Unit 2 Flashcards
Name the 3 levels of licensing
- Employing broker
- Independent broker
- Associate broker (aka broker associate, broker, licensee, employed broker, and designated broker)
What is an employing broker?
Employers broker associated and is responsible for supervising them
What is an independent broker?
- Works along
- Has 2+ active experience
- Cannot hire/supervise
What is an broker associate?
- Works under an employing broker
- Has 2- years of experience
- Most people
How often do you need to renew your license?
3 years
When does your license expire?
Dec. 31 of the third year
How many hours of education do you need to renew your license? How are the hours split?
- 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
What happens if you don’t renew in time but completed the CE?
- 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.
What if you let your license lapse?
Must take a reactivation course or go back and pass both exams.
True or False? A broker must have an office that is open to the public?
True
A nonresident licensee must..
- Have an office in their home state
- Keep all trust funds in a CO bank
- Accept legal action in CO
Who does not need a re license?
- 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)
Selling a businesses opportunity
- Must have a license if the transfer involves the sale of RE or transfer of a lease interest
- Must have a definite termination date
What is a real estate option?
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.
Is a re license required to sell options?
Yes. However, employees of corporations selling options do not need a license.
Who must notify the commission if a licensee changes firms?
The licensee and the employing broker
If a brokerage firm changes address, what will happen if they don’t notify the commission?
All broker’s license goes to inactive status
Do inactive licensees need E&O insurance?
No
Can inactive licensees perform unlicensed duties?
Yes. Such as salaried new home sales or property management
What is a temporary hardship license?
- 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
Who is required to have E&O insurance?
Licensed corporations and limited liability companies
Who is not required to have E&O insurance?
Inactive licensees, partnerships buying their own real estate, or utility companies buying right-of-ways
When must E&O insurance be renewed?
Every year on Dec. 31
