CHAPTER 15 - RULES AND REGULATIONS FOR …

1 MacIntosh real estate School Colorado Course - CHAPTER 15. CHAPTER 15 - RULES AND REGULATIONS . FOR real estate BROKERS. TABLE OF CONTENTS. Rule Heading (Topic) - Page Number RULE A - Qualifications, Applications and Examinations A-2 Requirements must precede application - 5. A-3 Exams given only to those qualified - 5. A-5 Licensing exam in two parts - 5. A-7 Exam results certified only if licensed - 5. NOTE to STUDENT: The A-9 License processing time frames - 5. headings (in bold) at the A-10 Application denied or deferred; exam score extension - 6. beginning of each Rule or A-11 Certificate of license history required - 6. Section serve as a summary A-12 Applicant with prior legal involvement - 6. A-15 Fingerprints and Background Check - 7. of the Rule that follows. Use A-16 Fingerprint submitted to CBI - 7. these summaries to help you A-17 Pre-license education requirements - 7. A-20 Denied license notice required - 7. understand the legalese of A-23 Pre-license & brokerage admin courses the RULES and put them into must be acceptable to comm.

2 - 7. terms that are simpler to A-24 Commission has course audit auth. - 8. A-25 NSF check voids application - 8. remember. These are also A-26 Temporary broker license 8. valuable tools to assist you RULE B - Continuing Education in outlining. Use them! B-1 When continuing education required - 8. B-2 Methods of completing continuing education - 8. B-3 Annual Commission Update Course Standards - 9. B-4 Distance learning permitted, defined - 9. B-5 Courses excluded from continuing education credit - 10. B-6 Courses automatically pre-approved for continuing ed. credit - 10. B-7 Courses that must receive Commission approval prior to offering - 10. B-8 Administrative RULES for continuing education courses - 10. B-10 Proof of course completion - 11. B-11 Provider must retain records - 11. B-12 Annual Commiss. Update Course approval application process - 11. B-13 Providers subject to statute, rule and course audit - 12. B-14 Licensee attests to compliance by submitting application 12.

3 RULE C - Licensing / Office C-1 Individual proprietor must be sole owner - 12. C-2 Resident broker required to have office; exceptions - 12. 1. Copyright 2018 - All Rights Reserved Colorado Contracts & Regs (48 credit hrs). MacIntosh real estate School Colorado Course - CHAPTER 15. C-3 Responsible broker availability - 12. C-14 Associates licensed under broker 's name, not trade name - 12. C-16 License non-transferable - 12. C-17 Corporate license name may not duplicate suspended/revoked license - 12. C-18 Brokerage activity only in trade name or full licensed name - 13. C-19 Name RULES - 13. C-20 No license name similar or identical to one previously issued - 14. C-21 Individual proprietor may not appear to be corporate - 14. C-22 Employing broker qualifications for business entities - 14. C-23 Unlicensed on-site manager - 15. C-24 On-site manager license exemption - 15. C-25 Notice of termination; employing broker 16. C-26 Inactive license 16. RULE D - Renewal, Transfer, Inactive License, Errors and Omissions Insurance D-2 Inactive license request - 16.

4 D-3 Inactive license must be renewed - 16. D-4 Renew using method approved by commission - 17. D-5 Inactive renewal notice to last home address - 17. D-6 Active renewal notice to employing broker - 17. D-7 Direct compensation from previous broker - 17. D-9 Form and fees required to change license - 17. D-11 Initial license renewal - 17. D-12 Renewal fees non-refundable - 17. D-13 Reinstatement & activation fees - 17. D-14 Errors and omissions (E&O) insurance 18. RULE - E Separate Accounts-Records-Accountings Investigations E-1 Trust accounts; requirements and purposes - 20. (a) Accounts in name of broker and business entity - 20. (b) Accounts in name of employing broker only - 20. (c) Escrow funds must be available immediately without penalty - 20. (e) Commingling prohibited - 21. (f) Money belonging to others defined - 22. (g) Earnest money on new construction - 22. (h) Separate escrow accounts required for managing 7 or more residences - 22. (j) Installment land contract - 22.

5 (k) Encumbrance before delivery of deed - 22. (l) Earnest money - 22. (m) Time limits for deposit of money belonging to others - 23. (n) Listing broker holds escrow funds; delivery to third party - 23. (o) Record keeping requirements - 23. (p) Diversion/Conversion prohibited - 25. (q) Items in lieu of cash - 25. (r) Branch office trust accounts require branch office record keeping - 25. 2. Copyright 2018 - All Rights Reserved Colorado Contracts & Regs (48 credit hrs). MacIntosh real estate School Colorado Course - CHAPTER 15. (t) Number of separate accounts may vary from zero to unlimited - 25. E-2 Payment earned only after performance;. Account within 30 days; non-refundable retainers - 25. E-3 Licensee must produce records; HOA records belong to HOA - 26. E-4 Document preparation and duplicates - 26. E-5 Closing responsibility; closing statement distribution - 27. E-6 Electronic Records - 28. E-8 Advertising - 28. E-10 License non-transferable Associates not independent or employing - 28.

