Colorado Real Estate Exam Re
questions well answered already passed
According to the Colorado Licensing Law, in order for a non-resident to become a broker: - correct
answer ✔✔• he must meet Colorado licensing law only
• he must be involved in real estate in his home state
• he must be 21 and have been involved in real estate for two years.
> he must be a broker from his home state and pass Colorado licensing laws, but need not open an office
in Colorado
The minimum age requirement for a license in Colorado is 18.
In order to obtain a non-residential license an applicant must be a broker in his own state and comply
with Colorado licensing laws. It is not necessary to have an office in Colorado but a Colorado trust
account is
When a licensee misrepresents facts in property sales, they are subject to which action? - correct answer
✔✔• Paying a fine to the county in which the misrepresentation occurred
• Immediately having their license suspended by the Real Estate Commission
>>>Having a hearing before the Real Estate Commission<<<
• Immediately having their license revoked by the Real Estate Commission.
A licensee is always under the jurisdiction of the real estate commission. Acts of fraud may also require a
broker to appear in civil or criminal court.
An ad in the newspaper must appear under the name of: - correct answer ✔✔• the branch office
>>>the broker of record<<<
• the listing licensee
• none of the above
All advertising must contain the name of the employing broker.
,If a licensee's license has been canceled because her broker's license was canceled: - correct answer
✔✔>>>she may have her license transferred without charge to another employing broker<<<
• she should complete all unfinished transactions before transferring her license to another broker
• she must pay a license activation fee when joining another employing broker
• she must pass the state exam and then join another employing broker
Canceled is not the same thing as terminated; when a licensee has had his license canceled because his
brokers license has been canceled, no business may be transacted until the license is active again.
A licensee has outstanding earned commissions; quits her employing broker and goes to work for
another broker. How does she receive the commissions that are due from her first broker? - correct
answer ✔✔>>>Direct from her first broker<<<
• From the first broker, but paid to the second broker
• She no longer has rights to the commission
• Through the Real Estate Commission
The only time an agent may receive a commission from someone other than her employing broker is
when she has a commission due from her previous broker.
Which one of the following funds should not be placed in the real estate trust account? - correct answer
✔✔• Earnest money
• Rental collections
• Installment land contract collections
>>>Insurance premiums<<<
Every active real estate licensee must be covered by errors and omissions insurance. What is the highest
deductible per occurrence allowed by the Commission? - correct answer ✔✔$1000
One thousand dollars is the maximum deductible per occurrence allowed.
A listing agreement may be terminated for all but which of the following reasons? - correct answer ✔✔•
Agreement of the parties
,>>>Death of the agent who took the listing<<<
• Destruction of the premises
• Sale of the property
The parties to a listing agreement are the Seller and a Brokerage Firm. The licensee is the person signing
on behalf of the Brokerage Firm. The death of the licensee does not in itself terminate the listing
contract as the agent was not a party to the agreement. The death of either the Seller, Sale of the
property, Agreement of the parties, Destruction of the premises or the dissolution of the Brokerage Firm
would terminate the listing agreement..
All but which of the following are essential elements in the formation of a contract? - correct answer
✔✔• Acceptance
• Consideration
>>>Performance<<<
• Offer
To be valid, a contract must have offer and acceptance, and good or valuable consideration.
Where one party to a contract was induced to sign under physical threat to his person, the contract is: -
correct answer ✔✔• void
>>>voidable<<<
• illegal
• any of the above
The damaged party has a voidable contract; the other party has an unenforceable contract.
Consideration is an essential element of valid contracts. Consideration may be: - correct answer ✔✔• A
promise
• the giving up of some legal right
• labor
, >>>all of the above<<<
Virtually anything of value may be "consideration."
An Exclusive Right-to-Sell Listing contract establishes which of the following agreements? - correct
answer ✔✔• The broker will never sue the seller
• That the seller will never sue the broker
• That the broker and the seller will use the same attorney
➢That the broker and the seller will submit to mediation prior to litigation
Section 24, Alternative Dispute Resolution: Mediation provides for disputes between the parties, to
submit the matter first, to mediation.
Agency relationships are: - correct answer ✔✔➢ established according to the written policy of the
managing broker
• dangerous if there are more than two parties involved
• established at the sole discretion of the listing agent
• determined by the cooperating broker
Managing brokers must have a written office policy, outlining agency relationships offered by the
brokerage.
