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CHAPTER 1: COLORADO LICENSE LAW 2024/2025 A+ grade assured
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CHAPTER 1: COLORADO LICENSE LAW 2024/2025 A+ grade assured
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CHAPTER 1: COLORADO LICENSELAW
C.R.S. 12-61-Part 1: 12-61-101: What is a Real Estate Broker? - ANSOne who on behalf of
another person, for any form of compensation, does, or tries to do (or even thinks of)
negotiating, listing, selling, exchanging, buying, renting, leasing, auctioning or dealing in
options in, real estate or any interest therein. This includes a business opportunity involving
an interest in real estate; or provides available rental information to prospective tenants. This
includes performing any of these acts as a paid employee.
C.R.S. 12-61-Part 1: What is an Option? - ANSa speculative, unilateral contract in which one
person, (the optionee) offers money now for the future right to buy a certain property. The
optionee may elect to "exercise" or carry out the purchase, or may choose to let the option
(contract) expire, but the landowner (the optionor) must sell if the option is exercised by the
contract end date.
C.R.S. 12-61-Part 1: 12-61-101 (4) - ANSidentifies persons NOT needing a real estate
license, including:
-Any person or legal entity acting on its own behalf as a principal. (This includes regularly
salaried employees and officers of corporations.)
-An uncompensated attorney-in-fact appointed under a recorded power of attorney.
-Public official performing official duties.
Trustee, administrator, executor, guardian, etc., performing authorized duties.
-A person or legal entity dealing in oil and gas or other mineral leases or certain
rights-of-way.
-A regularly-salaried on-site manager of an apartment or condominium building or complex.
-An attorney-at-law, but only when representing clients in the practice of law.
-A real estate broker licensed in another state who co-brokers a transaction with a Colorado
broker.
12-61-103 License Application & Qualification: - ANSIn order to qualify for a Colorado real
estate license, a person must be 18 years old, and of good moral character. The
Commission can require proof if there is doubt.
Next, an applicant must complete pre-license QUALIFYING EDUCATION as follows:
,Brand new applicant: Must complete a 168-hour pre-license education program including
Real Estate Law and Practice (48 hours), Colorado Contracts and Regulations (48 hours -
this course), Real Estate Closings (24 hours), Trust Accounts and Recordkeeping (8 hours),
Current Legal Issues (8 hours) and Practical Applications (32 hours).
OR have earned a college degree with a major course of study in real estate.
SINGLE LICENSING: - ANSEvery active Colorado real estate licensee is a BROKER. Unlike
many other states that require basic education to apply for a salesperson license, and later
qualify as a broker after some experience and advanced education, Colorado only licenses
individuals as brokers.
SINGLE LICENSING (CONT'D): - ANSPublic Protection: A new licensee, however, is poorly
equipped to practice real estate independently. There is only one broker license, but three
levels of performance. An inexperienced broker must practice as an associate broker for two
years. This includes attorneys.
A Colorado broker may apply to engage in independent brokerage after two years active
licensed experience under a high level of supervision. Since the original education and exam
were at the broker level, no further qualification is required. There is no required activity or
transaction level.
A Colorado broker desiring licensure as an employing broker, must in addition to the
experience requirement, complete the 24-hour "Brokerage Administration" course.
Previously licensed salesperson: - ANSMust complete 120 hours in Colorado Contracts and
Regulations (48), Real Estate Closings (24), Trust Accounts and Recordkeeping (8), Current
Legal Issues (8) and Practical Applications (32).
Previously licensed broker: - ANSMust complete 72 hours in Colorado Contracts and
Regulations (48) and Real Estate Closings (24).
Currently licensed salespersons or brokers from other states: - ANSColorado participates in
bilateral license recognition agreements with many other states. These agreements allow an
applicant who has been licensed for two years in a license recognition state to apply for a
Colorado broker license with limited education and passing just the Colorado part of the
broker licensing exam (partial recognition), or no additional education and no exam (full
recognition), provided the other state reciprocates.
Rule A-16: - ANSApplicants for an initial license must submit a set of fingerprints to the
Colorado Bureau of Investigation (CBI) and Federal Bureau of Investigation (FBI) for the
purpose of conducting a state and national criminal history record check prior to submitting
an application for a license. Fingerprints must be submitted to the CBI for processing in a
manner acceptable to the CBI. Fingerprints must be readable and all personal identification
data completed in a manner satisfactory to the CBI.
Licenses for Real Estate Firms: - ANSSole proprietorships are not licensed separately as the
individual and the proprietorship are one and the same.
, A broker qualified at the employing level is responsible for compliance and supervision within
the firm. The law permits issuing a temporary license to a qualified employing broker in a
corporation/LLC or partnership for 90 days (with one extension) to cover broker succession
emergencies. Unlike individual licenses, licenses of firms do not require renewal.
12-61-103.5 Broker Transition: - ANSIn 1993 when Colorado elected single licensure, they
created a 24-hour "Broker Transition" course to qualify for upgrade from salesperson to
(permanent) associate broker. Although the license law changed in 2008 (after 15 years) to
require inactive salespersons to start over from the beginning, this course is still active for
one-time use as continuing education.
12-61-103.6 Errors and Omissions (E&O) Insurance. - ANSIn 1998 the Commission
mandated E&O insurance for every active individual and firm license, except
attorney-brokers who maintain their own malpractice insurance.
The Commission seeks bids and selects a group provider. Licensees may also obtain
coverage independently, and must do so if the Commission is ever unable to secure a
reasonable group policy.
Unlike license renewals which occur every three years on the anniversary of initial issuance,
E&O insurance policies run for one calendar year and must be renewed each January 1.
12-61-105 The Real Estate Commission. - ANSThe Governor appoints five commissioners
to 3-year terms to administer the license law and set the course for the practice of real estate
state-wide. Three commissioners must be brokers with at least 5 year's experience. One
commissioner is a non-real estate person representing the public.
No broker license may be denied, suspended or revoked without a commission majority
vote.
The Commission has rule-making authority delegated by the Colorado General Assembly.
12-61-106 The Division of Real Estate: - ANSDo not confuse the 5-member appointed
commission with the civil service Division of Real Estate. The Division is one of 10 in the
Department of Regulatory Agencies and employs a director and several dozen staff
members that administer the day-to-day activities and direction of the Commission.
12-61-107 Non-resident Licensees. - ANSA broker in another state doesn't have to maintain
a residence in Colorado to hold a Colorado broker license, but must agree to jurisdiction of
Colorado courts in any lawsuit brought in Colorado.
12-61-108 Master File. - ANSThe record of licenses is public information. Anyone may
determine the name, address, license number, brokerage firm, date of original licensure, last
renewal date and record of disciplinary actions on the Commission Website.
https://www.colorado.gov/dora/division-real-estate
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