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30 Cards in this Set
- Front
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The Real Estate Commission has the authority to: audit or investigate a licensee and files at any time without advance notice audit or investigate a licensee and files at any time with advance notice audit or investigate a licensee only when a complaint has been filed |
A: audit or investigate a licensee and files at any time without advance notice § 12-61-113, C.R.S. Investigation – revocation – actions against licensee – repeal.(1) The commission, upon its own motion, may, and, upon the complaint in writing of any person, shall, investigate the activities of any licensee or any person who assumes to act in such capacity within the state... |
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An applicant for a real estate license can solicit buyers and sellers after (or upon): applying for a license taking the license examination notification of passing examination receipt by broker of individual's license |
A: receipt by broker of individual's license After applying for a license and passing the exam, the real estate commission will mail a license to the broker. The licensee can then practice real estate. |
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Which of the following actions on the part of a real estate broker could result in revocation of his license? Failing to submit to an owner all formal, written offers for property listed for sale Quoting to prospective buyers, of a property, a price other than the one stipulated by the owner Failure to report material facts All of the above could result in revocation |
A: All of the above could result in revocation A licensee must submit all offers and represent each property under the terms stipulated by he owner. |
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When a licensee transfers from the employ of one broker to another, of the following who is responsible for surrendering the license to the Real Estate Commission: the licensee the former employing broker new employing broker the licensee and the now former employing broker are required to file the necessary paperwork |
A: the licensee and the now former employing broker are required to file the necessary paperwork A licensee and his former employing broker are jointly responsible for returning real estate licenses to the commission. |
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In Colorado, all of the following topics are regulated by Real Estate License Law or Real Estate Commission Rules, except: qualifications of licensure record keeping ethical standards Commission-approved contracts |
A: ethical standards Code of Ethics and standard of practice is addressed when you become a member of a board, i.e. AAR, CAR, and NAR. |
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What kind of license must be held to sell options in real estate? An Associate Broker's license An Options License A Securities License |
A: An Associate Broker's license Under statute 12-61-101, the sale of options in real estate requires a real estate (Associate Broker). |
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Which of the following statement(s) is (are) true? New real estate licenses expire at midnight on December 31st of the year they are issued. Licenses are renewed for three year periods. Licenses renew one year after you pass the state exam. Employing broker licenses are for five years |
A: Licenses are renewed for three year periods. Licenses are renewable three years from your date of acquiring your license. |
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An associate broker terminates with a broker. The employing broker refuses to turn the license over to the Commission. Which of the following is true? Automatic fine for the Employing Broker The Employing Broker may be subject to disciplinary action Employing broker's license is immediately suspended Both associate and employing brokers may have their licenses canceled |
A: The Employing Broker may be subject to disciplinary action There is never automatic fines or suspensions; there is always a hearing first. A broker who refuses to return an agent’s license to the commission may be subject to disciplinary action. |
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From whom does the licensee receive a commission? Employing Broker Seller Buyer Either 2 or 3 may pay a commission to the licensee |
A: Employing Broker § 12-61-117, C.R.S. Broker remuneration.It is unlawful for a real estate broker registered in the commission office as in the employ of another broker to accept a commission or valuable consideration for the performance of any of the acts specified in this part 1 from any person except the broker’s employer, who shall be a licensed real estate broker. |
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In Colorado, who of the following is exempt from real estate license law? Property Manager renting single family homes for a variety of owners Investor who owns 12 investment properties and sells one to an owner-occupant. Inactive licensee assisting friends in filling out purchase offers and negotiating deals. Attorney at law collecting a five percent commission for helping |
A: Investor who owns 12 investment properties and sells one to an owner-occupant. |
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If a Colorado real estate licensee's license is revoked, his employing broker's license if implicated is: automatically revoked automatically suspended not suspended or revoked until a hearing is held |
A: not suspended or revoked until a hearing is held Licenses are never automatically revoked or suspended without a hearing. |
