Lisa is a licensed Colorado Broker Associate working under Employing Broker Frank. A seller approaches Lisa directly and asks her to list their home. Lisa, without informing Frank, signs a listing agreement with the seller using her own name and begins marketing the property independently. Under Colorado law, which of the following best describes the consequences of Lisa's actions?
Correct Answer
B) Lisa's actions violate Colorado license law because a Broker Associate may only enter into contracts and listing agreements on behalf of and through their Employing Broker
Under C.R.S. § 12-10-201 et seq. and CREC rules, a Broker Associate does not have the authority to independently enter into listing agreements or contracts in their own name. All brokerage activities, including listing agreements, must be conducted on behalf of and through the Employing Broker. Lisa's independent listing agreement violates Colorado license law and could subject her to disciplinary action by the CREC, including suspension or revocation of her license.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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