Colorado: what an unlicensed TC can do

What an unlicensed transaction coordinator may do in Colorado, what needs a license, and how far you can go in completing forms for a broker.

What you can do without a license

The employing broker is responsible for supervising all unlicensed employees, and for this purpose an independent contractor counts as an employee.

A practical example

You can:

Spot that the file is missing a disclosure and send it out.

Refer to the agent:

Negotiate an inspection credit. That goes to the broker.

Staying on the right side of the rules

Disclose your role

A broker should make sure an unlicensed REAP promptly discloses that they don't have a license and names the broker they work for, to the other side's broker, other industry professionals and consumers.

Broker responsibility

Commission Position 20 notes that under Section 12-10-222, C.R.S., a broker can be held responsible for an employee's actions if the broker knew of the violation or was negligent in supervision, and that Rule 6.3.A makes employing brokers responsible for supervising all unlicensed employees.

How you're paid

The Commission warns that paying an unlicensed REAP contingent on closing may violate RESPA, and that charging the consumer separately for work that helps the broker meet their own duties may be a duplicate fee. It tells brokers to get tax or legal advice on how to pay a REAP.

Showings with authorization

Unlike many states, Colorado lets an unlicensed REAP provide access, conduct showings or hold open houses if the seller or listing broker authorizes it.

How Closima handles it

You can fill out contract forms in Closima. Before you send one for signature, Send to agent for approval gives your agent a link to check the filled form and approve it or ask for changes, and the file records who approved it and when. If your agent signs off another way, you can still send it, and the file notes that.

Thinking about a license?

You don't need one to work as a TC in Colorado. A license lets you also do the work in the "Needs a license" column, under a broker. Here's what's involved:

Colorado requires 168 hours of qualifying education: 48 hours Real Estate Law and Practice, 48 hours Colorado Contracts and Regulations, 8 hours Trust Accounts and Recordkeeping, 8 hours Current Legal Issues, 24 hours Real Estate Closings and 32 hours Practical Applications. You must pass the national and state portions of the broker exam (results are good for one year), complete a fingerprint background check, and carry errors and omissions insurance before your license is active. New brokers with less than two years of experience are licensed as associate brokers and cannot practice independently, so they work under an employing broker. How to apply.

Resources

• Broker steps for initial licensureThe Division's step-by-step path from education to exam, background check, insurance and application.
• Broker license application requirementsThe 168-hour education breakdown and exam rules for first-time and out-of-state applicants.
• License lookupCheck that a Colorado broker holds an active license.
• Commission Position 20: Licensed and Unlicensed Real Estate Administrative Professionals (REAPs)The Real Estate Commission's position on what unlicensed staff, including transaction coordinators, may do.
• Real Estate Manual and position statementsColorado's broker license law, Commission rules and position statements.
• Employing broker supervisionHow employing brokers must supervise associate brokers and unlicensed staff, including personal assistants.
• Broker continuing educationActive brokers need 24 hours of CE every three-year cycle, including three Annual Commission Update courses.

Questions about what's allowed? Ask the regulator: Colorado Division of Real Estate (Department of Regulatory Agencies), 303-894-2166, [email protected].