Colorado Real Estate Broker Exam — All Questions

In Colorado, when a licensee prepares a standard purchase contract for residential real estate, the licensee generally must use:

• a.Any contract form the broker prefers to draft
• b.A form supplied only by the buyer's lender
• c.The current Colorado Real Estate Commission-approved standard form✓
• d.A National Association of Realtors national form

Colorado licensees are required to use current Colorado Real Estate Commission-approved standard forms, such as the Contract to Buy and Sell Real Estate, when acting within the scope of their license. This protects consumers and keeps licensees from the unauthorized practice of law. Licensees generally may not draft their own contract provisions except by filling in the approved blanks.

A licensee in Colorado wants to add a complex, non-standard legal clause that materially changes a party's rights and is not covered by the Commission-approved form. The proper course is to:

• a.Advise the party to have the clause prepared or reviewed by an attorney✓
• b.Draft the clause personally to save the client legal fees
• c.Leave the issue out of the contract entirely
• d.Copy language from an out-of-state contract

Colorado licensees may complete Commission-approved forms but may not draft complex or non-standard legal provisions, because doing so is the unauthorized practice of law. When a client needs special language that goes beyond the standard form, the licensee should recommend that an attorney prepare or review it. This protects both the consumer and the licensee.

A Colorado broker preparing a residential purchase contract finds that a Commission-approved form exists and fits the transaction. Using her attorney's own form instead would be:

• a.proper if the seller agrees to the substitution in writing
• b.proper whenever the property is not residential in character
• c.proper as long as the drafting attorney is licensed in Colorado
• d.improper, since an existing and appropriate Commission form must be used✓

A broker must use a Commission-approved form when such a form exists and is appropriate for the transaction. Attorney forms, Colorado Bar Association forms and the other standard-form categories are available only when no Commission form exists or none is appropriate. Cite: 4 CCR 725-1, Rule 7.1.A; C.R.S. 12-10-403(4)(c).

A Colorado brokerage firm's attorney drafts a form for a situation no Commission form covers. The form must carry:

• a.the Commission's promulgation stamp and its official adoption date
• b.a statement that the Commission has not approved the form✓
• c.the approval language of the Colorado Bar Association
• d.the notarized signature of the Director of the Division of Real Estate

An attorney form must say 'This form has not been approved by the Colorado Real Estate Commission' and must name the attorney or law firm that prepared it and the broker, employing broker or brokerage firm it was prepared for. The broker may not alter it beyond filling in blanks. Cite: 4 CCR 725-1, Rule 7.1.B; C.R.S. 12-10-403(4)(b)(II).

Negotiations lead the parties to delete the appraisal section of a Commission-approved Contract to Buy and Sell Real Estate. The broker must:

• a.retype the contract with the deleted section removed entirely
• b.attach a separate addendum that deletes the section by reference
• c.leave the caption unaltered and add the words 'omitted-not applicable'✓
• d.obtain the Commission's written consent to the deletion beforehand

When a broker deletes one of the listed deletable provisions, the provision's caption or heading must remain unaltered and be followed by 'omitted-not applicable'. Deletions from the printed body must result from negotiation or a party's instruction and be struck through legibly. Cite: 4 CCR 725-1, Rules 7.2.C and 7.2.F.

A Colorado broker who is not a party to the contract wants to insert a clause limiting her own liability to the buyer and seller. That clause is:

• a.prohibited, because a broker may not insert exculpatory language in her own favor✓
• b.permitted once both principal parties have initialed the clause
• c.permitted only in commercial real estate transactions
• d.permitted if the employing broker approves it in writing

A broker who is not a principal party may not insert personal provisions, personal disclaimers, or exculpatory language favoring the broker, employing broker or firm into a standard form. At a principal party's direction the broker may include negotiated commission-payment language. Cite: 4 CCR 725-1, Rule 7.4.B.

A Colorado broker's buyer client is purchasing from a homebuilder that insists on the builder's own purchase contract. Before the buyer signs it, the broker must:

• a.withdraw from the transaction and terminate the buyer engagement
• b.advise the buyer in writing to seek legal advice from an attorney✓
• c.submit the builder's own contract to the Commission for its approval
• d.transfer the builder's terms onto a Commission-approved form

When a principal to the transaction, such as a homebuilder, bank-owned seller or instant buyer, requires its own purchase contract, the broker must send the consumer a written communication advising the consumer to seek legal advice from a licensed attorney before the consumer enters into that contract. Cite: 4 CCR 725-1, Rule 7.5.

A Colorado seller tells his broker to start marketing the house and says they will sort out paperwork later. Before performing any brokerage services, the broker must have:

• a.an oral listing confirmed by an email to the seller the same day
• b.the seller's verbal consent plus a signed brokerage disclosure form
• c.a written listing contract with a definite termination date✓
• d.a written listing contract with no end date

Regardless of the brokerage relationship, all seller and landlord listing contracts must be in writing before any brokerage services are performed, and every such written agreement must carry a definite date for termination. Cite: 4 CCR 725-1, Rules 6.14.C and 6.14.D; C.R.S. 12-10-409(1)(b).

Who is supposed to fill out the Colorado Seller's Property Disclosure?

• a.The seller, to the seller's current actual knowledge✓
• b.The listing broker, working from the tax and MLS records
• c.The buyer's home inspector, after the physical inspection
• d.The title company that is providing the closing services

The Commission's SPD19 form states on its face that the disclosure should be completed by the seller, not by the broker, and that the information is correct to the seller's current actual knowledge as of the date the seller signs. New adverse material facts discovered later must still be disclosed in writing. Cite: Colorado Real Estate Commission form SPD19, adopted August 5, 2025, mandatory use January 1, 2026.

Every Colorado contract of sale for residential real property must carry a radon disclosure. The seller must additionally give the buyer:

• a.a radon test performed within the past twelve months
• b.a certificate signed by a licensed radon mitigation professional
• c.a written waiver of the buyer's right to test for radon
• d.the most recent state radon-in-real-estate brochure✓

Each contract of sale or seller's property disclosure for residential real property must disclose the seller's knowledge of radon testing, records, concentrations, mitigation and any installed mitigation system, and must include an electronic or paper copy of the most recent radon-in-real-estate brochure published by the Department of Public Health and Environment. Cite: C.R.S. 38-35.7-112(2); C.R.S. 12-10-220.5.