Colorado Real Estate Broker Exam — All Questions

A person who just passed the Colorado broker exam and obtained an initial license generally must, before performing brokerage activity:

• a.Wait five years to activate the license
• b.Immediately open an independent brokerage
• c.Be associated with and supervised by an employing broker as an associate broker✓
• d.Register with the federal real estate registry

A newly licensed Colorado broker typically starts as an associate broker under the supervision of an employing broker. Only after meeting additional experience and education requirements may a broker qualify to work independently or become an employing broker. This structure ensures new licensees gain supervised experience before operating on their own.

Colorado requires an applicant for an initial broker's license to complete how many hours of Commission-approved pre-licensing instruction?

• a.72 hours
• b.120 hours
• c.168 hours✓
• d.180 hours

Colorado requires 168 hours: 48 in Real Estate Law and Real Estate Practice, 48 in Colorado Real Estate Contracts, and 72 hours spread across Real Estate Closings (24), Trust Accounts and Record Keeping (8), Current Legal Issues (8) and Practical Application (32). Cite: C.R.S. 12-10-203(4)(a); 4 CCR 725-1, Rule 2.1.A.2.

A Colorado associate broker wants to stop working under an employing broker and hold an Independent Broker level license instead. First she must have:

• a.closed at least fifty residential sales transactions during the preceding five years
• b.completed twenty-four hours of instruction in Brokerage Administration
• c.held an Active Associate Broker license for the preceding two years✓
• d.passed the Commission's Employing Broker Refresher Course

An applicant for the Independent Broker level must have held an Associate Broker level license on Active status for at least two years immediately preceding the date of application. The 24-hour Brokerage Administration course and the points worksheet belong to the Employing Broker level. Cite: C.R.S. 12-10-203(5)(c)(I); 4 CCR 725-1, Rule 2.5.B.

An applicant for a Colorado Employing Broker level license documents experience on the Commission's point worksheet. The application must total at least:

• a.20 points accumulated in the preceding three years
• b.75 points accumulated in the preceding five years
• c.100 points accumulated over the applicant's career
• d.50 points accumulated in the preceding five years✓

The applicant must show at least two years of active practice within the five years before application, evidenced by at least fifty points: ten per full year as an employing broker, five per full year of delegated supervisory authority, three per closed residential sale, six per commercial or vacant-land sale, and one point per hour of designated continuing education (capped at twenty). Cite: 4 CCR 725-1, Rule 2.5.C.3.a.

The broker designated to act for a Colorado corporation licensed as a brokerage firm resigns. To prevent hardship, the Division director may issue a temporary license for a period not to exceed:

• a.thirty days, with no extension available
• b.ninety days, extendable once for up to ninety more days✓
• c.six months, after which the entity's license lapses automatically
• d.one year measured from the designated broker's date of departure

If the designated broker of a partnership, LLC or corporation ceases to serve, the director may issue a temporary license for not more than ninety days to the newly designated licensee, and may extend it for one additional period of not more than ninety days for good cause; any further extension requires the Commission. Cite: C.R.S. 12-10-203(6)(c).

A Colorado broker lets her license expire and applies to reinstate it four months later. On top of the renewal fee, she owes a reinstatement fee equal to:

• a.one-half the renewal fee✓
• b.nothing, because reinstatement within one year carries no added fee
• c.the full renewal fee, the same as a three-year reinstatement
• d.twice the renewal fee, plus a separate examination fee

Reinstatement more than thirty-one days but within one year of expiration costs the renewal fee plus a reinstatement fee equal to one-half the renewal fee. More than one year but within three years, the reinstatement fee equals the full renewal fee. Within thirty-one days, only the renewal fee is due. Cite: 4 CCR 725-1, Rule 3.15.

Colorado requires every active broker to carry errors and omissions insurance. The Commission's group policy must provide coverage of at least:

• a.$50,000 for each licensee per covered claim
• b.$100,000 for each licensee per covered claim✓
• c.$300,000 for each licensee per covered claim
• d.$1,000,000 in the aggregate for each brokerage firm

The Commission Insurance Policy must provide not less than one hundred thousand dollars of coverage for each licensed person and entity per covered claim, regardless of how many brokers a claim may touch, not including investigation and defense costs. Cite: 4 CCR 725-1, Rule 3.9.B.4; C.R.S. 12-10-204.