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Practice Of Real EstateLicense LawHARD

Broker Associate Cynthia has been working under Employing Broker Gary for 18 months. Gary's brokerage closes unexpectedly due to Gary's sudden incapacitation. Cynthia has several active listings and pending transactions. Under Colorado law, what is the most accurate description of Cynthia's situation and her immediate obligations?

Correct Answer

A) Cynthia must immediately affiliate with a new licensed Employing Broker to continue practicing real estate; she cannot conduct brokerage activities without an active Employing Broker affiliation

Under C.R.S. § 12-10-201 et seq., a Broker Associate must be affiliated with a licensed Employing Broker at all times to legally engage in real estate brokerage activities. When Gary's brokerage closes, Cynthia's ability to conduct brokerage activities under that Employing Broker ends. To continue practicing, Cynthia must promptly affiliate with a new licensed Employing Broker. CREC rules require that a Broker Associate's license be held by an active Employing Broker for the license to be in active status.

Answer Options
A
Cynthia must immediately affiliate with a new licensed Employing Broker to continue practicing real estate; she cannot conduct brokerage activities without an active Employing Broker affiliation
B
Cynthia may continue working all active listings and transactions independently for up to 90 days under a CREC emergency authorization
C
Cynthia may complete all pending transactions under her existing Broker Associate license without affiliation because the transactions were initiated while she was properly licensed
D
Cynthia's license is automatically suspended when Gary's brokerage closes, and she must cease all real estate activities immediately until she affiliates with a new Employing Broker

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Related Topics & Key Terms

Key Terms:

broker_associateemploying_brokeraffiliation_requirementbrokerage_closurelicense_status

Related Concepts

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.

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