Free Colorado Property Practice Test — LicenseIQ

Question 1

In general, a 'stigmatized' property refers to one:

Accepted Answer

Stigmatized properties are affected by events (crime, death) rather than physical condition; disclosure rules vary by state. (Well-established principle; not detailed in the course.)

Question 2

A property assessed at $365,000 is taxed at $2.85 per $100 of assessed value. What is the annual tax?

Accepted Answer

$365,000 / 100 = 3,650 units; 3,650 x $2.85 = $10,402.50.

Question 3

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 4

A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

Accepted Answer

Taxes = $6,000 / 12 = $500; insurance = $1,200 / 12 = $100. PITI = $1,193.54 + $500 + $100 = $1,793.54.

Question 5

Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

Accepted Answer

Certified General appraisers may appraise any property. Certified Residential appraisers are limited to 1-4 unit residential; Licensed Residential to noncomplex 1-4 units under $1 million.

Question 6

A buyer timely objects to an unreleased deed of trust on the title commitment. The parties do not resolve it in writing by the Title Resolution Deadline, and the buyer does not withdraw the objection. The contract:

Accepted Answer

Section 8.7 provides that without a written settlement by the Title Resolution Deadline, the contract terminates unless the objection is withdrawn.

Question 7

When the Colorado Division of Real Estate finds a possible RESPA kickback violation, it must refer the matter to:

Accepted Answer

C.R.S. 12-10-217(10), as discussed in Commission Position 3, requires referral of RESPA matters to the CFPB.

Question 8

In a deed, the party conveying title is the ____ and the party receiving title is the ____.

Accepted Answer

The seller (grantor) conveys to the buyer (grantee). A deed is the document; title is the ownership rights it transfers.

Question 9

The four unities required to create a joint tenancy are:

Accepted Answer

PITT: joint tenants must take equal interests, at the same time, by the same deed, with equal rights of possession.

Question 10

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 11

Which document is recorded in the county records and makes the property collateral for a loan?

Accepted Answer

The mortgage creates the lien and is recorded. The promissory note is the borrower's personal promise to repay and is not recorded.

Question 12

Who may perform an appraisal of real property for a lender?

Accepted Answer

Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.

Question 13

A buyer of a unit in a cooperative receives:

Accepted Answer

In a co-op the corporation owns the building; members own shares and a proprietary lease (personal property). Condominium owners receive a deed.

Question 14

In a life estate, the person who receives the property when the life tenant dies is the:

Accepted Answer

The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.

Question 15

For a deed to be valid it must be:

Accepted Answer

Transfer requires a valid deed signed by the grantor and delivered to and accepted by the grantee. Recording gives constructive notice but is not required for validity between the parties.

Question 16

A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

Accepted Answer

Real property tax liens take priority over all others regardless of recording date; other liens generally follow in order of recording.

Question 17

When a tenant in common dies, that owner's share:

Accepted Answer

Tenancy in common has NO right of survivorship, so a deceased co-owner's interest passes by will or to heirs. Automatic passage to co-owners describes joint tenancy.

Question 18

A broker produces a buyer under a written, enforceable contract. The buyer refuses to close because the title commitment reveals a defect, and the seller fails to cure it within a reasonable time. Under C.R.S. 12-10-301, the commission:

Accepted Answer

Section 12-10-301 provides that when a buyer refuses to complete because of title defects, no commission is owed unless the owner corrects the defects within a reasonable time.

Question 19

A new property management firm takes over an owner's rentals. Within how many days of signing the management agreement must it disclose the status of security deposits to the owner and tenants?

Accepted Answer

Rule 5.8.B, discussed in Commission Position 7, requires the new firm to disclose security deposit status to the owner and tenant within 30 days.

Question 20

Unless the parties choose otherwise, the 2026 Colorado residential contract calls for the seller to convey title by:

Accepted Answer

Section 13 of CBS1 defaults to a special warranty deed unless another deed type is selected.

Question 21

Under CBS1 Section 2.7, if the buyer's review of the property's water rights is unsatisfactory, the buyer may:

Accepted Answer

The contract gives the buyer a right to terminate if unsatisfied by the Water Rights Examination Deadline.

Question 22

Which phrase in a Colorado deed creates a joint tenancy?

Accepted Answer

C.R.S. 38-31-101 recognizes 'JTWROS,' 'in joint tenancy,' 'as joint tenants,' and the survivorship variants. Phrases like 'in equal shares' do not declare a joint tenancy.

Question 23

Of the Colorado Real Estate Commission's members, how many must be licensed brokers?

Accepted Answer

Three of the five members are brokers with at least five years of Colorado experience, and the remaining two are public members. A board made entirely of brokers is the tempting wrong answer, but the law reserves two seats for the public.

Question 24

When a buyer acquires residential property with a covered domestic well and a closing service provider is involved, the change in owner name form must be submitted to the Division of Water Resources within:

Accepted Answer

C.R.S. 38-30-102 requires the closing service provider to submit the form within 60 days after closing.

Question 25

Under Colorado's definition of real estate broker, a license is required when a person performs brokerage acts for another:

Accepted Answer

The statute covers a person acting for compensation or with the intent of receiving it, including anything of value. There is no dollar threshold and no requirement of a written listing.

Colorado real estate property practice test

1. In general, a 'stigmatized' property refers to one:

2. A property assessed at $365,000 is taxed at $2.85 per $100 of assessed value. What is the annual tax?

3. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

4. A borrower's monthly principal and interest payment is $1,193.54. Annual property taxes are $6,000 and annual homeowner's insurance is $1,200. What is the monthly PITI payment?

5. Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

6. A buyer timely objects to an unreleased deed of trust on the title commitment. The parties do not resolve it in writing by the Title Resolution Deadline, and the buyer does not withdraw the objection. The contract:

7. When the Colorado Division of Real Estate finds a possible RESPA kickback violation, it must refer the matter to:

8. In a deed, the party conveying title is the and the party receiving title is the .

9. The four unities required to create a joint tenancy are:

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

11. Which document is recorded in the county records and makes the property collateral for a loan?

12. Who may perform an appraisal of real property for a lender?

13. A buyer of a unit in a cooperative receives:

14. In a life estate, the person who receives the property when the life tenant dies is the:

15. For a deed to be valid it must be:

16. A property has a first mortgage (recorded 2015), a judgment lien (2018), a mechanic's lien (2020) and unpaid property taxes. Which is paid FIRST from sale proceeds?

17. When a tenant in common dies, that owner's share:

18. A broker produces a buyer under a written, enforceable contract. The buyer refuses to close because the title commitment reveals a defect, and the seller fails to cure it within a reasonable time. Under C.R.S. 12-10-301, the commission:

19. A new property management firm takes over an owner's rentals. Within how many days of signing the management agreement must it disclose the status of security deposits to the owner and tenants?

20. Unless the parties choose otherwise, the 2026 Colorado residential contract calls for the seller to convey title by:

21. Under CBS1 Section 2.7, if the buyer's review of the property's water rights is unsatisfactory, the buyer may:

22. Which phrase in a Colorado deed creates a joint tenancy?

23. Of the Colorado Real Estate Commission's members, how many must be licensed brokers?

24. When a buyer acquires residential property with a covered domestic well and a closing service provider is involved, the change in owner name form must be submitted to the Division of Water Resources within:

25. Under Colorado's definition of real estate broker, a license is required when a person performs brokerage acts for another:

Sources