Educational Resources: Colorado Real Estate Sample Tests, Application Steps, Tips and Resources

After successfully completing the required hours of approved prelicensing coursework,¹ candidates will be eligible to register for the Colorado real estate license exam. This crucial test covers both national and Colorado-specific laws and practices.

The official Colorado Real Estate Broker Licensing Examination is a computer-based test administered at approved PSI test centers across the state.² This is an opportunity to demonstrate retention and comprehension of the important concepts covered in real estate education.

The registration fee is $44.95. Retake fees for those who fail a section are $42.50.

Colorado’s Real Estate Examination Overview

The exam consists of both national and state-specific sections:

• National Portion: 80 multiple choice questions, 120 minutes allowed
• State Portion: 74 multiple choice questions, 110 minutes allotted

Candidates must pass each portion independently with a minimum score of 75% to demonstrate proficiency. That is 60 questions on the national portion and 53 questions on the state portion.

Here is a sampling of the subject areas covered in each section:

National Section (80 Questions)

This section covers general real estate principles and practices. The list below breaks down the topics covered on the national section of the real estate exam in Colorado along with the percentage of questions there are for each topic.

• Contracts: 17%
• General Principles of Agency:13%
• Practice of Real Estate: 13%
• Financing: 10%
• Real Estate Calculations: 10%
• Property Ownership: 8%
• Transfer of Title: 8%
• Valuation and Market Analysis: 7%
• Property Disclosures: 6%
• Land Use Controls and Regulations: 5%
• Leasing and Property Management: 3%

Here are some sample questions in the state section:³

1. A change of business address or employment without notification to the commission results in what?

• The commission shall automatically monetarily fine the license.
• The commission shall automatically inactivate the licensee’s license.
• The commission shall revoke the license in three months.
• The commission shall automatically revoke the licensee’s license.

2. Failure to provide a real estate buyer and seller with a closing statement may result in what?

• An investigation by the Colorado Real Estate Commission if a written complaint is received
• Immediate revocation of the broker’s license
• A fine of $4,000 immediately
• A fine of $2,000 immediately

3. An escrow account can also be called what?

• A trust account
• A commission account
• An expense account
• An expense and commission account

Colorado State Section (74 Questions)

This section tests knowledge of Colorado real estate laws, regulations, and practices. Here are the topics covered on the state portion of the Colorado real estate exam along with how many questions there are for each topic:

• Colorado Forms and Contracts: 23 Questions
• Brokerage Relationships: 11 Questions
• Requirements Governing the Activities of Licensees: 11 Questions
• Closing and Settlement: 10 Questions
• Licensing Requirements: 5 Questions
• Record Keeping and Trust Accounts: 5 Questions
• Duties and Powers of the Real Estate Commission: 2 Questions
• Additional Topics: 7 Questions

The state portion is considered harder of the two.

Here are some sample questions in the state section:³

1. How much notice must be given to the commission by a licensee for a change of business location or employment?

• Immediate notice
• Seven days notice
• Thirty days notice
• Fifty days notice

2. According to Colorado Law and Commission rules, what rule covers “Continuing Duty to Disclose Conflict of Interest and License Status?”

• Rule E-7
• Rule E-17
• Rule E-10
• Rule E-5

3. If a Colorado Real Estate License is revoked, how long must the former licensee wait to be considered for relicensing?

• 6 months
• One year
• Two years
• Three years

First-time pass rates average around 65-70%.⁴ Thorough pre-licensing education and exam prep can help improve your chances.

If a candidate fails on their first attempt, they can retest as soon as the following day after paying the $42.50 retake fee.

Additionally, they only need to retake the sections failed, not the full exam. Candidates have one year from passing one portion to pass the failed section/s.

Investing in exam preparation can greatly improve your chances of passing the real estate license exam on the first try. Resources like practice tests, study guides, and online courses help familiarize you with the exam format, subject matter, and pacing.

Don’t underestimate the value of proper exam prep when pursuing your Colorado real estate license.

Completing Your Colorado Division of Real Estate License Application: 6 Steps

Follow these key steps to submit your Colorado real estate broker license application successfully:⁵

Step 1: Fulfill the Education Requirements

• For prelicensing courses, obtain certificates of completion from your real estate school
• If qualifying based on a degree, acquire official transcripts from the accredited college or university
• For license reciprocity, get certified license histories from each state where you hold a license

Step 2: Schedule the Licensing Exam

• Contact the PSI Candidate Care Center at 855-744-0313 to make a reservation²
• Take the exam at one of their testing centers or remotely with proctoring

Step 3: Complete the Background Check

• Submit fingerprints through an approved vendor like IdentoGO or Colorado Fingerprinting^7,8
• Your prints will be sent to the Colorado Bureau of Investigation (CBI) and the Federal Bureau of Investigation (FBI) to perform the required background check

Step 4: Obtain Errors and Omissions Insurance

• Acquire an active E&O policy before applying for your license.⁹ This is required for approval.
• Most sponsoring brokerages provide group E&O coverage to associate brokers

Step 5: Prepare All Required Documentation

• Review the license application instructions and gather all needed documents ahead of time¹⁰
• This includes prelicensing certificates, transcripts, exam results, insurance certificates, brokerage agreements, etc.

Step 6: Submit the Online Application

• Create an account on the Division of Real Estate’s eLicense website¹¹
• Complete the online broker license application and upload supporting documents
• Pay the $485 application fee when you submit
• Allow 7-10 days for approval after applying

Following these steps carefully will help ensure your license application is processed smoothly and efficiently.

Once the Division of Real Estate approves your application, your active real estate license will be issued. You can then legally begin practicing real estate under your sponsoring broker.

