Colorado Out of State Broker Cooperation
- An out-of-state licensee may share in a fee earned on a Colorado transaction provided that:
a) the out-of-state licensee cooperates with a Colorado licensee;
b) all advertising, negotiations, contracting, and conveyancing done in Colorado must be performed in the name of the Colorado broker:
c) all money collected from the parties to the transaction shall be deposited in the name of the co-broker.
QUASI - BIZ BROKER STATE*
Specific to Colorado Real Estate
- This State requires Mandatory E&O Insurance Coverage (see RISC )
- For Business Brokers, a real estate license is only necessary if transacting a business that has a leasehold of freehold title to Real Estate and it's included in the transaction.
- DUAL AGENCY BANNED, DESIGNATED OR TRANSACTION ALLOWED
- CO is considered a Single Entity State, meaning that a Broker in this state can only represent one entity, whereas a broker in other states may represent multiple entities.
Colorado Reverse Reciprocity
These states specifically mention Colorado in their Reciprocity:
Arkansas, Connecticut, Illinois, Louisiana, Minnesota, Montana, Nevada, New York, Ohio
These States recognize any other State licenses but may have additional requirements:
Alaska, Alabama, Georgia, Idaho, Indiana, Kansas, Kentucky, Maine, Nebraska, North Carolina, Rhode Island, South Dakota, Tennessee, Vermont, Washington
Colorado Real Estate Customs
Title companies, brokers, and attorneys all may handle closings.
Conveyance is by warranty deed. Deeds of trust are the customary security instruments.
Coloradans have these title insurance policy options: ALTA owner’s, lender’s, leasehold, and construction loan; endorsements are used, too.
Although they are negotiable, closing costs are generally split between buyer and seller, and seller normally pays for title insurance.
Sellers pay the title insurance premium and the documentary transfer tax.
*QUASI - BIZ BROKER STATE
If a business brokerage commission is contingent on "the transfer of an interest in real estate", (this includes a lease transfer) then the business broker must possess a real estate license to be paid.
(2)(a) “Real estate broker” or “broker” means any person, firm, partnership, limited liability company, association, or corporation who, in consideration of compensation by fee, commission, salary, or anything of value or with the intention of receiving or collecting such compensation, engages in or offers or attempts to engage in, either directly or indirectly, by a continuing course of conduct or by any single act or transaction, any of the following acts:
(IX) Negotiating or attempting or offering to negotiate the listing, sale, purchase, exchange, or lease of a business or business opportunity or the goodwill thereof or any interest therein when such act or transaction involves, directly or indirectly, any change in the ownership or interest in real estate, or in a leasehold interest or estate, or in a business or business opportunity which owns an interest in real estate or in a leasehold unless such act is performed by any broker-dealer licensed under the provisions of article 51 of title 11, C.R.S., who is actually engaged generally in the business of offering, selling, purchasing, or trading in securities or any officer, partner, salesperson, employee, or other authorized representative or agent thereof;