To Help You Pass The Real Estate Exam

The Colorado Real Estate Commission publishes the Colorado Real Estate Manual as a basic learning text and ready reference for practicing licensees. It is highly recommended that prelicensees become very familiar with the information in the most recent manual. (Annual updates come out in July.)

If not enrolling in a class that provides one, you can obtain a current manual from several sources:

a.   The Colorado Division of Real Estate (free on-line copy)
b.   Real estate schools
c.   REALTOR® Associations

As you go through your classes, read and understand the chapter in the manual that corresponds with your course text. You may even find it matches word-for-word. When you hear about Rule F in your course, get a feel for the forms used by Colorado real estate licensees by quickly scanning this list of Commission approved forms.

• Definitions of Working Relationships
  This form is not a contract, but you will want to thoroughly understand each relationship!
  
  
• Exclusive Right to Buy Contract and Exclusive Right to Sell Contract
  These are listing contracts also referred to as employment contracts. They are the agreement between the Real Estate Broker and a seller or a buyer. There are different types of agreements: Exclusive Right To Sell, Exclusive Agency, Open Listing. For the exam, you will need to know the differences between them. Also know that these contracts are not required to be in writing to be enforceable.
  
  Note the following items in the contracts. Understanding how the information is relevant to a real-world real estate transaction can help the information make sense and 'stick'.
  
  
  • Buyer Agency vs Transaction Brokerage
    
  • Designated Brokerage
    
  • Brokerage Services and Duties (notice the duties required by an agent vs a transaction broker)
    
  • Brokerage Relationship
    
  • Compensation (how the brokerage firm will get paid)
  • Co-op arrangement with other brokers (seller contract only)
    
  • Notice of Delivery
    
  
  
• Contract to Buy and Sell Real Estate
  This is the buy/sell contract, the agreement between the parties buying and selling real estate. It is considered to be the most important contract in a real estate transaction! Per the Statute of Frauds: Contracts for interests in land must be in writing.
  

Helpful Study Supplements

• Guide To Passing The PSI Real Estate Exam-4th Edition
  Concisely outlined need-to-know concepts, study & review checklist, exam strategies with helpful hints for analyzing test questions.
  Click here to see a sample (or check your library!)
  
  
• Guide To Passing The Promissor Real Estate Exam-7th Edition
  Effective summarization of need-to-know concepts.  [ISBN 0-7931-8796-6]
  
  
• Exam prep tips  [PowerPoint]