How To Become a Real Estate Agent in Colorado

Colorado real estate agents assist clients in buying, selling, and renting properties. They help manage transactions and negotiations between buyers and sellers.

With such an important role, Colorado has set specific conditions for obtaining a real estate license including; age, education, and background check requirements.

The Colorado Department of Regulatory Agencies, Division of Real Estate oversees the licensing process.¹ Once licensed, agents must also follow rules for maintaining their active status.

This comprehensive guide provides aspiring real estate agents with everything needed to successfully get licensed in Colorado.

Colorado Professional Real Estate License

Here’s a quick rundown of some key facts about getting a real estate license in Colorado:

• First-time applicants must complete 168 hours of pre-licensing education from an accredited school before applying for a license.
• Colorado is a single-license state; all real estate agents are called “associate brokers” and there is no separate “salesperson” license.
• The Colorado real estate exam is considered quite challenging, with a pass rate of around 65 to 70%. It covers both national topics and state-specific laws.
• All license applicants must submit fingerprints and pass a background check conducted by the Colorado Bureau of Investigation (CBI).
• New licensees must hang their license with an employing brokerage. Real estate agents cannot practice independently right away after licensure.
• Colorado has reciprocal licensing agreements with all 50 states, making it easy to transfer an active out-of-state license.
• Active real estate agents must have Errors and Omissions (E&O) insurance coverage.

All these aspects will be explained in greater detail later.

Essential Conditions for Real Estate Professional Licensing

To become a licensed real estate professional in Colorado, a few baseline qualifications must be met. These prerequisites ensure all agents have the minimum knowledge and clear background necessary to conduct real estate transactions ethically and legally.

The major requirements include:

• Reaching the minimum age of 18 years old
• Finishing the requisite pre-licensing education hours
• Passing the state licensing exam
• Undergoing a background check
• Carrying errors and omissions insurance
• Affiliating with a sponsoring brokerage
• Submitting the completed license application with fees

Fulfilling each of these steps demonstrates to the Colorado Division of Real Estate that applicants are prepared for the duties and responsibilities of a real estate agent. While some requirements simply verify your identity and background, most involve proving you have mastered the foundations of real estate through testing and education.

Here are each of these essential conditions in more detail.

Age and Fundamental Academic Necessities

The Colorado Division of Real Estate mandates that all candidates be at least 18 years old and be legal residents of the United States when applying for a real estate license.¹ This age minimum ensures agents have reached a level of maturity and life experience needed to effectively advise clients.

While a high school diploma or equivalent is not formally required, most real estate schools do prefer students to have a high school diploma or GED before enrollment. Holding a diploma provides evidence that applicants have the basic academic abilities like reading comprehension needed to successfully complete the real estate curriculum.

Check the enrollment requirements for your chosen pre-licensing education provider to confirm if a diploma or transcript is needed.

Additionally, there are certain prerequisites that must be met depending on your specific background and experience.²

The major categories are:

Individuals Who Have Never Held a License

For someone who has never held a real estate license before,² the requirements are:

• Complete 168 hours of approved pre-licensing education OR hold a degree from an accredited college or university with a major in real estate
• Education must cover:
  • Real Estate Law and Practice (48 hours)
  • Current Legal Issues (8 hours)
  • Practical Applications (32 hours)
  • Trust Accounts and Recordkeeping (8 hours)
  • Real Estate Closings (24 hours)
  • Colorado Contracts and Regulations (48 hours)
• Pass both the national and state portions of the Colorado Real Estate Broker’s Exam

Individuals With a Non-Expired Out-Of-State License for 2+ Years

For someone who currently holds an active non-expired real estate license in another state for no less than 2 years,² the requirements are:

• Pass the state portion of the Colorado Real Estate Broker’s Exam
• Complete a fingerprint background check
• Provide a certified license history from the other state dated within 90 days

With 2+ years of experience, they qualify for an Independent or Employing license. With under 2 years of experience, they qualify for an Associate Broker license.

