Contracts

What's a sub-agent? A licensee who doesn't represent a party to the transaction, but assists a party in certain aspects of the transaction A licensee who represents both parties in the same transaction A licensee who's selected by the employing broker to act as either a single agent or transaction-broker to a party A licensee who works under another an agent from another firm, with the principal's permission to perform some of the acts of agency

A licensee who works under another an agent from another firm, with the principal's permission to perform some of the acts of agency

If a licensee will profit from a real estate transaction beyond the amount stated in the listing contract, from whom must the licensee obtain written consent? Both the principal and the broker The cooperating broker The employing broker The principal

Both the principal and the broker

A conservator may act in this role. General agent Special agent Universal agent

Universal agent

This type of agent may hold a broad power of attorney. General agent Special agent Universal agent

Universal agent

In Colorado, when do brokerage relationship disclosures need to be provided? After a consumer has entered into an agency relationship At closing Upon initial contact or before engaging in brokerage activities Upon termination of an agency agreement

Upon initial contact or before engaging in brokerage activities

If disciplinary actions are levied against a licensee, what's one alternative to an administrative hearing? Giving public apologies Paying legal fees and fines Performing community service Using the expedited settlement program

Using the expedited settlement program

When an estimate of value is being prepared by a real estate licensee, the licensee must ___________________. Clearly differentiate the estimate of value from an appraisal Refer to the estimate of value as an appraisal Tell the client that he or she is an appraiser Use the estimate of value to secure financing

Clearly differentiate the estimate of value from an appraisal

Which entity creates regulations governing real estate activities in Colorado? Colorado Real Estate Commission Department of Commerce Department of State Public Utility Commission

Colorado Real Estate Commission

Which documents offer commission clarification of an existing rule? Commission case interpretations Commission position statements Commission rule details Rulemaking interpretations

Commission position statements

If you're looking for guidance on a particular real estate related law, where would the best place be to look for more information? Broker blogs Commission rules State congressional records The annotated statutes

Commission rules

April is a Colorado broker who has a new listing with Marvin, a seller. April's employing broker is Steve, and Steve's firm is called Elite Realty. Two weeks into the listing, Marvin gets an offer from David, a buyer. Who are the parties to the employment contract in this case? April and Steve David and Marvin Elite Realty and Marvin Steve and Marvin

Elite Realty and Marvin: In Colorado, employment contracts that establish the agent-client relationship are between the principal and the brokerage firm, not an individual licensee or the employing broker. Elite Realty is the other party

What do licensees have to do after obtaining errors and omissions coverage? Add the policy number to their broker advertising. Arrange for automatic renewal of coverage. Display their coverage certificates at their brokerage office. File proof of coverage with the Real Estate Division.

File proof of coverage with the Real Estate Division.

How many members make up the Colorado Real Estate Commission? Five Nine Seven Three

Five

Janet's been a real estate broker for 12 years, but circumstances currently prevent her from continuing to work. She expects to return to real estate eventually, but in the meantime, she asks the real estate commission to make her license inactive. Which of these actions will she need to take as a result? Advertise only those properties she currently has listed and not under contract, until the listing terminates. Allow her current real estate advertisements to continue for 30 days, at which time all advertising must cease. Include a notice of "broker inactivity" in all her real estate advertisements. Stop all her real estate advertising immediately.

Stop all her real estate advertising immediately.

The Division of Real Estate enforces licensing law for real estate brokers, appraisers, mortgage loan originators, and what other professional group? General contractors Home inspectors Landscape architects Subdivision developers

Subdivision developers

Licensees should obtain no less than how much errors and omissions coverage per claim? $100,000 $25,000 $50,000 $75,000

$100,000

What's considered a kickback according to the Real Estate Settlement Procedures Act? Any fee paid for actual services rendered Any item of value received in return for referring business to a settlement service provider Educational material provided without receiving a referral in exchange The broker's commission

Any item of value received in return for referring business to a settlement service provider

A Colorado licensee cooperated with a licensee who lives and has an office out of state. All activities were performed in the Colorado broker's name. What else is required for compensation to be paid to the out-of-state licensee? Any money collected prior to closing was deposited in an account in the name of the Colorado broker. Any money collected prior to closing was deposited in an account in the name of the out-of-state broker. No money was collected prior to closing. There are no other requirements.

