10/24/24, 12:42 PM
Colorado Real Estate Practice Exam Questions (March
2024) With Complete Solution
Terms in this set (75)
Three Years
How long are the terms for members of the
"The Division has a five-member Commission that meets bi-monthly to conduct
Colorado Real Estate Commission?
rulemaking hearings, make policy decisions, consider licensing matters, review
Six Years
complaints and take disciplinary action against real estate brokers. The five
Three Years
Commission members consist of three real estate brokers, one of whom has
Four Years
substantial experience in property management, and two members of the public.
Five Years
The Commission members serve a three-year term." Per Colorado Division of Real
Estate
Is commingling legal in Colorado? No.
No.
Yes, under the Colorado Timeshare Act. No, it is not. "A Broker's or Brokerage Firm's personal or business operating funds
Sometimes, only with permission from the must not be commingled with Money Belonging to Others." Per 4 Colo. Code Regs.
buyer's agent and their broker. § 725-1-5.10
Sometimes, only with permission from the
seller's agent and their broker.
According to Colorado license law, which Fees to an attorney representing the parties.
of the following fees are permitted at
closing? Fees for an attorney representing the parties to a transaction are permitted under
Fees for a brokerage firm's attorney to Colorado law. All other options are NOT, either by law or by omittance.
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.
1/17
,10/24/24, 12:42 PM
To apply for a real estate broker's license in Error & Omissions Insurance
Colorado, applicants must meet several
requirements which of the following is a Colorado Primary Residence and a Credit Check are not requirements for brokers,
requirement from this list? Error & Omissions Insurance is.
Error & Omissions Insurance
Colorado Primary Residence
Credit Check
All of the options are requirements
Which of the following best describes E-46 states brokers are required to disclose affiliated business arrangements to
Colorado, E-46. Affiliated Business consumers in all transactions.
Arrangement Disclosures and its
importance to licensees? Colorado, E-46. Affiliated Business Arrangement Disclosure covers affiliated business
E-46 states brokers are required to disclose arrangements. Brokers are required to disclose affiliated business arrangements to
affiliated business arrangements to consumers in all transactions.
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.
Who would make an initial decision on An Administrative Law Judge
revocation, suspension, censure, or
dismissal of a licensee? Written objections are filed with the Colorado Real Estate Commission. The initial or
The Broker first decision is based on a hearing from an administrative judge.
The Seller's Broker
The Colorado Real Estate Commission
An Administrative Law Judge
If a Colorado real estate broker is licensed All of the above
as a sole proprietorship then their trade
name may not include which of the All of the above. Incorporated, Limited Liability Company, and Corporation are all
following word(s)? forms of business ownership. Since the broker is licensed as a sole proprietorship or
Incorporated single entity they are not any of the following. Advertising or including a business
Limited Liability Company entity that is not representative of the entity is false, misleading, and considered
Corporation fraudulent.
All of the above
How often is continuing education required Every three years
for Colorado real estate brokers?
Every year Three years. "For each three-year license cycle, all active real estate brokers must
Every two years complete 24 hours of continuing education." Per Colorado Division of Real Estate
Every three years
Every four years
2/17
, 10/24/24, 12:42 PM Colorado Real Estate Practice Exam Questions (March 2023) Flashcards | Quizlet
What was the reason or cause of the Too many homeowners were in financial distress due to unconscionable business
creation of the Colorado Foreclosure practices.
Protection Act?
"This Act was created in 2006 because: "Unfortunately, too many homeowners in
Mortgage companies were not issuing financial distress, especially the poor, elderly, and financially unsophisticated, are
enough mortgages, and this was causing vulnerable to a variety of deceptive or unconscionable business practices designed
the Colorado economy to tank. to dispossess them or otherwise strip the equity from their homes."" Per Colorado
Division of Real Estate
Too many homeowners were in financial
distress due to unconscionable business
practices.
Foreclosure companies were not
foreclosing enough.
Agents were using identity manipulation
tactics.