In a real estate transaction, it is possible to be an agent of only one party to the transaction when: -
correct answer ✔✔• the agent is the designated agent for either buyer or seller
• there is more than one broker involved in the transaction
• there is more than one company involved in the transaction
➢ all the above
The word "represent" implies "agency".
questions well answered already passed
According to the Colorado Licensing Law, in order for a non-resident to become a broker: - correct
answer ✔✔• he must meet Colorado licensing law only
• he must be involved in real estate in his home state
• he must be 21 and have been involved in real estate for two years.
> he must be a broker from his home state and pass Colorado licensing laws, but need not open an office
in Colorado
The minimum age requirement for a license in Colorado is 18.
In order to obtain a non-residential license an applicant must be a broker in his own state and comply
with Colorado licensing laws. It is not necessary to have an office in Colorado but a Colorado trust
account is
When a licensee misrepresents facts in property sales, they are subject to which action? - correct answer
✔✔• Paying a fine to the county in which the misrepresentation occurred
• Immediately having their license suspended by the Real Estate Commission
>>>Having a hearing before the Real Estate Commission<<<
• Immediately having their license revoked by the Real Estate Commission.
A licensee is always under the jurisdiction of the real estate commission. Acts of fraud may also require a
broker to appear in civil or criminal court.
An ad in the newspaper must appear under the name of: - correct answer ✔✔• the branch office
>>>the broker of record<<<
• the listing licensee
• none of the above
All advertising must contain the name of the employing broker.
,If a licensee's license has been canceled because her broker's license was canceled: - correct answer
✔✔>>>she may have her license transferred without charge to another employing broker<<<
• she should complete all unfinished transactions before transferring her license to another broker
• she must pay a license activation fee when joining another employing broker
• she must pass the state exam and then join another employing broker
Canceled is not the same thing as terminated; when a licensee has had his license canceled because his
brokers license has been canceled, no business may be transacted until the license is active again.
A licensee has outstanding earned commissions; quits her employing broker and goes to work for
another broker. How does she receive the commissions that are due from her first broker? - correct
answer ✔✔>>>Direct from her first broker<<<
• From the first broker, but paid to the second broker
• She no longer has rights to the commission
• Through the Real Estate Commission
The only time an agent may receive a commission from someone other than her employing broker is
when she has a commission due from her previous broker.
Which one of the following funds should not be placed in the real estate trust account? - correct answer
✔✔• Earnest money
• Rental collections
• Installment land contract collections
>>>Insurance premiums<<<
Every active real estate licensee must be covered by errors and omissions insurance. What is the highest
deductible per occurrence allowed by the Commission? - correct answer ✔✔$1000
One thousand dollars is the maximum deductible per occurrence allowed.
A listing agreement may be terminated for all but which of the following reasons? - correct answer ✔✔•
Agreement of the parties
,>>>Death of the agent who took the listing<<<
• Destruction of the premises
• Sale of the property
The parties to a listing agreement are the Seller and a Brokerage Firm. The licensee is the person signing
on behalf of the Brokerage Firm. The death of the licensee does not in itself terminate the listing
contract as the agent was not a party to the agreement. The death of either the Seller, Sale of the
property, Agreement of the parties, Destruction of the premises or the dissolution of the Brokerage Firm
would terminate the listing agreement..
All but which of the following are essential elements in the formation of a contract? - correct answer
✔✔• Acceptance
• Consideration
>>>Performance<<<
• Offer
To be valid, a contract must have offer and acceptance, and good or valuable consideration.
Where one party to a contract was induced to sign under physical threat to his person, the contract is: -
correct answer ✔✔• void
>>>voidable<<<
• illegal
• any of the above
The damaged party has a voidable contract; the other party has an unenforceable contract.
Consideration is an essential element of valid contracts. Consideration may be: - correct answer ✔✔• A
promise
• the giving up of some legal right
• labor
, >>>all of the above<<<
Virtually anything of value may be "consideration."
An Exclusive Right-to-Sell Listing contract establishes which of the following agreements? - correct
answer ✔✔• The broker will never sue the seller
• That the seller will never sue the broker
• That the broker and the seller will use the same attorney
➢That the broker and the seller will submit to mediation prior to litigation
Section 24, Alternative Dispute Resolution: Mediation provides for disputes between the parties, to
submit the matter first, to mediation.
Agency relationships are: - correct answer ✔✔➢ established according to the written policy of the
managing broker
• dangerous if there are more than two parties involved
• established at the sole discretion of the listing agent
• determined by the cooperating broker
Managing brokers must have a written office policy, outlining agency relationships offered by the
brokerage.
In a real estate transaction, it is possible to be an agent of only one party to the transaction when: -
correct answer ✔✔• the agent is the designated agent for either buyer or seller
• there is more than one broker involved in the transaction
• there is more than one company involved in the transaction
➢ all the above
The word "represent" implies "agency".