Any money collected prior to closing was deposited in an account in the name of the Colorado broker.

Trish is filling in the blanks on the Exclusive Right-to-Sell form to establish an agency relationship with seller Deanna. Deanna's a bit overwhelmed by the multiple pages of tiny print, and asks, "Can't we just do something simpler? Why does it have to be so complicated?" What's the best response for Trish to give her? "I can ask my employing broker to give us a shorter version of this form. As long as it comes from her, it will be okay. Whatever I can do to make this process easier for you!" "If you prefer, we can make our agreement oral. It's still legal that way under Colorado law." "It is really long, but my employing broker requires it in the office policy manual. If it was up to me, we'd use something far simpler!" "This is a standard form we're required to use, and that's to protect you. It's long because it was written to limit the potential for any misunderstandings between us."

"This is a standard form we're required to use, and that's to protect you. It's long because it was written to limit the potential for any misunderstandings between us."

Myrtle is newly licensed and is eager to be the best broker ever. She knows she's supposed to renew her license every three years, and that she has to complete a certain amount of continuing education. She's a little confused about that part and asks her employing broker what she should do. What should her employing broker tell her? "You can choose from four options, but doing the Annual Commission Update course plus 12 hours of electives is the preferred one." "You can do four hours annually, which meets the requirement with only 12 hours of CE each cycle." "You can retake any of the pre-licensing courses over again, as long as you've got at least 24 hours of CE at the end of the three-year cycle." "You can take the 24-hour Broker Reactivation course every year, or you can retake and pass the state portion of the licensing exam."

"You can choose from four options, but doing the Annual Commission Update course plus 12 hours of electives is the preferred one."

How far before errors and omissions insurance premiums are due will the Real Estate Division notify licensees about the required terms and conditions of their policy? 30 days 60 days Six months Three months

30 days

You've been a licensed real estate salesperson in another state for a little more than a year. How many hours of education must you complete to be eligible for Colorado licensure? 120 168 72 84

120

Melissa is studying her options for completing continuing education so she can renew her license at the end of the three-year cycle. She's torn between the option to get credit hours and the option to just pass the state portion of the exam (she loves taking tests). Finally, she decides to go for the commission's recommended choice. How many hours of CE will she need to complete? 12 24 48 72

24

Saul is a Colorado broker. Assuming each of these situations results in a transaction that meets the definition of federally-related, which of these payments to others would be illegal for him to make? A $100 gift card to former client Ana, who told him that her neighbor was looking for someone to help her sell her home. A $200 finder's fee to home inspector Pam, who gave Saul's name to the Delfords, who subsequently signed on as his clients. A $300 finder's fee to fellow broker Dan, who's got a vacation planned and who therefore recommends Saul to a prospective client. Five hundred dollars to Saul's mother-in-law, who sends her co-worker Missy to him as a potential client. Saul successfully acts as both listing agent and buyer's agent for Missy.

A $200 finder's fee to home inspector Pam, who gave Saul's name to the Delfords, who subsequently signed on as his clients.

Which of these actions would NOT lead to disciplinary action from the Colorado Real Estate Commission? A broker convinces a consumer to break an existing listing agreement and sign with her instead. A broker fails to follow her brokerage's safety policies, which are part of her firm's office policy manual. A broker fails to properly handle trust funds from a client. A licensee uses discriminatory language in her marketing materials in an effort to target a specific audience.

A broker fails to follow her brokerage's safety policies, which are part of her firm's office policy manual.

