(1) (a) All persons desiring to become real estate brokers shall apply to the commission for a license under the provisions of this part 2. Application for a license as a real estate broker shall be made to the commission upon forms or in a manner prescribed by the commission.
(b) (I) Prior to submitting an application for a license pursuant to subsection (1)(a) of this section, each applicant shall submit a set of fingerprints to the Colorado bureau of investigation for the purpose of conducting a state and national fingerprint-based criminal history record check utilizing records of the Colorado bureau of investigation and the federal bureau of investigation. The applicant shall pay the fee established by the Colorado bureau of investigation for conducting the fingerprint-based criminal history record check to the bureau. Upon completion of the criminal history record check, the bureau shall forward the results to the commission. The commission shall acquire a name-based criminal history record check, as defined in section 22-2-119.3 (6)(d), for an applicant who has twice submitted to a fingerprintbased criminal history record check and whose fingerprints are unclassifiable or when the results of a fingerprint-based criminal history record check of an applicant performed pursuant to this subsection (1)(b)(I) reveal a record of arrest without a disposition. The applicant shall pay the costs associated with a name-based criminal history record check.
(II) For purposes of this subsection (1)(b), "applicant" means an individual, or any person designated to act as broker for any partnership, limited liability company, or corporation pursuant to subsection (6) of this section.
Every real estate broker licensed under this part 2 shall maintain a place of businesswithin this state, except as provided in section 12-10-208. In case a real estate broker maintains more than one place of business within the state, the broker shall be responsible for supervising all licensed activities originating in the offices.
The commission is authorized by this section to require and procure any such proofas is necessary in reference to the truthfulness, honesty, and good moral character of any applicant for a real estate broker's license or, if the applicant is a partnership, limited liability company, or corporation, of any partner, manager, director, officer, member, or stockholder if the person has, either directly or indirectly, a substantial interest in the applicant prior to the issuance of the license.
(a) An applicant for a broker's license shall be at least eighteen years of age. The applicant must furnish proof satisfactory to the commission that the applicant has either received a degree from an accredited degree-granting college or university with a major course of study in real estate or has successfully completed courses of study, approved by the commission, at any accredited college or university or any private occupational school that has a certificate of approval from the private occupational school division in accordance with the provisions of article 64 of title 23 or that has been approved by the commission or licensed by an official state agency of any other state as follows:
Forty-eight hours of classroom instruction or equivalent correspondent hours in realestate law and real estate practice; and
Forty-eight hours of classroom instruction or equivalent correspondent hours in understanding and preparation of Colorado real estate contracts; and
A total of seventy-two hours of instruction or equivalent correspondence hours fromthe following areas of study:
Trust accounts and record keeping;
Real estate closings;
Current legal issues; and(D) Practical applications.
An applicant for a broker's license who has been licensed as a real estate broker inanother jurisdiction shall be required to complete only the course of study comprising the subject matter areas described in subsections (4)(a)(II) and (4)(a)(III)(B) of this section.
An applicant for a broker's license who has been licensed as a real estate salespersonin another jurisdiction shall be required to complete only the course of study required in subsections (4)(a)(II) and (4)(a)(III) of this section.
(5) (a) The applicant for a broker's license shall submit to and pass an examination designated to determine the competency of the applicant and prepared by or under the supervision of the commission or its designated contractor. The commission may contract with an independent testing service to develop, administer, or grade examinations or to administer licensee records. The contract may allow the testing service to recover the costs of the examination and the costs of administering exam and license records from the applicant. The commission may contract separately for these functions and allow recovered costs to be collected and retained by a single contractor for distribution to other contractors. The commission shall have the authority to set the minimum passing score that an applicant must receive on the examination, and the score shall reflect the minimum level of competency required to be a broker. The examination shall be given at such times and places as the commission prescribes. The examination shall include, but not be limited to, ethics, reading, spelling, basic mathematics, principles of land economics, appraisal, financing, a knowledge of the statutes and law of this state relating to deeds, trust deeds, mortgages, listing contracts, contracts of sale, bills of sale, leases, agency, brokerage, trust accounts, closings, securities, the provisions of this part 2, and the rules of the commission. The examination for a broker's license shall also include the preparation of a real estate closing statement.
An applicant for a broker's license who has held a real estate license in another jurisdiction that administers a real estate broker's examination and who has been licensed for two or more years prior to applying for a Colorado license may be issued a broker's license if the applicant establishes that he or she possesses credentials and qualifications that are substantively equivalent to the requirements in Colorado for licensure by examination.
