Free Colorado Real Estate Practice Exam

Q1.The principle that no two parcels of land are exactly alike is known as which physical characteristic of real property?

• A.Indestructibility
• B.Immobility
• C.Non-homogeneity
• D.Scarcity

Q2.At a residential closing, the lender collects funds to establish an escrow account for property taxes and insurance. Under RESPA, what is the maximum initial escrow deposit a lender may collect at settlement?

• A.Two months of escrow payments above the amount needed to pay charges when due
• B.Three months of escrow payments above the amount needed to pay charges when due
• C.Six months of estimated annual escrow payments collected upfront
• D.One full year of property taxes and insurance premiums collected at closing

Q3.A property manager discovers that the building's elevator has been out of service for three weeks, making upper floors inaccessible to disabled tenants. What is the manager's primary legal concern?

• A.Violation of the Americans with Disabilities Act (ADA)
• B.Violation of local building codes only
• C.Breach of the warranty of habitability
• D.Normal wear and tear issues

Q4.In a joint tenancy, when one co-owner dies, their interest in the property automatically passes to:

• A.The deceased owner's heirs as directed by their will
• B.The state through escheat
• C.The surviving joint tenant(s)
• D.A trustee appointed by the probate court

Q5.A Colorado listing broker wants to advertise a property on their personal website. Under Colorado Real Estate Commission Rules, what must the advertising clearly include?

• A.The broker's personal cell phone number and email address
• B.The name of the brokerage firm with which the broker is affiliated
• C.The list price approved by the seller in writing
• D.The broker's license number

Q6.Under Colorado law, if a seller becomes aware of a new material defect after providing the Seller's Property Disclosure (SPD) form but before closing, what is the seller's obligation?

• A.The seller has no further obligation because the original SPD was already delivered
• B.The seller must update the SPD or provide written notice of the new defect to the buyer
• C.The seller must immediately cancel the contract and relist the property
• D.The seller must only disclose the new defect to the listing broker, not the buyer

Q7.Before sitting for the Colorado real estate broker licensing examination, an applicant must complete which of the following pre-license education requirements as administered by the Colorado Division of Real Estate?

• A.72 hours of approved pre-license education covering principles and practices
• B.120 hours of approved broker pre-license education
• C.150 hours of approved broker pre-license education
• D.168 hours of approved broker pre-license education

Q8.A seller breaches a purchase contract by refusing to convey the property after all contingencies have been satisfied. Under contract law principles, which remedy would most likely provide the buyer with the actual property they contracted to purchase?

• A.Specific performance requiring the seller to complete the sale as agreed
• B.Monetary damages equal to the difference between contract price and current market value
• C.Rescission of the contract with return of earnest money
• D.Liquidated damages as specified in the purchase agreement

Q9.At closing, a real estate salesperson's client asks who is responsible for preparing the Closing Disclosure on a purchase transaction involving a new mortgage loan. Who is primarily responsible under federal law?

• A.The seller's real estate broker
• B.The title company, with no lender involvement
• C.The buyer's real estate agent
• D.The creditor (lender)

Q10.A landlord tells a prospective tenant that a unit has already been rented, but in fact the unit is still available. The landlord made this misrepresentation because the applicant is Muslim. Under the Fair Housing Act, this practice is known as:

• A.Blockbusting
• B.Steering
• C.Discriminatory misrepresentation
• D.Redlining

Q11.In Colorado, when a buyer purchases a property that is part of a Homeowners Association (HOA), which document package must the seller provide, and what right does the buyer have upon receiving it?

• A.The seller must provide HOA governing documents, and the buyer has the right to terminate the contract within a specific review period after receipt
• B.The seller must provide only the HOA budget, and the buyer has no right to terminate based on HOA documents
• C.The HOA must deliver documents directly to the buyer's lender, and the buyer has no review rights
• D.The seller must provide HOA meeting minutes only, and the buyer may request additional documents at closing

Q12.In the eviction process, which federal constitutional protection must landlords ensure they do not violate when seeking to remove tenants for lease violations?

• A.Fourteenth Amendment due process requirements
• B.First Amendment right to free speech
• C.Fourth Amendment protection against unreasonable searches
• D.Eighth Amendment protection against cruel and unusual punishment

Q13.A property is being purchased for $350,000 with a loan amount of $280,000. If the state transfer tax is $0.50 per $500 of consideration and the county transfer tax is 0.1% of the purchase price, what is the total transfer tax due?

• A.$350
• B.$700
• C.$280
• D.$1,050

Q14.Under federal fair housing law, which statement about reasonable accommodations for disabled tenants is correct?

• A.Landlords must make all requested modifications at their own expense
• B.Landlords must allow reasonable modifications to be made at the tenant's expense
• C.Landlords can charge additional rent for disabled tenants
• D.Landlords are not required to make any accommodations

Q15.According to EPA guidelines, which action regarding underground storage tanks (USTs) is required for real estate professionals when representing clients in commercial property transactions?

• A.Advising clients to investigate potential environmental liabilities associated with USTs
• B.Conducting soil contamination testing on all properties with current or former USTs
• C.Obtaining EPA permits for any existing USTs on the property
• D.Removing all USTs before completing the transaction