CO Real Estate VanEd Flashcards

CO Real Estate VanEd Flashcards In Company TransactionPossible with a Multiple Agency Firm Single Agent FirmOne operated by an Independent Broker with no other Brokers under themThere is no possibility for an in house (in company) transactionNo two people to appoint as buyer and seller representativesBroker could become a Transaction Broker and handle both sides of the contract Statute of FraudsUniform law in most statesRequiring all contracts of leasing of more than 1 year or the sale of any land is void unless the contract is in writing.If we are an Agent for the Seller, we must present the buyer...The Brokerage Disclosure Form to BuyerRequired at the very first opportunity before we acquire any confidential info from them.Multiple Agent FirmAgents for the Buyer or Agents for the SellerEmploying broker designates each party, the employing broker has no agency relationship to transactionEach designated broker is assigned to the buyer or the sellerListing agent is typically the seller's agentEach designated agent is responsible to his or her client and must not disclose confidential info to other agents If you fail to take the required annual update... You may elect to retake the CO RE examOR Take the 24 hr Broker Reactivation course (preferred)This course cannot be used in consecutive years Broker should not disclose this to anyone without consent by seller Seller willing to accept lessMotivating factorsSeller will agree to other financing terms not offeredMaterial info about seller unless disclosure is required or it would be dishonest not to discloseFacts or suspicions that could make an impact or stigmatize the prop Following investigation, commission will do one of the following Dismiss the complaintIssue letter of admonishment (warning)Send complaint to a hearing in state court with Admin Law Judge Independent BrokerA one person company that cannot employ other brokers.Min of 2 yrs of experience is required and Independent Brokers must have an office open to the public.CREC requires for advertisingName as it is recorded with CRECFirm NameYour Name and Firm Name can be no more than 1 click away when using electronic or social media Addtl duties when Buyer's agent box is checked Promoting the interests of the buyer with good faith, loyalty, fidelitySeeking price and terms that are acceptable to the buyerCounseling the buyer as to material benefits or risks of a transaction known by broker

Customer has ...No relationship with the Broker and Broker has no duties to the customerBroker can provide info but no confidential info Transaction Broker as definedA broker who provides limited representation to buyer and/or seller in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent Code of EthicsRules of behavior imposed on members of an org, ie the National Association of Realtors (NAR) Who must carry E&O insurance?All active licensed agents including the Employing Broker and any Corporation, LLC doing business as a firm.Corps and LLC's are viewed as a person or a personal entity, they also need E&O Insurance.Treble DamagesA statuteDirects the judge to multiply by three the amt of monetary damages awarded by the jury in those cases and to give judgement to the plaintiff in that tripled amt.Commission Position StatementCommission explanatory guidance on a specific topic without the force of law or Commission rule.Licensee found guilty by Admin law judge, types of penalties Fine not to exceed $2500 for each offenceCensure, suspend or revoke licenseCannot charge monetary damages or impose jail sentences BUT they CAN refer a case to District Attorney for criminal prosecution.Employing BrokerMust have at least 2 yrs experience. They may employ other licensees to work for their brokerage firm.Commission may investigate upon written complaint...False AdvertisingViolating CO consumer protection actImproperly handled trust moneyFailing to provide closing statementFailing to keep docs for 4 yearsPaying commission to unlicensed person for work requiring a license Brokerage Disclosure to Seller FormDiscloses to For Sale by Owners that we have an Agency relationship with the BuyerMakes unrepresented Sellers aware that the Agent has a relationship with the buyer.Who must have an active real estate license to engage in RE activity?People selling prop for others for a feePeople selling business opportunities that involve real propertySelling real estate optionsNOT selling real estate securities which requires a securities license All documents must be kept at the Broker's Office a minimum of ____. Upon closing a contract, the docs must be returned to the brokerage office firm asap and within _____ of closing.

• Years72 hours of closing

In a Real Estate Transaction, using a transaction brokerThe buyer or seller are not responsible for the acts of the licenseeBoth parties give up their rights to the undivided loyalty of a licenseeAllows licensee to facilitate a RE transaction by assisting both the buyer and the seller If an agent leaves with an active Listing in PlaceThe Employing Broker maintain possession of the listingThis is negotiable

Common Trust AccountsSales Trust Account - Sales Transaction pending closingManagement Trust Account - Prop mgmtSecurity Deposit Trust Acct - from tenants for leases under Broker mgmtAdvance Rental Trust - Funds collected in advance for short term rentals ie Vacation ResortsOwners Assoc.Trusts - HOA accts - each assoc must have its own acct Contracts with large earnest money deposits Should contain a provision saying which party is entitled to earned interest and under what conditions.If not specified, it belongs to the seller usually if the contract is consummated or the purchaser if the contract fails.A written AGENCY AGREEMENT to Buyer or Seller Is required to avoid being a transaction broker by default Agency AgreementIe the Listing ContractCreates a relationship between client (principal) and the broker/agentFiduciary relationship with trust and confidence by the principalEmployment contract between the two CO statutes presume that a licensee is operating as a Transaction Broker unless...The customer and broker establish a single agent or no brokerage relationship in writing Single AgentA broker who represents either the buyer or the seller (but not both)Highest form of representationMost confidence to the customer that the Realtor only represents them Listing Belongs to...The Brokerage Firm and does not belong to the Agent who took the listing Duties of a Transaction BrokerHonestly and fairlyAccounting all fundsSkill, Care, DiligenceDisclosing all known facts that affect value of the property that are not readily observablePresenting all offers timelyLimited confidentiality - unless waived by a party in writingPrevents disclosure of motivation to sell/buy, party's willingness to agree to diff. financing Disclosure of Conflicts of InterestBrokers are expected to fully disclose any area of conflict of interest w/ them and their clientMust disclose relationships between a title co the broker owns or an interest a company.When to disclose Single Agent Duties?Before or during entrance into a listing/representation agreement or before showing of the property E&O Insurance protects against this ___ and not this _____ Protects against loss from oversights in filling out forms and conducting businessDOES NOT protect when fraud is involved or alleged in the trans.Inactive licenseLicense still must be renewed every 3 yrsFailure to renew makes it expired Uniform Power of Attorney ActColorado statute creating a standard form by which a principal appoints an attorney-in-fact to act for the principal.Includes signature authority.Must be recorded to be valid for use in real estate transactions.Uniform Commercial CodeLaw adopted in all 50 states requiring specific docs (security agreements and financial statements) when

personal property is used to secure a commercial loan.