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Practice Of Real EstateLicense LawMEDIUM

Colorado licensee Patricia has her license placed on inactive status while she takes a leave of absence. During this inactive period, her former client calls and asks Patricia to write an offer on a property. Patricia verbally agrees and helps the client draft the offer, intending to reactivate her license the following week. Under Colorado law, what has Patricia most likely done?

Correct Answer

B) Committed unlicensed practice of real estate, which is a violation of Colorado license law

Under C.R.S. § 12-10-201 et seq., an inactive licensee is not authorized to engage in any real estate brokerage activities, including writing offers or negotiating on behalf of clients. Practicing real estate with an inactive license is treated the same as practicing without a license — it constitutes unlicensed practice and is a violation of Colorado license law subject to disciplinary action by CREC.

Answer Options
A
Acted within her rights because inactive licensees retain limited authority to assist former clients
B
Committed unlicensed practice of real estate, which is a violation of Colorado license law
C
Acted permissibly as long as she does not accept compensation for the transaction
D
Complied with Colorado law because she intends to reactivate her license before closing

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Related Topics & Key Terms

Key Terms:

inactive_licenseunlicensed_practicelicense_statusdisciplinary_action

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