Rules and Regs for Licensees

Question 1

Special Agent

Answer 1

RE agent

Agent for the person, but special b/c you can only help them with RE

Question 2

What do we owe our clients

Answer 2

duty of obedience to do what they say
duty of loyalty
duty of care
duty of disclosure unless it would cause a stigmatization (ghost/crimes/etc)
duty of accounting

Question 3

Implied agency

Answer 3

when words or deeds allow you to believe you have agency (allowed in contract law) but Colorado law requires written contract

Question 4

Designated Agency

Answer 4

Any contract we sign with client is actually with our company

Question 5

Universal Agent/General Agent

Answer 5

same as general agent

type of agency is very broad as opposed to special agent

Question 6

Express Agency

Answer 6

Written proof of agency with client

Question 7

Qualifications, Applications and Examinations

Answer 7

• 1 year to apply for license after passing test
• If licensed in another state, a certification of licensing history from that state must be filed with app
• Crime within 10 must give notice with app

Question 8

Continuing Education

Answer 8

24 hrs of CE in every 3 licensing period
12 hours are mandatory commission update (4 hrs each year)
Credits do not carry over
Must get documentation to prove attendance, but don’t turn it in unless audited
Can take brokerage administration one time in RE career to cover 24 hrs or can take state side of exam

Question 9

Licensing - office

Answer 9

brokers must have office open to the public

Question 10

Trust/Escrow Accounts

Answer 10

• all money belonging to others
• cant be commingled with money from other accts
• acct must have trust in its name
• must be immediately available without penalty
• money received must be deposited with 3 business days following acceptance of contract
• money received by prop managers must be deposited within 5 days
• selling broker must deliver contract and earnest money to listing broker
• earnest money check should be made out to listing broker or title company, but can be made out to anyone

Question 11

Commingling

Answer 11

Mixing escrow funds with operating acount

Question 12

Conversion

Answer 12

Using money as your own - theft

Question 13

Selling Broker

Answer 13

represents buyer

Question 14

Listing Broker

Answer 14

represents seller

Question 15

Record Keeping

Answer 15

Broker must maintain an escrow or trust account journal - ie checking acct (across clients)

• records in chron order
• a ledger record must be maintained for each beneficiary of a trust acct (individual client)
• employing broker or associate broker
• closing statements must be delivered at acceptance of title
• must keep closing statements for 4 yrs

Question 16

Delivery

Answer 16

when seller gives deed to buyer and buyer accepts it (when RE changes hands)

Question 17

Employing Broker

Answer 17

• must maintain all trust accts
• must maintain trust acct records
• maintain all transactions records
• develop and maintain office policy manual
• high level of supervision for newly licensed persons
• provide a reasonable level of supervision for experienced brokers
• supervise offices