Upgrading an Associate or Independent Broker's license to the Employing Broker level of Authority in Colorado has just gotten more interesting.
At the most recent Commission meeting a new Rule A-27 was adopted that mandates any broker who wants to upgrade now must not only meet the legislated requirements of holding an active license for two years and passing the Brokerage Administration course, but also earn 50 points using the methodology approved.
Those who have a current Employing Broker's license but applied for that license any time since January 1st, 1997 and wish to remain at this license level will also need to meet one of three requirements, one of which is to take a brand new Broker Refresher course that is being developed by the Commission. For those considering upgrading to the Employing Broker level of authority in order to open their own Brokerage Firm, you will need to comply with Commission Rule A-27. This rule clarifies what steps must be taken in order to upgrade.
For a Broker who holds a current and valid broker's license that was issued prior to December 31st, 1996 these rules do not apply. This is because that is the date that Colorado went to single licensing. All Salespeople became Associate Brokers and all Brokers became Employing Brokers (they had already met the requirements and passed a separate examination).
Beginning on January 1st, 2018 these rules will be slightly different. Below is Rule A-27 as it would apply to any Broker Associate seeking to upgrade their license level.
A-27. Employing broker qualifications.
In addition to the requirements prescribed in sections 12-61-103(6)(c)(I) and (II), C.R.S., and pursuant to section 12-61-103(6)(c)(III), C.R.S., a broker that did not hold a current and valid broker’s license on December 31, 1996, must not act as an employing broker without first demonstrating the following experience and knowledge:
A) A broker that was issued an employing broker level license prior to January 1, 2018, will have satisfied the employing broker experience and knowledge requirements by fulfilling one of the following:
- The broker must have held an active employing broker level license for at least two (2) years within the five (5) year period immediately preceding January 1, 2019; or
- The broker must successfully complete the employing broker refresher course; or
- The broker meets the experience requirements as prescribed in subsection B of this rule.
B) Each applicant for an employing broker level license who applies on or after January 1, 2018, must submit evidence satisfactory to the Commission that the applicant has practiced as an active licensed broker, as appropriate to the broker’s area of supervision, for at least two (2) years within the five (5) year period immediately preceding the date of application. The evidence must also demonstrate that the applicant’s experience as a licensed broker, as appropriate to the broker’s area of supervision, qualifies the applicant for a total of at least fifty (50) points having accumulated within the five (5) year period immediately preceding the date of application, based on the following point system:
- Each full year that the applicant has practiced as an employing broker, as defined by Colorado law, is worth ten (10) points.
- Each full year that the applicant was delegated supervisory authority from an employing broker that included responsibility for ensuring compliance with the Commission statutes and rules, and that ensured responsibility for the brokerage (excluding any mentorship) is worth five (5) points. (A copy of the detailed executed delegation of authority must be included.)
- Each hour of a continuing education approved and designated educational course in the broker’s area of expertise completed after January 1, 2018, is worth one (1) point. (This educational point category cannot exceed twenty (20) points.)
- Each completed or closed residential sales transaction is worth three (3) points.
- Each completed or closed commercial sales transaction is worth six (6) points.
- Each completed or closed vacant land sales transaction is worth six (6) points.
- Each administered commercial property management transaction is worth four (4) points.
- Each administered residential property management transaction is worth two (2) points.
- Each completed or closed commercial lease transaction is worth two (2) points.
- Each completed or closed residential lease transaction is worth one (1) point.
- Each completed or closed time share sales transaction is worth two (2) points.
C) Each applicant must complete the Commission created employing broker experience and knowledge worksheet and submit the worksheet and supporting documents with the application for an employing broker level license. An application is deemed complete at the time all required supporting documents and fees are received by the Division.
12-61-103(c) says in part:
(I) No broker shall engage in an independent brokerage practice without first having served actively as a real estate broker for at least two years.
(II) No broker shall employ another broker without first having completed the twenty-four hour Brokerage Administration course.
Note: The two items mentioned in 12-61-103 are in addition to Rule A-27 (and are mentioned in the Rule itself) and have been mandated by state law since 1997. For questions on any of these changes, please email us at firstname.lastname@example.org. We will be happy to answer any questions you have about your current license status.
Written and Published by: VanEd