STATE OF COLORADO

PSI Services LLC

3210 E Tropicana

Las Vegas, NV 89121



examschedule@

(855) 744-0313

STATE OF COLORADO

DEPARTMENT OF REGULATORY AGENCIES

DIVISION OF REAL ESTATE

REAL ESTATE

CANDIDATE INFORMATION BULLETIN

Examinations by PSI Services LLC ............................ 2

Instructions for License Qualification ....................... 2

Examination Reference Materials ............................ 3

Examination Content Outlines ................................ 3

Examination Scheduling Procedures ......................... 7

Fees ................................................... 10

On-line, via the Internet Scheduling............. 10

Telephone Scheduling .............................. 10

Rescheduling/Canceling an Examination ....... 10

Re-taking a Failed Examination .................. 10

Missed Appointment or Late Cancellation ...... 10

Exam Accommodations ............................ 11

Copyright ? 2023 by PSI Services LLC

Emergency Examination Center Closing ......... 11

Examination Site Location.................................... 11

Reporting to the Examination Site .......................... 12

Required Identification ............................ 12

Security Procedures ................................ 12

Taking the Examination by Computer ...................... 12

Tutorial ............................................... 12

Examination Review ........................................... 13

Score Reporting ................................................ 13

Sample Questions .............................................. 13

License Application Instructions............................. 14

List of Education Providers ................................... 15

Updated 10/1/2023

1

EXAMINATIONS BY PSI

This Candidate Information Bulletin provides you with

information about the examination and application process

for becoming licensed as a real estate broker in Colorado.

You should also access for

additional information on licensing requirements.

You need to pass an examination to confirm that you have

attained at least a minimum level of knowledge regarding

the principles, practices, statutes and regulations relating to

real estate. The Division has contracted with PSI Services

LLC (PSI) to conduct its examination program. PSI provides

examinations through a network of computer examination

centers in Colorado. PSI works closely with the Division of

Real Estate to be certain that examinations meet local as

well as national requirements in basic principles of real

estate and examination development standards.

The real estate broker examination offered by PSI

Examination Services consists of a state and national portion.

You must pass both portions to apply for a license.

All questions and requests for information about the

examination should be directed to:

PSI Services LLC

3210 E Tropicana

Las Vegas, NV 89121

(855) 744-0313



Questions about applications for licensure should be directed

to:

Colorado Division of Real Estate

1560 Broadway, Suite 925

Denver, CO 80202

(303) 894-2166 ? Fax (303) 894-2683



INSTRUCTIONS FOR LICENSE

QUALIFICATION

AGE

You must be 18 years old to apply for a Colorado real

estate broker license. There is no age restriction on taking

the broker examination.

EDUCATION EXPERIENCE AND EXAMINATION

The specific course, experience and exam requirements

vary for the different levels of licensure.

For information on the requirements for licensure

click on (or access) the following link to the DRE website:



DEADLINE FOR FILING AN APPLICATION

The real estate license examination is made up of two

parts, the general part, and the local (state) part.

Applicants for licensure who must receive passing scores on

both the general part and the state part of the examination

need not receive them on the same administration date. If

one part is failed, the applicant may retake it at a

subsequent time. In no event will a passing score on

either part of the exam be accepted beyond one year.

CHARACTER

The Real Estate Commission is authorized to require proof

of

truthfulness, honesty, good moral character of any

applicant.

BEFORE submitting an application for a real estate broker

license, each applicant shall submit a set of fingerprints to

the Colorado Bureau of Investigation for the purpose of

conducting a state and national fingerprint-based criminal

history record. The applicant shall pay the fee established by

the Colorado Bureau of Investigation. Upon completion of

the criminal history record check, the bureau shall forward

the results to the Real Estate Commission. Access the

Division of Real Estate (DRE) Internet homepage for

information on the procedure and process at:



CRIMINAL BACKGROUND

If you have been convicted, pled nolo contendere to, or

agreed to a deferred prosecution or judgment for any

felony, misdemeanor, theft-related petty offense, or have

such charges pending, you may apply for a preliminary

advisory opinion (PAO) as to the effect of the offense on

licensure.

