Question

All of these actions would be violations of the license law EXCEPT:

a violation of the Federal Fair Housing Act.

conviction of a felony.

obtaining money under false pretenses.

charging a commission in excess of seven percent.

A real estate broker would need copies of all of these in his transaction file EXCEPT:

closing statements.

purchase contract.

listing agreement (if listing company).

office expenses.

Answer 1

1. charging a commission in excess of seven percent.

Generally this amount vary and that too quite an extent because the broker is paid 6% as commission to the broker but that varies and the agents get 30 to 40% of the brokerage paid. All the other options are violations of the law.

2. Closing Statements

A broker needs to retain documents for four years under the §12-61-113(1)(i), C.R.S. Rules E-4 and E-5, as well as the Commission position statement of record keeping (CP-9), control the contents of the broker’s property transaction file. Closing entities are not required in this case.