Key Takeaways
- Colorado requires 168 hours of qualifying education for broker license (all agents are called "brokers" in Colorado)
- The exam requires 75% passing score on both national and state portions, administered by Pearson VUE
- Colorado uses "transaction-broker" as the default relationship rather than traditional agency
- Proof of E&O insurance required before license activation
- License renewal requires 24 hours CE every 3 years, including 12 hours of Annual Commission Updates
Colorado Real Estate Broker Exam Overview
Welcome to OpenExamPrep's FREE Colorado Real Estate Broker exam prep guide. This comprehensive resource covers Colorado-specific regulations, licensing requirements, and state real estate laws governed by the Colorado Real Estate Commission under the Department of Regulatory Agencies (DORA).
Understanding Colorado's Unique System
Colorado is one of the few states where all real estate licensees are called "brokers" rather than having separate salesperson and broker licenses. This guide covers the requirements for the associate broker license, which is the entry-level license for new agents.
License Types in Colorado
| License Type | Description |
|---|---|
| Associate Broker | Entry-level license (most common) |
| Employing Broker | Can supervise other brokers |
| Independent Broker | Works independently |
About DORA's Division of Real Estate
The Colorado Division of Real Estate operates under the Department of Regulatory Agencies (DORA) and oversees the Colorado Real Estate Commission. The Commission is responsible for licensing, education, and discipline of real estate professionals.
Division of Real Estate Contact Information
| Resource | Information |
|---|---|
| Website | dre.colorado.gov |
| Phone | (303) 894-2166 |
| Address | 1560 Broadway, Suite 925, Denver, CO 80202 |
| dora_dre_licensing@state.co.us |
Colorado Licensing Requirements at a Glance
| Requirement | Details |
|---|---|
| Minimum Age | 18 years old |
| Pre-License Hours | 168 hours (qualifying education) |
| Exam Provider | Pearson VUE |
| Exam Portions | National and State |
| Passing Score | 75% on each portion |
| Exam Validity | 1 year from passing each portion |
| E&O Insurance | Required before license activation |
| Background Check | CBI fingerprint check required |
Pre-License Education Requirements
Colorado requires 168 hours of qualifying education from an approved provider.
Education Sources
Your qualifying education must come from:
- Nationally accredited community college or university
- School approved by Colorado Department of Private and Occupational Schools (DPOS)
Course Requirements
The 168 hours include mandatory courses required by the Colorado Real Estate Commission:
| Course Category | Description |
|---|---|
| Real Estate Law | Colorado license law and regulations |
| Contracts | Colorado contract forms and procedures |
| Trust Accounts | Rule F requirements |
| Closing Procedures | Colorado-specific closing practices |
| Agency | Transaction-broker relationships |
| Additional Topics | Ethics, fair housing, appraisal, finance |
Alternative Education Pathways
| Pathway | Requirements |
|---|---|
| Degree Substitution | Degree with major in real estate may substitute |
| Licensed Attorney | 12 hours of Pre-Licensing education required |
| Out-of-State License | May qualify for reciprocity |
Note: As of January 1, 2026, DORA has implemented modifications to education requirements. Check dre.colorado.gov for the most current information.
The Colorado Real Estate Exam
The Colorado real estate broker exam is administered by Pearson VUE on behalf of the Division of Real Estate.
Exam Structure
| Component | Details |
|---|---|
| Exam Portions | National and State (separate) |
| Passing Score | 75% or greater on each portion |
| Format | Multiple choice, computer-based |
| Exam Validity | 1 year from date of each passing score |
Exam Topics - National Portion
The national portion covers general real estate concepts:
- Property Ownership - Estates, interests, ownership types
- Land Use Controls - Zoning, environmental regulations
- Valuation & Market Analysis - Appraisal methods, CMAs
- Financing - Mortgages, loan types, calculations
- Agency - Relationships, duties, disclosure
- Contracts - Elements, types, performance
- Practice of Real Estate - Licensing, ethics, fair housing
- Transfer of Title - Deeds, title insurance, recording
Exam Topics - Colorado State Portion
Colorado-specific topics include:
- Colorado Real Estate Commission authority
- Colorado License Law
- Transaction-broker (default relationship)
- Single agency relationships
- Rule F (trust accounts)
- Colorado contracts and forms
- Disclosure requirements
- Colorado water rights
- Disciplinary procedures
- Commission Position Statements
Step-by-Step Licensing Process
Step 1: Meet Basic Requirements
Verify you meet Colorado's eligibility requirements:
- At least 18 years old
- High school diploma or equivalent
- No disqualifying criminal history
- U.S. citizen or legal resident
Step 2: Complete Qualifying Education
Complete 168 hours of approved education:
- Enroll in an approved school or college
- Complete all mandatory courses
- Pass required course exams
- Receive certificates of completion
Step 3: Schedule and Pass the Exam
Register with Pearson VUE:
- Visit pearsonvue.com
- Create an account
- Register for Colorado Real Estate exam
- Schedule national and state portions
- Pay exam fees
- Pass both portions with 75% or higher
Important: Exam results are valid for 1 year from the date of each passing score.
