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30 Cards in this Set
- Front
- Back
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Broker A is a sole proprietor. He quits business and goes to work under Broker B. Whose responsibility is it to keep Broker A’s previous records? Broker A Broker B Real Estate Commission None of the above |
A: Broker A A real estate broker is required to keep records (for the Commission) for 4 years. |
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What is the maximum fine that the Real Estate Commission can impose for a violation of commission rules? $2,500 plus punitive damages 2500 No fine only license suspension or revocation $3,500 plus punitive damages |
A: 2500 The maximum administrative fine is $2,500. This can only be assessed after a hearing by an appointed administrative law judge. |
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According to Colorado license law, which of the following is correct with regard to the terms, "employing broker" and "employed licensee?" supervisory duties of brokers apply only to employees and not to associate brokers who are independent contractors employed licensees cannot be independent contractors under the rules of the IRS the employing broker has specific supervisory requirements for all employed licensees employed licensees must be offered a minimum salary and benefits |
A: the employing broker has specific supervisory requirements for all employed licensees Rules E-30, E-31, and E-32 apply to supervision of all employed licensees in Colorado. Thus, the employing broker has specific supervisory requirements for all employed licensees. |
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A Colorado broker with residence out of state accepts an earnest money deposit on a property located in Colorado. He needs to: open an escrow account in a Colorado bank have a Colorado office open to the public open an escrow account in his state of residence have an active license in his home state. |
A: open an escrow account in a Colorado bank A non-resident broker is required to open a trust account in a recognized Colorado depository when taking money belonging to others that pertain to properties in Colorado. |
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When an employing broker changes the primary business address, all of the licenses of employed licensees must be sent to the commission for reissue at the correct address. this change will be noted at the next license renewal cycle. each employed licensee must notify the commission of the change. the broker must notify the commission in a manner acceptable to the commission, or the brokerage license will become inactive. |
A: the broker must notify the commission in a manner acceptable to the commission, or the brokerage license will become inactive. The broker must notify the commission in a manner acceptable to the commission, or the brokerage license will become inactive.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. |
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If a broker lends money to a client and places it in his trust account: he may withdraw it only with the consent of his client since it is his money, he may withdraw it as he wishes the client may withdraw it at any time the broker may only withdraw it with the consent of the real estate commission |
A: he may withdraw it only with the consent of his client Once a broker makes a loan to a client, it becomes the property of the client and must be handled the same as any other trust money. |
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According to the Real Estate License Law, a transaction and trust account record must be kept for a minimum of how many years? 1 2 3 4 |
A: 4 The real estate commission requires all records to be kept for four years. |
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Which of the following is required for a person to be a broker of record for a corporation? a corporate position as a director with voting rights an executive position with the corporation such as president or chief executive officer a valid active Colorado broker's license more than nominal ownership in the corporation |
A: a valid active Colorado broker's license The only requirement in order to be the broker of record for a corporation is that one have a valid, active Colorado broker's license, and have fulfilled the necessary requirements to be an Independent Broker. |
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When the license of the sole proprietor is suspended for two years, what is the effect on the affiliated associate brokers? Affiliates' licenses will also be suspended for a two-year period. Affiliates' licenses will be revoked, subject to reinstatement after one year. Suspension of the proprietor has no effect on the affiliates' licenses. Affiliates licenses are inactive until they are hired by a new employing broker. |
A: Affiliates licenses are inactive until they are hired by a new employing broker. If the broker's license is suspended, the licenses of all associate brokers will be placed on inactive status until these persons are "hired" by a new broker. |
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A broker purchases software for contract printing. If there is an error in the contract wording: the Software Company is legally liable for any errors in the package the broker is liable for the contract’s accuracy the Software Company must be on the Real Estate Commission’s "approved" list of preparers he must send it to his attorney for review before using the software |
A: the broker is liable for the contract’s accuracy A broker is ultimately responsible for the accuracy of all contracts and closings, unless legal counsel of one of the parties to the transaction prepares them. |
