CO State Exam UPDATED ACTUAL Exam
Questions and CORRECT Answers
A real estate licensee is in compliance with fair housing practice in which of the following
situations? - CORRECT ANSWER - Refusing to rent to an alcoholic classified as mentally
disabled based on a record of abusive and dangerous behavior
Under landmark Colorado case law, title companies in Colorado are permitted to offer closing
services including preparation of legal documents.. - CORRECT ANSWER - scrivener of
the listing broker
Which of the following transfer of property provisions is NOT found in a Colorado real estate
commission approved deed of trust? - CORRECT ANSWER - 1% interest increase
When a broker ceases the management of an owners association, the original management
records must be.. - CORRECT ANSWER - audited by the real estate commission
In the exclusive right to sell listing contract, the broker need NOT perform which of the
following duties? - CORRECT ANSWER - verify the accuracy of statements
a transaction broker may perform all of the following acts EXCEPT.. - CORRECT
ANSWER - assist both the buyer and the seller in negotiating a real estate transaction
On the statement of settlement, which of the following entries would be made in connection with
accrued interest prorated on a loan assumption? - CORRECT ANSWER - a debit to seller,
credit to buyer
security deposits MUST be returned within... - CORRECT ANSWER - 1 month of lease
ending or 60 days with extension
the agreement to amend/extend contract... - CORRECT ANSWER - can be used to extend
the length of a listing agreement
, a broker should facilitate safeguards relating to seller assisted down payments regarding which
of the following transactions? - CORRECT ANSWER - residential
The only written policy that MUST be established by every employing or independent broker
is... - CORRECT ANSWER - payment of commissions
When completing a commission-approved counterproposal form, the broker should... -
CORRECT ANSWER - include all the original dates and any dates that have changed
In the Colorado real estate commission-approved contract to buy and sell real estate, the amount
due at closing may NOT be paid by... - CORRECT ANSWER - a local personal check
a broker may bypass the 3 year, 24-hour continuing education requirement buy... - CORRECT
ANSWER - passing the Colorado portion of the licensing exam
The Colorado division of real estate has the authority to issue a temporary broker's license to all
of the following entities EXCEPT... - CORRECT ANSWER - individual proprietorships
An unlicensed office manager can do which of the following? - CORRECT ANSWER -
deliver completed contracts to other brokers
The buyer's agent is unable to attend a closing and asks another broker to attend the closing the
agent's place. Who is responsible for the documents..? - CORRECT ANSWER - Only the
employing broker, the buyer's agent, and the broker who attends the closing
Colorado real estate commission Rule E-35 requires disclosure of a brokerage relationship
when... - CORRECT ANSWER - accepting confidential information from a purchaser
by statue, payment of the Colorado use tax on the sale of furniture and equipment is the
obligation of the... - CORRECT ANSWER - buyer
Questions and CORRECT Answers
A real estate licensee is in compliance with fair housing practice in which of the following
situations? - CORRECT ANSWER - Refusing to rent to an alcoholic classified as mentally
disabled based on a record of abusive and dangerous behavior
Under landmark Colorado case law, title companies in Colorado are permitted to offer closing
services including preparation of legal documents.. - CORRECT ANSWER - scrivener of
the listing broker
Which of the following transfer of property provisions is NOT found in a Colorado real estate
commission approved deed of trust? - CORRECT ANSWER - 1% interest increase
When a broker ceases the management of an owners association, the original management
records must be.. - CORRECT ANSWER - audited by the real estate commission
In the exclusive right to sell listing contract, the broker need NOT perform which of the
following duties? - CORRECT ANSWER - verify the accuracy of statements
a transaction broker may perform all of the following acts EXCEPT.. - CORRECT
ANSWER - assist both the buyer and the seller in negotiating a real estate transaction
On the statement of settlement, which of the following entries would be made in connection with
accrued interest prorated on a loan assumption? - CORRECT ANSWER - a debit to seller,
credit to buyer
security deposits MUST be returned within... - CORRECT ANSWER - 1 month of lease
ending or 60 days with extension
the agreement to amend/extend contract... - CORRECT ANSWER - can be used to extend
the length of a listing agreement
, a broker should facilitate safeguards relating to seller assisted down payments regarding which
of the following transactions? - CORRECT ANSWER - residential
The only written policy that MUST be established by every employing or independent broker
is... - CORRECT ANSWER - payment of commissions
When completing a commission-approved counterproposal form, the broker should... -
CORRECT ANSWER - include all the original dates and any dates that have changed
In the Colorado real estate commission-approved contract to buy and sell real estate, the amount
due at closing may NOT be paid by... - CORRECT ANSWER - a local personal check
a broker may bypass the 3 year, 24-hour continuing education requirement buy... - CORRECT
ANSWER - passing the Colorado portion of the licensing exam
The Colorado division of real estate has the authority to issue a temporary broker's license to all
of the following entities EXCEPT... - CORRECT ANSWER - individual proprietorships
An unlicensed office manager can do which of the following? - CORRECT ANSWER -
deliver completed contracts to other brokers
The buyer's agent is unable to attend a closing and asks another broker to attend the closing the
agent's place. Who is responsible for the documents..? - CORRECT ANSWER - Only the
employing broker, the buyer's agent, and the broker who attends the closing
Colorado real estate commission Rule E-35 requires disclosure of a brokerage relationship
when... - CORRECT ANSWER - accepting confidential information from a purchaser
by statue, payment of the Colorado use tax on the sale of furniture and equipment is the
obligation of the... - CORRECT ANSWER - buyer