6 E-11 Listing must have termination date - 28. E-12 Holdover agreement - 29. E-13 Sign-crossing rule - 29. E-14 Licensee must recommend title exam & legal counsel - 29. E-15 No broker right to earnest money return - 30. E-16 Owner-held security deposits - 30. E-18 Fees from mortgage lenders; prior approval required - 30. E-19 Fees from title insurance companies prohibited - 30. E-20 Property list price must be set by owner - 30. E-21 Licensee must respond to complaint or audit notice in writing - 31. E-22 Inducements for title insurance prohibited - 31. E-23 Payment to out-of-state brokers - 31. E-24 Fraudulent application subject to discipline - 32. E-25 Continuing duty to disclose conflict of interest and license status - 32. E-27 No representation of future status of property - 32. E-29 Employing broker exercises authority, direction and control - 32. E-30 Employing broker responsibilities - 33. E-31 Reasonable supervision - 33. E-32 High-level of supervision - 34.

7 E-33 Ministerial tasks - 34. E-34 Purchase offers must go to listing broker - 34. E-35 Brokerage relationship disclosure in writing - 34. E-36 Good funds at closing 35. E-37 No fees to licensee/agent for legal document preparation - 35. E-38 Office Policy Contains Designation of Brokerage Relationship - 35. E-39 Office brokerage relationship policy must be written - 36. E-40 Double-ended brokerage relationships (no dual agency) - 37. E-41 Change of Status disclosure in writing - 37. E-42 Notice required on CMA's for other than marketing - 37. E-43 Square footage measurement (Licensee responsible for accuracy of measurements when licensee does the measuring) - 37. E-44 Actions when license is revoked, expired or inactive - 38. E-45 Supervising broker Confidential Information - 38. E-46 Affiliated Business Arrangements - 39. E-48 No licensee may file lien to secure commission - 41. E-49 Licensee must notify Commission of result of criminal action - 41. 3. Copyright 2018 - All Rights Reserved Colorado Contracts & Regs (48 credit hrs).

8 MacIntosh real estate School Colorado Course - CHAPTER 15. RULE F - Use of Commission Approved Forms Introduction - 41. F-1 Permitted and Prohibited Form Modifications - 47. F-2 Additional Provisions - 43. F-3 Addenda - 43. F-4 Prohibited Provisions - 44. F-5 Explanation of Permitted Modifications - 44. F-6 Commission-Approved Form Reproduction - 44. F-7 Forms Promulgated by the Commission - 45. real estate COMMISSION APPROVED FORMS (List) 45. RULE G - Brokers acting under 12-61-101(2)(j) CRS. G-2 Licensee must give tenant contract or receipt - 47. G-3 broker must retain copy of referral lists given in person - 48. G-5 broker must retain copy of referral lists given by phone - 49. G-6 Advertising - 49. G-7 Grounds for finding unworthiness or incompetence 50. RULE I - Declaratory Orders I-1 Any person may petition for an order - 50. I-2 Commission determines whether to rule - 50. I-3 Commission considerations - 50. I-4 Petition contents - 51. I-5 Procedures if the Commission will rule - 51.

9 I-6 Parties to proceedings - 52. I-7 Orders subject to judicial review 52. RULE K - Exceptions and Commission Review of Initial Decisions K-1 Written Form, Service and Filing Requirements - 52. K-2 Authority to review - 53. K-3 Designation of record and transcripts - 53. K-4 Filing of Exceptions and Responsive Pleadings - 54. K-5 Request for Oral Argument - 54. SHORT-ANSWER and QUIZ QUESTIONS - 55 through 80. SHORT-ANSWER and QUIZ ANSWERS - 81 through 86. 4. Copyright 2018 - All Rights Reserved Colorado Contracts & Regs (48 credit hrs). MacIntosh real estate School Colorado Course - CHAPTER 15. CHAPTER 15 - COMMISSION RULES . A. QUALIFICATIONS, APPLICATIONS AND EXAMINATIONS Notes: A-2. Requirements must precede application Educational requirements for an initial license imposed by 12-61-103(4) and (6)(c)(II), , must be completed and proof of completion filed in a method or manner as prescribed by the Commission prior to taking the examination and applying for a license.

10 A-3. Exams given only to those qualified Examinations will be given only to duly qualified applicants for a real estate broker license, licensees upgrading a license, or licensees meeting the continuing education requirement; however, one instructor from each real estate school offering real estate courses required of applicants under section 12-61- 103(4) may write the examination one time during any 12-month period. A-5. real estate license examination, exam expiration and application requirements. The real estate license examination is made up of two parts, a general portion and a state portion. If an applicant fails one or both parts of the exam, the applicant may retake the failed portion(s) at a subsequent time. A passing score for either part of the exam is valid for one year only. An application received by the Division must be accompanied by the statutory fee, proof of completion of the required education and experience requirements, and proof of successful completion of the appropriate portion(s) of the exam within the year prior to the application being received by the Division.