Colorado Real Estate Broker Exam Overview
The Colorado Real Estate Broker Exam is administered by PSI Services on behalf of the Division of Real Estate under DORA (Department of Regulatory Agencies). Colorado is unique in defaulting to "transaction-broker" status, requires E&O insurance, and has one of the highest pre-licensing education requirements at 168 hours.
Passing this exam qualifies you to work as a real estate broker in Colorado—a state with over 5.8 million residents and one of the nation's most dynamic real estate markets, particularly in the Denver metro area, Boulder, and mountain resort communities.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | National + State portions |
| Time Limit | 4 hours |
| Passing Score | 75% on each section |
| Exam Fee | $44.95 |
| Pre-licensing Education | 168 hours required |
| Testing Vendor | PSI Services |
| License Term | 3 years |
Why Get Licensed in Colorado?
- Booming market — Denver among hottest markets
- Mountain properties — Unique niche opportunities
- Population growth — Strong migration trends
- High property values — Significant commissions
- Quality of life — Attracts relocating buyers
Start Your FREE Colorado Real Estate Exam Prep
Ready to begin studying? Our comprehensive, completely free Colorado Real Estate exam prep covers everything you need to pass.
→ Start FREE Colorado Real Estate Exam Prep
Key Topics Covered on the Exam
1. DORA & Licensing (20%)
Regulatory Authority:
- Division of Real Estate under DORA
- Real Estate Commission
- Rule-making powers (Rule E, Rule F)
- Disciplinary procedures
- License law enforcement
License Requirements:
- 18 years old minimum
- 168 hours pre-license education
- Pass both exam portions
- Fingerprint background check
- E&O insurance required
E&O Insurance Requirement:
- Errors and Omissions coverage mandatory
- Minimum coverage levels
- Group or individual policies
- Proof required for licensing
- Annual renewal
Employing Broker:
- All brokers must have employing broker
- Employing broker responsibilities
- Supervision requirements
- Independent contractor agreements
- Commission arrangements
2. Brokerage Relationships (25%)
Transaction-Broker (Default):
- Colorado's default relationship
- Not an agent—facilitator
- No fiduciary duties owed
- Limited confidentiality
- Must opt-out for agency
Single Agency:
- Must be agreed in writing
- Full fiduciary duties
- Seller agent or buyer agent
- Opt-out of transaction broker
- Disclosure requirements
Brokerage Relationships Disclosure:
- Required at first substantive contact
- Explains relationship options
- Transaction broker default
- Timing critical
- Documentation required
Rule E Duties:
- Duties to all parties
- Honesty and good faith
- Disclosure of material facts
- Present all offers
- Account for funds
- Exercise reasonable skill
3. Contracts & Closings (30%)
Commission Contracts:
- Colorado uses specific forms
- Contract to Buy and Sell
- Listing contracts
- Buyer agency agreements
- Commission arrangements
Closing Procedures:
- Colorado closing practices
- Prorations and credits
- Closing cost allocation
- Title insurance
- Recording procedures
Trust Accounts:
- Escrow requirements
- Deposit handling
- Interest-bearing accounts
- Disbursement rules
- Record keeping (4 years)
Required Disclosures:
- Seller's Property Disclosure
- Lead-based paint
- Source of water
- Radon disclosure
- Special taxing districts
4. Property Law & Special Topics (25%)
Colorado Fair Housing:
- Colorado Anti-Discrimination Act
- Protected classes
- State enforcement
- Penalties and remedies
- Housing and testing
Water Rights:
- Colorado prior appropriation doctrine
- Surface water rights
- Groundwater rights
- Well permits
- Water adequacy
- Heavily tested topic
Types of Ownership:
- Fee simple
- Life estates
- Tenancy in common
- Joint tenancy
- Tenancy by the entirety
Special Topics:
- Common interest communities
- HOA governance
- CCIOA provisions
- Mountain property issues
- Environmental regulations
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-3 | DORA regulations and licensing | 25-30 |
| Week 3-5 | Brokerage relationships | 30-35 |
| Week 5-7 | Contracts and closings | 35-40 |
| Week 7-9 | Property law and special topics | 25-30 |
| Week 9-10 | Practice exams and review | 25-30 |
Total recommended study time: 160-200 hours (plus 168-hour pre-licensing)
Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the Colorado Real Estate exam.
→ Access FREE CO Real Estate Practice Questions
Colorado-Specific Exam Tips
1. Master Transaction-Broker Status
Colorado defaults to transaction-broker:
- NOT an agency relationship
- Facilitator role, not advocate
- Limited duties owed
- Must opt-out for single agency
- Heavily tested concept
2. Know E&O Insurance Requirements
Colorado requires errors and omissions:
- Mandatory for all licensees
- Minimum coverage levels
- Proof required for licensing
- Group policies common
- Annual renewal required
3. Understand Water Rights
Colorado's unique water law:
- Prior appropriation doctrine
- "First in time, first in right"
- Surface vs. groundwater
- Well permit requirements
- Critical for rural properties
4. Key Numbers to Remember
| Topic | Colorado Requirement |
|---|---|
| Passing score | 75% each section |
| Pre-licensing | 168 hours |
| License term | 3 years |
| CE requirement | 24 hours/3 years |
| Record retention | 4 years |
| Exam fee | $44.95 |
Common Mistakes to Avoid
- Confusing transaction-broker — Default status, not agency
- Forgetting E&O insurance — Mandatory in Colorado
- Ignoring water rights — Unique and heavily tested
- Missing 168-hour requirement — Longest pre-licensing
- Skipping Rule E duties — Duties to all parties
- Underestimating study time — Plan 6-8 weeks minimum
After Passing Your Exam
- Obtain E&O insurance coverage
- Complete fingerprint background check
- Submit license application to DORA
- Pay application fee ($485)
- Find employing broker before activation
- Begin your real estate career in Colorado
2026 Colorado Updates
For 2026, be aware of:
- Updated DORA regulations
- Contract form revisions
- Digital transaction standards
- Fair housing training updates
- Water rights developments
Start Your Colorado Real Estate Career Today
The Colorado Real Estate Broker license opens doors to one of the nation's most dynamic markets. With Denver's tech boom, mountain resort properties, and strong population growth, Colorado offers exceptional opportunities. With proper preparation for the extensive 168-hour pre-licensing, you can pass both exam sections on your first attempt.
→ Begin FREE Colorado Real Estate Exam Prep Now
Our free study materials include:
- Complete topic coverage
- Practice questions with explanations
- Transaction-broker guide
- Water rights specifics
- AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.