Real Estate Office Policy Manual Colorado
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EBSCO articles ( E) are available only to NAR members and require a. What a Policy Manual Should Do. Provide a clear understanding of the relationship between broker and sales associates, management and employees, and administrative functions and sales functions. Permit the anticipation of and resolution of controversies before they arise. Stabilize both management and sales by building confidence that both management and sales associates know the rules by which the game is to be played. Forbid favoritism, since all must operate within the framework of the manual's predetermined rules and guidelines.
Provide stability of organization and permit the staff to function effectively in the absence of management Source: Portions adapted from (Chicago, IL: Real Estate Education Co. 2004) Real Estate Office Policies ( HR Magazine, 2017) E ( HR Magazine, 2017) E ( HR Magazine, 2017) E ( HR Magazine, Feb. 2016). Implementation of an office policy including anti-harassment training E ( HR Magazine, Feb. 2016) The article discusses the critical position on bring-your-own-device (BYOD) policies. E ( REALTOR® Magazine, May 2015) ( HR Magazine, June 2014) Prevent systemic workplace hostility. E ( Entrepreneur, Mar. 4, 2014) In a perfect world, everyone would show up to the workplace in smart, office-appropriate attire.
( Fortune, Oct. 21, 2013) Banning personal devices at work might safeguard sensitive networks, but new research shows younger employees increasingly circumvent the rules. ( Portland Business Journal, Nov. 7, 2008) Although most employers are aware that discrimination based on an employee’s religion is prohibited by federal and state laws, fewer actually understand the extent of protection that the laws offer individuals. ( Dallas Business Journal, Aug. 29, 2008) Promoting your campaign views at work is risky for both employer and employee. Drafting a Policy Manual ( HR Specialist, 2017) E: How an employee handbook can make your life easier and improve productivity ( Landscape Management, 2017) E ( Small Business Administration, 2014) A guide to help you write your own employee handbook.
( REALTOR® Magazine, Jan. 2010) Turn your office into a model of efficiency and profitability with some well-planned policies. May, 27, 2010) Whether your company is active on social media, your employees probably are.
Here are some things to consider when creating a social media policy. ( HR Magazine, May 2009) Employee handbooks should reflect your culture, not just the law. E ( National Association of REALTORS® Human Resources Toolkit) Be sure to check out the 'related documents' in the box on the right side of the page for sample drug and harassment policy suggestions. ( National Association of REALTORS®) Sample Policy Manuals & Manual Templates Several state associations have developed sample policy manuals for their members, not all of which are available on the open web. Members are encouraged to contact their state association to see if a template is available. ( National Association of REALTORS®, 2011) Not intended for use as a policy manual for independent contractors, this sample customizable employee manual is available in downloadable MS Word format.
Manual includes policies on compensation, conduct, privacy, safety, technology/social media, time off, and termination. for purchase ( National Association of REALTORS®, 2010) This sample customizable employee manual geared toward local REALTOR® Associations is available to you in downloadable MS Word format. Manual includes topics on technology, time off, compensation, disciplinary policies, and more. for purchase Note: Many of these samples were developed by state or local associations based on local laws and regulations that may be different from those of your state. As with any legal document, you are strongly encouraged to seek legal counsel to make sure your version is compliant with the law after you modify it for your business. Again, these samples are meant to be used as guides for members.
The information should not be construed as a recommendation by NAR for any course of action regarding financial, legal or accounting matters. It is not meant as a substitute for professional advice from a qualified legal, accounting or financial professional. ( ARELLO, 2012) links to PDF document Prepared by real estate regulators to assist a broker who is considering owning and/or operating a real estate brokerage, as this endeavor comes with much responsibility and liability. ( National Association of REALTORS®) From NAR's Legal Affairs division, this members-only document provides brokers with a template that may be used when developing a social media policy for the broker's own firm. ( Society of Human Resource Management, 2007) Benefits, diversity, safety, technology and other. EBooks & Other Resources Books, Videos, Research Reports & More The resources below are available for loan through Member Support.
Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Member Support at 800-874-6500 for assistance. (Phoenix, AZ: Arizona Department of Real Estate—Broker Office Policies Model Manual Committee, c2002) HF 5438 Es4 link to PDF version in library catalog listing (Madison, WI: Wisconsin REALTORS® Association, 2007) HF 5438 W75 (Novato, CA: Professional Publishers, Inc. 2000) HF 5438 M19o (Tallahassee, FL: The Real Estate School, 1998) HF 5438 P75p (Chicago, IL: National Association of REALTORS®, 2006) HD 1386 N21. Also available in the nar.realtor Store for sale.
(Chicago, IL: Dearborn Real Estate Education, 2004) HF 5438 R22r Ed. 4 (Chicago, IL: National Association of REALTORS®, 2001) HF 5549 N16wl (Madison, WI: Wisconsin REALTORS® Association, 2007) HF 5438 W75 (Phoenix, AZ: Arizona Department of Real Estate—Broker Office Policies Model Manual Committee, c2002) HF 5438 Es4 link to PDF version in library catalog listing (Chicago, IL: National Association of REALTORS®, 2001) HF 5549 N16wl (Novato, CA: Professional Publishers, Inc. 2000) HF 5438 M19o (Tallahassee, FL: The Real Estate School, 1998) HF 5438 P75p Have an idea for a real estate topic?. The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.
Create your own flash cards!. Cards Term Real Estate Commission Definition A division of the Colorado Department of Regulatory Agencies, is composed of 5 members appointed by the Governor of Colorado. It protects the public by regulating the industry through licensing and examination, maintaining The master file on all licensees, investment and enforcement, auditing and education. Term Real Estate Broker Definition Is any legal entity who engages in the act of selling, renting, exchanging, buying, negotiating, offering to sell or listing real estate, for compensation or in consideration of compensation. Term Recovery Fund Definition Maintained by the state treasurer, under the direction of the commission, for judgments that arise out of civil suits, and only covered unpaid out of pocket losses, unpaid court costs, and attorney fees. This fund was 'swept' by the legislature during the economic crisis and is no longer solvent. No new cases are being accepted and in fact the final payment out of the recovery fund has been made.
In essence this fund no longer exists in Colorado. Term Megan’s Law Definition Federal law passed in 1994, creating a registration and notification procedure to alert the public as to The presence of certain types of convicted sex offenders living in a neighborhood. Term What is a Single Licensing State Definition All real estate licensees are brokers Term Employing Broker Definition Definition Under Colorado law the 'employing broker' is responsible for supervision over new broker licensees. New associate brokers cannot work independently until they have been supervised by an employing broker for a period of two years. Term Responsibilities of an Employing Broker (4) Definition 1) Maintain trust accounts and trust account records. 2) Maintain company transaction records.
3) Develop an office policy manual and ensure compliance with it. 4) Supervise all new licensees. Term What laws cover ethical standards Definition Not license law. The law of crimes (public wrongs) and of torts (private wrongs) controls the behavior of individuals as it relates to their conduct with others. A Code of Ethics is voluntarily adopted and imposed on members of organizations. REALTORS® is such an organization.
Term How does the Real Estate Commission protect the public? (4) Definition 1. Regulating the industry through licensing and examinations; 2. Maintaining a Master File on all licensees; 3.
Enforcement of license law by investigating complaints and taking disciplinary action; 4. Auditing broker escrow/trust accounts and transaction records Term What is License Law (10) Definition A real estate broker license must be held by a legal entity who engages in the following acts for compensation or in consideration of compensation.
Selling, renting, exchanging, buying real estate or any interest therein. Negotiating the sale, rent, or exchange of real estate or any interest therein 3. Offering to sell rent, exchange or buy real estate or any interest therein. Listing to sell rent, exchange or buy real estate or any interest therein. Auctioning real estate or any interest therein. Dealing in options to sell, rent, exchange or buy real estate or any interest therein.
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Or a fee collected to help tenants find, or inform about, possible housing. All of the above pertains also to leases. Selling, exchanging, or buying businesses if the businesses affect real property or leases. Performing the above as an employee of an owner of real estate. (See exemptions below) Term What is an Option Dealer Definition An option dealer is any person or other legal entity that, for compensation, offers or uses an option of any real estate interest for the purposes of purchasing, selling, exchanging, renting or leasing real estate or interests therein.
