There is no way anyone can deny how gorgeous the landscape is in the beautiful state of Colorado. The scenic routes and various outdoor activities are a few of the main things many people look forward to when living in Colorado.
The 5.7 million residents in Colorado can also agree that this place is a beautiful area to settle down in. If you want to obtain your real estate license in Colorado, you came to the right article.
This brief article will go over what you will need to know to pass your licensing exam and who you can contact about your required pre-licensing courses.
Step One: Complete Your Colorado Pre-license Online Courses
In the state of Colorado, you have to complete 168 hours of pre-licensing courses before you can sit for your state exam. A state-certified Colorado real estate school, must administer the pre-licensing course. There are six courses that you must complete.
The six courses are:
- Legal issues
- Practical applications
- Contracts and regulations
- Law and practice
- Colorado closings
- Record keeping and trust accounts
Once you complete these six courses, you will receive a certification. Make sure you hold on to that certificate, as you will need this form when you apply for your license.
Real Estate Legal Issues
This section will learn about real-world problems that the Colorado Real Estate Commission deals with. You will review real examples of legal cases, legal responsibilities, complaints, and audits. This section is an eight-hour course.
Real Estate Practical Applications
Your practical applications course will help new brokers understand the importance of setting up a business plan and personal goals. You will learn how to work with buyers and sellers and how to write an offer.
This course also goes over the closing process and how to show a property. The practical applications section takes up 32 hours of the overall 168 hours.
Contracts and Regulations
In this section, you will learn about Colorado real estate contracts and important regulations. The course covers license laws, listing contracts, sale contracts, and statutory relationships.
At the end of the course, you will learn more about contacts in general and the statute of fraud. The contracts and regulations section is vital and takes up 48 hours of the total 168-hour requirement.
Record Keeping and Trust Accounts
A lot of money is typically involved in the home buying and selling process. In this section of your studies, you will learn how to record said funds properly.
The Colorado Real Estate Commission has specific rules and regulations for record-keeping, and you will learn all about it in this section. This section takes up the final 8 hours of your 168 hours long pre-licensing course.
Real Estate Law and Practice
The real estate law and practice section take up 48 hours of the overall 168 requirements. This is a critical section to review. This section covers the national portion of your exam.
You will learn more about the basic principles of real estate and real estate law. This course goes over any local, state, or federal laws related to housing discrimination and community reinvestment.
Colorado Closings
Closing on a home sale is an essential part of the home buying process. This course will ensure that you will have the basic skills to close your home sale properly. You will learn about the responsibilities associated with closing and what happens after the close of your sale.
This course will also go over how to account for any funds received and disbursed. Because this section is essential, you can expect to spend around 8 hours on this course.
Step Two: Pass Your Pre-licensing Course Final
Once you complete all six of your courses, you must take your pre-licensing course final exam. This final exam will prepare you for your licensing exam.
Step Three: Pass Your Colorado Licensing Exam
Now that you have the proper pre-licensing courses completed, you can move on to take your Kaplan real estate license Colorado exam. There are 80 nationally tested questions on the exam, and you must answer at least 60 of those questions to pass.
For the state portion of the exam, there are 74 questions. You must at least answer 53 of the state-specific questions correctly.
Step Four: Complete a Background Check
You must submit fingerprints to the Colorado Bureau of Investigation. The Bureau will use your fingerprints to conduct a federal and state-based background check. You can schedule an appointment with your local IndentoGo center to have them take your fingerprints.
Other Locations for Fingerprinting
You also have the option to go through the Colorado Background Applicant Services, also known as CABS, for your fingerprints. If you decide to go through with CABS for your prints, you must bring the code: 0800REEI.
This code is a unique identifier for new real estate agents. CABS does not allow walk-ins; you must make an appointment.
If you are unable to go to a physical location for your prints, you have the option to submit your fingerprints electronically. You must obtain the FBI fingerprint card FD-258.
Once your fingerprints have been received and processed, you have the option to challenge any arrest records online on the Colorado Bureau of Investigation.
Step Five: Obtain Errors and Omissions Insurance
One last step you will need to take before applying for your license is to obtain errors and omissions insurance. This insurance is also known as professional liability insurance.
It covers you in the event that your client sues you claiming that your work was inaccurate or never delivered. This coverage protects you if someone accuses you of negligence or if you make any professional mistakes.
Step Six: Apply for Your License
The Colorado Division of Real Estate allows you to apply for your broker license online using their eLicense service. After submitting your application, it can take around ten business days before you will hear anything back. The application fee is $485.00.
Overall Colorado License Fees
The cost to obtain your license and errors and omissions insurance varies based on who you go through licensing with and who you purchase your insurance policy from. Overall, you can expect to pay between $900 to $1,000 for your real estate license.
Course Fees
Depending on who you choose for your pre-licensing course requirements, you can expect to pay around $400 to $500. As mentioned earlier, make sure that the company you select is state-approved and reputable.
Fingerprint Fees
The cost to complete your fingerprints depends on which method you choose to have them completed. On average, it costs around $20.00 to $40.00 to complete.
Background Check Fees
On average, the cost for a background check costs around $40.00. Keep in mind that it may take up to ten weeks for the Colorado Division of Real Estate to complete processing your background check and fingerprints.
Errors and Omissions Insurance
As stated above, the cost of this insurance varies based on the insurance company you decide to partner with. If you already have a soon-to-be managing broker you will report to, ask them about their insurer. You can expect to pay between $200 to $400 for your policy.
Renewing Your License
In the state of Colorado, you have to renew your license every three years. Your renewal deadline is the anniversary date of your initial licensure. You must complete 24 hours of continuing education courses before you can apply for your renewal.
Twelve of those continuing education hours must be three different four-hour annual commission update courses. The other twelve hours can be any courses approved by the Colorado Division of Real Estate.
It is important to remember that you have to renew your license up to two years past your expiration date. It costs $123.00 to renew your license.
How Hard Is the Licensing Exam?
This is a common question that most people ask before they even start their real estate broker journey. The answer is that it is pretty difficult to pass, but this is for a good reason.
The Colorado Division of Real Estate wants to make sure that all real estate agents are well aware of their position and the laws and regulations that they must follow. Make sure that you review the information covered in your pre-licensing course to ensure that you pass your exam. If you need to take practice exams, your online course provider should have mock exams for you to take.
Prepare for Your Licensing Exam
Becoming a real estate in Colorado is extremely exciting. Understanding the information learned from your pre-licensing courses is very important if you expect to be a successful real estate agent.
When you start your new career journey, you will want to partner with a state-approved pre-licensing course. Contact us now if you are looking for the best online pre-licensing courses needed to pass your licensing exam successfully!
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