Step 4: Complete Background Check
Colorado requires a fingerprint-based background check:
| Component | Details |
|---|---|
| Agency | Colorado Bureau of Investigation (CBI) |
| Process | Submit fingerprints |
| Timing | Before license can be issued |
| Results | Sent directly to Division of Real Estate |
Step 5: Obtain E&O Insurance
Colorado requires Errors and Omissions (E&O) insurance before your license can be activated:
| Requirement | Details |
|---|---|
| Coverage | Professional liability insurance |
| Timing | Must have before license activation |
| Proof | Certificate of insurance required |
| Annual Cost | Typically $200-500/year |
Step 6: Apply for Your License
Within 1 year of passing the exam:
- Submit broker's license application to DORA
- Provide education certificates
- Provide fingerprint form
- Provide proof of E&O insurance
- Pay all required fees
Step 7: Affiliate with an Employing Broker
As an associate broker, you must work under an employing broker:
- Find an employing broker to sponsor you
- Complete any broker-required paperwork
- Broker provides supervision and oversight
Total Costs Summary
| Item | Cost |
|---|---|
| Qualifying Education (168 hrs) | $500-1,000 |
| Exam Fees | ~$100-150 |
| Application/License Fees | ~$150-200 |
| Background Check | ~$40-50 |
| E&O Insurance (annual) | $200-500 |
| TOTAL (Estimated) | $990-1,900 |
Important Timelines
| Milestone | Timeline |
|---|---|
| Exam validity | 1 year from passing each portion |
| License application | Within 1 year of passing exam |
| License renewal | Every 3 years |
License Renewal
Colorado real estate licenses renew every 3 years with continuing education requirements.
Continuing Education Requirements
| Requirement | Details |
|---|---|
| Total CE Hours | 24 hours per 3-year cycle |
| Annual Commission Updates | 12 hours (three 4-hour courses) |
| Electives | 12 hours |
Annual Commission Update Courses
Colorado requires three different 4-hour Annual Commission Update courses during each renewal cycle:
- Topics address changes in law, regulations, and Commission positions
- Must be from different years of the cycle
- Covers current industry issues and best practices
Renewal Process
- Complete 24 hours of CE before expiration
- Ensure 12 hours are Annual Commission Updates
- Renew through DORA online system
- Pay renewal fees
- Maintain E&O insurance
Colorado's Transaction-Broker System
One of the most important concepts for the Colorado exam is the transaction-broker relationship, which is the default in Colorado.
Transaction-Broker vs. Traditional Agency
| Aspect | Transaction-Broker | Traditional Agent |
|---|---|---|
| Representation | Facilitates, doesn't represent | Represents client's interests |
| Fiduciary Duties | Limited duties | Full fiduciary duties |
| Confidentiality | Less strict | Strict confidentiality |
| Advocacy | Neutral facilitation | Advocates for client |
| Default Status | Yes (in Colorado) | Must be chosen |
Single Agency Alternative
Parties can choose single agency representation instead of transaction-broker:
- Must be agreed upon in writing
- Creates traditional fiduciary relationship
- Broker owes full duties to client
- Disclosure requirements apply
Exam Tip: Understand the differences between transaction-broker and single agency. This is heavily tested on the Colorado state portion.
Rule F: Trust Account Requirements
Colorado's Rule F governs trust account handling and is frequently tested:
Key Rule F Requirements
| Requirement | Details |
|---|---|
| Account Type | FDIC-insured, interest-bearing (unless exempt) |
| Deposits | Timely deposit of client funds |
| Records | Detailed records maintained |
| Reconciliation | Monthly reconciliation required |
| Disbursement | Only upon proper authorization |
| Commingling | Prohibited |
Colorado Water Rights
Colorado follows the prior appropriation doctrine for water rights:
Key Concepts
| Concept | Description |
|---|---|
| Prior Appropriation | "First in time, first in right" |
| Beneficial Use | Water must be put to beneficial use |
| Water Court | Adjudicates water rights |
| Augmentation | May be required for wells |
| Disclosure | Water rights affect property value |
What This Guide Covers
This FREE study guide focuses on Colorado state-specific content:
Chapter 1: Colorado DRE & Licensing Requirements
- Division of Real Estate structure
- Colorado License Law
- Licensing requirements and processes
- Disciplinary procedures
Chapter 2: Colorado Agency & Transaction-Broker
- Transaction-broker relationships
- Single agency alternative
- Disclosure requirements
- Duties and obligations
Chapter 3: Colorado Contracts & Disclosures
- Colorado contract forms
- Disclosure requirements
- Colorado-specific provisions
- Closing procedures
Chapter 4: Trust Accounts & Property Law
- Rule F requirements
- Trust account procedures
- Colorado water rights
- Property law considerations
Study Tips for Success
Recommended Study Plan
| Week | Focus | Hours |
|---|---|---|
| 1-2 | National concepts | 25-30 |
| 3-4 | Colorado law & transaction-broker | 20-25 |
| 5-6 | Rule F, contracts, water rights | 15-20 |
| 7 | Practice exams | 12-15 |
| 8 | Review & final prep | 8-10 |
Key Numbers to Memorize
| Topic | Number |
|---|---|
| Qualifying education hours | 168 |
| Attorney education hours | 12 |
| Passing score | 75% |
| Exam validity | 1 year |
| License renewal | 3 years |
| CE hours per cycle | 24 |
| Annual Commission Updates | 12 hours (three 4-hour courses) |
| Employing broker training | 24 hours |
Next Steps
Ready to begin? Here's your action plan:
- Verify eligibility - Age 18+, HS diploma
- Enroll in 168-hour program - Approved school
- Complete education - All mandatory courses
- Register for exam - Through Pearson VUE
- Pass both portions - 75% required
- Complete background check - CBI fingerprints
- Obtain E&O insurance - Required for license
- Apply for license - Within 1 year of exam
- Find employing broker - Secure sponsorship
- Get licensed - Start your career!
Real Estate SalespersonFree exam prep with practice questions & AI tutor
Let's get started with Chapter 1: Colorado DRE & Licensing Requirements!
How many hours of qualifying education are required for a Colorado real estate broker license?
What is the default brokerage relationship in Colorado?
What passing score is required on each portion of the Colorado real estate exam?
What is required before a Colorado real estate license can be activated?
How long is a Colorado real estate license renewal cycle?