4 CCR 725-1 Chapter 1 - [Effective until 3/30/2024] Definitions
1.1. Active: A
current, valid License that allows a person, firm, partnership, limited
liability company, association, or corporation to engage in Real Estate
Brokerage Services.
1.2. Advertise
or Advertising: The promotion, solicitation, or representation of Real Estate
Brokerage Services requiring a License. Advertising may include, but is not
limited to, business cards, brochures, websites, signage, property flyers,
mailings (paper or electronic), social media, letterhead, email signatures, and
contract documents. A uniform resource locator (URL) and an email address are
not considered Advertising for purposes of Rule 6.10 so long as they are not
directly used to promote or solicit Real Estate Brokerage Services.
1.3. Affiliated Business Arrangement: Has the
same meaning pursuant to section
12-10-218(1),
C.R.S.
1.4. Anniversary Year Cycle:
The three-year licensing period commencing on a Broker's initial date of
licensure (anniversary date) and expiring three (3) years later on the same
date. The anniversary date may be any day of the calendar year.
1.5. Applicant: A person or entity seeking a
License from the Commission to perform the duties pursuant to section
12-10-201(6)(a),
C.R.S.
1.6. Associate Broker: A
Broker who holds an Associate Broker level license and works under the
supervision of an Employing Broker. Associate Brokers may have an Independent
Broker or Employing Broker level license even if they are still acting as an
Associate Broker under the supervision of an Employing Broker.
1.7. Broker: Any person licensed by the
Commission to perform Real Estate Brokerage Services regardless if the Broker
is licensed as an Associate Broker, Independent Broker, or Employing
Broker.
1.8. Brokerage Firm: Any
sole proprietor, partnership, limited liability company, corporation, or any
other authorized entity licensed by the Commission to employ or engage Brokers
to perform Real Estate Brokerage Services. All Brokerage Firms that employ or
engage Associate Brokers must have an Active Employing Broker.
1.9. Brokerage Relationship: Has the same
meaning pursuant to section
12-10-304(2)(b)(I),
C.R.S.
1.10. Calendar Year Cycle:
This is the three-year licensing period commencing on January 1 of year one and
expiring on December 31 of year three. All Brokers will eventually be on a
Calendar Year Cycle for their License renewal.
1.11. Commercial Real Estate: Any real
property other than real property containing one to four residential units,
single-family or multi-family residential units including condominiums,
townhouses, or homes in a subdivision when such real estate is sold, leased, or
otherwise conveyed on a unit-by-unit basis even though the units may be part of
a larger building or parcel of real property containing more than four
residential units as defined pursuant to section
38-22.5-102(2),
C.R.S.
1.12. Commission: The
Colorado Real Estate Commission as defined pursuant to section
12-10-201(1),
C.R.S.
1.13. Consumer: A member of
the public that has sought or is seeking to engage Real Estate Brokerage
Services provided by a Broker. A Consumer is a buyer, seller, tenant, or
landlord, as applicable.
1.14.
Customer: Has the same meaning pursuant to section
12-10-402(2),
C.R.S.
1.15. Deemed Complete: An
Applicant has submitted a complete and satisfactory application in compliance
with sections
12-10-202 and
12-10-203, C.R.S. that includes
the Fee and the accompanying required documentation as set forth in Chapters 2
and 3 of these Rules.
1.16.
Designated Broker: Has the same meaning pursuant to section
12-10-402(3),
C.R.S.
1.17. Director: The Director
of the Division as defined pursuant to section
12-10-101(1),
C.R.S.
1.18. Distance Learning:
Education courses offered outside the traditional classroom setting in which
the instructor and learner are separated by distance and/or time.
1.19. Division: The Division of Real Estate
as defined pursuant to section
12-10-101(2),
C.R.S.
1.20. Duplicate: A legible
photocopy, carbon copy, facsimile, or electronic copies which contain a digital
or electronic signature as defined pursuant to section
24-71-101(1),
C.R.S.
1.21. Electronic Media: The
method of communicating information that are in an electronic format rather
than a paper format. Electronic Media may include, but is not limited to,
websites, electronic mailings, social Media such as Twitter and Facebook,
banner advertisements, and YouTube.
1.22. Electronic Record: A record generated,
communicated, received, or stored by electronic means as defined to pursuant to
section 24-71.3-102(7),
C.R.S.
