Free Colorado Real Estate Practice Exam

Q1.A Colorado buyer is under contract to purchase a condominium unit in a community governed by a homeowners association (HOA). Under Colorado's Homeowner Association Act (CCIOA) and standard Colorado Real Estate Commission contract provisions, by when must the seller provide the HOA documents to the buyer, and what is the buyer's right upon receiving them?

• A.The seller must provide HOA documents at closing, and the buyer has no right to terminate based solely on their content.
• B.The seller must provide HOA documents within a timeframe specified in the contract, and the buyer has the right to terminate the contract for any reason within the HOA documents review period.
• C.The seller must provide HOA documents only if the buyer requests them in writing, and termination rights apply only to budget-related disclosures.
• D.Colorado law does not regulate the timeline for HOA document delivery; that timing is left entirely to the parties to negotiate without any buyer termination right.

Q2.Under the Colorado Anti-Discrimination Act (CADA), which of the following protected classes is covered in housing transactions in Colorado but is NOT included as a protected class under the federal Fair Housing Act?

• A.Race
• B.Sexual orientation
• C.National origin
• D.Familial status

Q3.A property is held in joint tenancy with right of survivorship. One owner dies. How does title pass?

• A.Through the probate court based on the deceased owner's will
• B.Automatically to the surviving joint tenant(s) without probate
• C.To the deceased owner's heirs equally regardless of survivorship language
• D.By court order after creditor claims are resolved

Q4.Under Colorado law, which state agency is responsible for issuing and regulating real estate broker licenses?

• A.The Colorado Department of Regulatory Agencies (DORA) Secretary of State's Office
• B.The Colorado Real Estate Commission under the Division of Real Estate
• C.The Colorado Association of REALTORS®
• D.The Colorado Department of Revenue

Q5.Under the Federal Fair Housing Act, which of the following actions by a landlord would constitute illegal discrimination?

• A.Requiring a higher security deposit from tenants with pets
• B.Refusing to rent to someone who cannot meet the income requirements
• C.Refusing to rent to a family with children because the property has a swimming pool
• D.Charging different application fees based on credit score

Q6.Under C.R.S. § 12-10-408 and Colorado Commission rules, a broker's written independent contractor agreement with an affiliated broker must address which of the following to be compliant, and what is the consequence of operating WITHOUT such a written agreement?

• A.The agreement must specify commission splits only; operating without it results in a civil fine of $500 per transaction but no license discipline.
• B.The agreement must address supervision responsibilities, commission splits, and the independent contractor relationship; operating without a compliant written agreement is a grounds for license discipline of both the employing broker and the affiliated broker.
• C.The agreement must be notarized and filed with DORA annually; failure to file triggers automatic license suspension.
• D.Colorado does not require a written independent contractor agreement; an oral agreement is legally sufficient as long as both parties can demonstrate mutual consent.

Q7.Under RESPA (Real Estate Settlement Procedures Act), which of the following actions by a real estate licensee would be prohibited?

• A.Recommending a specific lender to a client based on competitive rates
• B.Providing clients with a list of preferred service providers
• C.Attending closing meetings with clients
• D.Receiving a referral fee from a mortgage broker for directing clients to their services

Q8.A lead-based paint disclosure is required under the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. § 4852d) for target housing. Which of the following transactions is EXEMPT from the federal lead-based paint disclosure requirements?

• A.Sale of a condominium unit in a building constructed in 1978
• B.Sale of a single-family home built in 1975 that has been fully renovated
• C.Rental of a zero-bedroom efficiency apartment built in 1960
• D.Sale of a property built in 1980 to a buyer with young children

Q9.A landlord in Colorado refuses to rent to a prospective tenant because the tenant has a service animal and the landlord has a strict no-pets policy. Under the Colorado Anti-Discrimination Act (CADA) and applicable Colorado law, this refusal is most likely:

• A.Lawful, because a no-pets policy is a legitimate and neutral business rule that applies to all applicants equally.
• B.Unlawful, because a landlord must make a reasonable accommodation for a tenant's disability-related need for a service or assistance animal.
• C.Lawful, unless the prospective tenant can prove the landlord has discriminated against other disabled tenants in the past.
• D.Unlawful only if the property contains five or more rental units, because smaller properties are exempt from fair housing requirements.

Q10.When a Colorado property is located within a special district, such as a metropolitan district, what is the seller required to provide to the buyer regarding that district?

• A.A copy of the district's most recent audit report
• B.A Special District Notice disclosing the existence of the district and its taxing authority
• C.A guarantee that the district's mill levy will not increase
• D.Written approval from the district allowing the sale to proceed

Q11.Colorado broker Maria is supervising three affiliated brokers operating under her employing broker license. One of her affiliated brokers, without authorization, executes a Buyer Agency Contract on behalf of a buyer but signs his own name as the 'broker' rather than listing the employing broker. Under C.R.S. § 12-10-217 and DORA Division of Real Estate rules, which statement BEST describes Maria's liability exposure?

• A.Maria has no liability because the affiliated broker acted outside the scope of his authority and the error belongs solely to the affiliated broker.
• B.Maria may be subject to discipline because employing brokers are statutorily responsible for supervising affiliated licensees and ensuring compliance with brokerage agreements.
• C.Maria is automatically subject to license revocation because any contract error by an affiliated broker is treated as broker fraud under Colorado law.
• D.Maria's liability is limited to civil damages only; the Colorado Real Estate Commission has no jurisdiction over contract execution errors.

Q12.Which type of ownership gives a person the most complete bundle of rights in real property?

• A.Life estate
• B.Leasehold estate
• C.Fee simple absolute
• D.Remainder interest

Q13.A recorded easement that allows the electric company to run power lines across a property is an example of which type of encumbrance?

• A.An encumbrance that affects possession but not title
• B.A monetary lien against the property
• C.A covenant that restricts property use
• D.An encumbrance that affects title but not possession

Q14.When investigating a complaint alleging ECOA (Equal Credit Opportunity Act) violations by a real estate licensee, what is the primary limitation on a state licensing board's authority?

• A.The board can only discipline licensees, not lenders or mortgage brokers
• B.The board cannot investigate credit-related complaints
• C.ECOA violations must be prosecuted exclusively in federal court
• D.The board cannot access credit files during investigations

Q15.A Colorado transaction-broker represents both the buyer and seller in a residential sale. At closing, the buyer asks the broker to explain an unexplained $1,200 'administrative fee' that appeared on the settlement statement, which was not disclosed in any prior agreement. Under Colorado law, what must the broker do?

• A.The broker must explain the fee, and if it was not previously disclosed and agreed upon, must take steps to have it corrected or removed before the closing proceeds.
• B.The broker may direct the buyer to ask the closing company directly, as the broker has no responsibility for fees charged by third-party settlement service providers.
• C.The broker must advise the buyer to sign the closing documents as presented because disputing fees at closing creates liability for the broker.
• D.The broker may proceed with closing because undisclosed administrative fees under a certain dollar threshold do not require broker intervention under Colorado law.