How to Become a Real Estate Agent in Colorado

Real estate brokers, not real estate agents, are the official term for people who represent buyers and sellers in Colorado. You’ll need to complete 168 prelicensing hours authorized by the Department of Regulatory Agencies (DORA), as well as fingerprints, a passing test, and a license application, in order to obtain it. This step-by-step tutorial will walk you through the process of obtaining a broker’s license in Colorado.

1. Comply with all legal requirements set out by the state

The legal requirements for obtaining a Colorado real estate license are straightforward. Sole that you must be at least 18 years old is the only requirement. Colorado, unlike many other states, does not need any prior schooling.

What if I told you that

All 50 states have complete reciprocity with Colorado. This implies that agents who are already licensed in another state do not need to complete DORA’s prelicensing classes and may acquire their license bypassing the background check and state section of the real estate test.

In terms of mobility, Colorado is also a cooperative state. It permits out-of-state real estate agents and brokers to physically do business in the state. Out-of-state agents, on the other hand, must have a co-brokerage agreement with a licensed in that state in order to operate on a real estate transaction.

2. Complete all pre-licensing courses that are required.

You’re ready to begin the real estate prelicensing courses if you fulfill the state’s legal criteria. Courses range from $295 to $850 and are provided both in-person and via authorized online real estate colleges in Colorado. The following subjects should be covered by all providers:

• The Real Estate Industry
• License Law and Licensure Requirements
• Rules of the Commission and the License Law
• Authorized Relationships, Responsibilities, and Information
• Activities and Procedures in Real Estate Brokerage
• Penalties and Procedures for License Law Violations
• Real Estate Laws at the Federal and State Level
• Estates and tenancies, condominiums, cooperatives, and time-sharing
• Ownership Restrictions, Title, and Deeds
• Legal Terminologies
• Contracts for Real Estate
• Mortgages for homes
• Types of Mortgages and Financing Options
• Computations and Transaction Closing
• Analysis of the Real Estate Market
• Appraisal of Real Estate
• Brokerage of Real Estate Investments and Business Opportunities
• Real-Estate-Related Taxes
• Environmental Hazards, Planning, and Zoning

What if I told you that

To get your Colorado real estate license, you simply need to complete 12 hours of study, pass the broker’s test and submit a fingerprint background check if you are a member of any bar organization. You may also be excluded from the necessary education if you have a degree with a significant course of study in real estate.

There are several online real estate colleges to choose from, but if you want to get started on your prelicensing classes right away, Kaplan is a good choice. You may finish your 168 hours of instruction from the convenience of your own home with its online courses.

3. Get Your Fingerprints & Background Check

All applicants must submit fingerprints to the Colorado Bureau of Investigation for a background check (CBI). Because this procedure might take several weeks, it’s critical to get started as soon as possible to ensure that everything is done in time for you to acquire your license. There are a variety of fingerprint services available:

• Option 1 – IdentoGO: Create an appointment by selecting “Schedule or Manage Appointment” from the drop-down menu. The price ranges from $20 to $30.
• Option 2 – Colorado Fingerprinting: The Colorado Applicant Background Services offers this service to those who live in Colorado (CABS). To arrange your appointment, create an account and provide the real estate broker code 0800REEI when required. This service will set you back $39.50.

Both state and federal arrest records will be checked using your fingerprints. Applicants must disclose any criminal convictions from the previous ten years, as well as any current proceedings. With your application, you must include a written explanation and evidence of the occurrence. The Real Estate Commission will decide on permission on a case-by-case basis, and prospective agents may seek review by submitting a preliminary advisory opinion prior to commencing their real estate education (PAO).

Further restrictions are specified in the Code of Colorado Requirements under section A-12 for further details.

4. Take the Examination

You’ll need to pass your licensure test now that you’ve finished your paperwork and schooling. Fortunately, Colorado has a higher passing rate than other states, at 77 percent, and since the exam is administered on a computer at a test center or proctored from your home, you will get your results shortly after finishing it.

If you do not pass the test the first time, you have the option of retaking it as many times as you need within a year after completing your prelicensing studies. In addition, if you fail, you will get a diagnostic report outlining your strengths and shortcomings, allowing you to prepare for the relevant component, national or state, that you must review and repeat.

Exam Specifics

Make Your Exam Appointment

PSI, a leading supplier of state licensing examinations, administers the Colorado real estate exam. To begin scheduling, you must first register for a PSI account, which will get you access to the scheduling portal.

For more testing information, you will get a copy of the Candidate Information Bulletin. The test costs $44.95 and may be paid with a credit or debit card immediately on the website. If you need to repeat the test, the cost is $42.50.

We suggest Real Estate Exam Scholar for a complete exam prep course if you need to brush up on your abilities before the big day. It provides excellent test preparation at a reasonable cost. Even better, if you don’t pass the first time, you can get your money back.

5. Decide the company you want to work for.

You must locate a sponsoring brokerage to affiliate your license in order to keep it active in Colorado.

6. Acquire Errors & Omissions Insurance

To have an active license, all brokers are required to have errors and omissions insurance (E&O). This is used to protect real estate businesses from mistakes made during professional service. Some brokerages may provide their brokers with E&O. Otherwise, you’ll have to purchase it for yourself. DORA works closely with Rice Insurance Services, LLC to provide affordable options, or you can choose your own provider and submit the Independent Coverage Certification Form.

7. Submit an application for your license.

Once you’ve guaranteed E&O coverage independently or through your affiliate brokerage, you can move forward with applying for your license. Applications are done online through eLicense via the DORA website, where you must create an account and follow the instructions to upload and complete documentation for licensure.

Your employing brokerage must approve your application license, and you must apply within one year after completing your test. Your first license application will cost you $485 and will take around 10 days to complete via its system. When your license becomes officially active, you will get an email notification.

8. Get Your Real Estate Career Started

You’re ready to begin your real estate career now that you’ve learned how to become a real estate agent in Colorado.