1.23. Employing Broker: Has
the same meaning pursuant to section
12-10-201(2),
C.R.S.
1.24. Expired: A License
that was not renewed prior to the last day of the license cycle and is no
longer valid for a person or entity to perform any Real Estate Brokerage
Services. Such persons cannot hold themselves out to the public as Brokers and
such entities cannot Advertise as Brokerage Firms.
1.25. Fee: The prescribed non-refundable fee
as set by the Division.
1.26.
Initial License or Initial Licensure: The first license granted by the
Commission to an Applicant pursuant to sections
12-10-202 and
12-10-203, C.R.S.
1.27. Inactive: A Broker who holds a valid
License shown in the Commission's records as being Inactive is not permitted to
engage in Real Estate Brokerage Services. To maintain licensure on Inactive
status, a Broker must still continue to renew their License as set forth in
Chapter 3 of these Rules.
1.28.
Independent Broker: A Broker either holding an Independent Broker level license
or Employing Broker level license acting as their own Brokerage Firm or sole
proprietor and not employing or supervising any Associate Brokers.
1.29. Invalid Payment: If the Fees
accompanying any application including Fees for the recovery fund, renewals and
transfers made to the Division are paid for by check and the check is not
immediately paid upon presentment to the bank upon which the check was drawn,
or if payment is submitted in any other manner, and payment is denied,
rescinded or returned as invalid, the application will be immediately canceled.
The application will only be reinstated if the Division has received valid
payment of all application Fees together with any fees incurred by the Division
including the fee required by state fiscal rules for clerical services
necessary for reinstatement.
1.30.
Jurisdiction: For purposes of Chapter 2 of these Rules, all 50 states, the
District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands.
1.31. License: A Broker's or Brokerage Firm's
license issued by the Commission pursuant to section
12-10-203, C.R.S.
1.32. Listing Contract: An agreement between
a Brokerage Firm and a Consumer in which a Broker licensed with the Brokerage
Firm is designated to provide Real Estate Brokerage Services to the Consumer.
Listing Agreements include: Exclusive Tenant Contract, Exclusive Right to Sell,
Exclusive Right to Lease, Exclusive Right to Buy, and Management
Agreements.
1.33. Management
Agreement: An agreement between a Brokerage Firm and an owner of a property in
which a Broker licensed with the Brokerage Firm is designated to provide
Property Management Services on behalf of the owner.
1.34. Money Belonging to Others: Money
Belonging to Others which is accepted by the Broker or Brokerage Firm for
deposit in the Broker's or Brokerage Firm's Trust or Escrow Account that
includes, but is not limited to, money received in connection with Management
Agreements, partnerships, limited liability companies, syndications, lease
agreements, advance fee contracts, guest deposits for short term rentals,
rental receipts, security deposits, earnest money deposits, or Money Belonging
to Others received for any other purpose.
1.35. New Associate Broker: An Associate
Broker with less than two (2) years of accumulative Active
experience.
1.36. Office Policy
Manual: The Manual required for all Employing Brokers or the Employing Broker's
Brokerage Firm, which contains certain policies and procedures.
1.37. Petitioner: For the purposes of
implementing the provisions of Chapter 8 of these Rules, any person who has
filed with the Commission a petition or has been granted leave to intervene by
the Commission for a declaratory order pursuant to section
24-4-105(11),
C.R.S. and as set forth in Chapter 8 of these Rules.
1.38. Property Management: An on-going
relationship between a Brokerage Firm and an owner of a property in which the
Brokerage Firm is designated to provide Property Management Services.
1.39. Property Management Services: The
activities performed in leasing and subsequent management of a property on
behalf of an owner that are pursuant to section
12-10-201(6),
C.R.S. and further described in the Management Agreement.
1.40. Real Estate Brokerage Services: Any of
the activities pursuant to section
12-10-201(6)(a),
C.R.S. when performed on behalf of a Consumer.
1.41. Real Estate Licensing Examination: An
examination that consists of two (2) parts; a national part and a Colorado part
as set forth in Rule 2.2.
1.42.
Real Estate School: Has the same meaning pursuant to section
23-64-103(20),
C.R.S.
