Broker relationship must be disclosed to the client/customer in writing.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Which agency licenses and regulates real estate brokers in Colorado?
Answer: A. The Colorado Division of Real Estate, within the Department of Regulatory Agencies (DORA), licenses and regulates real estate brokers in Colorado.
Question 2 of 5
Which agency is responsible for regulating real estate licensees in Colorado?
Answer: A. Real estate licensing in Colorado is regulated by the Colorado Division of Real Estate, which operates within the Department of Regulatory Agencies (DORA).
Question 3 of 5
Which state agency is primarily responsible for regulating real estate licensees in Colorado?
Answer: A. Real estate licensing in Colorado is overseen by the Colorado Division of Real Estate, which sits within the Department of Regulatory Agencies (DORA).
Question 4 of 5
Which state agency is responsible for licensing and regulating real estate professionals in Colorado?
Answer: A. Real estate licensing in Colorado is administered by the Colorado Division of Real Estate, which operates under the Department of Regulatory Agencies (DORA). The Real Estate Commission sets policy and rules within the Division. Trade associations like the Colorado Association of REALTORS are private and do not issue licenses.
Question 5 of 5
When a brokerage relationship is not specified in writing, what is the DEFAULT relationship a Colorado licensee has with a party to a transaction?
Answer: C. In Colorado, the default working relationship is transaction-broker, in which the licensee assists the party without being an advocate or agent. To create an agency relationship, the broker must establish it in writing; absent that, transaction-brokerage applies.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Default relationship: TRANSACTION-BROKER (non-agency) unless a written agency agreement says otherwise.
- A transaction-broker assists the parties WITHOUT being an advocate/agent for either side.
- Agency choices: single agent for the seller, single agent for the buyer, or transaction-broker.
- DUAL AGENCY IS PROHIBITED in Colorado.
- When one brokerage works with both sides, the practical path is transaction-brokerage.
- Broker relationship must be disclosed to the client/customer in writing.
- Even a transaction-broker owes core duties: honesty, accounting, confidentiality, and disclosure of material facts.
Colorado Agency Model Cheat Sheet: FAQs
Is Colorado Agency Model Cheat Sheet on the real estate exam?
Yes. State License Law is a scored domain on the Colorado real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does Colorado test this differently?
Colorado applies its own license law on top of the national portion. This page covers the Colorado rules specifically, which is what the state section of your exam tests.
