction are permitted under
Colorado law. All other options are NOT, either by law or by omittance.
To apply for a real estate broker's license in Colorado, applicants must meet several
requirements which of the following is a requirement from this list?
Error & Omissions Insurance
Colorado Primary Residence
Credit Check
All of the options are requirements - ANSWER-Error & Omissions Insurance
Colorado Primary Residence and a Credit Check are not requirements for brokers, Error
& Omissions Insurance is.
Which of the following best describes Colorado, E-46. Affiliated Business Arrangement
Disclosures and its importance to licensees?
E-46 states brokers are required to disclose affiliated business arrangements to
consumers in all transactions.
E-46 states brokers are required to disclose some business arrangements to certain
consumers.
E-46 outlines specifically how to organize disclosures for Colorado trust fund
paperwork.
E-46 is a mandated law that covers brokers and brokerage relationships. - ANSWER-E-
46 states brokers are required to disclose affiliated business arrangements to
consumers in all transactions.
Colorado, E-46. Affiliated Business Arrangement Disclosure covers affiliated business
arrangements. Brokers are required to disclose affiliated business arrangements to
consumers in all transactions.
, Who would make an initial decision on revocation, suspension, censure, or dismissal of
a licensee?
The Broker
The Seller's Broker
The Colorado Real Estate Commission
An Administrative Law Judge - ANSWER-An Administrative Law Judge
Written objections are filed with the Colorado Real Estate Commission. The initial or first
decision is based on a hearing from an administrative judge.
If a Colorado real estate broker is licensed as a sole proprietorship then their trade
name may not include which of the following word(s)?
Incorporated
Limited Liability Company
Corporation
All of the above - ANSWER-All of the above
All of the above. Incorporated, Limited Liability Company, and Corporation are all forms
of business ownership. Since the broker is licensed as a sole proprietorship or single
entity they are not any of the following. Advertising or including a business entity that is
not representative of the entity is false, misleading, and considered fraudulent.
How often is continuing education required for Colorado real estate brokers?
Every year
Every two years
Every three years
Every four years - ANSWER-Every three years
Three years. "For each three-year license cycle, all active real estate brokers must
complete 24 hours of continuing education." Per Colorado Division of Real Estate
Questions (March 2023)/ 2024 With 100%
Verified Answers
How long are the terms for members of the Colorado Real Estate Commission?
Six Years
Three Years
Four Years
Five Years - ANSWER-Three Years
"The Division has a five-member Commission that meets bi-monthly to conduct
rulemaking hearings, make policy decisions, consider licensing matters, review
complaints and take disciplinary action against real estate brokers. The five
Commission members consist of three real estate brokers, one of whom has substantial
experience in property management, and two members of the public. The Commission
members serve a three-year term." Per Colorado Division of Real Estate
Is commingling legal in Colorado?
No.
Yes, under the Colorado Timeshare Act.
Sometimes, only with permission from the buyer's agent and their broker.
Sometimes, only with permission from the seller's agent and their broker. - ANSWER-
No.
No, it is not. "A Broker's or Brokerage Firm's personal or business operating funds must
not be commingled with Money Belonging to Others." Per 4 Colo. Code Regs. § 725-1-
5.10
According to Colorado license law, which of the following fees are permitted at closing?
Fees for a brokerage firm's attorney to prepare documents.
Fees for in-house transactions without legal written authorization.
,Fees charged by a broker for preparation of legal documents.
Fees to an attorney representing the parties. - ANSWER-Fees to an attorney
representing the parties.
Fees for an attorney representing the parties to a transaction are permitted under
Colorado law. All other options are NOT, either by law or by omittance.
To apply for a real estate broker's license in Colorado, applicants must meet several
requirements which of the following is a requirement from this list?
Error & Omissions Insurance
Colorado Primary Residence
Credit Check
All of the options are requirements - ANSWER-Error & Omissions Insurance
Colorado Primary Residence and a Credit Check are not requirements for brokers, Error
& Omissions Insurance is.
Which of the following best describes Colorado, E-46. Affiliated Business Arrangement
Disclosures and its importance to licensees?
E-46 states brokers are required to disclose affiliated business arrangements to
consumers in all transactions.
E-46 states brokers are required to disclose some business arrangements to certain
consumers.
E-46 outlines specifically how to organize disclosures for Colorado trust fund
paperwork.
E-46 is a mandated law that covers brokers and brokerage relationships. - ANSWER-E-
46 states brokers are required to disclose affiliated business arrangements to
consumers in all transactions.
Colorado, E-46. Affiliated Business Arrangement Disclosure covers affiliated business
arrangements. Brokers are required to disclose affiliated business arrangements to
consumers in all transactions.
, Who would make an initial decision on revocation, suspension, censure, or dismissal of
a licensee?
The Broker
The Seller's Broker
The Colorado Real Estate Commission
An Administrative Law Judge - ANSWER-An Administrative Law Judge
Written objections are filed with the Colorado Real Estate Commission. The initial or first
decision is based on a hearing from an administrative judge.
If a Colorado real estate broker is licensed as a sole proprietorship then their trade
name may not include which of the following word(s)?
Incorporated
Limited Liability Company
Corporation
All of the above - ANSWER-All of the above
All of the above. Incorporated, Limited Liability Company, and Corporation are all forms
of business ownership. Since the broker is licensed as a sole proprietorship or single
entity they are not any of the following. Advertising or including a business entity that is
not representative of the entity is false, misleading, and considered fraudulent.
How often is continuing education required for Colorado real estate brokers?
Every year
Every two years
Every three years
Every four years - ANSWER-Every three years
Three years. "For each three-year license cycle, all active real estate brokers must
complete 24 hours of continuing education." Per Colorado Division of Real Estate
