Determine your answer, then click the arrow to see the correct response.
How Many Hours of Pre-Licensing Education Are Required for a Real Estate Salesperson in Colorado?
A) 60 hours
B) 75 hours
C) 90 hours
D) 168 hours
Correct Answer: D) 168 hours
Explanation: Colorado requires 168 hours of pre-licensing education for real estate salesperson applicants.
How Often Must Real Estate Licenses Be Renewed in Colorado?
A) Every year
B) Every two years
C) Every three years
D) Every four years
Correct Answer: C) Every three years
Explanation: Real estate licenses in Colorado must be renewed every three years.
Which of the Following Must Be Included in a Listing Agreement in Colorado?
A) The list price of the property
B) The duration of the listing
C) The commission to be paid to the broker
D) All of the above
Correct Answer: D) All of the above
Explanation: A listing agreement must include the list price, the duration of the listing, and the commission to be paid to the broker.
A Real Estate Agent in Colorado Is Also a Licensed Contractor. The Agent Is Representing a Buyer Who Needs Extensive Repairs on the Property They Are Purchasing. What Should the Agent Do?
A) Offer to do the repairs at a discounted rate
B) Disclose the dual role and obtain written consent from the buyer
C) Do the repairs without disclosing the dual role
D) Refuse to do the repairs to avoid a conflict of interest
Correct Answer: B) Disclose the dual role and obtain written consent from the buyer
Explanation: The agent must disclose any potential conflict of interest and obtain written consent from the buyer before proceeding with any additional services.
A Real Estate Agent in Colorado Receives an Offer on a Property They Have Listed. The Offer Is Significantly Lower Than the Listing Price. What Should the Agent Do?
A) Reject the offer on behalf of the seller
B) Present the offer to the seller for consideration
C) Ignore the offer since it is too low
D) Counter the offer without consulting the seller
Correct Answer: B) Present the offer to the seller for consideration
Explanation: An agent is required to present all offers to their client, regardless of the offer amount.
Which of the Following Best Describes a "Deed of Trust" in Colorado?
A) A legal document that transfers property ownership directly
B) A security instrument in which the borrower conveys title to a trustee as security for a loan
C) A lease agreement between landlord and tenant
D) An easement agreement for utility access
Correct Answer: B) A security instrument in which the borrower conveys title to a trustee as security for a loan
Explanation: A deed of trust is commonly used in Colorado as a security instrument for real estate loans, involving the borrower, lender, and trustee.
Which of the Following Is TRUE About the Colorado Common Interest Ownership Act (CCIOA)?
A) It only applies to condominium developments
B) It governs all common interest communities created in Colorado
C) It is voluntary for homeowners associations to follow
D) It requires all properties to have a homeowner’s association
Correct Answer: B) It governs all common interest communities created in Colorado
Explanation: The CCIOA applies to all common interest communities created in Colorado, including condominiums, cooperatives, and planned communities, and sets out rights and obligations for these communities.
In Colorado, Which Form Is Used To Disclose the Known Adverse Material Facts About a Property?
A) Seller’s Property Disclosure Form
B) Buyer’s Disclosure Form
C) Real Estate Transfer Disclosure Form
D) Environmental Disclosure Form
Correct Answer: A) Seller’s Property Disclosure Form
Explanation: The Seller’s Property Disclosure Form is used in Colorado to disclose any known adverse material facts about a property to potential buyers.
Which of the Following Is TRUE About Colorado's Water Rights Laws?
A) Water rights are automatically included with land ownership
B) Water rights are based on the doctrine of riparian rights
C) Water rights must be acquired separately and are based on the doctrine of prior appropriation
D) Water rights cannot be transferred separately from land
Correct Answer: C) Water rights must be acquired separately and are based on the doctrine of prior appropriation
Explanation: In Colorado, water rights are not automatically included with land ownership and must be acquired separately. They are based on the doctrine of prior appropriation, which allocates water rights based on a first-come, first-served basis.
What Is the Purpose of the Colorado Real Estate Commission (CREC)?
A) To regulate property taxes
B) To manage state-owned properties
C) To license and regulate real estate professionals
D) To develop zoning laws
Correct Answer: C) To license and regulate real estate professionals
Explanation: The Colorado Real Estate Commission (CREC) is responsible for licensing and regulating real estate professionals in Colorado to ensure compliance with state laws and protect consumers.