Aiden is an associate broker in Colorado. He recently helped a seller client close on a real estate transaction. Which of the following would be illegal for him to receive as part of this transaction? A cash gift from the seller, thanking him for negotiating on his behalf An email from the buyer's agent, saying it's been a pleasure A thank you card from his client for being such a great agent Verbal acknowledgement from his broker for doing a good job

A cash gift from the seller, thanking him for negotiating on his behalf

"Someone who has agency representation with the real estate salesperson or broker" is the definition of ________. A client A consumer A customer A fiduciary

A client

Which of the following defines a developer under the Subdivision Developer's Act? A city or county that permits the development of a subdivision A person or partnership promoting the sale of a subdivision A person responsible for listing and marketing condominiums A real estate licensee promoting the sale of a subdivision

A person or partnership promoting the sale of a subdivision

In what way or ways do consumers compensate brokers for their services? As a fee for service only As a flat fee, fee for service, and/or percentage of sale As a flat fee only As a percentage of the sales price only

As a flat fee, fee for service, and/or percentage of sale

At any multiple-person brokerage where you work, the employing broker has certain CRECmandated responsibilities. Which of these is NOT a responsibility of the employing broker? Attend closings for all transactions represented by a broker of the firm. Maintain all transaction records. Provide a reasonable level of supervision for experienced licensees. Provide a reasonable level of supervision to all offices the broker operates.

Attend closings for all transactions represented by a broker of the firm.

How often does the Colorado Real Estate Commission meet? Bi-annually Bi-monthly Monthly Quarterly

Bi-monthly

As of 2021, what's the date by which Colorado real estate brokers must renew their licenses? December 31 January 1 June 30 License anniversary date

December 31

You're an associate broker with two current clients. If you have a sudden illness and ask the commission to make your license inactive for a time, which of these is an action your employing broker must take? Designate another broker to represent your clients. Hold all of your commissions. Provide you with copies of all transactional records. Return any trust funds for your current transactions.

Designate another broker to represent your clients.

Brokerage firms often employ large numbers of licensees. What CREC-required action helps a brokerage ensure that all associates represent the firm consistently, understand the firm's procedures, and follow federal and state laws when practicing real estate? A specified hiring process that ensures employees are honest and know how to follow license law Development of an office policy manual covering a mandated set of topics, reviewed periodically with all workers Regular oversight and mentorship for all associates from an experienced employing broker Weekly sales meetings to reiterate the behaviors required of all associates

Development of an office policy manual covering a mandated set of topics, reviewed periodically with all workers

Ron's a part-time broker who discovers that the lockbox he placed on the door of his listing has been broken into. Pilar is a busy broker, with so much on her plate that she mistakenly forgets a key detail in one of her transactions, costing her client money. Natalie is struggling to make money as a broker, but manages to complete a transaction only by being a little vague about some of the property's issues. Will these problems be covered by the licensees' errors and omissions insurance? E&O will cover Natalie's situation, but not Ron's or Pilar's. E&O will cover Ron's and Pilar's situations, but not Natalie's. No, E&O insurance won't cover any of these situations. Yes, E&O insurance will cover all these situations

E&O will cover Ron's and Pilar's situations, but not Natalie's.

What's the chief function of licensing laws? Create career paths for real estate professionals Ensure that consumers are protected Generate funding for professional education and research Grow the economy through a pipeline of professionals

Ensure that consumers are protected

The brokerage firm where you're an associate includes several other licensees, some of whom have unlicensed assistants, and several administrative personnel. It all runs like clockwork under employing broker John. Which of the workers at the firm does John have the authority to control in order to ensure compliance with licensing statutes and rules? All licensed personnel, but not unlicensed employees or assistants Everyone, licensed or unlicensed Only licensed personnel with less than two years of experience Only unlicensed employees or assistants

Everyone, licensed or unlicensed

When a developer performs a bulk sale or transfer of a subdivision, it's ______________ under the Subdivision Developer's Act. Exempt Required to be registered Required to be renewed Unlawful

Exempt

What alternative to a formal hearing does CREC offer to licensees who are facing discipline after an investigation? Alternative dispute resolution Expedited settlement program Peer disciplinary review Voluntary probation

Expedited settlement program

Colorado brokerage records should be retained for how long? Four years One year Seven years Three years

Four years

Property managers generally serve in this role. General agent Special agent Universal agent

General agent

The person responsible for handling all dealings for a specific piece of client property. General agent Special agent Universal agent

General agent

You're discussing the rules promulgated by the Colorado Real Estate Commission with a group of licensees from various brokerages. Each broker seems to have a different opinion about the rules. Who do you think is correct? Danielle says, "We only need these rules if we don't have an employing broker. Employed brokers follow their office policy, which can be different than the rules." Greg says, "These are regulations that support and help us interpret what the license law says, and we're required to abide by them." Ruby says, "These are the laws that every real estate broker in the United States is required to follow." Seth says, "These are the ethical guidelines the commission would like us to follow."

