During a CREC audit, it is discovered that employing broker Patricia Nguyen has been allowing an unlicensed assistant, Greg, to negotiate purchase prices and present offers directly to buyers on her behalf. Patricia argues that Greg was acting as her agent and that she supervised all final decisions. Under Colorado law, how should this situation be characterized?
Correct Answer
B) Greg's activities constitute unlicensed practice, and Patricia may face disciplinary action for allowing an unlicensed person to perform licensed activities
Under C.R.S. § 12-10-201 et seq., negotiating purchase prices and presenting offers are activities that require a real estate license in Colorado. An unlicensed assistant may not perform these functions regardless of how much supervision the employing broker provides. Patricia has violated Colorado license law by allowing Greg to engage in activities requiring licensure. The CREC can discipline Patricia for permitting unlicensed practice, and Greg may face separate penalties for practicing without a license.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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