COLORADO REAL ESTATE EXAM PREP STATE PORTION SECTION 6, RECORD KEEPING AND TRUST ACCOUNTS|ACTUAL EXAM QUESTIONS AND 100% CORRECT ANSWERS|LATEST 2025/2026|VERIFIED

COLORADO REAL ESTATE EXAM PREP STATE
PORTION SECTION 6, RECORD KEEPING AND
TRUST ACCOUNTS|ACTUAL EXAM QUESTIONS
AND 100% CORRECT ANSWERS|LATEST
2025/2026|VERIFIED

All earnest money received by a broker on behalf of his or her principle must be deposited in a
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n escrow account within - ANSWER-
B B B B B



Three business days after the broker learns of acceptance of the offer
B B B B B B B B B B B




The broker received earnest money deposit from a buyer. Under Colorado law, the broker sho
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uld - ANSWER- B B



hold the earnest money deposit in a secure place in the brokers real estate brokerage o
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ffice until the offer is accepted
B B B B B




Broker B received a buyers earnest money check for $5000 and immediately cashed it. At closi
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ng, the broker handed the seller s personal check drawn by the brokers own bank for the amo
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unt of $5300, representing the original earnest money plus six percent interest. The broker -
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ANSWER-
B



Should have deposited the money in a bank escrow or trust account and should have di
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scussed the interest with the parties B B B B B




If a broker establishes an account to hold money belonging to others, which of the following is
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correct? - ANSWER- B B



All checks, deposit slips, and bank statements must include the word "escrow" or "trust
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" as part of the account name.
B B B B B B




A broker manages three properties for the same owner. One property is in need of emergency
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repairs, but the owner does not have enough money in the management account to cover the
B B B B B B B B B B B B B B B B



cost. The broker uses excess funds from the account for the emergency then replaces funds lat
B B B B B B B B B B B B B B B



er with a check from the owner. Which of the following is true? - ANSWER-
B B B B B B B B B B B B B B



The broker is in violation of regulations for improperly handling escrow funds
B B B B B B B B B B B




1
Wicky

, Which of the following types of escrow accounts must a broker keep if appropriate to the type
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of business he does? - ANSWER-
B B B B B



Sales, Management, and Security Deposit trust accounts
B B B B B B




In each of the trust accounts, the broker must do or is able to do which of the following? -
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BANSWER-
be able to withdraw money from the account and may authorize others to withdraw fu
B B B B B B B B B B B B B B



nds



Which of the following is true of trust accounts? - ANSWER-
B B B B B B B B B B



Normally a separate trust account shall not be used as a depository for monies belongi
B B B B B B B B B B B B B B



ng to employed licenses
B B B




Monies belonging to others that need to be placed in trust accounts includes which of the foll
B B B B B B B B B B B B B B B B



owing? - ANSWER- B B Monies received for partnerships B B B




When a check is received as earnest money, the regulations require - ANSWER-
B B B B B B B B B B B B



It may be withheld from presentment only if so disclosed in the contract or by written i
B B B B B B B B B B B B B B B B



nstruction of the seller. B B B




When a broker acting as a property manager receives a security deposit from a tenant which o
B B B B B B B B B B B B B B B B



f the following is true? - ANSWER-
B B B B B B



Security Deposits received must be deposited within 5 business days into the escrow ac
B B B B B B B B B B B B B



count



Which of the following records must a broker maintain in connection with escrow accounts? -
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B ANSWER- an account journal, a ledger, a bank reconciliation worksheet
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If the broker prepares instruments pertaining to the consummation of the sales, leasing or pur
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chase of real estate, he or she must do which of the following? - ANSWER-
B B B B B B B B B B B B B B



The broker shall retain copies of these documents in his or her files
B B B B B B B B B B B B




2
Wicky