Greg says, "These are regulations that support and help us interpret what the license law says, and we're required to abide by them."

You're discussing the rules promulgated by the Colorado Real Estate Commission with a group of licensees from various brokerages. Each broker seems to have a different opinion about the rules. Who do you think is correct? Danielle says, "We only need these rules if we don't have an employing broker. Employed brokers follow their office policy, which can be different than the rules." Greg says, "These are regulations that support and help us interpret what the license law says, and we're required to abide by them." Ruby says, "These are the laws that every real estate broker in the United States is required to follow." Seth says, "These are the ethical guidelines the commission would like us to follow."

Greg says, "These are regulations that support and help us interpret what the license law says, and we're required to abide by them."

The Colorado Real Estate Commission doesn't have any legal standing to intervene in ________. Complaints against licensees License law violations License renewals Payment disputes between brokers

Payment disputes between brokers

Hugh runs a successful brokerage, though it's one of several franchises of the national Super National Homes chain of brokerages in his metro area. In order to take advantage of the national trademark's reputation in his advertisements, he's required to do what? Have permission from the trademark owner to use it, and include a specific statement in his advertising that the firm is independently owned and operated. Maintain a separate broker's license on behalf of the third-party company. Pay CREC an additional licensing fee for the rights to use the trademark publicly. Use the phrase "used with permission" wherever the trademark appears.

Have permission from the trademark owner to use it, and include a specific statement in his advertising that the firm is independently owned and operated.

Christian just received his Colorado real estate broker's license. Which of the following must be true? He received a perfect score on his licensing exam. He's always honest. He's always punctual. He's at least 18 years old.

He's at least 18 years old.

What's the purpose of regulations? Expand laws Help put laws into effect Limit laws Provide alternatives to laws

Help put laws into effect

This type of property is considered a subdivision in Colorado when there are 20 or more shares in the corporation. Condominium Housing cooperative Office building Timeshare

Housing cooperative: Interests in housing cooperatives are shares of a corporation, however when there are 20 or more shares offered within the property, it is considered a subdivision under the Subdivision Developer's Act

Your clients want you to host an open house next weekend but you'll be at your son's wedding. Is there a circumstance under which your unlicensed assistant Ava can host the open house? Ava can't legally host the open house. If the seller consents. If you're ill. If you're more than 250 miles away

If the seller consents.

Every broker licensed in Colorado must maintain an office ________. In the capital In the state, open to the public With a private conference room With office hours

In the state, open to the public

What statement must a brokerage use in its advertising if its trademark or trade name is owned by a third party? All rights reserved Independently owned and operated Registered trademark Used by explicit permission

Independently owned and operated

A brokerage can use a trade name in its print and web advertising, as long as the trade name ________. Doesn't use obscene or offensive language Is fewer than 220 characters Is first filed with the Colorado Real Estate Commission Isn't already taken by another company in Colorado

Is first filed with the Colorado Real Estate Commission

Which of the following statements is true of the Definitions of Working Relationships document? It describes how the commission oversees real estate licensees. It describes the relationship between the broker and licensee. It describes the relationships a consumer could have with a licensee. It's a legal, binding contract.

It describes the relationships a consumer could have with a licensee.

What must be done for a fee to be considered acceptable under RESPA? It can only be split 10% with the settlement service provider. It must adhere to the 80/20 rule. It must be disclosed to the client. It must only be between affiliated businesses.

It must be disclosed to the client.