Term Length of Initial License Definition Three years, commencing on the issuance date and expiring three years from the date of issuance Term Who does not need a real estate license (8) Definition 1) Any person, firm, partnership, limited liability company or association acting personally on its own behalf. (This includes regularly salaried employees and officers of corporations.) 2) Attorney-in-fact (power of attorney) without compensation. 3) Public official doing his duties. 4) Trustee, administrator, etc., doing his authorized duties.
5) Dealing in oil and gas leases. 6) A regularly salaried employee of an apartment building. 7) On-site mangers of condominiums carrying out their regular duties and who are regularly salaried. 8) A real estate broker licensed in another state who receives a payment in a co-op relationship.
Term Who must appoint an active broker to be the designated broker Definition Corporations, limited liability companies, and partnerships must appoint an active broker to be its designated broker. The broker does not need to be a manager of a partnership or officer of the corporation. The requirements are the same as for any other broker license. Term Reasons the Commission can punish a broker (16) Definition 1) Knowingly making any misrepresentation or false or misleading advertising. 2) Influencing, persuading or inducing another person with false promises.
3) Violating the 'Colorado Consumer Protection Act,' Article 1 of Title 6, C.R.S. 4) Acting for more than one party without all parties' acknowledgment.
5) Acting for more than one party in a transaction without the knowledge of all parties thereto. 6) Not placing, as soon as possible, any deposit money with the employing broker. 7) Failure to keep good accounting of deposit money. 8) Commingling of funds of others with broker's own money; diverting funds of others; failure of keeping other's funds in an escrow or trustee account. 9) Failure in providing a purchaser/seller a closing statement. 10) Failure to maintain possession of Commission prescribed documents for a period of four years.
11) Paying a commission to an unlicensed person for carrying out real estate activities. There is an exception for a finder's fee paid to an out-of-state broker. 12) Violating the Colorado or Federal Fair Housing laws. 13) Failure to exercise reasonable supervision over the activities of licensed employees. 14) Receiving any secret or undisclosed amount of compensation. 15) Causing any payment to be made from the recovery fund.
16) Failure to document the completion of the continuing education requirements. Term How many votes are needed from the Commission to deny, suspend, or revoke a license Definition A majority Term Who can pay a commission to a licensed broker and when is it due Definition All commissions must be paid to the brokerage company. It is unlawful for a licensed broker associate to receive any compensation from anyone other than the employing broker (brokerage company). Disputes over payment to the broker associate by the employing broker are a matter for the courts, not the Real Estate Commission. A commission is not due the broker until a ready, willing, and able purchaser actually completes the purchase or at such time as the seller refuses to allow said purchaser to purchase. No commission is due if the sale does not occur because of title defects. Term What is the Recovery Fund Definition The state treasurer has maintained a Real Estate Recovery fund, which is under the direction of the Real Estate Commission.
The fund was maintained for judgments arising out of civil suits, and only covered unpaid out-of-pocket losses, unpaid court costs, and unpaid reasonable attorney fees. Term Maximum Liability of Recovery Fund Definition The fund is liable for a maximum of $50,000 per transaction (no matter how many individuals, licensees or parcels make up the transaction). A licensee can only account for a maximum of $150,000 of fund monies no matter how many transactions.
Term Implications of payment from the Recovery Fund Definition The license of the broker shall be automatically revoked if any payment is made from the recovery fund. Term Future of the Recovery Fund Definition At this time no new fees are being collected from new licensees to replenish the recovery fund, and the recovery fund will cease to exist once all currently pending transactions are completed. Term Mortgage Broker Licensing Requirements Definition As of January 1, 2008, The Mortgage Brokers Registration Act requires all persons acting as Mortgage Brokers to apply for licensure every three years. An applicant for licensure must submit, along with the application fee, a criminal history background check from CBI and disclosure of all administrative discipline taken against the applicant. All applicants are required to post a bond of twenty-five thousand dollars, to be maintained at all times. Applicants shall be issued or denied within twenty-one days.
