Colorado Real Estate Practice Exam

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. 1. A Colorado broker who was the seller's single agent gives the Change of Status form and becomes a transaction-broker for both the seller and a buyer on one sale. What is the effect of the form?

   • AThe change applies only to that transaction with that buyercorrect
   • BThe seller becomes a customer of the broker for that sale
   • CThe broker becomes a disclosed dual agent for both parties
   • DThe listing converts to transaction-brokerage for the rest of its term

   Why: The Commission-approved Change of Status (Transaction-Brokerage Disclosure) form states that the change is effective only for the transaction between the seller and buyer for the described property and does not change the relationship for other transactions. Dual agency is never the result, because C.R.S. 12-10-406 bars it. Rule 6.9 requires the form no later than when the consumer signs the contract.

   Agency

2. 2. A Colorado broker's employing broker co-owns a title company. In October 2026 the broker refers her buyer client to that title company. Under C.R.S. 12-10-218(2)(b) as amended by HB26-1287, when must the affiliated business arrangement be disclosed?

   • AAt the time of making the referral, to the party the broker representscorrect
   • BOnly if the buyer asks whether the firm has an ownership interest
   • CWhen the offer to purchase is fully executed, to all parties to the transaction
   • DAt closing, on the settlement statement

   Why: HB26-1287, effective August 12, 2026, changed C.R.S. 12-10-218(2)(b) so the licensee discloses an affiliated business arrangement to the party the licensee represents at the time of making the referral. Disclosure when the offer is fully executed was the old rule and is the trap. The disclosure must still be written, signed and comply with RESPA.

   Property disclosures

3. 3. A Division of Real Estate audit after renewal shows that a Colorado broker did not complete the required continuing education. Under C.R.S. 12-10-213(5) as amended by HB26-1287, what may the Commission do?

   • ANothing until the next renewal, because the license has already been renewed
   • BInactivate the broker's licensecorrect
   • CFine the employing broker, who is responsible for associates' continuing education
   • DRequire the broker to retake both parts of the licensing exam

   Why: HB26-1287, effective August 12, 2026, amended C.R.S. 12-10-213(5) so the Commission may inactivate the license of a licensee who fails to comply with the continuing education requirements, backing up the Division's post-renewal audits. The statute puts the duty on the licensee, not the employing broker. The same act also lets the Division charge a fee to each provider that submits a continuing education course.

   Practice of real estate

4. 4. Broker Ana is the seller's single agent on a Colorado listing. A buyer she has been working with wants to make an offer. Which arrangement is allowed?

   • AAna stays the seller's agent and becomes transaction-broker for the buyer
   • BAna becomes transaction-broker for both, using the Change of Status formcorrect
   • CAna acts as a dual agent with written consent from both parties
   • DAna stays the seller's agent and also becomes the buyer's single agent

   Why: C.R.S. 12-10-406 bars dual agency, even with consent. Rule 6.7 forbids being a single agent for one consumer and a single agent or transaction-broker for the other in the same transaction. Ana may become transaction-broker for both, giving the Change of Status form no later than when the consumer signs the contract (Rule 6.9), or stay seller's agent and treat the buyer as a customer. Since August 12, 2026, a transaction-broker relationship with the buyer also needs a written agreement under C.R.S. 12-10-403(2).

   Agency

5. 5. A buyer gives a Colorado listing firm (the earnest money holder) an earnest money check on Monday, March 2. The seller signs, completing mutual execution, on Wednesday, March 4. Under Commission Rule 5.7.B, what is the deposit deadline?

   • AThree business days after Monday, March 2
   • BFive business days after Wednesday, March 4
   • CThe end of the next business day after March 4
   • DThree business days after Wednesday, March 4correct

   Why: Rule 5.7.B requires money belonging to others, other than property management funds, to be deposited in the firm's trust or escrow account no later than three business days after receipt or mutual execution of the contract, whichever is later. Mutual execution on March 4 is later than receipt on March 2. Five business days is the Rule 5.7.A deadline for property management funds.

   Practice of real estate

6. 6. For Colorado property-management funds, what deposit deadline generally applies?

   • AWithin 30 days after the tenant's move-out
   • BOnly when the owner asks for payment
   • CWithin 5 business days of receipt or mutual lease execution, whichever is latercorrect
   • DOnly at the end of each calendar quarter

   Why: Rule 5.7.A requires property management funds to be deposited within 5 business days of receipt or mutual execution of the lease, whichever is later.

   Property management

7. 7. Before engaging in the business of a Colorado real estate broker, what state authorization is required?

   • AOnly a county business card registration
   • BOnly completion of a single transaction as a trainee
   • COnly a private association membership
   • DA license from the Real Estate Commissioncorrect

   Why: C.R.S. 12-10-202 makes it unlawful to engage in the business of a real estate broker in Colorado without first obtaining a license from the Real Estate Commission.

   Practice of real estate

8. 8. Dana has no real estate degree and wants a Colorado Associate Broker level license. How much approved pre-licensing education does Commission Rule 2.1.A require?

   • A90 hours
   • B135 hours
   • C168 hourscorrect
   • D75 hours

   Why: Rule 2.1.A requires 168 hours: Real Estate Law and Practice 48, Colorado Real Estate Contracts 48, Real Estate Closings 24, Trust Accounts and Record Keeping 8, Current Legal Issues 8 and Practical Application 32. The smaller totals are near-miss distractors; Colorado puts unusually heavy weight on contracts and closings.

   Practice of real estate

9. 9. The parties to a terminated CBS1 sign mutual written instructions to release earnest money held by the listing firm, and the earnest money check has cleared. Within how many days of receiving the executed instructions must the firm release the money?

   • A2
   • B3
   • C5correct
   • D10

   Why: In the CBS1 broker acknowledgments, a brokerage firm acting as earnest money holder agrees to release earnest money as directed by written mutual instructions within 5 days of receiving the executed instructions, provided the earnest money check has cleared. Three business days is the trap: that is the Rule 5.7.B deposit deadline.

   Practice of real estate

10. 10. What written policy must a Colorado broker adopt concerning public services?

    • AA uniform commission rate required of competitors
    • BA guarantee that every client will qualify for financing
    • CAn office policy identifying the brokerage relationships offeredcorrect
    • DA policy waiving every statutory duty

    Why: C.R.S. 12-10-408(1)(a) requires every broker to adopt a written office policy identifying the brokerage relationships it offers to the public.

    Agency