Free Colorado Real Estate Practice Test (2026) — LicenseIQ

Question 1

Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

Accepted Answer

Specific terms like the down payment amount, number or amount of payments, finance charge or repayment period trigger full disclosure (including APR). General statements do not.

Question 2

A deed conveys property to two trustees of a family trust without specifying the form of co-ownership. Under C.R.S. 38-31-101, the trustees are presumed to hold as:

Accepted Answer

Subsection (3) presumes a joint tenancy for conveyances to two or more personal representatives, trustees, or other fiduciaries, an exception to the tenancy-in-common default.

Question 3

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 4

A candidate passes the national portion of the Colorado exam but fails the state portion. What must the candidate retake?

Accepted Answer

The bulletin allows a candidate to retake only the failed portion; the two portions need not be passed on the same date. There is no 30-day wait; a candidate may rebook the next day for a later date.

Question 5

The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

Accepted Answer

The income statement (P&L) summarizes income and expenses for the accounting period, typically monthly.

Question 6

A seller collected $1,950 rent for June (30 days) on June 1. Closing is June 21 and the buyer owns the closing day. The rent proration is:

Accepted Answer

Daily rent: $1,950 / 30 = $65. The buyer owns June 21 through 30, which is 10 days. 10 x $65 = $650, debited to the seller who collected it. $585 uses 9 days.

Question 7

Under the Colorado Contract to Buy and Sell, a 'day' ends at:

Accepted Answer

Section 3.3.1 of CBS1 defines a day as the entire day ending at 11:59 p.m. United States Mountain Time.

Question 8

Before offering brokerage services, a Colorado employing broker must:

Accepted Answer

Rule 6.4.A and C.R.S. 12-10-408(1) require a written office policy describing the relationships offered. A firm is not required to offer every relationship, and commission schedules are never filed with the Commission.

Question 9

The statutory source-of-water disclosure warns buyers that:

Accepted Answer

The required notice tells buyers some providers rely on nonrenewable groundwater and that they may wish to ask about long-term supply.

Question 10

Which fiduciary duty continues even after the agency relationship has ended?

Accepted Answer

Most fiduciary duties end with the agency, but the agent must continue to keep the former client's confidential information private.

Question 11

The common interest community disclosure under C.R.S. 38-35.7-102 warns a buyer that, among other things:

Accepted Answer

The required bold disclosure states that the owner must be a member of the association, must pay assessments, and that nonpayment can result in a lien and possible sale.

Question 12

A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

Accepted Answer

Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)

Question 13

An investor buys a property for $180,000 and sells for $216,000. What is the percent of profit on cost?

Accepted Answer

Profit = $36,000; $36,000 / $180,000 (cost) = 20%. Dividing by the sale price ($216,000) would give 16.7%.

Question 14

Under the Housing for Older Persons Act, a '55 and older' community generally requires that:

Accepted Answer

55+ housing requires at least 80% of occupied units to have one resident 55+; 62+ housing requires all residents to be 62+. The exemption applies only to familial status.

Question 15

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 16

Which account title satisfies Colorado's requirement for a trust account holding sales deposits?

Accepted Answer

Rule 5.2 requires the word 'trust' or 'escrow' plus a description of the account's purpose, such as 'sales escrow.'

Question 17

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 18

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 19

Which is NOT an essential element of a valid contract?

Accepted Answer

The essential elements are offer and acceptance (mutual consent), consideration, competent parties and legal purpose. Notarization is not required for a contract to be valid.

Question 20

A person who believes she suffered housing discrimination under the federal Fair Housing Act may file a complaint with HUD within:

Accepted Answer

HUD complaints must be filed within one year; a federal civil suit may be filed within two years.

Question 21

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 22

How many members serve on the Colorado Real Estate Commission?

Accepted Answer

C.R.S. 12-10-206 creates a five-member Commission appointed by the Governor. Seven is a common guess because several other states use larger boards, but Colorado's is five.

Question 23

A house with only one bathroom and very small closets in a market expecting more suffers from:

Accepted Answer

Functional obsolescence is outdated design or layout inside the property. External obsolescence comes from outside the property and is usually incurable.

Question 24

Radon is:

Accepted Answer

Radon is a colorless, odorless, naturally occurring radioactive gas that can enter homes through the foundation; it is the second leading cause of lung cancer.

Question 25

Which is a protected class under the Colorado Anti-Discrimination Act's housing provisions but NOT under the federal Fair Housing Act?

Accepted Answer

C.R.S. 24-34-502 protects marital status, which the federal Act does not. Familial status, disability, and national origin are protected under both.

Colorado real estate practice test

1. Under the Truth in Lending Act (Regulation Z), which phrase in an ad is a 'trigger term' requiring full credit disclosures?

2. A deed conveys property to two trustees of a family trust without specifying the form of co-ownership. Under C.R.S. 38-31-101, the trustees are presumed to hold as:

3. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

4. A candidate passes the national portion of the Colorado exam but fails the state portion. What must the candidate retake?

5. The periodic report a property manager gives the owner showing rents and other income collected and expenses paid for the period is the:

6. A seller collected $1,950 rent for June (30 days) on June 1. Closing is June 21 and the buyer owns the closing day. The rent proration is:

7. Under the Colorado Contract to Buy and Sell, a 'day' ends at:

8. Before offering brokerage services, a Colorado employing broker must:

9. The statutory source-of-water disclosure warns buyers that:

10. Which fiduciary duty continues even after the agency relationship has ended?

11. The common interest community disclosure under C.R.S. 38-35.7-102 warns a buyer that, among other things:

12. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

13. An investor buys a property for $180,000 and sells for $216,000. What is the percent of profit on cost?

14. Under the Housing for Older Persons Act, a '55 and older' community generally requires that:

15. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

16. Which account title satisfies Colorado's requirement for a trust account holding sales deposits?

17. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

18. Under a land contract (contract for deed), during the payment period the buyer holds:

19. Which is NOT an essential element of a valid contract?

20. A person who believes she suffered housing discrimination under the federal Fair Housing Act may file a complaint with HUD within:

21. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

22. How many members serve on the Colorado Real Estate Commission?

23. A house with only one bathroom and very small closets in a market expecting more suffers from:

24. Radon is:

25. Which is a protected class under the Colorado Anti-Discrimination Act's housing provisions but NOT under the federal Fair Housing Act?

Sources