In this guide, you’ll learn the steps to get your real estate license in the State of Colorado. Normally, getting a real estate license is an uphill task especially when you are not aware of the steps, you are new, or an outside resident.
If you are interested in becoming a real estate sales agent in Colorado, this article will be very appropriate, concise, and comprehensive for you. We will delve into the Colorado real estate license requirements and the subsequent cost of acquiring a real estate sales license.
The requirements for getting a real estate license are not the same for every State in America.
For example, the number of hours for the pre-licensing course in Florida is 63 hours. This differs from that of the California real estate license requirements at 135 hours.
As another example, the minimum age required for you to acquire a license in Alaska is 19, as opposed to California, which is 18 years.
Before we get into the Colorado real estate license requirements and costs, it’s good to know what the Colorado Division of Real Estate is and what it entails.
What is the Colorado Division of Real Estate?
Colorado Division of Real Estate is commonly referred to as Colorado DRE. It is a body that licenses, controls, and enforces licensing rules and regulations for real estate professionals. Colorado DRE is a part of the larger Colorado’s Division of Regulatory Agencies, and it supervises;
- Appraisal Management Companies
- Subdivision Developers
- Mortgage loan originators and loan firms
Since the real estate field is subject to many alterations in regulations, it is imperative to be updated from time to time by regularly visiting the Colorado DRE website. From there, you can not only keep up with real estate information but also get a chance to study the information you may need to know more about, at your own convenient time. The centrality of the site for a real estate practitioner cannot be overemphasized.
The Colorado DRE has comprehensive information about the state-approved contracts, disclosure forms, offers, rules, subsequent disciplinary actions, and many more. These are pretty easy to download on the website.
In a nutshell, the Colorado DRE is regarded as the trusted government agency to liaise with when applying for a real estate license.
As a real estate developer or enthusiast, you should familiarize yourself with the structure and functions of the division, and the most suitable way is by getting into their website.
Let’s continue with the requirements to get your real estate license in Colorado.
Colorado Real Estate License Requirements
The prerequisite requirement is to be at least 18 years old. You must complete the following steps before being awarded the Colorado Real Estate License; Keep in mind that the broker and agent qualifications are similar in Colorado, so the two terms will be used interchangeably.
- Complete the 168-hour Colorado Pre-Licensing course
- Pass the Colorado Pre-license Course Final Exam
- Pass the state’s Real Estate Exam
- Submit your fingerprints and do a Background check
- Apply for your Colorado real estate License
What Are The Colorado Real Estate Pre-Licensing Course Requirements?
The 168-hour Colorado real estate pre-licensing course is compulsory in all Colorado state-approved schools. This course must be taken in by a specific order enforced by the system.
The 168 hours of education consists of the following packages, alongside the specific periods they take;
- Real Estate Law and Practice – 48 hours
- Colorado Contracts and Regulations – 48 hours
- Colorado Closings – 24 hours
- Colorado Record-Keeping and Trust Accounts – 8 hours
- Colorado Legal Issues – 8 hours
- Colorado Practical Applications – 32 hours
Pass the Colorado Real Estate Pre-Licensing Exam
Having completed the six real estate pre-licensing packages, you are required to pass the pre-licensing course final exam, which will prepare you for the final state real estate licensing exam.
Every chapter of the Colorado real estate pre-licensing course ends with multiple questions. The exam can be done over as many times as possible if you do not attain the required 70% mark.
However, with proper planning, you can cover the course packages extensively.
Also, listen to the short audio lessons for better understanding, and you will be guaranteed success. When you pass your exam, you’ll be awarded a Certificate of Completion.
Based on our research, we suggest the Colorado Real Estate Pre-Licensing course from Real Estate Express. You can read Colibri Real Estate reviews on our site.
Pass the Colorado Final State Real Estate Exam
The PSI, Professional Service Industries, is used to stand for the licensing exams that prospective real estate agents must sit for to be licensed.
If you have a Colorado Real Estate PSI account, you are allowed to register, schedule, and take practice tests licensed by various bodies partnered with the latter.
We recommend that you take a Colorado real estate exam prep course such as the PrepAgent Colorado Course before taking the final state exam.
Learn More About These Top Colorado Real Estate Exam Prep Courses:
How Do I Schedule for the Colorado Real Estate Exam?
It is recommended that you schedule your Colorado Final Real Estate Exam after completing the 168 hours of education.
This will aid you in preparation for the comprehensive main exam. PSI administers the exam. You can schedule your exam with them using this website www.psiexams.com.
The online scheduling process requires you to set up an account with PSI, and you can do this in an easy eight-step process. Registration only takes at most fifteen minutes. Visit the website for more information on the process.
To reschedule or cancel your state exam, you must do that at least two days before the exam date. You can take your exam in the following locations; For specific addresses, visit the PSI website.
- Fort Collins
- Grand Junction
Taking the Colorado Real Estate Exam
The Colorado Real Estate exam consists of 80 national questions and 74 state-specific questions.
Sixty correctly answered national questions give you a pass, and 53 correctly answered state questions counts for a pass.
The time allowed for the national portion of the exam is 120 minutes and 110 minutes for the state-specific part.
After you complete the exam, you will get to know your scores immediately.
What Areas are Tested in the Colorado Real Estate Exam State-Specific Portion?
