Free Colorado Real Estate Practice Exam

Q1.A Colorado broker is helping a buyer purchase a property located within a special district that levies an annual assessment. According to Colorado law, what disclosure obligation exists regarding the special district?

• A.The broker must verbally inform the buyer about the special district at the time of the showing.
• B.The seller is required to provide the buyer with a Special District Notice as part of the contract, and the buyer has the right to terminate the contract if the notice is not provided.
• C.Special district disclosures are the sole responsibility of the title company at closing.
• D.Disclosure of a special district is only required if the district's annual assessment exceeds $500.

Q2.A Colorado real estate broker wishes to renew their active license. Under Colorado Real Estate Commission rules, how many hours of continuing education must an active broker complete during each three-year renewal cycle?

• A.12 hours
• B.18 hours
• C.24 hours
• D.36 hours

Q3.Under the Fair Housing Act, what is the statute of limitations for filing a discrimination complaint with HUD?

• A.1 year from the date of the discriminatory act
• B.30 days from the date of the discriminatory act
• C.6 months from the date of the discriminatory act
• D.2 years from the date of the discriminatory act

Q4.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.

Q5.A Colorado transaction-broker is working with both the buyer and seller in the same transaction. Midway through negotiations, the broker discovers that the seller has received a previous written offer that the seller rejected. The buyer then asks the broker whether any prior offers were made on the property. What is the transaction-broker's obligation under Colorado law?

• A.The broker must disclose the existence and terms of the prior offer to the buyer because transaction-brokers owe full disclosure to all parties.
• B.The broker must disclose the existence of the prior offer but not its terms, as Colorado requires brokers to disclose all material facts.
• C.The broker is not required to disclose the prior rejected offer to the buyer, as it is confidential seller information, and rejected offers are generally not considered material facts requiring mandatory disclosure under Colorado transaction-broker duties.
• D.The broker must immediately withdraw from the transaction and refer both parties to separate brokers to avoid a conflict of interest.

Q6.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

Q7.A managing broker operates a residential brokerage with 12 salesperson licensees. She designates one salesperson to represent the seller and a different salesperson to represent the buyer in the same transaction. The broker has written informed consent from both parties. Under advanced agency principles, which best describes the broker's role in this arrangement?

• A.The broker is a single agent for the seller because the seller listed first
• B.The broker is a disclosed dual agent, while each designated salesperson acts as a single agent for their respective client
• C.The broker has no agency role because designation of salespersons eliminates the broker's agency obligations entirely
• D.Designated agency is prohibited under federal law and creates per se dual agency without the possibility of consent

Q8.Under the Colorado Real Estate License Act, which conduct is explicitly prohibited for a licensed broker when dealing with the public?

• A.Representing both a buyer and a seller in the same transaction as a transaction-broker
• B.Making a substantial misrepresentation about a property to a prospective buyer
• C.Charging a commission rate negotiated below the local market average
• D.Advertising a property on a website before obtaining a signed listing agreement

Q9.In a joint tenancy, what happens to a deceased owner's interest in the property?

• A.It passes to the deceased owner's heirs according to their will
• B.It is distributed equally among all remaining joint tenants
• C.It reverts to the state through escheat
• D.It automatically passes to the surviving joint tenant(s) by right of survivorship

Q10.A brokerage's leasing agent conditions a showing on a sexual favor, without the broker's knowledge. Under the FHA, which statement is correct?

• A.The brokerage has no liability because the broker did not know
• B.Only the agent is personally liable
• C.The brokerage may face vicarious liability because the agent acted within the scope of employment
• D.The brokerage is only liable if the conduct was part of a pattern

Q11.A Colorado buyer's broker advertises on social media: 'I'll rebate half my commission back to you at closing—contact me directly!' The ad does not identify the broker's employing brokerage. Under Colorado law, which violation has most clearly occurred?

• A.No violation has occurred because commission rebates to consumers are legal in Colorado.
• B.The broker has violated Colorado Real Estate Commission advertising rules by failing to include the licensed name of the employing brokerage in the advertisement.
• C.The broker has violated Colorado law by offering a rebate, which constitutes an illegal kickback under C.R.S. Title 12.
• D.The broker has violated the federal Real Estate Settlement Procedures Act (RESPA) by offering a rebate.

Q12.Under the Fair Housing Act, housing for older persons is exempt from familial status protections if the housing is intended for and solely occupied by persons who are:

• A.60 years of age or older
• B.65 years of age or older
• C.70 years of age or older
• D.55 years of age or older

Q13.A Colorado broker is the subject of a formal CREC investigation following a consumer complaint alleging misrepresentation. Under C.R.S. § 12-10-217, the CREC has the power to investigate and discipline licensees. During the investigation, the CREC's investigator requests copies of all transaction files related to the complaint for the past three years. The broker claims certain files are protected by attorney-client privilege because she consulted her personal attorney. Which files must the broker produce to the CREC?

• A.All requested transaction files, including any communications with her personal attorney, because the CREC's investigative authority supersedes all privilege claims.
• B.None of the files, because a pending legal matter allows the broker to withhold all documents until the matter is resolved in court.
• C.All transaction files unrelated to attorney-client communications, while legitimately privileged attorney communications may be withheld pending a ruling on the privilege claim.
• D.Only files from the most recent transaction involved in the complaint, as the three-year records request exceeds the CREC's jurisdiction.

Q14.Under the Equal Credit Opportunity Act (ECOA), which of the following information can a lender legally request from a loan applicant?

• A.Whether the applicant plans to have children in the future
• B.The race of the applicant for monitoring purposes with voluntary disclosure
• C.The applicant's marital status when applying for a joint account
• D.The applicant's age if they appear to be under 25

Q15.Before sitting for the Colorado broker licensing examination administered by PSI, an applicant for an initial broker license must complete how many hours of Colorado-approved pre-license education?

• A.48 hours
• B.150 hours
• C.72 hours
• D.168 hours