Unit 2

Question 1

Name the 3 levels of licensing

Answer 1

• Employing broker
• Independent broker
• Associate broker (aka broker associate, broker, licensee, employed broker, and designated broker)

Question 2

What is an employing broker?

Answer 2

Employers broker associated and is responsible for supervising them

Question 3

What is an independent broker?

Answer 3

• Works along
• Has 2+ active experience
• Cannot hire/supervise

Question 4

What is an broker associate?

Answer 4

• Works under an employing broker
• Has 2- years of experience
• Most people

Question 5

How often do you need to renew your license?

Answer 5

3 years

Question 6

When does your license expire?

Answer 6

Dec. 31 of the third year

Question 7

How many hours of education do you need to renew your license? How are the hours split?

Answer 7

• 24 hours
• 12 for annual commision update
• 12 for electives (personal marketing and exam prep don’t count)
• OR you can pass the state portion of the exam

Question 8

What happens if you don’t renew in time but completed the CE?

Answer 8

• Will have an active license but can’t do re or get paid until you pay up (Jan 31)
• If you don’t pay by day 32, you will have to pay the renewal fee plus a reinstatement fee of one-half of the renewal fee.

Question 9

What if you let your license lapse?

Answer 9

Must take a reactivation course or go back and pass both exams.

Question 10

True or False? A broker must have an office that is open to the public?

Answer 10

True

Question 11

A nonresident licensee must..

Answer 11

• Have an office in their home state
• Keep all trust funds in a CO bank
• Accept legal action in CO

Question 12

Who does not need a re license?

Answer 12

• A corporate employee leasing mineral rights
• A corporation buying and selling real estate (on behalf of the company)
• A public officinal in the conduct of the official’s duties (public trustee)
• For sale by owner
• Leasing person at an apt building
• An employee of a home builder (onsite sales person)

Question 13

Selling a businesses opportunity

Answer 13

• Must have a license if the transfer involves the sale of RE or transfer of a lease interest
• Must have a definite termination date

Question 14

What is a real estate option?

Answer 14

A real estate purchase option is a contract on a specific piece of real estate that allows the buyer the exclusive right to purchase the property. Once a buyer has an option to buy a property, the seller cannot sell the property to anyone else.

Question 15

Is a re license required to sell options?

Answer 15

Yes. However, employees of corporations selling options do not need a license.

Question 16

Who must notify the commission if a licensee changes firms?

Answer 16

The licensee and the employing broker

Question 17

If a brokerage firm changes address, what will happen if they don’t notify the commission?

Answer 17

All broker’s license goes to inactive status

Question 18

Do inactive licensees need E&O insurance?

Answer 18

No

Question 19

Can inactive licensees perform unlicensed duties?

Answer 19

Yes. Such as salaried new home sales or property management

Question 20

What is a temporary hardship license?

Answer 20

• When a corporation wishes to act as a brokerage and appoints a qualified broker to represent the firm as the principal (employing) broker
• If they cannot continue, the commission may issue a temporary hardship license to a active CO broker for up to 90 days until someone else can be found.(2+ years experience)
• A sole proprietor brokerage cannot receive a hardship license

Question 21

Who is required to have E&O insurance?

Answer 21

Licensed corporations and limited liability companies

Question 22

Who is not required to have E&O insurance?

Answer 22

Inactive licensees, partnerships buying their own real estate, or utility companies buying right-of-ways

Question 23

When must E&O insurance be renewed?

Answer 23

Every year on Dec. 31