CO Real Estate study guide
CO Real Estate · Work through your exam, one topic at a time.
A Colorado real estate broker license is issued by the Division of Real Estate, one of the divisions of the Colorado Department of Regulatory Agencies (DORA). DORA describes itself as "the state's umbrella regulatory agency, charged with managing licensing and registration for multiple professions and businesses, implementing balanced regulation for Colorado industries, and protecting consumers." Broker candidates generally move through pre-licensure education, a licensing examination, a background check, and an application, but every specific - item count, time limit, passing score, exam fee, retake waiting periods, and license term - must be confirmed with the Division of Real Estate before you schedule. The CO Real Estate study guide has 10 sections and about 2,996 words.
01Colorado Real Estate License Law and Commission Rules
The Colorado Real Estate Commission, part of the Division of Real Estate within DORA, licenses broker associates, employing brokers, and independent brokers - the old 'salesperson' category ended in 2003. Entry requires 168 hours of pre-licensing education, a background check, the state exam, errors-and-omissions insurance, and a supervising employing broker before the license becomes active.
314 words, about 2 min02Brokerage Relationships and Agency
Colorado recognizes single agency (seller/landlord agent or buyer/tenant agent) and transaction-brokerage . Transaction-broker is the default: a licensee working with a buyer without a signed single-agency agreement is a transaction-broker, not the buyer's advocate.
320 words, about 2 min03Contracts and Closings
Colorado licensees must use Commission-approved forms when they exist - the Contract to Buy and Sell Real Estate (CBS1), listing agreements, disclosures, and addenda. The contract must be in writing (statute of frauds), identify parties and property, state price and terms, be signed by the parties, and carry the deadlines that drive the file: earnest money, title objection, loan and appraisal, survey, inspection, and closing.
301 words, about 2 min04Trust Accounts and Record Keeping
Any money a broker holds for others - earnest money, rents, security deposits, escrow repair funds - belongs in a trust account at a Colorado bank or savings institution, titled as a trust account, with the broker authorized to withdraw. Commingling is prohibited; the broker may keep only the minimum balance the bank requires.
307 words, about 2 min05Property Ownership and Land Use Controls
Ownership is held as fee simple, life estate, leasehold, or lesser estates. Co-ownership in Colorado usually means tenancy in common (unequal shares, no survivorship) or joint tenancy (equal shares with survivorship, which must be clearly created).
298 words, about 1 min06Valuation and Market Analysis
Sales comparison carries the most weight for residences; cost approach fits new construction or special-use property; income approach (gross rent multiplier, capitalization rate) serves investment property. Highest and best use frames all three: legally permissible, physically possible, financially feasible, maximally productive.
303 words, about 2 min07Real Estate Finance
Colorado borrowers sign a promissory note (the promise to pay) and a deed of trust (the security instrument) naming a public trustee rather than a mortgage. Colorado is a lien-theory state; the lender's remedy is foreclosure through the public trustee, with a court order under Rule 120 when the borrower contests, and generally no post-sale redemption in residential cases.
296 words, about 1 min08Property Disclosures and Environmental Issues
Colorado requires a residential seller to deliver the Commission-approved Seller's Property Disclosure - a good-faith report of known conditions, defects, and systems, covering water, sewer, structural items, hazardous conditions, and legal matters. Statutory exemptions include new construction never occupied, foreclosure and deed-in-lieu transfers, gifts, and court-ordered transfers.
253 words, about 1 min09Leases and Property Management
A lease transfers possession, not title. Colorado requires a writing for leases longer than one year (statute of frauds).
305 words, about 2 min10Real Estate Calculations and Prorations
Colorado practice prorates on a 365-day year . The seller typically pays recurring items through the day before closing; the buyer pays from closing day.
299 words, about 1 min