Why would you not be able to accept tickets in exchange for referring business to a settlement service provider? All exchanges for referral business must be done with cash. If the tickets cost more than $150, you can't accept them. It would be considered a kickback. Tickets can't be evenly split between you and the service provider, so they can't be accepted.

It would be considered a kickback

What's true regarding a Colorado listing agent's compensation? It's based on the amount of time the listing agent put into marketing and closing. It's usually dependent on the sales price and agreement with the brokerage. The listing agent is paid directly by the buyer. The listing agent receives a standard 3% of the sales price.

It's usually dependent on the sales price and agreement with the brokerage.

Unlicensed consumers in Colorado may only perform real estate activities in certain situations. In which of these scenarios would the consumer need a real estate license? Jessie is searching for a new home for a friend moving into town. Jessie will be compensated 2% of the sale price for her time and effort. Mickey is selling his own home and isn't using the services of a listing agent. Peter is helping his sister, Kristen, find a new apartment. He will not be compensated in any way. Ronald is acting as executor of his uncle's estate, which includes selling the property his uncle owned.

Jessie is searching for a new home for a friend moving into town. Jessie will be compensated 2% of the sale price for her time and effort.

Where will you find official documentation about the licensing of real estate professionals? Codes of conduct Laws and regulations Ordinances Zoning codes

Laws and regulations

Sally's a first-time homebuyer. She's a little nervous about finding a good real estate agentshe's read about a lot of scams out there. Which of the following provides protection for consumers like Sally? Criminal courts License laws Real estate education providers The U.S. Constitution

License laws

If you had a question about referral fees, and your employing broker told you that you need to follow the guidance found in CP-2, what would you do? Call the Division of Real Estate's licensee hotline and ask for extension CP-2. Find page CP-2 in the brokerage policies and procedures manual and read it carefully. Locate CP-2 in the commission position statements and read it carefully. Review the Real Estate Broker License Law, Part 2, sub-paragraph CP-2, to determine the law related to referral fees.

Locate CP-2 in the commission position statements and read it carefully.

Which of these Colorado brokers is NOT required to maintain a place of business in the state? Fred, whose license is inactive. Jerry, who's an independent broker. Lynn, who's an out-of-state resident. Martha, who lives in a rural area of the state.

Lynn, who's an out-of-state resident.

All resident Colorado real estate licensees must ______. Hold an active license Join the National Association of REALTORS® Maintain a place of business in the state, open to the public Perform a minimum number of transactions each year

Maintain a place of business in the state, open to the public

Which of the following is considered a brokerage function in which payment of a referral fee can only be given to a licensed individual? Giving the name of a potential buyer to a seller's agent Negotiating the exchange of one property for another Offering the name of a potential seller to a listing agent Providing the name of a potential tenant to a landlord

Negotiating the exchange of one property for another

Which of the following is NOT considered an activity requiring a real estate license? Albert conducts weekly real estate auctions, and makes a good living at it. For a nominal fee, Tess shows a home for rent to a prospective tenant on behalf of the home's owner. Joan negotiates a lease on a new location for her place of work on behalf of her employer. Nick purchases a fixer-upper using a loan from his parents, puts some sweat-equity into it, and flips it.

Nick purchases a fixer-upper using a loan from his parents, puts some sweat-equity into it, and flips it.

George has been practicing as a real estate broker in California for the last 15 years. He decides to move his family to Colorado. Since he has so much experience already, can he automatically be licensed as an employing broker in Colorado? No, but he can automatically obtain an independent broker's license. No, he'll need to complete the same process and requirements as any other candidate for initial licensure in Colorado. No, he'll need to take a 24-hour brokerage administration course and pass the state portion of the licensing exam. Yes; his California broker's license automatically qualifies him for licensure as an employing broker in Colorado.

No, he'll need to take a 24-hour brokerage administration course and pass the state portion of the licensing exam.

Angela greets a consumer who walks into her office looking for real estate services. She reviews the Definitions of Working Relationships disclosure with the consumer, but when she asks the consumer to sign the form, he politely says, "No, thank you. I have a couple more licensees to talk to." What should Angela do? Alert other licensees in the area about the consumer. Note the date and consumer's refusal to sign and retain for her records. Refuse to let the consumer leave without a signature. Thank the consumer and put the unsigned form away.