Applicants will also be required to maintain Errors and Omission Insurance. Term Mortgage Broker Duties (3) Definition A mortgage broker shall have a duty of good faith and fair dealing in all transactions with a borrower, including: 1) The duty to not recommend or induce the borrower to enter into a transaction that does not have a reasonable, tangible net benefit to the borrower. 2) The duty to make his/her best efforts to recommend, broker, or originate a residential mortgage loan that takes into consideration the borrower’s income, existing debts and other obligations. 3) The duty not to commit any unconscionable act or practice. Term Persons Exempt from a Mortgage Broker License (3) Definition 1) Government employees 2) Sellers offering private financing 3) Banks and attorneys rendering service in the course of practice Term Requirements when acting as a Mortgage Broker and a Real Estate Broker (6) Definition 1) Before providing mortgage services to the borrower, a mortgage broker shall make a full and fair disclosure to the borrower. 2) Carry on such mortgage broker business activities and shall maintain such person’s mortgage broker business records separate and apart from the real estate broker activities. Such activities shall be deemed separate and apart even if they are conducted at an office location with a common entrance and mailing address.
3) Each business must be clearly identified by a sign visible to the public. 4) Each business is physically separated within the office facility. 5) No deception of the public as to the separate identities of the broker business firms shall result.
6) Every contract between a mortgage broker and a borrower shall be in writing and shall contain the entire agreement of the parties. Term Disclosure Requirements of a Mortgage Broker Definition Within three business days after receipt of a loan application or any moneys from a borrower, a mortgage broker shall provide to each borrower a full written disclosure containing an itemization and explanation of all fees and costs that the borrower is required to pay in connection with obtaining a residential mortgage loan, and specifying the fee or fees that inure to the benefit of the mortgage broker. A good-faith estimate of a fee or cost shall be provided if the exact amount of the fee or cost is not determinable. Term Mortgage Broker Compensation Rules Definition A mortgage broker shall not receive a fee, commission, or compensation of any kind in connection with the preparation, negotiation, or brokering of a residential mortgage loan unless a borrower actually obtains a loan from a lender on the terms and conditions agreed to by the borrower and mortgage broker. If the borrower fails to close on the loan through no fault of the mortgage broker, the mortgage broker may charge a fee, not to exceed three hundred dollars. A mortgage broker may solicit or receive fees for third-party provider goods or services in advance. Fees for any goods or services not provided shall be refunded to the borrower, and the mortgage broker may not charge more for the goods and services than the actual costs of goods or services charged by the third-party provider.
Colorado Real Estate Manual Online
Term Requirements to get a Real Estate Brokers License (4) Definition 1) Pass the exam. 2) Have a certification of completion (Form REC-33) for all educational requirements from a qualified school 3) A completed Fingerprint Card No.
FD-258 submitted to the Colorado Bureau of Investigation for the purpose of conducting a state and national criminal history record check prior to submitting an application for a license. 4).A written explanation covering any convictions (or nolo contendere) for misdemeanors or felony (or pending charges) or for a deferred judgment or sentence within the last 10 years. Term Real Estate Broker required hours of study (Six Areas) Definition 1) 48 hours in Real Estate Law and Practice. 2) 48 hours of Colorado Contracts.
3) 24 hours of Real Estate Closings. 4) 8 hours of Trust Accounts and Record Keeping. 5) 8 hours on Current Legal Issues 6) 32 hours in Practical Applications. Term Continuing Education Requirements Definition 24 hours every 3 years.
The Commission requires you to take three 4-hour 'Annual Commission Update' classes in a three-year license cycle. The remaining 12 hours of CE credit can be selected from a variety of approved elective courses.
You are not allowed to take more than 8 hours of CE credit in any given day. Term Continuing Education Alternatives Definition You can take the 24-hour Broker Reactivation Course once in any six year period (two license cycles) in lieu of the 24-hour requirement, or you can take and pass the state specific portion of the Colorado broker exam in lieu of taking any CE courses.
