Colorado Requirements Governing the Activities of Licensees Flashcards

Comprehensive practice flashcards covering Colorado real estate requirements for advertising, administration, supervision, and documentation based on CREC rules and position statements.

Rule 6.10

The rule that sets forth specific requirements for licensee advertisements related to names, teams, use of the Internet, and sales data.

Trade Name

A name or trademark that a brokerage firm may use instead of its legal name, provided it is filed with the commission and includes specific disclosure language if owned by a third party.

Prohibited Team Advertising Terms

Terms such as "company," "corporation," "incorporated," "realty," "real estate," "Realtors," "LLC," "LP," or "LLP" that cannot be used in team ads to avoid implying a separate entity.

Expired Listing Removal Deadline

The requirement that expired listings must be removed from electronic media within $3$ days of contract expiration.

Residential Square Footage Disclosure

The requirement to disclose the source of a living space's square footage to consumers on the commission-approved form.

Independent Contractor Agreement Requirements

Contracts that must specify the worker is not entitled to unemployment compensation and must pay their own federal and state income taxes.

Worker Misclassification First Offense Fine

A fine of $5,000$ imposed on Colorado employers for demonstrating "willful disregard" of the law regarding worker classification.

Worker Misclassification Subsequent Violation Fine

A fine of $25,000$ for additional offenses related to the incorrect classification of employees as independent contractors.

Rule 6.3

The commission rule describing an employing broker's responsibility for supervising all employees, including licensees and unlicensed personnel.

High Level of Supervision

The level of oversight required for licensees with less than $2$ years of experience, including transaction oversight and attendance of closings.

Reasonable Level of Supervision

The level of oversight required for experienced licensees, including maintaining a written office policy manual and reviewing executed contracts.

Place of Business Requirement

The rule that every broker licensed in the state, except non-resident licensees, must maintain a place of business within the state.

CP-21

The Commission Position Statement that lists the topics an office policy manual should cover.

CP-12

The Commission Position Statement defining allowed payments to sellers or buyers and stating that gratuitous gifts do not require consent or disclosure.

Rule 6.21.A

The rule stating no referral fees may be given to or accepted from settlement service providers in transactions involving a federally related mortgage loan.

RESPA Section 8

The federal law prohibiting the giving or receipt of any kickback in return for referring business to any settlement service provider.

Transactional Record Retention Period

The requirement that brokers must retain brokerage and transactional records for a period of $4$ years.

Rule 6.14.D

The Colorado rule requiring a specific termination date on all listing agreements.

CMA/BPO Disclosure Language

A mandatory statement that the evaluation was prepared by a licensed broker, is not an appraisal, and cannot be used for obtaining financing.

Conway-Bogue

A historical Colorado case affecting the ability of real estate brokers to prepare legal documents using standard and approved forms.

Colorado Dual Status Disclosure

A form given to a buyer/borrower when an individual acts as both a real estate broker and a mortgage loan originator in the same transaction.

Dual Status Disclosure Deadline

The requirement to present the disclosure form to a borrower within $3$ days of receiving a loan application.

CP-20

The Commission Position Statement addressing the permitted and prohibited duties of unlicensed personal assistants.

Unlicensed Assistant Permitted Clerical Duties

Activities like completing forms prepared by a broker, scheduling repairs, and collecting receipts for earnest money or security deposits.

Rule 6.15

The "sign-crossing rule" that prohibits licensees from negotiating with consumers who have an active exclusive contract with another licensee.