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Colorado Real Estate Exam- Ch 2 Licensing Requirements 2024/2025 A+ grade assured
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Colorado Real Estate Exam- Ch 2 Licensing Requirements 2024/2025 A+ grade assured
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Colorado Real Estate Exam- Ch 2Licensing Requirements
E&O Insurance - ANSE&O insurance protects the Broker against loss from oversights in
filling out
forms and conducting business. It does not protect the Broker if fraud is
involved or alleged in the transaction.
All activelicensed Brokers must carry E&O insurance. The CREC requires that it
be on file with them or they may inactivate a license. The insurance is
purchased through private carriers and an Employing Broker can help you with
obtaining your insurance. Approved vendors are also listed on the DORA web
pages. An often asked question for testing is who must carry the insurance. The
answer is all active licensed Agents including the Employing Broker and..... any
Corporation or LLC that is doing business as a firm. This last part trips new
Agents up. In this case as in others, a LLC(Limited Liability Corporation) or
regular Corporation are viewed as a person or personal entity. As such they also
need E&O insurance. The best example is a Broker that wants to have a
brokerage firm. Let's say Gary wishes to be an Employing Broker. Gary could
operate as a sole proprietor and just work as such. Later Gary learns that
working as a sole proprietor he might be sued one day, and since he is the
business, his home and personal assets would be at risk. His attorney tells him
he should consider an LLC or limited liability company as a vehicle to protect
himself and conduct business. By forming the company, now it is considered its
own entity. Gary is protected and has limited his liability to the assets of the
company and is less at risk personally. Since the company has its own liability,
it must carry E&O insurance and Gary must carry it for himself also. In
addition, any agent Gary hires must have E&O insurance as well.
Active and Inactive Licenses - ANSHow can a license become inactive?The most common
ways are a broker may
place his or her license on inactive status voluntarily or the Real Estate
Commission may suspend your license for cause.
A couple of other ways include: Failure of the Employing Broker to notify the
Commission of a change of locationor failure of the Broker Associate to notify
the Commission of a move from one firm or location to another. If the
Employing Broker moves their office, the Employing Broker's license and all
the licenses under him or her become inactive if the CREC is not notified, and if
the Employing Broker's license is suspended or revoked then all licensee under
him are placed on inactive status. Remember, you are responsible for your
license always.
LLC - ANSLimted Liability Company
May obtain 90 day temporary license, with one 90 day renewal.
, Three levels of license - ANSAssociate Brokers, Independent Brokers,
and Employing Brokers
Steps to become Employing or Independent Broker? - ANSTo move from an Associate
Broker position to either Employing or
Independent Broker the requirements are that you have 2 years of active
license, and that you take a 24 hour Broker Administration course.
So what is required to get an initial license? - ANS1. You must take and pass a 168 hour
class or its distance/online
equivalent hours. Your current class meets this requirement with a
combination of online, at home and in‐class hours. At completion you
will be given a REC‐33 Certificate that is your proof of course completion.
2. You must be 18 years of age to obtain a license.
3. You must submit fingerprints to the Colorado Bureau of Investigation.
4. You must pass the background check.
5. You must be lawfully present in the United States.
6. You must take and pass the Colorado Real Estate Broker Exam given by
PSI.
License renewal requirements-
Years?
CE? - ANSOnce you have your license you will need to renew it every three years.In
order to do this, the state requires that you complete 24 hours of continuing
education.
Twelve of these hours must be the annual update course; each annual update
course counts as 4 hours equaling 12 hours over three years. You may only take
the update course within it current year. In addition, you would need to take 12
hours of elective credit. The National Association of Realtors Ethics class counts
within those credit hours
What if I did not take the update or for some reason did not complete the 24
hour requirements?- ANSA provision has been made for such a circumstance. The
first option is to take the Colorado portion of the exam and pass it again. You
may only do this one time and it is not the most popular option. A second
option is to take and pass a 24 hour Broker Reactivation course. You may only
do this one time as well. Many people choose this option. I would encourage
our students to keep up the annual updates and not let them get behind. They
contain needed information for the professional licensee each year.
When does the license expire? - ANSIn Colorado the license expires three years from
the date of issue; however, an important thing to know is that you have a 31 day
grace period to renew an expired license. You will not have to pay the
additional fee for renewal until your license is 32 days late for renewal.
What does it cost to renew your license? - ANSFrom 32 days to one year Renewal Fee
+Reinstatement
Fee = to ½ Renewal Fee
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