If the complaint against the licensee is 30 days
made it may result in disciplinary action
against a licensee, and a hearing may be "If the complaint against the licensee is made it may result in disciplinary action
held before an administrative law judge. against a licensee, and a hearing may be held before an administrative law judge.
The administrative law judge will make an The administrative law judge will make an initial decision of revocation, suspension,
initial decision of revocation, suspension, censure, or dismissal. If written objections are not filed with the Commission within
censure, or dismissal. If written objections 30 days, the initial decision becomes final." Per Chapter 1: Colorado Real Estate
are not filed with the Commission within Broker License Law C. Enforcement Section
how many days does the initial decision
become final?
21 days
30 days
60 days
180 days
In Colorado the amount a broker may Negotiable in the listing contract
charge for a commission is
0.06 Unlike some states, in Colorado, there is no state law that dictates what a broker may
Up to 6% charge for a commission. The commission is completely negotiable in the listing
Up to 7% contract.
Negotiable in the listing contract
All deposits of funds into an escrow or trust Each person tendering funds to the broker for deposit, the amount of funds
account must be documented. The tendered, types of funds received from each person, and the property address,
documentation must identify what? affected.
Each person tendering funds to the broker
for deposit, real estate agents license The agents license number is not required. "All deposits of funds into an escrow or
number, the amount of funds tendered, trust account must be documented ( i.e ., bank deposits) including confirmation of
types of funds received from each person, electronic and telephonic transfers or on detailed schedules attached to the deposit
and the property address, affected. slips or confirmations. The documentation must identify each person tendering funds
Each person tendering funds to the broker to the broker for deposit, the amount of funds tendered, types of funds received
for deposit, the amount of funds tendered, from each person, and the property address, affected." Per E-1. Trust accounts;
types of funds received from each person, requirements and purposes O. Recordkeeping requirements
and the property address, affected.
The amount of funds tendered, types of
funds received from each person, and the
property address, affected.
The amount of funds tendered and the
property address, affected.
Colorado Real Estate Practice Exam Questions (March 2023)
https://quizlet.com/785793429/colorado-real-estate-practice-exam-questions-march-2023-flash-cards/ 3/17
Colorado Real Estate Practice Exam Questions (March
2024) With Complete Solution
Terms in this set (75)
Three Years
How long are the terms for members of the
"The Division has a five-member Commission that meets bi-monthly to conduct
Colorado Real Estate Commission?
rulemaking hearings, make policy decisions, consider licensing matters, review
Six Years
complaints and take disciplinary action against real estate brokers. The five
Three Years
Commission members consist of three real estate brokers, one of whom has
Four Years
substantial experience in property management, and two members of the public.
Five Years
The Commission members serve a three-year term." Per Colorado Division of Real
Estate
Is commingling legal in Colorado? No.
No.
Yes, under the Colorado Timeshare Act. No, it is not. "A Broker's or Brokerage Firm's personal or business operating funds
Sometimes, only with permission from the must not be commingled with Money Belonging to Others." Per 4 Colo. Code Regs.
buyer's agent and their broker. § 725-1-5.10
Sometimes, only with permission from the
seller's agent and their broker.
According to Colorado license law, which Fees to an attorney representing the parties.
of the following fees are permitted at
closing? Fees for an attorney representing the parties to a transaction are permitted under
Fees for a brokerage firm's attorney to Colorado law. All other options are NOT, either by law or by omittance.
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.
1/17
,10/24/24, 12:42 PM
To apply for a real estate broker's license in Error & Omissions Insurance
Colorado, applicants must meet several
requirements which of the following is a Colorado Primary Residence and a Credit Check are not requirements for brokers,
requirement from this list? Error & Omissions Insurance is.
Error & Omissions Insurance
Colorado Primary Residence
Credit Check
All of the options are requirements
Which of the following best describes E-46 states brokers are required to disclose affiliated business arrangements to
Colorado, E-46. Affiliated Business consumers in all transactions.
Arrangement Disclosures and its
importance to licensees? Colorado, E-46. Affiliated Business Arrangement Disclosure covers affiliated business
E-46 states brokers are required to disclose arrangements. Brokers are required to disclose affiliated business arrangements to
affiliated business arrangements to consumers in all transactions.