1.43. RESPA- The Real Estate
Settlement Procedures Act of 1974, set forth in
12 U.S.C.
2601, et. seq. (Act), effective June 1, 2018,
incorporated by reference in compliance with section
24-4-103 (12.5), C.R.S. and does
not include any later amendments or editions to the Act. A certified copy of
the Act is readily available for public inspection at the Office of the
Colorado Real Estate Commission at 1560 Broadway, Suite 925, Denver, Colorado.
The Act may also be examined at the internet website of the Consumer Bureau of
Financial Protection (CFPB) at www.consumerfinance.gov. The CFPB may
also be contacted at 1700 G. Street, NW, Washington, D.C. 20552 or by telephone
at (202) 435-7000.
1.44. Recognized
Depository: Any bank, savings and loan association, or credit union that
accepts deposits or shares insured by the Federal Deposit Insurance Corporation
(FDIC) or the National Credit Union Administration (NCUA)
respectively.
1.45. Reinstatement
or Reinstating or Reinstate: Has the same meaning pursuant to section
12-10-212(4)(a)(III),
C.R.S.
1.46. Single Agent: Has the
same meaning pursuant to section
12-10-402(6),
C.R.S.
1.47. Standard Form: Has the
meaning pursuant to section
12-10-403(4),
C.R.S. and also as set forth in Rule 7.1.
1.48. Supervisory Broker: A Broker, such as a
managing broker, team lead, office manager, etc., who has been delegated in
writing by an Employing Broker to assume some of the Employing Broker's duties
and responsibilities as set forth in Rule 6.3.
1.49. Team: Two (2) or more Brokers within a
Brokerage Firm that cooperate on an on-going basis to conduct a substantial
portion of their Real Estate Brokerage Services together.
1.50. Temporary License: Has the same meaning
pursuant to section
12-10-203(6)(c),
C.R.S.
1.51. Things of Value:
Monetary considerations as well as the exchange of tangible, non-monetary
assets.
1.52. Trademark: Any logo,
service mark, or other identifying mark used in conjunction with a Brokerage
Firm's legal name or Trade Name. Trademarks may be registered with the Colorado
Secretary of State pursuant to section
7-70-102, C.R.S. As an example, the
brokerage "A Better Choice Real Estate" uses a logo bearing the initials "ABC".
The logo is used to identify the Brokerage Firm and the Real Estate Brokerage
Services that it provides to Consumers; therefore, it would be the trademark
for the Brokerage Firm.
1.53. Trade
Name: The name under which a Brokerage Firm does business other than the
Brokerage Firm's legal name. Any Trade Name used by a Brokerage Firm must be on
file with the Commission and must be filed with the Colorado Secretary of State
pursuant to section
7-71-101, C.R.S. For example, a
Brokerage Firm is licensed with the Commission under its legal name of
"Colorado Real Estate Group LLC". However, the Brokerage is also a franchise of
"International Realty" and does business under the Trade Name "International
Realty of Colorado".
1.54.
Transaction-Broker: Has the same meaning pursuant to section
12-10-402(8),
C.R.S.
1.55. Transition Period: The
two-year licensing period plus a partial year commencing on the anniversary
date when a Broker's license expires in the years of 2018, 2019, or 2020 and
expiring two (2) years plus the remaining days in the third year to reach
December 31. The length of the Transition Period is dependent on the
anniversary date and could be as long as three (3) years or as short as two (2)
years and one day.
1.56. Trust or
Escrow Account: Any checking, demand, passbook or statement account, which has,
at a minimum, the following elements:
A. The
account is separate and contains only Money Belonging to Others;
B. The account is custodial and
fiduciary;
C. All funds are
available on demand; and
D. The
account is held with a Recognized Depository.
1.57. Trust or Escrow Accounting Equation:
The reconciled trust or escrow bank account cash balance must equal the sum
total of the individual ledger balance for each owner at any given point in
time.
1.58. Unlicensed On-Site
Manager: An unlicensed person who fills in blanks, as a scrivener, on lease
forms, shows prospective tenants available units, quotes rental prices
established by the owner or Broker, arranges for maintenance, and collects
monies, including security deposits and rents. A Brokerage Firm which employs
an Unlicensed On-Site Manager must do so either as a regularly salaried
employee or as an independent contractor, and pay the Unlicensed On-Site
Manager through the Brokerage Firm. The salary may include rent value or other
non-commission income.
1.59.
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