Brokerage Administration I

This course is required by the Colorado Real Estate Commission in order to upgrade from Associate or Independent Broker to the Managing/Employing Broker level. This course may also be used to meet the 12 hours of elective continuing education required each license cycle. This course may also be used for out of state brokers wishing to activate a Colorado license at the Employing/Managing Broker level of authority. Verify your requirements online at http://www.vaned.com/licensefind.htm.

Note: This course is NOT acceptable to activate an inactive or expired license. Visit http://vaned.com/renew for information on the appropriate course or program required for activation.

Course Objective:

To provide a course of study for the practical application of laws, rules and sound business practices for the management, operation and supervision of a real estate brokerage company. Upon completion participants will have obtained an understanding and working knowledge of the necessary components of an office policy, independent contractor agreements, supervision of employed broker associates and an ability to understand and apply the requirements of recordkeeping and trust accounts. Participants will have obtained a basic knowledge of real estate brokerage business planning and will be able to explain the functions and role of the Real Estate Commission and the Division of Real Estate.

Course Description:

Students will experience several quizzes and examinations throughout the material together with a policy workshop. An office policy workshop allows the student the opportunity to start their policy per statute and assists in the development process thereof. Passage of the final exam is required.

The course outline used is provided by the Division of Real Estate and meets the requirements set forth.

Learning Objectives:

This is a comprehensive Brokerage course. At the conclusion of this course, students will;

• Be able to recognize state government functions as they relate to real estate
• Analyze the taxation of business and then compare and forecast based on projections
• Illustrate the CREC requirements for an office policy
• Be able to support their associates by recognizing good and bad business practices
• Differentiate between the responsibilities of managing an experienced broker vs. an inexperienced broker
• Be able to recall the rules and regulations as they pertain to Trust accounts and accounting practices
• Demonstrate the ability to examine and discuss the closing statements and transaction documents
• Formulate and Prepare an office policy manual that complies with CREC Rules and Regulations
• List the functions of the real estate commission and division of real estate
• Investigate rules and regulations that relate to the real estate industry and derive a plan for informing associates and consumers about the same

Table of Contents
Introduction
Unit I:  Introduction to Planning a Brokerage Business

• Type of Company and Start-up Fees
• Office Support
• Recruiting agents and staff; EEOC guidelines
• Employees vs. independent contractors
• Written employment agreements (CP-10)
• Compensation
• Termination Policies (Rule D-7)

Unit II: Trust Accounts and Record Keeping

• Broker Supervision and oversight
• Operations account
• Trust accounts
• Security and advance deposits (CP-5)
• Transaction files; checklists
• Closings (CP-7)
• Escrow Requirements
• Earnest Money (CP-6)
• Property Management Records
• Change of brokers, principals: disposition of funds, records (CP-8)
• Retention periods (CP-9)

Unit III: Office Policies and Procedures

• Sales
  • Competency
  • Transactions
  • Guaranteed Buyouts
  • Investor Purchases
  • Brokerage Relationships with the public
  • Monitoring of licensees and delegation of authority
  • Training and Personal assistants
  • Fair Housing and Internal audits
• Property Management
  • Activity and monitoring of licensees activity
  • Policies and Procedures
  • On-site managers and Administration
  • Supervision, handling of money
  • Recordkeeping, disaster recovery and Reporting
  • Termination, Eviction and Legal Action
  • Return of security and advance deposits

Unit IV: Office Policy Workshop

• Development of office policy
  • Files
  • Minimum Service Requirements
  • Handling earnest money
  • Transaction Documents (CP-22)
  • Brokerage Relationships (CP-31, CP-32)
  • Property Management Activity

Unit V: Real Estate Commission and the Division of Real Estate

• The Licensing Section
• The Education and Communication Section
• The Investigations Section
• Sustainability

Unit VI: Other Current Issues

• Current Rulemaking / Recent Changes
• Risk Reduction
• Identity Theft and the FTC
• Sustainability

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This course is self paced online and contains numerous exercises, quizzes, and examinations. It is completed with a multiple choice final exam and a review of specific sections of your submitted office policy assignment.