Colorado Real Estate Broker Exam

Colorado Real Estate Broker Exam: National Portion

This section of the exam consists of 80 multiple-choice questions and must be completed in 120 minutes. A passing score in this section is 60 correct answers or more (75%). A comprehensive list of the topics covered in this section includes:

• Property Ownership - This content area covers the legal definitions of properties, ownership types, easements, encumbrances that can affect a title, and how to measure structures.
• Land Use Controls and Regulations - The Land Use Controls and Regulations content area of the Colorado Real Estate Broker Exam will ask questions about the role the government plays in real estate transactions. This might include building codes, environmental concerns, conflicts of interest and regulations set by homeowners associations.
• Valuation and Market Analysis - In this category, test takers should be familiar with the procedures for determining a property's value, including the typical steps, analyzing the characteristics of a property and finding comparables in the area.
• Financing - Financing is a huge part of real estate. Examinees must have an understanding of common terminology, and be able to demonstrate knowledge of a wide range of loans.
• General Principles of Agency - Relationships are the backbone of the real estate industry, so the Colorado Real Estate Broker Exam covers these in detail. This includes the relationship the agency has with clients, third parties, lenders, brokerages and other agents.
• Property Disclosures - This is a short but important section about what an agent must disclose to clients. It includes information about when inspections are required, the environmental issues that must be disclosed, and LEAD, which sets out the government's requirements for disclosure.
• Contracts - This exam expects candidates to be familiar with all aspects of the contract process. Since it's such an integral part of the business, this section represents the largest segment of the national portion of the exam (17%). In this section, the main focus is the rights and obligations of parties regarding a contract, including the requirements to make them valid, things that can lead to breaches and handling multiple offers.
• Leasing and Property Management - In this section, the exam will cover the kinds of leases, tenant and landlord responsibilities and complying with Fair Housing and Americans with Disabilities Act rules.
• Transfer of Title - This content area will cover the legal aspects of transferring property ownership to the buyer. Subcategories of this section cover title insurance, tax implications, home warranties and foreclosure procedures.
• Practice of Real Estate - In this category of the Colorado Real Estate Broker Exam, test takers will see questions about how to handle special circumstances they will see in the field. Topics might include ethical advertising practices, compliance with antitrust regulations and handling escrow accounts.
• Real Estate Calculations - In this section, test takers should be able to perform mathematical calculations as they pertain to real estate transactions, including divvying up commissions, figuring property taxes, transfer fees and Principal, Interest, Taxes and Insurance (PITI) payments.

Colorado Real Estate Broker Exam: State Portion

The Colorado state portion of the exam has 74 multiple-choice questions and slightly less time, with only 110 minutes for applicants to complete the section. To pass this portion, test takers must answer 53 or more questions correctly (71.6%). Questions on the Colorado state portion will be on the following topics:

• Duties and Powers of the Real Estate Commission - This section covers the purview of the state's real estate commission, so examinees should be familiar with its regulations, audits and procedures for violations.
• Licensing Requirements - This Colorado Real Estate Broker Exam category will have questions about the types of licenses and the qualifications to obtain one, what activities require a license, how to renew your license, and keeping legal insurance to practice.
• Requirements Governing the Activities of Licensees - Similar to the previous category, this category contains questions on the actions that would require someone to have a real estate license. Examples of question topics include administering a brokerage, handling referrals, proper documenting procedures, and commissions.
• Additional Topics - This content area features a range of topics, from water rights and the Landlord Tenant Act to tax issues and the particulars of the Colorado Fair Housing Act.
• Colorado Forms and Contracts - In this section, the test taker must answer questions about the specific Colorado process of selling a home, from listing contracts to closing instructions.
• Record Keeping and Trust Accounts - This section covers the ins and outs of record keeping, requirements for trust accounts and conveying money to the title company or broker.
• Closing and Settlement - This category of Colorado Real Estate Broker's Exam will cover the details of closing the sale of a property or a home. Topics delve into proration calculations, drawing up the closing documents accurately and knowing each party's responsibilities during the final part of the transaction.
• Brokerage Relationships - This category is fairly simple. The only content covered is brokerage relationship disclosure, transaction brokerage, a case with a single agent, and designated brokers.