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.
Who would make an initial decision on An Administrative Law Judge
revocation, suspension, censure, or
dismissal of a licensee? Written objections are filed with the Colorado Real Estate Commission. The initial or
The Broker first decision is based on a hearing from an administrative judge.
The Seller's Broker
The Colorado Real Estate Commission
An Administrative Law Judge
If a Colorado real estate broker is licensed All of the above
as a sole proprietorship then their trade
name may not include which of the All of the above. Incorporated, Limited Liability Company, and Corporation are all
following word(s)? forms of business ownership. Since the broker is licensed as a sole proprietorship or
Incorporated single entity they are not any of the following. Advertising or including a business
Limited Liability Company entity that is not representative of the entity is false, misleading, and considered
Corporation fraudulent.
All of the above
How often is continuing education required Every three years
for Colorado real estate brokers?
Every year Three years. "For each three-year license cycle, all active real estate brokers must
Every two years complete 24 hours of continuing education." Per Colorado Division of Real Estate
Every three years
Every four years
2/17
, 10/24/24, 12:42 PM Colorado Real Estate Practice Exam Questions (March 2023) Flashcards | Quizlet
What was the reason or cause of the Too many homeowners were in financial distress due to unconscionable business
creation of the Colorado Foreclosure practices.
Protection Act?
"This Act was created in 2006 because: "Unfortunately, too many homeowners in
Mortgage companies were not issuing financial distress, especially the poor, elderly, and financially unsophisticated, are
enough mortgages, and this was causing vulnerable to a variety of deceptive or unconscionable business practices designed
the Colorado economy to tank. to dispossess them or otherwise strip the equity from their homes."" Per Colorado
Division of Real Estate
Too many homeowners were in financial
distress due to unconscionable business
practices.
Foreclosure companies were not
foreclosing enough.
Agents were using identity manipulation
tactics.
If the complaint against the licensee is 30 days
made it may result in disciplinary action
against a licensee, and a hearing may be "If the complaint against the licensee is made it may result in disciplinary action
held before an administrative law judge. against a licensee, and a hearing may be held before an administrative law judge.
The administrative law judge will make an The administrative law judge will make an initial decision of revocation, suspension,
initial decision of revocation, suspension, censure, or dismissal. If written objections are not filed with the Commission within
censure, or dismissal. If written objections 30 days, the initial decision becomes final." Per Chapter 1: Colorado Real Estate
are not filed with the Commission within Broker License Law C. Enforcement Section
how many days does the initial decision
become final?
21 days
30 days
60 days
180 days
In Colorado the amount a broker may Negotiable in the listing contract
charge for a commission is
0.06 Unlike some states, in Colorado, there is no state law that dictates what a broker may
Up to 6% charge for a commission. The commission is completely negotiable in the listing
Up to 7% contract.
Negotiable in the listing contract
All deposits of funds into an escrow or trust Each person tendering funds to the broker for deposit, the amount of funds
account must be documented. The tendered, types of funds received from each person, and the property address,
documentation must identify what? affected.
Each person tendering funds to the broker
for deposit, real estate agents license The agents license number is not required. "All deposits of funds into an escrow or
number, the amount of funds tendered, trust account must be documented ( i.e ., bank deposits) including confirmation of
types of funds received from each person, electronic and telephonic transfers or on detailed schedules attached to the deposit
and the property address, affected. slips or confirmations. The documentation must identify each person tendering funds
Each person tendering funds to the broker to the broker for deposit, the amount of funds tendered, types of funds received
for deposit, the amount of funds tendered, from each person, and the property address, affected." Per E-1. Trust accounts;
types of funds received from each person, requirements and purposes O. Recordkeeping requirements
and the property address, affected.
The amount of funds tendered, types of
funds received from each person, and the
property address, affected.
The amount of funds tendered and the
property address, affected.
Colorado Real Estate Practice Exam Questions (March 2023)
https://quizlet.com/785793429/colorado-real-estate-practice-exam-questions-march-2023-flash-cards/ 3/17
