Contracts/Regulations

Question 1

Single Licensing

Answer 1

In Colorado, all licensees are called associate brokers - changed in 1997
Reasons why:
want salespersons and brokers to have same knowledge

Question 2

Employing Brokers

Answer 2

The person who all the real estate associates report to

Maintain trust account and records
Maintain company’s transaction records
Ensuring compliance with the office policy manual
Provide a high level of supervision especially new licensees

Question 3

What the Law does not cover

Answer 3

Ethical Standards - those are covered by the National Association of Realtors (NARS)

Question 4

The Commission Office

Answer 4

• 5 member board appointed by the governor
• has the power to investigate the real estate activities of any licensee
• establish rules and regs

Question 5

Filing Complaints

Answer 5

• hearings on complaints held by administrative law judge (retired judge)
• can decide on revocation, suspension, censure, or dismissal
• can mandate education courses, probation and fines

Question 6

License requirements/non requirements

Answer 6

Required: when engaged as a RE broker, receiving a commission
Not required: resident or onsite property manager, developer salaried salespeople, people/corporations who buy and sell real estate for their own purposes, attorneys

Question 7

Educational Requirements

Answer 7

168 hours of training
state test (uniform law and colorado law)
24 hours of CE over 3 years - 12 hours of commission update class (every year for 4 hrs)

employing broker:
2 years of active license
24 hr class
state test

Independent broker:
going out on your own after 2 years
no employees

Question 8

Actions against licensees

Answer 8

fine up to 2500
probation
suspension, censure, revocation of license

Question 9

Prohibition of certain referrals

Answer 9

• Brokers can’t offer incentives to other brokers for the use of certain title companies
• requires a written disclosure if broker holds a financial interest in title or mortgage company

Question 10

Broker’s Commission

Answer 10

• earned when is consummated

- maybe be owed when client fails to consummate deal (aka backs out)

Question 11

Colorado Brokerage Relationships

Answer 11

1. Seller agency - you rep seller/LL
2. Buyer agency - you rep buyer or tenant
3. Transaction broker - not an advocate of either party just helping to put deal through

Question 12

Duration of Relationships

Answer 12

Terminates:
date of expiration
any relinquishment between parties
one year after date of engagement