You may submit a no-cost PAO request before completing

any education or examination requirements. If you choose

to complete the licensing requirements and apply for a

broker license, you must complete an addendum to the

broker application and submit it with the nonrefundable

application fee.

Both the PAO and broker application addendum are given

individual consideration by the Commissioners and may

take up to two months from the date a fully documented

application or PAO is received. Both forms are available

from the Commission Website.

Now you can take the practice exam online at

National Real Estate Salesperson Practice Examination

to prepare for your Colorado Real Estate Examination.

Please note that practice exams are intended only to help testing

candidates become familiar with the general types of questions

that will appear on a licensing examination. They ARE NOT a

substitute for proper education and study. Furthermore, scoring

well on the practice exam does not guarantee a positive outcome

on an actual licensing examination.

Note: You may take the practice exams an unlimited number of

times. However, you will need to pay each time.

2

Real Estate Law, 11th Edition, 2022, Elliot Klayman,

Dearborn Real Estate Education

Real Estate Fundamentals, 10th Edition, 2019, Gaddy,

Hart, Spodek, Dearborn Real Estate

Education,

Real Estate Principles, 12th Edition, Charles Jacobus,

OnCourse Publishing, N19W24075 Riverwood Drive,

Suite 200, Waukesha, WI 53188, 855-733-7239,

ISBN 1285420985

Real Estate Principles, 12th Edition, 2021, Floyd and

Allen, Dearborn Real Estate

Education,

Mastering Real Estate Principles, 8th Edition, 2022,

Gerald Cortesi

Real Estate Principles & Practices, 9th Edition, 2014,

Arlyne Geschwender, OnCourse Publishing, N19W24075

Riverwood Drive, Suite 200, Waukesha, WI 53188, 855733-7239, ISBN

0324784554

Principles of Real Estate Practice, 6th edition, 2019,

Mettling, Stephen and Cusic, David, Performance

Programs Company,



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DESCRIPTION OF EXAMINATION AND

EXAMINATION CONTENT OUTLINES

Use the outline as the basis of your study. The outlines list

the topics that are on the examination and the number of

items for each topic. Do not schedule your examination until

you are familiar with all topics in the outline.

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This table shows the number of questions and the time

allowed for each examination. For the Real Estate Broker

Examination, you must pass both portions to apply for a

license.

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# of

Questions

Passing

Score

Time

Allowed

National

80

60 correct

120

Minutes

State

74

53 correct

110

Minutes

Continuing

Education

State

74

53 correct

110

Minutes

Reciprocal

Licensure

State

74

53 correct

110

Minutes

Examination

Broker

Portion

Continuing Education candidates will only be required to

take the state portion to satisfy their CE requirement. You

must select the Continuing Education examination to get

credit. Do NOT register for the Broker State examination.

Reciprocal Licensure candidates will only be required to

take the state portion to qualify for reciprocal licensing.

You must select the Reciprocal License examination to

get credit. Do NOT register for the Broker State

examination.

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STATE PORTION OF THE EXAMINATION

Colorado Real Estate Manual, (most current version),

compiled by the Colorado Division of Real Estate, (303)

894-2166. Google ¡°Colorado Real Estate Manual¡± and it will

provide you with the link to download the manual.

NATIONAL PORTION CONTENT OUTLINE

(REAL ESTATE PRINCIPLES AND PRACTICES)

I.

Property Ownership (Broker 10%)

A. Real and personal property; conveyances

B.

Land characteristics and legal descriptions

NATIONAL PORTION OF THE EXAMINATION

1.

The following is a list of possible study materials for the

national portion of the real estate examination. The list is

given to identify resources and does not constitute an

endorsement by PSI or by the State Real Estate

Commission. Use the latest edition available.

2.

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Modern Real Estate Practice, 21st Edition, Galaty,

Allaway, Kyle, and Williams, Dearborn Real Estate

Education, , ISBN: 978-1-07881887-2

Mastering Real Estate Math, 9th Edition, 2022, Denise

Evans ISBN: 9781078819008

The Language of Real Estate, 8th Edition, 2019, Reilly

and Spodek, Dearborn Real Estate Education,



Property Management, 11th edition, 2016, Kyle, Robert

C., Baird, Floyd M. and Kyle, C. Donald, Chicago:

Dearborn Real Estate Education

4.