Term What is Rule E-42: BPO Commission Rule Definition When a real estate licensee prepares a comparative market analysis (CMA) for any reason other than the anticipated sale or purchase of the property (i.e. Broker price opinion), the licensee must include a notice stating: The preparer of this evaluation is not registered, licensed, or certified as a real estate appraiser by the state of Colorado.' Term What is Rule E-43 Definition This rule applies to residential transactions when a licensee personally measures real estate or provides information from another source of measurement. The licensee listing property is responsible for accurately representing any source of square footage. Term Sources of Measurement for a property Definition 1) Licensee measurement.
Real Estate Office Policy Manual Colorado
A licensee is not required to measure the square footage of a property. If the licensee takes an actual measurement it does not have to be exact, however, the licensee's objective must be to measure accurately and calculate competently in a manner that is not misleading, and: 2) Other sources of square footage. If a buyer or seller is provided information from another source for square footage, that source (whether an actual measurement, building plans, prior appraisals, assessor's office, etc.) must be disclosed in writing by the licensee, in a timely manner, including date of issuance. Such disclosure must advise the recipient to verify the information. A licensee may not provide information to a person from a source known to be unreliable and is responsible for indications pointing to obvious mis-measurement by others. 3) A licensee working with a buyer may rely on a representation of square footage by a listing broker; however, such licensee is responsible for indications of obvious mis-measurement by others.
Term Requirements if Broker Measures Property (3) Definition 1) The standard, methodology or manner in which the measurement was taken must be disclosed; 2) The buyer and seller must be advised that the measurement is for purposes of marketing and is not a measurement for loan, valuation, or any other purpose; and 3) The buyer and seller must be advised that if exact square footage is a concern, the property should be independently measured. Term What is Rule E-45 Definition The Commission allows the supervising broker to receive confidential information so long as it has been authorized by the parties to the contract. This transferring of confidential information does not change the brokerage company's relationship with the buyer or seller (it does not make the company an Agent or T-B or the buyer or seller). Term What is Rule E-46: Affiliated Business Arrangement Definition Licensed Colorado real estate brokers must disclose affiliated business arrangements to any client so referred and to the Colorado Division of Real Estate.
The statute requires brokers to disclose to the Commission upon entering into or changing an affiliated business arrangement. It also requires employing brokers to report such arrangement(s) at least annually. Commission Rule E-46 further requires disclosure at the time of a new application for active licensure or at the time of activation of an inactive license. Term What is an Affiliated Business Arrangement Definition A relationship with, or an ownership interest (more than 1%) by one provider of settlement services (real estate broker, title insurer, lender, attorney, surveyor, etc.) in another provider of settlement services. These two providers (or their associates) then refer business to one another and benefit financially from such referrals. Term What is CP-1: HOMEBUILDER'S EXEMPTION FROM LICENSING Definition The employee must be a regularly salaried employee and not paid on a commission basis (commission payment may be made over the base salary).
The salary cannot be a draw on commissions, and deductions will be made which include state and federal withholding taxes and FICA taxes. Term What is the Commissions positions on earned commissions Definition License law forbids a broker from paying a commission or valuable consideration, for performing brokerage functions, to any person who is not licensed as a real estate broker. Brokerage functions include negotiating the purchase, sale or exchange of real estate. Therefore, any unlicensed person who directly or indirectly brings a buyer and seller together, is negotiating and would need a broker’s license in order to be compensated. This includes, but is not limited to, such activities as referring potential time-share purchasers to a developer or referring potential purchasers to a homebuilder. Term What is the Commissions positions on when referral fees can be paid Definition A real estate broker can pay a referral fee if reasonable cause for payment exists.
Reasonable cause exists when: 1) An actual introduction of business has been made; 2) A contractual referral fee relationship exists; or 3) A contractual cooperative brokerage relationship exists. Term Referral fee definition Definition Any fee paid by a licensee to any person or entity, other than a cooperative commission offered by a listing broker to a selling broker or vice versa. Term What governs referral fee payments in transactions involving a federally related mortgage loan?
Definition Section 8 of the Real Estate Settlement Procedures Act (“RESPA”), governs the payment of referral fees. Term What fees does RESPA permit?