In addition to all other applicable requirements, the following provisions apply tobrokers that did not hold a current and valid broker's license on December 31, 1996:
No such broker shall engage in an independent brokerage practice without first having served actively as a real estate broker for at least two years. The commission shall adopt rules requiring an employing broker to ensure that a high level of supervision is exercised over such a broker during the two-year period.
No such broker shall employ another broker without first having completed twentyfour clock hours of instruction, or the equivalent in correspondence hours, as approved by the commission, in brokerage administration.
Effective January 1, 2019, a broker shall not act as an employing broker withoutfirst demonstrating, in accordance with rules of the commission, experience and knowledge sufficient to enable the broker to employ and adequately supervise other brokers, as appropriate to the broker's area of supervision. The commission's rules must set forth the method or methods by which the broker may demonstrate the experience and knowledge, either by documenting a specified number of transactions that the broker has completed or by other methods.
(6) (a) Real estate brokers' licenses may be granted to individuals, partnerships, limited liability companies, or corporations. A partnership, limited liability company, or corporation, in its application for a license, shall designate a qualified, active broker to be responsible for management and supervision of the licensed actions of the partnership, limited liability company, or corporation and all licensees shown in the commission's records as being in the employ of the entity. The application of the partnership, limited liability company, or corporation and the application of the broker designated by it shall be filed with the commission.
No license shall be issued to any partnership, limited liability company, or corporation unless and until the broker so designated by the partnership, limited liability company, or corporation submits to and passes the examination required by this part 2 on behalf of the partnership, limited liability company, or corporation. Upon the broker successfully passing the examination and upon compliance with all other requirements of law by the partnership, limited liability company, or corporation, as well as by the designated broker, the commission shall issue a broker's license to the partnership, limited liability company, or corporation, which shall bear the name of the designated broker, and thereupon the broker so designated shall conduct business as a real estate broker only through the partnership, limited liability company, or corporation and not for the broker's own account.
If the person so designated is refused a license by the commission or ceases to be thedesignated broker of the partnership, limited liability company, or corporation, the entity may designate another person to make application for a license. If the person ceases to be the designated broker of the partnership, limited liability company, or corporation, the director may issue a temporary license to prevent hardship for a period not to exceed ninety days to the licensed person so designated. The director may extend a temporary license for one additional period not to exceed ninety days upon proper application and a showing of good cause; if the director refuses, no further extension of a temporary license shall be granted except by the commission. If any broker or employee of any such partnership, limited liability company, or corporation, other than the one designated as provided in this section, desires to act as a real estate broker, the broker or employee shall first obtain a license as a real estate broker as provided in this section and shall pay the regular fee therefor.
The broker designated to act as broker for any partnership, limited liability company,or corporation is personally responsible for the handling of any and all earnest money deposits or escrow or trust funds received or disbursed by the partnership, limited liability company, or corporation. In the event of any breach of duty by the partnership, limited liability company, or corporation as a fiduciary, any person aggrieved or damaged by the breach of fiduciary duty shall have a claim for relief against the partnership, limited liability company, or corporation, as well as against the designated broker, and may pursue the claim against the partnership, limited liability company, or corporation and the designated broker personally. The broker may be held responsible and liable for damages based upon the breach of fiduciary duty as may be recoverable against the partnership, limited liability company, or corporation, and any judgment so obtained may be enforced jointly or severally against the broker personally and the partnership, limited liability company, or corporation.
No license for a broker registered as being in the employ of another broker shall beissued to a partnership, a limited liability company, or a corporation or under a fictitious name or trade name; except that a married woman may elect to use her birth name.
No person shall be licensed as a real estate broker under more than one name, and noperson shall conduct or promote a real estate brokerage business except under the name under which the person is licensed.
A licensed attorney shall take and pass the examination referred to in this sectionafter having completed twelve hours of classroom instruction or equivalent correspondent hours in trust accounts, record keeping, and real estate closings.
Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 618, § 1, effective October 1; (1)(b)(I) amended, (HB 19-1166), ch. 125, p. 564, § 68, effective October 1.
Editor's note: (1) This section is similar to former § 12-61-103 as it existed prior to 2019.
(2) Before its relocation in 2019, this section was amended in HB 19-1166. Those amendments were superseded by the repeal and reenactment of this title 12, effective October 1, 2019. For those amendments to the former section in effect from April 18, 2019, to October 1, 2019, see HB 19-1166, chapter 125, Session Laws of Colorado 2019.