CONTRACTS AND REGULATIONS 2
To renew an active Colorado real estate license, what continuing education is required of the licensee? 24 hours of continuing education and successful completion of the Colorado portion of the state licensing exam 8 hours of mandatory continuing education taken within the last three years 24 hours of approved continuing education, of which 12 hrs must consist of the 4 hour Annual Commission Update Course taken each year 24 hours of additional education from any source
24 hours of approved continuing education, of which 12 hrs must consist of the 4 hour Annual Commission Update Course taken each year
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
2500 The maximum administrative fine is $2,500. This can only be assessed after a hearing by an appointed administrative law judge.
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
4
An applicant for a Colorado real estate license who has been licensed in any other state must file which of the following proofs of that licensure? Photocopy of her license from that state Letter from the last employing broker A certificate of licensing history from the other state's real estate licensing authority
A certificate of licensing history from the other state's real estate licensing authority A certificate of licensing history that indicates the licensee's current status. Any complaints and disciplinary actions taken against the individual must accompany an application for a real estate license in a new state.
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
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.
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
Broker A
When the employing broker of a corporate brokerage is suddenly unable to continue in that position, to whom may the commission issue a temporary "hardship" license? person with sufficient ownership interest in the corporation Colorado licensee approved by the corporate board of directors member of the board of directors officer or director with a broker's license from another state
Colorado licensee approved by the corporate board of directors
A resident Colorado broker's office must: Be in a commercial office building to comply with zoning Be a virtual office doing business by phone and using a post office box mailing address Have a physical address in Colorado where the commission staff can inspect records
Have a physical address in Colorado where the commission staff can inspect records
Cindy is an associate broker who received a thank you letter and nice bonus check from the seller of a house several weeks after the closing. Cindy cashed the check because she felt she earned it. Which of the following is true in this situation? Cindy may accept the bonus check because she is licensed as an associate broker Cindy is allowed to accept the money if 30 days have elapsed since the closing It is a violation of commission regulations to accept the money Cindy may accept the money if her broker permits her to do so
It is a violation of commission regulations to accept the money Cindy acted improperly by cashing the check. It is a violation of commission regulations to accept the money. She may only be paid by her employing broker.
What is the status of an employing broker who moves his office down the street but does not notify the Real Estate Commission? The broker must notify the Real Estate Commission within 30 days The broker's license is revoked The broker and all of his agents' licenses are inactive The broker's license is suspended but all of the employed agents may continue to conduct business
The broker and all of his agents' licenses are inactive
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
The licensee's employing broker only
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
When a minimum amount is required by the bank to maintain the account
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 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.
When a real estate entity is dissolved: the last employing broker becomes personally responsible for making all final disbursements and accounting for all trust funds the last employing broker must maintain all records for a period of four years the agent's licenses are inactive until they join another real estate entity all of the above
all of the above All agents have to join another company, and the responsibility of the employing broker is to maintain the records for four years and is responsible for all final disbursements.
If an owner refuses to pay a broker an earned commission, the broker may properly seek relief by: filing a mechanic's lien bringing a formal complaint with the division of real estate bringing a court action bringing a quiet title action against the seller
bringing a court action An employing broker may sue a seller or buyer for commission pursuant to an exclusive right contract.
When employing broker A sells his company to broker B: broker A is responsible for retention of all records prior to sale broker B is responsible for retention of all records before and after sale broker A is only responsible for records of transactions not completed broker A is only responsible for their personal transactions
broker A is responsible for retention of all records prior to sale Broker selling company is responsible for retention of all transaction records that occurred prior to the sale of the company.
A real estate broker sold property on Friday morning and received a $2,000 deposit in cash. Afraid to carry the money, he quickly deposited it into his own account in a nearby branch of his bank. This is clearly an example of: judicious caution conversion commingling cohabitation
commingling Commingling is mixing the broker's money with that of his clients. Conversion occurs when a broker spends any of this money, or withdraws any of this money.
A broker received an earnest money deposit. Other than depositing it in an escrow account, he may: do whatever the buyer wants him to do do whatever the seller wants him to do do whatever he wants to do because he is responsible for the money until closing do whatever is agreed to by the seller and buyer
do whatever is agreed to by the seller and buyer
In Colorado, when must real estate licenses be renewed? every three years with expiration on December 31 of the third year every three years on the anniversary date of first being licensed, or any date mandated by the CREC each year at the anniversary of licensing every three years if the licensee passes the state examination
every three years on the anniversary date of first being licensed, or any date mandated by the CREC
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
have a regular specified minimum balance
Unclaimed funds held in escrow after five years: may be used by the broker for the annual office party must be reported and remitted to the state treasurer should be invested in real estate investment trusts should be kept indefinitely
must be reported and remitted to the state treasurer Must be remitted to state treasurer after five years. These funds do not belong to the Broker.
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
negotiable between the broker and the seller or buyer
If a licensee negotiates a sale of real estate on behalf of a seller while her license is inactive, she may receive a commission from: her employing broker the seller her principal none of the above
none of the above
You competed for and won a listing contract by offering a considerably reduced commission. In order to recoup some of your normal fee, you charge for each contract document that you prepare. Your seller agrees to this arrangement. It is: perfectly all right, so long as you use approved forms not allowable all right, so long as the seller's attorney prepares the forms anything that you and the seller agree upon in writing is allowable
not allowable It is illegal for a broker to charge a fee for the preparation of legal documents; a broker must even pay the Title Company for preparing the warranty deed, and the bill of sale, as the seller cannot be charged for the preparation of legal documents.
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
open an escrow account in a Colorado bank
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
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.
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
the broker must notify the commission in a manner acceptable to the commission, or the brokerage license will become inactive
If an employing broker leaves a real estate brokerage, what happens to the transaction records? the brokerage retains the records as the company is responsibile 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
the brokerage retains the records as the company is responsibile 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 repsonsibility 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.
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
the employing broker has specific supervisory requirements for all employed licensee
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 Seller's or Buyer's 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 the licensee does not pay for the preparation of legal documents
the licensee bears the cost for the preparation of legal documents except those prepared by the Seller's or Buyer's attorney