Metes and bounds method of legal property

description

Lot and block (recorded plat) method of legal

property description

Government survey (rectangular survey) method of

legal property description

Measuring structures (linear and square footage)

5.

Land measurement

3.

C.

Encumbrances and effects on property ownership

1.

2.

3.

4.

5.

Types of liens and their effect on the title and value

of real property

Easements, rights of way and licenses, including their

effect on the title, value and use of real property

Encroachments and their effect on the title, value and

use of real property

Potential encumbrances on title, such as probate,

leases, or adverse possession

Property rights that may be conveyed separately from

use of the land surface, such as mineral and other

subsurface rights, air rights, or water rights

3

D. Types of ownership

II.

Implications of ownership as tenants in common

a.

FHA insured loans

3.

Implications of ownership in joint tenancy

b.

VA guaranteed loans

4.

c.

USDA/Rural Development loan programs

5.

Forms of common-interest ownership, such as

Timeshares, Condominiums and Co-ops

Property ownership held in a trust or by an estate

6.

Ownership by business entities

5. Owner financing (for example, installment or

land contract/contract for deed)

6. Reverse-mortgage loans

7.

Life Estate ownership

7. Home equity loans and lines of credit

Land use Controls (Broker 5%)

B.

Government rights to impose property taxes and

special assessments

2. Government rights to acquire land through eminent

domain, condemnation and escheat

Government controls on land use

C.

Private controls

1.

8. Construction loans

9. Rehab loans

10. Bridge loans

C.

Appraisals for valuation of real property

2.

Situations which require appraisal by a licensed or

certified appraiser and brokerage-related actions that

constitute unauthorized appraisal practice

General steps in appraisal process

V.

Risky loan features, such as prepayment penalties and

balloon payments

Contracts (Broker 19%)

A. General Contract Law

General principles of contract law

2.

Elements necessary for a contract to be valid

3.

Effect of the Statute of Frauds

Estimating Value

4.

Offer and a contract

1.

5.

Enforceability of contracts

6.

Void, voidable and unenforceable contracts

7.

Bilateral and unilateral contracts

8.

Nature and use of option agreements

Economic principles and property characteristics that

affect value of real property

2. Sales or market comparison approach to property

valuation and appropriate uses

3. Cost approach to property valuation and appropriate

uses

4. Income analysis approach to property valuation and

appropriate uses

Comparative Market Analysis (CMA)

9.

Notice, delivery, acceptance and execution of

contracts

10. Appropriate use, risks, and advantages of electronic

signatures and paperless transactions

11. Rights and obligations of the parties to a contract

1.

Competitive/Comparative Market Analysis (CMA), BPO

or equivalent

2. Automated Valuation Method (AVM), appraisal

valuation and Comparative Market Analysis (CMA)

Financing (Broker 9%)

12. Possible remedies for breach or non-performance of

contract

13. Termination, rescission and cancellation of contracts

B.

A. Basic Concepts and Terminology

1.

2.

3.

4.

B.

Lending Process (application through loan closing)

6.

1.

3.

IV.

5.

3.

Subdivision covenants, conditions and restrictions

(CC&Rs) on property use

3. Condominium and owners¡¯ associations regulations or

bylaws on property use

Valuation (Broker 8%)

1.

4.

Real Estate Settlement Procedures Act (RESPA),

including kickbacks

Truth-in-Lending Act (Regulation Z), including

advertising

Requirements and time frames of TRID (TILA-RESPA

Integrated Disclosures)

Equal Credit Opportunity Act

2.

Deed conditions or restrictions on property use

A. Appraisals

Financing and Lending

1.

2.

C.

Government Loans

2.

1.

B.

Adjustable-rate mortgage (ARM) loans

4.

Ownership in severalty/sole ownership

A. Government rights in land

III.

3.

1.

Loan financing (for example, points, LTV, PMI,

interest, PITI)

General underwriting process (e.g., debt ratios, credit

scoring and history)

Standard mortgage/deed of trust clauses and

conditions

Essential elements of a promissory note

Types of Loans

1.

Conventional loans

2.

Amortized loans, partially amortized (balloon) loans,

interest-only loans

C.

VI.

