Colorado Real Estate Broker Exam — All Questions

Under Colorado law, if a licensee works with a buyer or seller but no written agreement establishes single agency, the default brokerage relationship is:

• a.Dual agent
• b.Transaction-broker✓
• c.Subagent of the listing broker
• d.Single agent

In Colorado the default relationship is transaction-broker unless the parties agree in writing to a single agency relationship. A transaction-broker assists a party without being that party's advocate and owes duties such as honesty, disclosure of material facts, and reasonable skill and care. Colorado does not permit dual agency; a licensee is either a single agent for one side or a transaction-broker.

A Colorado buyer wants a licensee to act as an advocate and owe full fiduciary duties, including advising on price and negotiating on the buyer's behalf. The appropriate written relationship is:

• a.Facilitator relationship
• b.Customer relationship with no agency
• c.Transaction-broker
• d.Single agency (buyer agency) by written agreement✓

To obtain advocacy and full fiduciary duties, a Colorado buyer must enter a written single agency (buyer agency) agreement, because the default is transaction-broker. A single agent owes duties such as loyalty, confidentiality, and counsel. A transaction-broker helps facilitate the deal but does not advocate for one party against the other.

A Colorado seller and buyer each ask the same broker to represent them as a limited agent in one transaction, and both will sign a consent. The broker must refuse because Colorado:

• a.requires the written informed consent of the employing broker as well
• b.permits dual agency in commercial deals only
• c.permits dual agency only after the Commission approves the arrangement
• d.forbids a broker to establish dual agency with any party✓

Colorado abolished dual agency outright: a broker shall not establish dual agency with any seller, landlord, buyer or tenant. Consent cannot cure it. Cite: C.R.S. 12-10-406.

A Colorado buyer signs a buyer agency agreement with one designated broker at a forty-broker firm. The agency relationship:

• a.exists only with that designated broker, not with the firm✓
• b.extends to every broker licensed with that brokerage firm
• c.extends to the employing broker but not to the firm's other associate brokers
• d.exists with the firm, which then assigns one of its brokers

The brokerage relationship, including its duties and obligations, runs to the designated broker only. It does not extend to the employing broker, to other undesignated brokers, or to the entity. There is no imputation of knowledge to undesignated brokers. This does not relieve the employing broker of the duty to supervise. Cite: C.R.S. 12-10-403(6)(b) and (6)(f).

One Colorado broker is working with both the buyer and the seller in the same transaction. Which arrangement does the Commission permit?

• a.Single agent for the seller and single agent for the buyer
• b.Transaction-broker for both parties✓
• c.Single agent for the buyer and transaction-broker for the seller
• d.Dual agent for both parties with their written informed consent

One broker or team working both sides may act as transaction-broker for both, as transaction-broker for one while treating the other as a customer, or as single agent for one while treating the other as a customer. Never as single agent for one and single agent or transaction-broker for the other. Cite: 4 CCR 725-1, Rule 6.7; C.R.S. 12-10-403(6)(d).

A Colorado broker listed a seller as a single agent. Her own buyer client now wants that house and both consumers agree she may continue as a transaction-broker for both. She must give the seller the Commission-approved Change of Status form:

• a.when she begins assisting both, and no later than contract signing✓
• b.within three business days after the transaction has closed
• c.at the time the original listing contract was signed by the seller
• d.only if the seller requests the form from her in writing

A broker or team changing from single agent for one consumer to transaction-broker for both must deliver the written Commission-approved Change of Status form to the consumer whose relationship changed, at the time the broker begins assisting both, but not later than the time that consumer signs the contract. Cite: 4 CCR 725-1, Rule 6.9.

A Colorado broker is a single agent for the seller and is treating the buyer as a customer. Which task may she perform for that buyer without creating a brokerage relationship with him?

• a.Advising the buyer what price he should offer for the property
• b.Disclosing the lowest price the seller has said she would accept
• c.Negotiating the repair of defects on the buyer's behalf with the seller
• d.Showing the property and conveying written offers and counteroffers✓

Ministerial tasks, performed after proper disclosure, include showing a property, acting as a scrivener, conveying written offers and counteroffers, explaining financing alternatives, and providing information on professional, governmental and community services. They do not create agency or a transaction-broker relationship with the customer. Cite: 4 CCR 725-1, Rule 6.8.

When must a Colorado broker make the written brokerage-relationship disclosure to a consumer?

• a.At the closing table, before the consumer signs the settlement statement
• b.Before eliciting or discussing confidential information from that consumer✓
• c.Before answering any question about a listed property's price or location
• d.Within twenty-four hours after the first showing of any property

The written disclosure must be made before eliciting or discussing confidential information. Preliminary conversation or small talk about price range, location and property styles, or answering general factual questions about advertised properties, does not trigger it. Cite: 4 CCR 725-1, Rule 6.5; C.R.S. 12-10-408.

A Colorado transaction-broker learns that her seller would take $20,000 less than the asking price. Without the written consent of all parties she:

• a.must disclose it to the buyer as an adverse material fact
• b.may disclose it to the buyer's lender but not to the buyer
• c.must not disclose it✓
• d.may disclose it once the buyer has submitted a written offer

A transaction-broker may not disclose, without the express written consent of all parties, that a seller will accept less or a buyer will pay more, the parties' motivating factors, willingness to accept different financing terms, or facts that would stigmatize the property. Adverse material facts about the property are a different category and must be disclosed. Cite: C.R.S. 12-10-407(3).

A Colorado brokerage agreement is never performed or completed. The statute ends the relationship at the earliest of an agreed expiration date, a termination by the parties, or:

• a.six months after the engagement
• b.two years after the date of the engagement
• c.one year after the date of the engagement✓
• d.the end of the calendar year of the engagement

Relationships under Part 4 commence when the broker is engaged and run until performance or completion. If the agreement is not performed or completed for any reason, the relationship ends at the earlier of an agreed expiration date, termination or relinquishment by the parties, or one year after the date of engagement. Cite: C.R.S. 12-10-409(1).

A Colorado buyer's agent wants to ask the listing broker to share the seller-paid commission with her. Before she proposes it, she must obtain:

• a.the Commission's advance written consent to the sharing arrangement
• b.an amendment to the seller's exclusive right-to-sell listing contract
• c.the buyer's written approval✓
• d.the seller's written approval delivered through the listing broker

A buyer's or tenant's agent must obtain the written approval of the buyer or tenant before proposing to the seller's or landlord's agent that the buyer's agent be compensated out of the compensation the seller or landlord pays. Payment alone never creates agency. Cite: C.R.S. 12-10-410(5) and (2).

The written agreement that establishes a Colorado single-agency or transaction-broker relationship must:

• a.be signed by both parties at the closing table before disbursement
• b.be filed with the Colorado Real Estate Commission within ten days
• c.be recorded with the county clerk and recorder in the county of the property
• d.conspicuously disclose the amount or rate of the broker's compensation✓

The broker must establish the relationship through a written agreement that specifies and conspicuously discloses the amount or rate of any compensation to be paid to the broker, and must complete that agreement before performing any licensed brokerage activity. Cite: C.R.S. 12-10-403(2), as amended by HB 26-1426, effective August 12, 2026.