Colorado Real Estate Broker Exam — All Questions

The state body responsible for licensing and disciplining real estate brokers in Colorado, operating within the Department of Regulatory Agencies, is the:

• a.Federal Real Estate Board
• b.Colorado Association of Realtors
• c.Colorado Real Estate Commission within the Division of Real Estate✓
• d.Colorado Department of Housing Finance

The Colorado Division of Real Estate, part of the Department of Regulatory Agencies (DORA), houses the Colorado Real Estate Commission, which licenses and regulates brokers. Trade associations such as the Colorado Association of Realtors are private membership groups and do not issue licenses. The Commission sets rules, approves forms, and can discipline licensees.

In Colorado, real estate licensees are all licensed under a single category. That category is:

• a.Broker (associate, employing, or independent broker)✓
• b.Realtor
• c.Salesperson
• d.Escrow officer

Colorado does not issue a separate salesperson license; everyone is licensed as a broker. The levels include associate broker, employing broker, and independent broker, which differ by supervision and the ability to supervise others. A newly licensed broker typically works as an associate broker under an employing broker before qualifying to work independently.

The Colorado Real Estate Commission consists of:

• a.five members: three real estate brokers and two members of the public✓
• b.seven members: five brokers and two public members
• c.nine members, each appointed by the Director of the Division of Real Estate
• d.five members, all of whom must hold an active Colorado broker license

The Commission has five governor-appointed members: three brokers with at least five years of Colorado real estate experience, one of whom must have substantial property management experience, and two representatives of the public at large. Members serve three-year terms. Cite: C.R.S. 12-10-206(1).

A grateful buyer wants to hand a Colorado associate broker a $2,000 bonus directly at closing. The associate broker may accept compensation for licensed acts only from:

• a.any party who discloses the payment in writing before closing
• b.any party, so long as the payment is under five thousand dollars
• c.the closing entity, which must itemize it on the settlement sheet
• d.her employing broker✓

It is unlawful for a broker registered in Commission records as being in the employ of another broker to accept a commission or valuable consideration for licensed acts from anyone except that employing broker, who must be a licensed real estate broker. Cite: C.R.S. 12-10-221.

An associate broker violates the Commission's trust account rules. The Commission may take disciplinary action against her employing broker only if the employing broker:

• a.personally signed the closing statement in the affected transaction
• b.had actual knowledge of the violation or was negligent in supervision✓
• c.received any portion of the commission earned on the transaction
• d.was named in the consumer's written complaint filed with the Division

An unlawful act by an employee, officer or member of a licensed broker is not cause for discipline against that broker unless the Commission is satisfied the broker had actual knowledge of the act or had been negligent in supervising employees. Cite: C.R.S. 12-10-222.

A Colorado broker enters a guilty plea to a misdemeanor theft charge. She must provide written notification to the Commission within:

• a.thirty calendar days✓
• b.three business days
• c.ten calendar days
• d.the next license renewal cycle

A broker must notify the Commission in writing within thirty calendar days of a guilty plea, a plea of nolo contendere or a conviction of any crime, and also of any fair housing violation or out-of-state disciplinary action. Cite: 4 CCR 725-1, Rule 6.23.

Two brokers licensed with the same Colorado firm form a team and want to advertise as 'Summit Peak Realty Group.' Under the Commission's advertising rule the name is:

• a.permitted if the firm files the name as a trade name
• b.permitted so long as the brokerage firm's name is on the team's business cards
• c.prohibited, because a team name may not use 'Realty'✓
• d.prohibited unless the Commission consents to the name in advance in writing

A team name may not include Realty, Real Estate, Realtors, Company, Corporation, Corp., Inc., LLC, LP, LLP, or any other term implying an entity separate from the brokerage firm. All team advertising must also appear with the firm's legal name or trade name. Cite: 4 CCR 725-1, Rule 6.10.B.1.

A listing on a Colorado broker's own website expires. She must remove the expired listing from her electronic media within:

• a.ten days
• b.thirty days
• c.one business day
• d.three days✓

When a broker owns or controls electronic media, every viewable page must carry the brokerage firm's name, and any expired listing must be removed within three days of the listing contract expiring. Cite: 4 CCR 725-1, Rule 6.10.D.1.

A Colorado broker prepares a broker's price opinion for a lender's internal portfolio review rather than for an anticipated sale. The BPO must carry a notice saying it:

• a.was prepared under the Uniform Standards of Professional Appraisal Practice
• b.is not an appraisal and cannot be used to obtain financing✓
• c.expires ninety days after the broker signed it
• d.may be relied upon by any third party who receives a copy of it

A CMA or BPO prepared for any purpose other than an anticipated sale or purchase must state: 'This evaluation was prepared by a licensed real estate broker and is not an appraisal. This evaluation cannot be used for the purposes of obtaining financing.' Brokers are barred from preparing CMAs or BPOs used to obtain financing. Cite: 4 CCR 725-1, Rule 6.12; C.R.S. 12-10-602(9)(b)(II).