Purchase and Lease Contracts

1.

Addenda and amendments to contracts

2.

Purchase agreements

3.

4.

Contract contingencies and methods for satisfying

them

Leases and rental agreements

5.

Lease-purchase agreements

6.

Types of leases

Proper handling of multiple offers and

counteroffers

Agency (Broker 13%)

4

A. Agency and non-agency relationships

Home and new construction warranties

2.

Types of listing contracts

3.

Buyer brokerage/tenant representation contracts

1.

Special issues in transferring foreclosed properties

4.

Other brokerage relationships, including transaction

brokers and facilitators

Powers of attorney and other assignments of authority

2.

Special issues in short sale transactions

3.

Special issues in probate transactions

6.

Conditions for termination of agency or brokerage

service agreements

Agent Duties

1.

D. Special Processes

X.

1.

Fiduciary duties of agents

2.

Agent's duties to customers/non-clients, including

honesty and good faith

Agency Disclosures

1.

Practice of Real Estate (Broker 12%)

A. Antidiscrimination

2.

C.

Settlement procedures (closing) and parties involved

4.

Agency relationships and how they are established

5.

B.

3.

1.

3.

4.

Disclosure of agency/representation

2.

Disclosure of possible conflict of interest or selfinterest

Property Disclosures (Broker 7%)

VII.

5.

Seller's property condition disclosure requirements

B.

2.

Property conditions that may warrant inspections or a

survey

3. Red flags that warrant investigation of public or

private land use controls

B. Environmental and Government Disclosures

1.

2.

3.

Environmental issues requiring disclosure

C.

2.

A. Duties and Responsibilities

IX.

Licensee responsibility for due diligence in real estate

transactions

D. Supervisory Responsibilities (BROKER ONLY)

1.

Broker's supervisory responsibilities (licensees, teams

and unlicensed assistants and employees) (BROKER

ONLY)

2. Broker relationship with licensees (employees or

independent contractors and governing rules) (BROKER

ONLY)

Real Estate Calculations (Broker 6%)

XI.

A. Calculations for Transactions

Transfer of Title (Broker 6%)

A. Types of deeds

B.

C.

Title Insurance and Searches

1.

Title insurance policies and title searches

2.

Potential title problems and resolutions

3.

Marketable and insurable title

Protection of confidential personal information

(written, verbal or electronic)

Duties when handling funds of others in transactions

3.

Procurement and qualification of prospective tenants

2.

B.

Proper use of Social Media and Internet

communication and advertising

Duties and Responsibilities

1.

Property Management (Broker 5%)

Fair housing and ADA compliance specific to property

management

3. How to complete a market analysis to identify factors

in setting rents or lease rates

4. Property manager responsibility for maintenance,

improvements, reporting and risk management

(BROKER ONLY)

5. Handling landlord and tenant funds; trust accounts,

reports and disbursements (BROKER ONLY)

6. Provisions of property management contracts (BROKER

ONLY)

Landlord and tenant rights and obligations

Licensees¡¯ status as employees or independent

contractors

Antitrust laws and types of violations, fines and

penalties

Do-Not-Call List rule compliance

4.

Federal, state, or local disclosure requirements

regarding the property

C. Disclosure of material facts and material defects

1.

Americans with Disabilities Act (ADA) obligations

pertaining to accessibility and reasonable

accommodations

Legislation and Regulations

1.

2.

VIII.

Protections against discrimination based on gender

identity and sexual orientation

Prohibited conduct under Federal Fair Housing Act

(Redlining, Blockbusting, Steering, Disparate

Treatment)

Fair housing advertising rules

6.

A. Property Condition

1.

Federal Fair Housing Act general principles and

exemptions

Protected classes under Federal Fair Housing Act

1.

Seller¡¯s net proceeds

2.

Buyer funds needed at closing

3.

Real property tax and other prorations

4.

Real property transfer fees

5.

B.

PITI (Principal, Interest, Taxes and Insurance)

payments estimate given loan rate and term

General Concepts

1.

Equity

Closing Process

2.

Rate of return/Capitalization rate

1.

When transfer of ownership becomes effective

3.

Loan-to-Value ratio

2.

Process and importance of recordation

4.

Discount points and loan origination fees

5

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