Colorado Real Estate Exam Prep State Portion Section 1 Duties and Powers of the Real Estate Commission and Section 2 Licensing Requirements 100% Correct

Colorado Real Estate Exam Prep State Portion Section 1 Duties and Powers of the Real Estate Commission and Section 2 Licensing Requirements 100% Correct What is the purpose of Colorado real estate License Law Protect the public of the State of Colorado The purpose of the Colorado Real Estate Commission is to: Protect the public of the state of Colorado in real estate matters Acting as a real estate broker without a license or with a suspended license is: a misdemeanor punishable by six months in jail and a fine up to $500 The Real Estate Commission: Consists of 5 members who are appointed by the governor and meet monthly If a broker is accused of a violation of the license law in a complaint to the commission and the commission investigative staff determines that the violation probably happened, the commission: May decide to refer the matter to a hearing before an appointed administrative law judge. If a licensee has violated the license law, what is the maximum monetary penalty the Real Estate Commission may impose? $2500 administrative fine To suspend, revoke, or deny a license, requires a vote of: a majority of the members of the Real Estate Commission The Real Estate Commission must investigate any verified written complaint The Commission may investigate a licensee's activities, and upon sufficient grounds: may suspend, censure, and fine the licensee a sum not exceeding $2,500 Which of the following is grounds for the Commission suspending or revoking a license? 1.Knowingly making use of any false or misleading advertising. 2. Acting for more then one party without the knowledge of all parties. 3. Commingling funds Who have given the Real Estate Commission rule-making authority? The State Legislature In which situations may the Commission suspend an Associate Brokers license? Taking a secret or undisclosed profit in a real estate transaction. When are rules made by the Real Estate Commission? After written notice and a hearing in which all interested parties may participate. When a licensee acts as a broker involving an interest in real estate, and is a party to a court action involving that same interest, the Commission may: Require the licensee to furnish copies of all pleadings After investigation has taken place determining licensee misconduct, the Commission May issue a letter of admonishment How often does the Real Estate Commission meet? Monthly Which of the following would fall under the definition of a real estate broker? anyone who solicits a fee from a prospective tenant for furnishing information concerning the availability of rental properties Which of the following could qualify for a temporary "hardship" broker license corporation? A corporate employee with a Colorado broker associate license Who of the following is exempt from real estate law? Investor who owns 12 investment properties and sells one to an owner occupant. In order to be the broker of record for a corporation, a person must hold A valid Colorado broker's license For which of the following does someone not need a real estate brokers license? A person selling or dealing in oil or gas leases Jane is the broker/owner of Downtown Realty which is a trade name registered with the Colorado Department of Revenue and licensed with the Real Estate Commission as Downtown Realty. Which of the following is correct? All licensees employed by Jane must do business only with the name Downtown Realty In the event that the Employing Broker of corporate brokerage is suddenly unable to continue in that position, the commission may issue a temporary "hardship" license to any Colorado licensee approved by the board of directors Which of the following is true regarding an application for a brokers license? Must have 48 hours of instruction in the Colorado Contracts and Regulations When an Employing Broker changes the primary business address The broker must notify the commission in a manner acceptable to the commission, or brokerage license will become inactive Which of the following is exempt from the real estate licensing law in Colorado? An investor who owns more than six houses and sells two of them to a private individual. Errors and Omissions professional liability insurance is required for every active Colorado licensee What is NOT proper for an unlicensed on-site manager of an apartment complex? Negotiating a rent reduction for a long term tenant What is proper for an unlicensed on-site manager of an apartment complex? 1. Show apartments which are available for rent. 2. Filing in a lease and collecting a tenant's deposit 3. Explaining the lease terms and rules and regulations of the complex Which level of licensure is required to hire other licensees to work in your company? Employing Broker When would a business opportunity not need a real estate license? Whenever the transfer involves no real estate nor any rights to real property. An applicant for a brokers license must Have 48 hours of classroom instruction or equivalent correspondence hours in Real Estate Law and Practice A broker moves his office to the building next door and neglects to inform the Real Estate Commission. What is the status of the brokerage license? The license is cancelled along with the licenses of the employed licensees In order to renew an active Colorado real estate license, the licensee 24 Hours of approved continuing education or successful completion of the Colorado portion of the state licensing examination Any individual who illegally acts as a broker by failure to obtain a real estate license has committed a misdemeanor A person maintaining an inactive Colorado real estate license Must complete continuing education for the current renewal cycle before activating the license. Which of the following is authorized for an Independent Broker under Colorado Law? May independently work without the supervision of another broker A nonresident of this state may become a real estate broker if they comply with all of the requirements for a Colorado Broker, except that brokers do not have to maintain a place of business in Colorado if they have one in another state What are the different license levels in the state of Colorado? Employing Broker, IndependentBroker, Associate Broker True of False: Excepting real estate instructors, the examination will be given only to duly qualified applicant's for a brokers license. A license will normally be issued after a review by the Colorado Bureau of investigation and the Federal Bureau of investigation. True Which of the following is true of a continuing education renewal? All licensees must complete an annual 4 hour Commission update course Which of the following is not true about continuing education? Hours in excess of those required by the statutory education requirement may be carried forward into the next renewal period. Which of the following is true concerning a licensure? 1. No license may be issued under more then one name. 2. A brokerage business must be operated only under the name in which the brokerage is licensed. 3. A trade name may be used concurrently with the name of the broker in the conduct of the business. When do licensees not need errors and omission insurance? when the hold an inactive license Which of the following is untrue as to on-site manager that is unlicensed? one of the duties of the on-site manager is to negotiate the terms of the lease Which is not true regarding licensees whose license is held inactive? A broker license may not be issued on an inactive status When is a real estate license required when selling a business opportunity? Only when a lease is involved Which of the following would be considered intangibles in the sale of business? Blue Sky and Good Will