The state-specific portion comprises multiple-choice questions. The following parts are tested;
- Powers and Duties of the Real Estate Commission
- Licensing Requirements
- Requirements Governing the Activities of Licenses
- Colorado Forms and Contracts
- Record Keeping and Trust Accounts
- Closing and Settlement
- Brokerage Relationships
- Additional Topics
- The national portion tests the following areas;
- Property Ownership
- Land Use Controls and Regulations
- Valuation and Market Analysis
- General Principles of Agency
- Property Conditions and Disclosures
- Transfer of Title
- Real Estate Calculations
- Specialty Areas
Required items before taking the exam include two forms of identification;
The PSI calls for primary identification to be government-issued, and this includes;
- US government-issued Passport
- US government-issued military identification card
- State driver’s License
- ID card
The PSI also calls for the other identification, which is secondary, and it includes; Keep in mind that they should be signed;
- Credit card
- Wholesale store card
- Debit card
The PSI will keep your personal belongings during the test. Electronic devices are forbidden in the exam center.
After completing the exams, your results will show instantly. A report will appear on your screen and then be sent to you via email. The score report will show the topic area and the exam type that you passed or did not pass.
What Next After Passing Your Colorado Real Estate Exam?
If you successfully passed your exam, the next thing to do is to get your fingerprints scanned, complete a background check, purchase E&O insurance, and a Colorado employing broker. The broker application form is available online.
Also, remember that your real estate exam results expire after one year. So, after getting your results, apply for the Colorado Real Estate Commission for your License strictly within that year of passing both portions of the exam.
If you fail your exam, it is possible to retake it as many times as possible to pass.
However, if you fail in only one section and pass in the other, then you do not retake both. The passing score for one section retains validity for only one year.
To retake your main exams, just visit psiexams.com or call (855) 744-0313 to reschedule for the state exam. The cost for a Colorado real estate exam retake is $42.50, paid to the PSI.
Getting Fingerprinted and Completing a Background Check in Colorado
The Colorado Applicant Background Services program (CABS) calls for fingerprint transmission through a CBI-approved vendor. The options for getting and submitting fingerprints are as follows;
1. Identogo by Idemia
Identogo enrollment centers are located throughout Colorado and the US. Register and schedule for submitting your fingerprints. For more details, visit the following website (https://www.identogo.com)
2. Colorado Fingerprinting
Register and schedule for fingerprinting and submission through Colorado Finger Printing. Note that you have to enter the code corresponding to the License you will be applying for. For more information on this, visit the website.
3. Fingerprint card with Electronic Transfer
This is the most suitable option to take in case you are not near any physical fingerprinting centers. For hard copy submission, you have to follow the pre-registration process with Identogo or Colorado Fingerprinting.
To register, visit Identogo or Colorado Fingerprinting websites and fill in the code for submission instructions.
Fingerprinting is an imperative process for any real estate agent or broker, for the State’s bureau requires it for the background check.
After a fingerprinting session with the approved vendor, submit it to the Colorado Bureau of Investigation.
Out-of-state residents will have to re-register with either of the approved vendors and then acquire a hard copy card.
Running a background check and the fingerprinting process in Colorado takes up to ten weeks.
The Division of Real Estate does not notify the applicants of the background check receipt. Instead, they match the check to the license application.
Colorado Real Estate License Cost
Now that we established and outlined the Real Estate License acquisition requirements, what is the cost?
Besides the cost, having a real estate license in Colorado is very important, especially because it gives you room and time to maneuver in other businesses, manage your business activities, and have unlimited income potential.
So, the cost to acquire a license is worth it. Below, we shall delve into the costs of the earlier outlined requirements in the article.
What is the Cost of the Colorado Real Estate Pre-Licensing Course?
The 168-hour course equips you with the necessary skills and knowledge to help your customers with their massive financial transactions.
The course entails six major parts, which have been outlined at the beginning of the article. However, there is more than just a cost to consider when choosing a course provider.
Make sure the school that offers you the cost has the best curriculum, teacher support, access to learning materials, and exam prep/practices. You stop running the stake of paying a lot to acquire a little when you do that.
The cost of completing a real estate Pre-licensing course in Colorado lies between approximately $400-$600, mostly depending on the course provider.
How Much Does the Colorado Real Estate Exam Cost?
The cost for the Colorado Broker Exam fee is $44.95. If you fail the exam and need to retake it, you have to pay an additional fee of $42.95.
What is the Cost Of Fingerprinting and Background Check In Colorado?
The cost of undergoing a fingerprinting session is $39.50 in Colorado. However, the cost is subject to the vendor.
How Much Does the Broker Application in Colorado Cost?
The Division of Real Estate uses the online eLicense services for new applicants when applying for their broker license. The application may take up to ten business days from the moment of reception for processing. The Colorado broker application is $485.
Cumulatively, the cost of acquiring a license in Colorado is approximately $890.
How to renew a Colorado real estate license?
The following three steps are ways in which you can renew a Colorado Real Estate License;
- Complete twelve credit hours of annual commission update courses
- Complete twelve hours of elective credits
- Complete the required CE before your license renewal date
For more details on license renewal and other real estate information in Colorado, kindly visit their website at dre.colorado.gov
Getting Your Colorado Real Estate License – Final Take Away
Though Colorado takes all the credit for being a tough state, acquiring a real estate license would not give you so much headache in case you are prepared with the required cost and resources.
You just need to attend your classes fully, study well for your exams, pass and apply for the broker license. Wishing you all the best!
About The Author: This article was researched and published by Tim Schroeder. As a husband and wife real estate team residing in Florida, Tim Schroeder brings deep expertise with over 8 years of experience as a licensed real estate agent.
Deb and Tim Schroeder have earned numerous real estate industry awards and recognitions. They have been recognized by Orlando Magazine as a “Top 100 Real Estate Professional” as well as earned Top Producer Designations with the Orlando Realtor Association for 6 years straight.