Note the date and consumer's refusal to sign and retain for her records.

After you present a Definitions of Working Relationships disclosure, the consumer refuses to sign the document. What should you do? File a complaint with the real estate commission Note the date and consumer's refusal to sign and retain for your records Refer the consumer to another licensee Refuse to work with the consumer

Note the date and consumer's refusal to sign and retain for your records

How often must a developer register a subdivision of 20 or more interests with the Colorado Real Estate Commission? Each time an interest is sold, leased or transferred Once a year, by December 31 Once, in the year of development Twice a year, June 30 and December 31

Once a year, by December 31

Brian's been working as an independent broker for a few years. He and some friends decide to become business partners and incorporate as a brokerage. They plan to start relatively small, with just a few associated brokers, but their long-range plans include dominating the local market. How many qualified brokers must they designate to begin, and how many will they need to designate in order to maintain the organization's broker license when they expand? Each company officer must be a designated qualified broker, so it depends on how many officers the corporation has at any given time. One to begin, and another one for every 10 employed brokers in the organization One to begin, and still one after they expand Two to begin, and two more if they expand beyond 30 employed brokers in the organization

One to begin, and still one after they expand

The Division of Real Estate has responsibility for a number of functions. Which of these activities is NOT one of its responsibilities? Enforce license law for real estate brokers and the other professions the division oversees. Maintain a master electronic file of licensing status of brokers and brokerages. Manage the licensing of real estate brokers and the other professions the division oversees. Promulgate rules real estate licensees must follow in their professional practice.

Promulgate rules real estate licensees must follow in their professional practice.

The Colorado Real Estate Commission investigates possible violations of license law in order to ______. Protect the interests of the state Protect the public Protect the real estate industry Protect the rights of licensees

Protect the public

What's codified and often carries the force of law without being a law? Bill Position statement Regulation Statute

Regulation

What right was established by the Colorado Common Interest Ownership Act that enables homeowner associations to pursue homeowners who have unpaid assessments? Collection reporting rights Lockout rights Right to lien The right to impose fines

Right to lien: One of the key provisions of the CCIOA was that it established the right for homeowners' associations to place a lien on the homeowner's property.

Raoul, a Colorado broker, gets a call from his friend Sasha in Florida. Sasha tells him her cousin Dominic is moving his family to Colorado and is looking for a home to buy in Raoul's area, so she's given Dominic Raoul's name. A few months later, Raoul sends Sasha a commission after they close on Dominic's new house. Under what circumstances would this be legal? Colorado law makes this illegal under any circumstances. Sasha and Raoul had a referral agreement in place. Sasha did nothing more than provide Raoul with Dominic's name. Sasha is a licensed broker in Florida and maintains an office there.

Sasha is a licensed broker in Florida and maintains an office there.

What type of relationship with a seller does the Colorado Exclusive Right-to-Sell Listing Contract allow a licensee to establish without using an addendum? Exclusive buyer agency Exclusive seller agency Seller agency or transaction-brokerage Transaction brokerage

Seller agency or transaction-brokerage

Frieda received a notice from the Colorado Real Estate Commission that a complaint had been filed against her. After reading the complaint, Frieda could see it was baseless, so she didn't take the matter too seriously. She filed the notice away, figuring she'd give someone a call and get the matter straightened out when she had some free time. What could happen to Frieda? She could face disciplinary action from the commission. She may be found guilty of a misdemeanor. She may receive a call from an investigator at the Division of Real Estate. The matter may be referred to a civil court, rather than being investigated by the Division of Real Estate.

She could face disciplinary action from the commission.

CREC has asked licensee Millie to produce her records for a particular transaction that closed 18 months ago. Millie has searched frantically, but is unable to find all the requested documents by CREC's deadline. What's going to happen to Millie? Nothing; she's only required to maintain transactional records for one year. She may be disciplined by CREC for failure to submit the requested documents. She may be required by law to refund her commission to the seller in the transaction. She may face a jail sentence since this is a serious violation of license law and is considered a felony.