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When a licensee misrepresents facts in property sales, they are subject to which action? Paying a fine to the county in which the misrepresentation occurred Immediately having their license suspended by the Real Estate Commission Having a hearing before the Real Estate Commission Immediately having their license revoked by the Real Estate Commission |
A: Having a hearing before the Real Estate Commission A licensee is always under the jurisdiction of the real estate commission. Acts of fraud may also require a broker to appear in civil or criminal court. |
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As to the preparation of legal documents at closing: the licensee bears the cost for the preparation of all legal documents including those prepared by the Sellers or Buyers attorney the licensee may charge the Seller or Buyer for the cost of preparation the licensee bears the cost for the preparation of legal documents except those prepared by the Seller''s or Buyer''s attorney |
A: the licensee bears the cost for the preparation of legal documents except those prepared by the Seller''s or Buyer''s attorney E-37. No fees to licensee/agent for legal document preparationThere is no obligation for a licensee to prepare any legal documents as part of a real estate transaction. However, if a licensee or the licensee’s agent (editors note: the Closing Agent is engaged by a licensee and is thus a licensee's agent) prepares any legal document, the licensee or the licensee’s agent may not charge a separate fee for preparation of such documents. A licensee shall not be responsible for fees charged for the preparation of legal documents where they are prepared by an attorney representing the purchaser or seller. Costs of closing not related to preparation of legal documents may be paid by the licensee or by any other person. A broker who closes transactions and charges separately for costs of closing not related to the preparation of legal documents must specify the costs and obtain the written consent of the parties to be charged |
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A licensee, who is guilty of an act that is grounds for disciplinary action, may: be subject to criminal prosecution have his/her license suspended or revoked be subject to civil prosecution all of the above |
A: all of the above The real estate commission may suspend or revoke a license. Brokers may also be subjected to criminal prosecutions as a result of certain criminal acts. |
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What license is required to deal in real estate options? Option license None needed Dealer’s license Real estate broker's license |
A: Real estate broker's license A real estate license is required to sell, lease list, or dealer real estate options. There is no such thing as an option license. |
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When a complaint against a licensee results in a possible suspension or revocation, a hearing is required. Which of the following presides over the hearing? Attorney general An administrative law judge The director of the Real Estate Commission An arbitration committee established by the Real Estate Commission |
A: An administrative law judge An administrative law judge presides over all hearings by the real estate commission. Colorado Real Estate Manual statute 12-61-114. |
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The Colorado Real Estate Commission was formed to: standardize testing uniform forms regulate licenses protect the public |
A: protect the public a, b & c are all elements of the Commission’s duties but "Protect The Public" is the reason for their existance |
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Those exempted from the obtaining a real estate license are: any person who purchases property or a business opportunity for his own account or in any way disposes of the same any authorized attorney in fact or attorney at law while acting in that capacity any escrow agent, receiver, trustee in bankruptcy, executor, administrator, guardian, or any person acting under a court order all of the above |
A: all of the above A license is required when an individual receives compensation for the sale of property for others. |
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How many credit hours of Continuing Education classes does an Associate Broker need to renew his/her license? 24 hours of elective class credit 24 hours of mandatory class credit 12 hours of elective class credit and 12 hours of mandatory class credit 4 hours of mandatory class credits and 20 hours of elective class credit |
A: 12 hours of elective class credit and 12 hours of mandatory class credit Renewal requires twenty-four hours of education credit, twelve of which shall be the credits developed by the real estate commission. A licensee can also satisfy all educational requirements by retaking the Colorado portion of the real estate exam. |
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The quarterly interest on a loan is $1,135 and the interest rate is 7.5%. What is the principal of the loan 15000 4540 60533 180000 |
A: 60533 $1,135 X 4 = $4,540 (Annual Interest) / .075 = $60,533 |
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Does the Real Estate Commission provide address and contact information for licensees to the public? Yes No |
A: Yes |
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In Colorado, all of the following would be required to obtain a real estate license except: a time share salesperson a resident property manager who is an employee of a building owner a property manager managing properties for multiple owners a commercial real estate broker |