To qualify for an Employing license, they must also:

• Take a 24-hour brokerage administration course
• Complete the Employing Broker Affidavit

Individuals With an Expired or Out-Of-State License Held Less Than 2 Years

For someone who held a license in another state that was expired or held less than 2 years,² the requirements are:

• Complete the required pre-licensing education hours:
  • Salesperson: 120 hours
  • Broker: 72 hours
• Pass both the national and state portions of the Colorado Real Estate Broker’s Exam
• Provide a certified out-of-state license history

They qualify for an Associate Broker license if they held their previous license for less than 2 years.

The 120 hours of education for a salesperson consists of:

• Colorado Contracts & Regulations (48 hours)
• Current Legal Issues (8 hours)
• Practical Applications (32 hours)
• Real Estate Closings (24 hours)
• Trust Accounts & Recordkeeping (8 hours)

The 72 hours of education for a broker consists of:

• Colorado Contracts & Regulations (48 hours)
• Real Estate Closings (24 hours)

Former Colorado Brokers Who Have Not Held a License For 3+ Years

For former Colorado brokers whose license expired more than 3 years ago,² the requirements depend on when they were originally licensed:

1. Licensed before 1/1/1997:

• Complete required pre-licensing education hours (120 hours for salesperson, 72 for broker)
• Pass both portions of the Colorado Real Estate Broker’s Exam

They qualify for an Independent or Employing license with 2+ years of experience or an Associate Broker license with less than 2 years of experience.

2. Licensed after 1/1/1997:

• Pass both portions of the Colorado Real Estate Broker’s Exam

They qualify for an Independent or Employing license with 2+ years of experience or an Associate Broker license with less than 2 years of experience.

To qualify for Employing status, they must also take a 24-hour brokerage administration course and complete the Employing Broker Affidavit.

Licensed Attorneys

For licensed attorneys,² the requirements are:

• Provide proof of an active law license
• Complete 12 hours of education in trust accounts, closing, and recordkeeping
• Pass both portions of the Colorado Real Estate Broker’s Exam

Obligatory Course Hours for Real Estate Licensing

Arguably the most extensive real estate license requirement is completing the hours of Commission-approved pre-licensing education.² These hours ensure new agents have mastered the foundational concepts and skills required for the profession.

The obligatory pre-licensing education course hours vary based on your specific background,² as follows:

Individuals Who Have Never Held a License

Must complete 168 hours of pre-licensing education course covering:³

• Real Estate Law and Practice (48 hours)
• Practical Applications (32 hours)
• Real Estate Closings (24 hours)
• Trust Accounts and Recordkeeping (8 hours)
• Current Legal Issues (8 hours)
• Colorado Contracts and Regulations (48 hours)

Individuals With a Non-Expired Out-Of-State License for 2+ Years

No pre-licensing education is required but applicants must sit for and pass the state portion of the Colorado Real Estate Brokers Exam.

Individuals With an Expired or Out-Of-State License Held Less Than 2 Years

Must complete education hours based on prior license type:

• Salesperson: 120 hours
  • Colorado Contracts & Regulations (48 hours)
  • Current Legal Issues (8 hours)
  • Practical Applications (32 hours)
  • Real Estate Closings (24 hours)
  • Trust Accounts & Recordkeeping (8 hours)
• Broker: 72 hours
  • Colorado Contracts & Regulations (48 hours)
  • Real Estate Closings (24 hours)

Former Colorado Brokers Who Have Not Held a License for 3+ Years

Must complete education hours based on when they held their prior license:

1. Licensed before 1/1/1997

• • Salesperson: 120 hours
    • Colorado Contracts & Regulations (48 hours)
    • Current Legal Issues (8 hours)
    • Practical Applications (32 hours)
    • Real Estate Closings (24 hours)
    • Trust Accounts & Recordkeeping (8 hours)
  • Broker: 72 hours
  • Colorado Contracts & Regulations (48 hours)
  • Real Estate Closings (24 hours)

2. Licensed after 1/1/1997:

No prelicensing education is required but must sit for and pass the state and national portion of the Colorado Real Estate Brokers Exam.

