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30 Cards in this Set
- Front
- Back
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Who has the responsibility for prosecuting the practice of real estate without a license? A District Attorney The Colorado Real Estate Commission A Police Detective IRS |
A: A District Attorney Since the Real Estate Commission only has jurisdiction over people with licenses, someone performing a licensed activity without a license would be a criminal matter prosecuted by the district attorneys. The Real Estate Commission can work with District Attorneys in the preparation of cases. What the Real Estate Commission can do is: The Real Estate Commission has the power upon its own motion to investigate anylicensee’s real estate activities. If a written complaint is filed, the office is compelled to investigate. If the complaint against the licensee is of such a serious nature that it may result in disciplinary action against a licensee, a hearing will be held before an administrative law judge. The judge is appointed by the Department of Personnel and Administration. Theadministrative law judge will make an initial decision of revocation, suspension, censure, or dismissal. Education courses, probation, and fines can also be mandated. If written objections are not filed with the Commission within 30 days, the initial decision becomes final. Ifwritten objections are filed, the Commission may adopt the findings and initial decision of the administrative law judge, modify the disciplinary action, or refer the matter back for rehearing. The Commission can also issue letters of admonishment in instances where conduct does not warrant formal disciplinary proceedings. |
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Colorado Commission Rule E-35 regarding disclosure of agency relationships requires: Real Estate agents to use commission approved forms Written disclosure of agency relationships An escrow account for earnest money Use of the licensee buyout agreement when purchasing his/her own listing |
A: E-35 requires the written disclosure of agency relationships. |
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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: A license is required when an individual receives compensation for the sale of property for others. |
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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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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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Which of the following is required to have a real estate license? Resident manager of an apartment building Property manager specializing in handling buildings in commercial districts A salesperson working in a builder’s office |
A: Property manager specializing in handling buildings in commercial districts A licensee is someone who offers real estate services to the public. A resident manager of an apartment building, who is employed by the owner and does not negotiate leases, does not need a real estate license as he/she is considered to be an extension of the owner and is not offering his/her services to the public.Salespersons working for a home builder or any developer, although they are often not salaried and work for commission, are specifically excluded from needing a real estate license by State law.A property managers managing multiple properties, owned by different owners, is clearly offering his/her services to the public and requires a real estate license. |
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In Colorado in the absence of a written agency agreement, a broker is considered to be a: free agent transaction broker sub agent general agent |
A: transaction broker Agency agreements are established only by a written contractual agreement. If no contractual agreement has been signed then the default relationship is transaction broker. Transaction broker can also be established by a written contractual agreement. |
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In Colorado a broker must retain records of real estate transactions for a minimum of how many years? 2 3 4 8 |
A: 4 The real estate commission requires all records to be kept for four years. (was seven) |
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Which of the following would normally be a reason for suspension or revocation of a real estate license? Charging more than a regular commission Offering a property for sale on terms or at a price other than stipulated by the owner Holding only one open house during a six month listing period Not selling the property within the listing time period |
A: Offering a property for sale on terms or at a price other than stipulated by the owner Anti trust laws prohibit "standard", "average", "regular" or going rate commissions. Offering a property for more or less than the seller wants is a violation of license law. |
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The Colorado Real Estate Commission can investigate a licensee in all cases except: improper supervision by a managing broker not cooperating with a broker in the MLS when a valid complaint is received |
A: not cooperating with a broker in the MLS Disputes between brokers, cooperating through the MLS a (Multiple Listing Service), are resolved through mediation at the Association of Realtors or in the courts. |
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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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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, 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. Private owners may always act for themselves and are not subject to real estate license laws. Attorneys are normally exempt from real estate license law while practicing law but must have a license to act as a broker. An inactive licensee is still bound by all rules of the commission, and the right-of-way specialist is exempt only for certain specific activities. |
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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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Which of these acts could result in license suspension or revocation? Conviction of a forgery crime Accepting compensation from more than one party in a transaction without full disclosure Advertising in the name of another broker All of the above |
A: All of the above Committing a crime. Not disclosing compensations (secret profits) and representing another broker without the permission of your employing broker, are grounds for disciplinary action. There are many more covered in The Colorado Real Estate Manual statute 12-61-113 |
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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 preparation There 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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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. |
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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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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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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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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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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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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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A broker is required to disclose any psychologically stigmatizing factors, such as their was a death in the property, actually known by the broker when he is acting as: a seller's agent a buyer’s agent a transaction broker never |
A: never The real estate commission's position on psychologically stigmatized properties is that they are NOT TO BE disclosed and agents are protected from legal actions resulting from nondisclosure. Stigmatized property is a controversial term used in the real estate business for property which buyers or tenants may shun for reasons that are unrelated to its physical condition or features. These can include events invloving murder or suicide or AIDS in addition to a belief that a house may be haunted. Material facts such as the foundation is bad or the house tested high for Radon ARE required to be disclosed. |
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A broker's license may be suspended or revoked for which of the following causes? Over-charging sales commission Conviction of a motor vehicle violation Failure to pay a money judgement entered by a clerk of courts Failure to account for or remit funds belonging to others |
A: Failure to account for or remit funds belonging to others Failing to account for funds of others, conversions and commingling are grounds for disciplinary action. |
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After successfully completing the educational classes and passing the state exam, within what time frame must an applicant make application to the Commission? 120 days after taking the test 120 days after passing educational classes 150 days after taking the test 365 days after passing the test |
A: 365 days after passing the test Real estate examination test scores expire, after one year. |
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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 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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Colorado licensing law sets a standard for: Marketing Intelligence Performance Competency and integrity |
A: Competency and integrity Chapter 1 Real Estate Broker License Law from Real Estate ManualI. Reason for Its EnactmentThe Colorado Real Estate Broker License Law was passed to protect the people of the State of Colorado. Through licensing, the law seeks competency and integrity on the part of those engaged in the real estate business. The law has had the effect of raising the general standing of the real estate business and has helped to safeguard the interests of both the public and those engaged in the business. |
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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 |