A: a resident property manager who is an employee of a building owner A rental referral agent is not required to have a real estate license. The other three are required to have a license. |
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What can the Real Estate Commission do with a broker’s license after one of his licensees has had his license revoked or suspended? The brokers license is automatically suspended until a hearing can be held There must first be a hearing to determine if the broker had knowledge, or did not properly supervise the associate broker prior to suspension or revocation of his license The broker’s license is immediately revoked Nothing can be done to the employing broker |
A: There must first be a hearing to determine if the broker had knowledge, or did not properly supervise the associate broker prior to suspension or revocation of his license Should there be a question of improper supervision on the part of the employing broker then the real state commission would have to hold a hearing before any disciplinary action could be taken. |
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An ad in the newspaper must appear under the name of: the branch office the brokerage firm the listing licensee none of the above |
A: the brokerage firm All advertising must contain the name of the brokerage firm. |
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In Colorado, all of the following topics are regulated by Real Estate License Law or Real Estate Commission Rules except: qualifications of licensure record keeping ethical standards Commission-approved contracts |
A: ethical standards The real estate commission enforces laws, approves contracts and approves license applications. The National Association of Realtors (NAR) regulates ethics. |
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A Colorado broker may pay a part or all of his commission to any of the following except: a state licensed appraiser his own licensee another Colorado broker an out-of-state broker who is licensed in his own state |
A: a state licensed appraiser Brokers may pay their own agents or other principal Brokers in any state. |
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What is the purpose of the real estate commission in Colorado? to provide mediation in disputes between brokers and Colorado residents to protect the public to assure that licensees collect commissions in accordance with the law to provide legal assistance to the public regarding real estate transactions |
A: to protect the public The function of the real estate commission is to protect the public. This is done chiefly by licensing brokers, enforcing the licensing law through rules, forms, and disciplinary proceedings. Licencee's are not considered "public" therefore the commission does not get involved in disputes between licensee's in matters such as commission disagreements. |
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With regard to Colorado real estate licensees: If an associate broker uses her home as her office, her license should be in her home. An associate broker’s license should be in his/her broker’s office. It must be in the county in which they live Cannot sell property unless they have a county real estate license |
A: An associate broker’s license should be in his/her broker’s office. An associate broker's license must always be in his/her broker's office. |
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If an employing broker moves his place of business without advising the Real Estate Commission: His license is inactivated but not licensees working for him His license and all associate brokers working for him are inactivated The licenses of all associate brokers under him are inactivated |
A: His license and all associate brokers working for him are inactivated We have various questions floating around related to what happens when a broker fails to notify the real estate commission of a business address change. Any licensee who does not notify the Commission of an address change will have their license inactivated. When the licensee is also the mama or poppa bear of the office (the employing broker) the penalty goes up. Since an employing broker with an inactive license cannot have licensees reporting to him/her AND a licensee who is not independent cannot have an active licensee without reporting to an employing broker - the effect is catastrophic. Everybody's license in the office is inactive. Here are the applicable statues: From chapter in real estate manual on License Law § 12-61-109, C.R.S. Change of license status – inactive – cancellation. (1) Immediate notice shall be given in a manner acceptable to the commission by each licensee of any change of business location or employment. A change of business address or employment without notification to the commission shall automatically inactivate the licensee’s license. § 12-61-110, C.R.S (5) The suspension, expiration, or revocation of a real estate broker’s license shall automatically inactivate every real estate broker’s license where the holder of such license is shown in the commission records to be in the employ of the broker whose license has expired or has been suspended or revoked pending notification to the commission by the employed licensee of a change of employment. |
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In Colorado, commissions for real estate transactions are set by: The Colorado Real Estate Commission Law Local boards of realtors Each brokerage firm |
A: Each brokerage firm Each brokerage firm sets its own commission structure parameters or else it could be construed as price fixing and a violation of Sherman Antitrust Laws. |
