Colorado Real Estate License

Real Estate Broker Rules and Regulations 

• Corporations 
• General Partnerships 
• Limited Liability Companies 

• Any Brokerage Firm or Broker who receives Money Belonging to Others must establish written accounting control policies and procedures, which must include adequate checks and balances over the financial activities of the Broker, Brokerage Firm, and unlicensed persons, as well as manage the risk of fraud or illegal acts.
• All Money Belonging to Others accepted by a Broker or Brokerage Firm for deposit into the Broker’s or Brokerage Firm’s Trust or Escrow Account must be deposited in one or more accounts separate from other money belonging to the Broker or Brokerage Firm. The Broker or Brokerage Firm must identify the fiduciary nature of each separate Trust or Escrow Account in deposit agreements with a Recognized Depository by the use of the word “trust” or “escrow” and a label identifying the purpose of such account, such as “sales escrow”, “rental escrow”, “security deposit escrow”, or other abbreviated form defined in the deposit agreement. The Broker or Brokerage Firm must retain a copy of each executed Trust or Escrow Account deposit agreement for inspection by the Commission.
• Accounts in the Name of the Brokerage Firm or Broker
  • Brokerage Firms acting in the name of the Employing Broker or Independent Broker as a sole- proprietor must maintain separate Trust or Escrow Accounts in the name of the Employing Broker or Independent Broker.
  • Brokerage Firms licensed as a partnership, corporation, or limited liability company must maintain separate Trust or Escrow Accounts in the name of the licensed partnership, corporation, or limited liability company.
  • The Employing Broker or Independent Broker are responsible for, must maintain and be able to withdraw money from each separate account, but may authorize other licensed or unlicensed cosigners. However, such authorization will not relieve the Employing Broker or Independent Broker of any responsibility under the Commission statutes and these Rules.
• A Brokerage Firm is not limited as to the number of separate accounts, which may be maintained for Money Belonging to Others. If the Brokerage Firm is not in possession of Money Belonging to Others, there is no obligation to maintain a separate Trust or Escrow Account.
• A Brokerage Firm who engages in Property Management must deposit rental receipts and security deposits and disburse money collected for such purposes in separate Trust or Escrow Accounts, a minimum of one for rental receipts and a minimum of one for security deposits.
• Unless otherwise agreed to in writing by the parties, Money Belonging to Others must not be invested in any type of account, security, or certificate of deposit that has a fixed term for maturity or imposes any fee or penalty for withdrawal prior to maturity.

• Every active real estate licensee, including licensed real estate companies with more than one broker, shall have in effect a policy of errors and omissions insurance to cover all acts requiring a license. Licensees can be covered under their company’s umbrella E&O policy.
• The Division has contracted with Rice Insurance Services, LLC to administer the group E&O insurance program for real estate brokers.
• Some licensed brokerage firms carry a group E&O policy that provides coverage to all brokers associated with that firm for the duration of their employment/association with that firm. Terminating employment with that brokerage firm may result in the need to purchase 'tail' coverage and a new individual E&O policy.
• E&O insurance instructions 

The Commission may refuse to issue a License to a partnership, limited liability company, or corporation if the name of said corporation, partnership, or limited liability company is the same as that of any person or entity whose License has been suspended or revoked or is so similar as to be easily confused with that of the suspended or revoked person or entity by members of the general public.

• Prior to submission of this application form, the responsible broker’s license must show a license prefix of either “IR” or “ER” (shown before the license number within the license record). Use the “Change License Level / Update Name and/or DBA” form from within the responsible broker’s individual license account if you need to update your license level or role.
• When an Independent Broker or Employing Broker submits an application to qualify a
  partnership, corporation, or limited liability company as a Brokerage Firm, the Applicant
  must certify:
  • The partnership, corporation, or limited liability company has been properly registered with the Colorado Secretary of State and is in good standing, proof of which must be included with the application;
  • If an assumed or trade name is to be used, it has been properly filed with and accepted by the Colorado Secretary of State, proof of which must be included with the application; and
  • The Independent Broker or Employing Broker has been appointed as the Independent
    Broker or Employing Broker by the appropriate authority of the applicable Brokerage
    Firm.

Prior to submitting an application for licensure, each applicant must submit a set of fingerprints to the Colorado Bureau of Investigation (CBI) for the purpose of conducting a Colorado and national fingerprint-based criminal history background check utilizing records of CBI and the FBI.  All applications received by the Division of Real Estate will not be processed without receipt of the CBI background results.

If you have had a disciplinary action against a professional license you’ll be required to upload: A signed written statement from the applicant, including the name of the agency, license type, dates nature of the alleged infraction, and deposition, a copy of the original charges or complaint against you, a copy of any agency order or other notification of the action taken and a confirmation of the current status of the license, certification, or registration.