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Tina Dooley, a salesperson, ordered this listing in the real estate section of the local phone directory: Tina Dooley, Real Estate Salesperson, Residential Property My Specialty." What additional information must be included? her street address her license number the expiration date of her license the name of her employing broker |
A: the name of her employing broker All advertising must include the employing broker's name. |
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What if anything must an associate broker include in his/her Web site advertising? Name of the brokerage firm that holds the associate broker's license Names of all licensees in the broker's office which the associate broker works The brokerage firms home office that holds the associate's license There is no need for additional disclosures |
A: Name of the brokerage firm that holds the associate broker's license All advertising by an associate broker must include the identity of the brokerage firm that holds the associate's license |
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An associate broker has developed a web site. What must he or she include on the site? name of the home office of the company that holds the salesperson's license and a list of states in which company is licensed name and location of the brokerage company that holds the associate's license names of all licensees in the broker's office and the states in which they are licensed license number of the brokerage and a list of current active licensees |
A: name and location of the brokerage company that holds the associate's license All advertising by an employed licensee must include the identity of the brokerage that holds the associate's license. This also applies to internet advertising. |
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A broker is entitled to pay commission to: a licensee in another state without knowledge of his/her employing broker a licensed real estate appraiser a licensed broker in another state, provided payment is made as a part of a cooperating sale a mortgage banker who helped obtain a loan |
A: a licensed broker in another state, provided payment is made as a part of a cooperating sale A real estate broker may pay his own agents or other employing brokers in any state, in connection with a real estate transaction. |
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According to the Colorado Licensing Law, in order for a non-resident to become a broker: he must meet Colorado licensing law only he must be involved in real estate in his home state he must be 21 and have been involved in real estate for two years he must be a broker from his home state and pass Colorado licensing laws, but need not open an office in Colorado |
A: he must be a broker from his home state and pass Colorado licensing laws, but need not open an office in Colorado The minimum age requirement for a license in Colorado is 18. In order to obtain a non-residential license an applicant must be a broker in his own state and comply with Colorado licensing laws. It is not necessary to have an office in Colorado but a Colorado trust account is necessary the minute he receives any money from a client in Colorado. |
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A broker may deposit her personal funds in her trust account in which of the following situations? When a minimum amount is required by the bank to maintain the account Whenever she wants to -- it is withdrawals that are not allowed If an earnest money check bounces to cover the check When she had to use the escrow to pay her rent and she is putting the money back |
A: When a minimum amount is required by the bank to maintain the account Brokers may only deposit enough money in a trust account to maintain the minimum required balance. |
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A licensee may accept compensation from: The licensee’s employing broker only The seller or buyer Any licensed real estate broker Any service provider to the transaction |
A: The licensee’s employing broker only A licensee can only accept compensation from his employing broker. |
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Deposit money received by a licensee is turned over to the: seller of the property Real Estate Commission broker to deposit in his trust fund seller’s attorney |
A: broker to deposit in his trust fund All earnest money must be deposited in the employing brokers trust account within three business days after acceptance of the contract, unless the buyer and seller instructed the broker, in writing, to do something different. |
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Which of the following is true when an employing broker changes the primary business address? the broker must notify the commission in a manner acceptable to the commission or the license will become inactive each employed licensee must notify the commission of the change the change may be noted at the next license renewal cycle all licenses of employees must be sent to the commission for reissue |
A: the broker must notify the commission in a manner acceptable to the commission or the license will become inactive The employing broker must notify the commission of the address change in writing or all licenses will be inactive until the change is made. One notification will suffice for the broker and all associated licensees. 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. |
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How are real estate commissions determined in Colorado? set by the real estate commission set by law determined by local brokers negotiable between the broker and the seller or buyer |
A: negotiable between the broker and the seller or buyer Commissions are always negotiable between the principal and the agent, that is between the seller or buyer and the broker |