Licensed Attorneys

Must complete 12 hours of education covering:

• Trust Accounts
• Recordkeeping
• Closings

The academic requirements focus both on general real estate principles and Colorado-specific laws and practices. Showing that you have completed the curriculum demonstrates substantive understanding and command of the subject matter.

Once finished, you will be ready to apply this knowledge when sitting for the Colorado real estate licensing exam.

Expenditure on Pre-Licensing Education for Real Estate

In terms of costs, prelicensing education ranges from $300 on the low end for self-paced online courses to upwards of $1000 for in-person classroom packages. Additional exam prep materials can cost $50 to $200.

The main variables affecting price are the delivery format, the provider chosen, and any extras like exam prep or retake guarantees.

For instance, online courses allow providers to offer more budget-friendly options since they require fewer overhead expenses. Premier schools with extensive instructor support and physical campuses charge higher tuition rates.

When selecting your prelicensing program, balance your budget with factors like format, curriculum, and pass rates.

Research different approved qualifying education providers locally or virtually to find the prelicensing package best aligned with your learning style, budget preferences, and pass rates.^4,5Just be sure the courses satisfy the academic requirements.

Core Background Check for Real Estate Licensing (Fingerprinting Facility Details)

A critical component of qualifying for a real estate license in Colorado involves passing a fingerprint-based criminal history record check.⁶

Applicants must schedule an appointment to submit fingerprints at an approved location no more than 60 days before submitting an application for licensure. The collected fingerprints are transmitted to the Colorado Bureau of Investigation (CBI) and Federal Bureau of Investigation (FBI) to check for any potential disqualifying offenses.⁷

The Colorado Applicant Background Services program (CABS) requires that fingerprints be transmitted through a CBI-approved vendor.⁸ Here are the 3 options for submitting fingerprints:⁶

Option 1: Colorado Fingerprinting

This option is available for applicants located in Colorado through the Colorado Applicant Background Services (CABS) program.

You must register and schedule an appointment at your most convenient location.⁸ Walk-ins are not accepted.

When registering, use code 0800REEI for real estate broker applicants.

Option 2: Identogo by Idemia

IdentoGO has fingerprinting locations across Colorado and the U.S.

You must register and schedule an appointment at identogo.com.⁹ Walk-ins are not permitted.

Option 3: Fingerprint Card With Electronic Submission

If you are unable to visit a location in person, you can submit fingerprints remotely using an FD-258 fingerprint card. You must still pre-register with IdentoGO or Colorado Fingerprinting and follow the provided instructions for submission.

Use code 0800REEI when registering for real estate broker fingerprint card submission.

Once submitted, it takes 2-6 weeks to process the background check. Discrepancies found can be disputed by following CBI or FBI procedures.

If you need assistance with your registration or when submitting the FD-258 fingerprint card, contact Colorado Fingerprinting at (833) 224-2227, (720) 292-2722, or by email at [email protected].

Fingerprinting costs around $39.50-$75 depending on the provider.

Once collected these digital fingerprints are then run through Colorado and Federal databases to check for any prior criminal records. It typically takes 4 to 6 weeks to process the full results.

Applicants are not directly notified by CBI of the outcome. Instead, the background check record is internally shared with the Division of Real Estate for review.

While having a criminal record does not result in automatic disqualification, certain types of criminal convictions within the past 10 years may disqualify applicants from holding a real estate license in Colorado. These include past felony charges, misdemeanors involving unlawful sexual behavior or fraud, or ongoing court cases.

Candidates with potentially disqualifying records may request a Preliminary Background Check through the Preliminary Advisory Opinion process before investing time and money into pre-licensing education.¹⁰ This preliminary advisory opinion will provide guidance on the probability of approval.