She may be disciplined by CREC for failure to submit the requested documents.

Most real estate transactions involving a buyer and seller deal with this type of agency. General agent Special agent Universal agent

Special agent

This type of agent acts as an intermediary but doesn't make decisions or enter into contracts on a client's behalf. General agent Special agent Universal agent

Special agent

Stacey, a buyer, is working with Rebecca, a licensee. Rebecca doesn't represent Stacey, however, and is performing only ministerial tasks for her. Which of these statements about this situation is correct? Rebecca can't work with Stacey without an agency agreement. Rebecca is acting in an agency capacity for Stacey. Stacey is Rebecca's client. Stacey is Rebecca's customer.

Stacey is Rebecca's customer.

At what level does real estate licensing take place? County Federal Municipal State

State

The directives of the Colorado Real Estate Commission are carried out by ________. An administrative law judge Chief commission clerk The Division of Real Estate director The Secretary of Commerce

The Division of Real Estate director

Who determines if the Division of Real Estate has jurisdiction over a submitted complaint? An administrative law judge An investigative supervisor The Division of Real Estate director The investigative staff

The investigative staff

The Colorado Real Estate Commission has investigated and determined that licensee Stan has committed a serious violation of license law. In order to revoke Stan's license, what must happen? All five members of the commission must agree to the revocation. Stan must have had his license previously suspended; revocation doesn't apply to a first offense. The majority of the commission must agree to the revocation. They must submit the decision for a public review and comment period before making it final.

The majority of the commission must agree to the revocation.

Happy Home Realty, Inc. is a newly licensed organizational broker in Colorado. The corporation is headed by Neil, Carey, and Randa. Neil and Randa are both licensed brokers with years of real estate experience, but Carey is a business administrator. Which of these is one of the requirements Happy Home Realty had to meet in order to become licensed? All company officers (Neil, Carey, and Randa) must be licensed brokers. All of the organization's licensed activities must be supervised by Neil or Randa, since they're both licensed and both officers of the corporation. Carey is designated as the sole escrow fund holder for the company. The officers of the company designated Randa as their qualified active broker.

The officers of the company designated Randa as their qualified active broker.

A Colorado licensee cooperated with an out-of-state licensee in a transaction. All activities were performed in Colorado, and all money collected was deposited in an account in the Colorado broker's name. What else is required for compensation to be paid to the out-of-state licensee? The Colorado licensee is also licensed in the out-of-state licensee's state. The out-of-state licensee lives and has an office outside of Colorado. The out-of-state licensee lives in Colorado but has an office outside the state. There are no other requirements

The out-of-state licensee lives and has an office outside of Colorado.

Which of the following best describes a net listing? The seller and agent agree to split the profit from the proceeds of the sale. The seller reserves the right to sell the property and not have to pay a commission. The seller specifies a desired price for the property and agrees to pay the broker any amount received that's more than that price. The seller works with many agents, and only the agent who procures the buyer is owed a commission.

The seller specifies a desired price for the property and agrees to pay the broker any amount received that's more than that price.

Licensee Nick's been fighting a former client's complaint against him. The investigation into the matter indicated that Nick's actions were a serious violation of license law. What's the most likely way the commission will handle Nick's case? They'll hold a hearing on the matter before an administrative law judge. They'll refer the case to a criminal court for a decision. They'll require Nick's employing broker to take disciplinary action. They'll send him a letter of admonishment.

They'll hold a hearing on the matter before an administrative law judge.

You're an associate broker looking for some good marketing strategies. You know consumers are looking for an agent they feel they can trust, so you add some professional designations to your name in your ads, to show you're experienced and knowledgeable. What's true about your decision? This is acceptable as long as your employing broker has also earned the same designations (or higher), since you represent your employing broker. This is acceptable as long as you've legitimately earned the designations you include, and they're verifiable by the public. This isn't allowed in your advertisements, since most consumers don't understand what the designations mean. This is only allowed if you include information about the organization granting the designation in your ad.