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When a broker terminates his affiliation with an employing broker what must be done? All business cards must be returned to the employing broker The broker's license along with a letter of termination must be send to the real estate commission The broker must give the employing broker and official letter of termination that he or she can send to the real estate commission The broker and the employing broker have joint responsibility to assure that the real estate commission is notified. |
A: The broker and the employing broker have joint responsibility to assure that the real estate commission is notified. The licensee and the employing broker have joint responsibility in notifying the real estate commission. |
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The commissioners are selected in the following way: Popular vote Appointed by the real estate director Appointed by the governor They volunteer |
A: Appointed by the governor The real estate commissioners are appointed by and serve at the pleasure of governor. |
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What if anything is required by the broker to be included on his/her Web site. License number of the brokerage and a list of all current active licensees Names of active licensees, addresses, and telephone numbers Address of the brokerage's home office and states in which the brokerage holds licenses Name of licensee's brokerage firm |
A: Name of licensee's brokerage firm Commission rules regarding advertising of brokerage identity all apply to any Web site or Internet advertising. Brokerage name must appear on web site. |
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If a licensee fails to complete the continuing education requirements by the renewal date: the license is placed on inactive status the license is canceled the license is renewed for one 30-day grace period the Commission will review each case individually |
A: the license is placed on inactive status A real estate license will not be renewed if continuing education requirements are not met; the license would be placed on inactive status. |
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A trust account maintained by a licensed broker in Colorado must have all of the following except: be located in the state of Colorado have a regular specified minimum balance designate the broker as trustee be the subject of a record showing deposits and withdrawals |
A: have a regular specified minimum balance Trust accounts must be in Colorado, name the broker as owner of the accounts and be reconciled monthly |
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A broker’s record-keeping system for his trust account(s) must include the following: a trust account ledger a trust account journal a monthly bank reconciliation worksheet all of the above |
A: all of the above A trust account ledger and journal must be kept current at all times and the account must be reconciled monthly with the bank statement. |
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If an owner refuses to pay a broker an earned commission, the broker may properly seek relief by: filing a mechanics lien bringing a formal complaint with the division of real estate bringing a court action bringing a quiet title action against the seller |
A: bringing a court action An employing broker may sue a seller or buyer for commission pursuant to an exclusive right contract. |
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Judy Moore, is a licensee in the employ of ABC Real Estate, she may advertise her listing as: For sale, 4 bedrooms, 2 baths. Close to Schools. Call Judy 555-6543 Home for Sale. Suburban location. Contact Judy, ABC Real Estate 303-555-5555 Home for Sale. Suburban location. Near Catholic schools. Contact Judy, ABC Real Estate 303-555-5555 For sale, 4 bedrooms, 2 baths. Married Couple Only. Contact Judy, ABC Real Estate 303-555-5555 |
A: Home for Sale. Suburban location. Contact Judy, ABC Real Estate 303-555-5555 An ad that does not indicate that the property is offered by a broker and not an owner, is called a blind ad. Religion and marital status are protected classes. |
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Who of the following is required to obtain errors and omissions professional liability insurance? the employing broker only every active Colorado licensee active and inactive Colorado licensees resident Colorado brokers only |
A: every active Colorado licensee Errors and omissions insurance coverage is required for every active Colorado licensee. Inactive licensees are not required to carry this insurance, however, they cannot conduct any real estate activities either |
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If an employing broker leaves a real estate brokerage, what happens to the transaction records? the brokerage retains the records as the company is responsible for maintenance of records the departing broker is personally responsible for delivering all such records to to his/her new brokerage all funds in escrow must be returned to the rightful parties before being re-deposited with the new brokerage. the real estate brokerage can dispose of all records acquired while the former employing broker worked for the company |
A: the brokerage retains the records as the company is responsible for maintenance of records Employing brokers are often salaried employees, they are not always the owner of a brokerage. Just like any company, if an employee leaves a brokerage s/he does not get to take records. The brokerage has legal respsonsibility for all transaction records and must keep them for at least 4 years. The only time an employing broker would be responsible for record retention would be if the company is shutting down. |
