Free Colorado Agency Practice Test — LicenseIQ

Question 1

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 2

A buyer's agent in Colorado must disclose to the seller which of the following, if known?

Accepted Answer

C.R.S. 12-10-405(3) requires disclosure of adverse material facts including the buyer's financial ability and whether the buyer intends to occupy as a principal residence. The buyer's price ceiling and motivation are confidential.

Question 3

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 4

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 5

A seller's agent agrees to help an unrepresented buyer purchase the listing, becoming a transaction-broker for both. The Change of Status form must be provided no later than:

Accepted Answer

Rule 6.9 requires the Change of Status form when the broker begins assisting both parties and no later than the time the consumer signs the contract.

Question 6

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 7

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 8

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 9

An agent authorized to perform a single specific act for a principal is a:

Accepted Answer

A special (limited) agent has authority for a specific task, typical of a listing agent. A property manager is usually a general agent.

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 client a broker represents is the:

Accepted Answer

The principal is the client to whom the agent owes fiduciary duties; a customer is a party the agent works with but does not represent.

Question 12

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 13

After a seller's agency relationship ends, the broker must still:

Accepted Answer

C.R.S. 12-10-409(2)(b) preserves the duties to account and to keep confidential information that the client requested be kept confidential, subject to exceptions such as written consent or legal requirement.

Question 14

An agency relationship can be terminated by all of the following EXCEPT:

Accepted Answer

Agency ends by performance, expiration, mutual agreement, operation of law, death or incapacity, or destruction of the property - not by the wish of an unrepresented customer.

Question 15

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 16

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 17

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 18

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 19

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 20

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 21

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 22

A seller's agent owes a buyer-customer which duty?

Accepted Answer

Under 12-10-404(3), a seller's agent owes the buyer no duty beyond disclosing known adverse material facts. Counseling and negotiating for the buyer would be agency duties owed only to the seller.

Question 23

Under Colorado law, dual agency is:

Accepted Answer

C.R.S. 12-10-406 says a broker shall not establish dual agency with any seller, landlord, buyer, or tenant. Many states permit consensual dual agency, which makes that the tempting wrong answer.

Question 24

A Colorado buyer's agent who wants help from another firm in showing homes:

Accepted Answer

C.R.S. 12-10-405(6) allows cooperation but prohibits creating subagents.

Question 25

When a Colorado broker works with a buyer and no written agency agreement has been signed, the broker is presumed to be:

Accepted Answer

C.R.S. 12-10-403(2) presumes transaction-brokerage unless a single-agency relationship is established in writing. Subagency and dual agency are not defaults in Colorado.

Colorado real estate agency practice test

1. Which of the following is a fiduciary duty an agent owes the principal?

2. A buyer's agent in Colorado must disclose to the seller which of the following, if known?

3. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

4. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

5. A seller's agent agrees to help an unrepresented buyer purchase the listing, becoming a transaction-broker for both. The Change of Status form must be provided no later than:

6. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

7. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

8. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

9. An agent authorized to perform a single specific act for a principal is a:

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

11. The client a broker represents is the:

12. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

13. After a seller's agency relationship ends, the broker must still:

14. An agency relationship can be terminated by all of the following EXCEPT:

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

16. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

17. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

18. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

19. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

20. The best way to create an agency relationship is a(n):

21. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

22. A seller's agent owes a buyer-customer which duty?

23. Under Colorado law, dual agency is:

24. A Colorado buyer's agent who wants help from another firm in showing homes:

25. When a Colorado broker works with a buyer and no written agency agreement has been signed, the broker is presumed to be:

Sources