This is acceptable as long as you've legitimately earned the designations you include, and they're verifiable by the public.

What type of properties are considered subdivisions in Colorado? A neighborhood with 10 or more houses Condominiums with eight or more units Housing cooperatives with 15 or more proprietary leases Timeshares with 28 interests

Timeshares with 28 interests: A timeshare is considered a subdivision in Colorado when there are 20 or more interests for sale, lease, or transfer.

Jamie typically specifies a 2% commission rate in her transactions as a buyer's agent. She's cooperating in a transaction in which she'll only receive 1.5% from the seller, so her client will pay the 0.5% difference. To whom must she disclose this compensation arrangement? No one Only to the buyer Only to the seller To all parties to the transaction

To all parties to the transaction

When you're a licensed real estate professional in Colorado, how will you use the CREC rules and position statements? As a guide to developing a successful real estate practice As an ethical code of conduct applicable to real estate activities To help your customers understand the real estate process To regulate your behavior and actions when practicing real estate

To regulate your behavior and actions when practicing real estate

Harriet, an out-of-state licensee, is friends with Tonya, a licensee who works with Perfectly at Home. Harriet referred one of her buyer friends to Tonya, so Tonya plans to pay Harriet a referral fee. Which one of the following statements about this fee is true? It's illegal for Tonya to pay an out-of-state licensee a referral fee. Referral fees have no disclosure requirements. Tonya must pay the fee directly to Harriet since Harriet is an out-of-state licensee. Tonya must pay the referral fee through her brokerage firm to Harriet's brokerage firm.

Tonya must pay the referral fee through her brokerage firm to Harriet's brokerage firm.

Edward is an independent broker who's made a New Year's resolution to put all his old transactional records in a digital format. He'll then destroy all the hard copies by sending them to a document shredding service. Is Edward in compliance with CREC rules for recordkeeping? No, only specific documents can be stored as electronic records, such as those that are publicly available. No, single-person firms must always keep all records as hard copies. Yes, as long as he reviews each file and redacts any client signatures or confidential information they contain. Yes, as long as the digital files are secure and can be printed and produced if needed.

Yes, as long as the digital files are secure and can be printed and produced if needed.

Broker Dill accidentally let his license expire. Now he needs to figure out what he's supposed to do to reinstate his license. Will the commission rules help him do this? No, commission rules are regulations that describe the real estate commission duties, and don't apply to licensing requirements. No, commission rules govern the actions of consumers and businesses, not individual licensees. Yes, commission rules are written to help licensees interpret and comply with license law. Yes, the commission rules will give Dill a list of approved education providers and include links to the application he should complete.

Yes, commission rules are written to help licensees interpret and comply with license law.

Independent broker Rebekah is designing a print ad marketing her services as a broker. She makes sure it's eye-catching and has her name and contact information on it. Does she need to include anything else to make it a legal advertisement according to Colorado license law? No, she's good to go! Yes, she has to include a statement directing consumers to DORA if they have a complaint about her. Yes, she must include her broker license number on all ads. Yes, she must make sure she's included the name of her brokerage firm.

Yes, she must make sure she's included the name of her brokerage firm.

How would you avoid violating RESPA when referring clients to your affiliated settlement service business? You can only receive payment for the referral of the client to the affiliated business and not any related to the return earned from owning the business. You must disclose the relationship and cannot require the client to use the affiliated business. You must not disclose the relationship, as it could bias the client. You must require the client to use either both services or none.

You must disclose the relationship and cannot require the client to use the affiliated business.

You've been practicing real estate for a while and decide to purchase a property as an investment along with a business partner (who's not a real estate broker). Which of these actions will Colorado law require of you in the purchase? You must be represented by another broker, preferably your employing broker if you're an associate broker. You must disclose your licensed status, brokerage relationship, and any conflict of interest to the seller. You must offer the full list price, regardless of any other factors affecting the property value. You must sign an agency agreement to represent your business partner before you can make an offer to the seller.

You must disclose your licensed status, brokerage relationship, and any conflict of interest to the seller.