Colorado Division of Real Estate Membership Dues and Costs

Pursuing a career as a licensed real estate broker in Colorado requires payment of various fees and costs to the state’s Division of Real Estate (DRE) as well as industry organizations. Understanding these expenses helps you budget accordingly.

Dre License Fees

The  DRE charges several fees directly related to obtaining and maintaining your real estate broker license:¹²

• Broker license application fee: A $485 fee is paid upon submitting your new license application. This covers processing and background checks.
• Fingerprinting fee: A $39.50 fee is paid when registering for fingerprinting, required for the criminal history check by the Colorado Bureau of Investigation (CBI)
• Errors and omissions insurance: This is a type of professional liability insurance that protects you from claims of negligence or mistakes in your real estate transactions. The fee varies.
• License renewal fee: A $387 fee is paid every 3 years when renewing your broker license. Late penalties apply if you renew 1-3 years late ($579) or over 3 years late ($771).
• Continuing education: You are required to complete 24 hours of DRE-approved continuing education required before license renewal every 3 years¹³
• Other fees: Additional DRE fees related to transfers, activations, company licensing, and exam retakes may apply¹²

Be sure to review the DRE’s fee schedule for the most up-to-date costs. Prompt payment ensures timely processing and smooth renewal.

Industry Organization Dues

You’ll also need to budget for fees from real estate industry organizations:

• Local board/association dues: They vary based on the specific board or realtor® association. For example, Denver Metro Association of Realtors® (DMAR) dues are approximately $300/year.¹⁴
• MLS fees: Multiple Listing Service (MLS) provides access to property listings. Fees include an initiation fee of around $95 and monthly subscription fees of $44/month.
• CAR and NAR dues: The Colorado Association of Realtors® (CAR) charges $175/year. The National Association of Realtors® (NAR) has yearly dues of $150 (2023) and $156 (2024).

While optional, membership in professional real estate organizations is highly beneficial for resources, advocacy, and networking. Factor these costs into your annual brokerage budget.

Additional Expenses

Depending on your brokerage, you may be responsible for other fees like:

• Brokerage monthly desk fees
• Brokerage transaction fees
• Franchise fees if your brokerage operates as a franchise
• Marketing and business cards

As you build your real estate business, don’t forget recurring expenses for education, insurance, and professional development as well. While the costs may seem high initially, they are an investment in your long-term success.

Exercising Your Right To Apply for National Association of Realtors® Membership

Active Colorado real estate licensees have the option of joining the National Association of Realtors® (NAR),¹⁵ the largest trade association representing professionals in the U.S. real estate industry.

While optional, most active real estate professionals choose to join their local realtor® association which provides access to the multiple listing service (MLS) as well as benefits from the National Association of Realtors®. Here are some of the key advantages of NAR membership:¹⁶

• Access to comprehensive MLS real estate listings
• Realtor® branding that signifies high ethical standards
• Discounts on E&O insurance, technology, and other services
• Advanced educational programs to further specialize
• Involvement in advocating for real estate interests on a state and national level

To display the realtor® trademark and access NAR benefits, real estate agents must proactively apply for membership through their local realtor® association. Dues are paid annually and vary by state and association.

In Colorado, expect to invest $150 to $500 each year for NAR membership privileges.

The process of applying for NAR membership involves:⁶

• Obtaining your real estate license: Before applying to NAR, you must hold an active Colorado real estate broker license. This requires meeting education, exam, and other licensing requirements through the Division of Real Estate.
• Joining a local realtor® association: NAR membership starts at the local level. You need to join a local realtor® association in your region that is affiliated with NAR.
  Use NAR’s directory to find options or search online directories.
• Meeting the membership criteria: Before applying, understand NAR’s membership qualification criteria related to ethics, license validity, criminal history, and adherence to bylaws. Local associations may have additional requirements.
• Completing new member requirements: Once approved, new NAR members must complete orientation training and a Code of Ethics course within set timeframes.
• Paying applicable dues: You will pay annual dues to your local association, the Colorado Association of Realtors®, and NAR. Dues are prorated when you join mid-year.
  The application costs $150 and annual dues are around $150 as well.

The NAR membership application is submitted concurrently when joining your local real estate association. The local association will transmit your application and payment to NAR for processing.

While NAR membership is not required, it provides valuable networking, training, business development, and marketing resources that can help new real estate agents grow their practice. Consult current NAR-member brokers to gauge the value for your needs.

What’s the Standard Timeframe For Completing the Real Estate Application?

A common question from new real estate license hopefuls ask is “How long does it take to become an agent in Colorado?”

While timelines vary, you can expect it to take a minimum of 6-8 weeks to go through the necessary steps to obtain your real estate license in Colorado after completing your educational requirements.

However, it is wise to budget 8 to 12 months for the entire process from enrolling in courses to passing the exam, securing insurance and brokerage sponsorship, completing background checks, and the application processing timelines.

That said, it is possible to complete the full real estate licensing process in 3 to 4 months in Colorado.

Here is a general framework of the steps involved in licensure:⁵

• Two to 8 months to complete 168 hours of prelicensing education
• Two to 6 weeks to process fingerprint background check
• One-month minimum to study for, schedule, and pass the licensing exam
• Two to 4 weeks to join a sponsoring brokerage and obtain E&O insurance
• One to 2 weeks for the Division of Real Estate to review and approve the license application after submission. Your license should show as active in the online eLicense system within 10 business days

This adds up to an overall timeline of 3-12 months for most students. The variable with the widest range is completing the prelicensing coursework, which depends greatly on the study format chosen.

Online self-paced courses allow you to get your education done more quickly. In-person formats often involve set class schedules which takes longer.

Dedicate time to prep for and pass the exam, research brokerages, and compile all components of your license application for efficient approval.