CO Real Estate flashcards
CO Real Estate · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Employing broker
- A Colorado licensee who may hire and supervise other brokers, is responsible for their brokerage activities, and must maintain the office records and trust accounts.
- Annual Commission Update
- Twelve of the 24 continuing-education hours required in each three-year Colorado license cycle must come from Commission Annual Update courses, four hours per year.
- Unlicensed brokerage
- Accepting compensation for listing, selling, leasing, or negotiating real property without a Colorado license; the Commission may issue fines and cease-and-desist orders for it.
- Letter of admonition
- A Colorado Real Estate Commission disciplinary action that publicly reprimands a licensee without suspending or revoking the license, which is also available as a sanction.
- Transaction-broker
- A Colorado broker who is not an agent of either party, does not advocate for either side, but assists both parties with the transaction and discloses known material facts.
- Single agent
- A Colorado broker who represents only one party in the transaction and owes that party fiduciary duties including loyalty, confidentiality, disclosure, accounting, and reasonable care.
- Dual agency
- A Colorado broker representing both the buyer and the seller in the same transaction; it is permitted only with the written informed consent of both parties.
- Confidential information
- Information that could harm a party's negotiating position, which a broker may not disclose to the other side without written permission, even after the relationship ends.
- Contract to Buy and Sell
- The Colorado Real Estate Commission-approved purchase contract form that sets the price, dates, earnest money, contingencies, and title-review deadlines for the transaction.
- Documentary fee
- A Colorado recording charge of one cent per one hundred dollars of consideration paid to the county clerk; Colorado has no state or local real estate transfer tax.
- Objection and resolution
- A Colorado contract mechanism under which a buyer objects in writing to title, survey, or inspection matters by a stated deadline and the parties negotiate a written resolution.
- Closing instructions
- Written directions from buyer, seller, and lender to the closing or title company that authorize disbursement of funds and assign responsibility for each closing cost.
- Trust account
- A federally insured Colorado account titled as a trust account in which a broker deposits client money such as earnest money, rents, and tenant security deposits.
- Commingling
- Depositing broker or personal funds into a trust account holding client money; prohibited in Colorado except for minimal amounts needed to cover bank service charges.
- Monthly reconciliation
- The required comparison of the trust account checkbook balance to the bank statement and to the sum of all individual client ledger balances each month.
- Prior appropriation
- Colorado's water doctrine that awards water to the first user who puts it to beneficial use; water rights are property interests separate from the land itself.
- Split estate
- Ownership situation in which the mineral estate has been severed from the surface estate, so different parties own the surface and the minerals beneath it.
- Special district
- A Colorado local government unit such as a metropolitan, water, or fire district that has authority to levy taxes or fees on property inside its boundaries.
- Highest and best use
- The use of a property that is legally permissible, physically possible, financially feasible, and produces the highest value; it underlies every valuation approach.
- Gross rent multiplier
- A valuation tool computed as sale price divided by gross monthly rent; multiplying it by the subject property's market rent produces an indicated value.
- External obsolescence
- A loss of value caused by factors outside the property boundaries, such as neighborhood decline or highway noise, which an owner cannot cure.
- Loan-to-value ratio
- The loan amount divided by the property's value or purchase price, expressed as a percentage; private mortgage insurance is typically required above 80 percent.
- Closing Disclosure
- The TRID form that itemizes the final loan terms and closing costs, which must be delivered to the borrower at least three business days before consummation.
- CHFA
- The Colorado Housing and Finance Authority, a state agency that offers first mortgages, down payment assistance, and tax credits to eligible Colorado homebuyers.
- Seller's Property Disclosure
- A Colorado form on which the seller reports known adverse conditions about the property; it is not a warranty and does not replace the buyer's inspections.
- Lead-based paint disclosure
- A federal requirement for sales and leases of pre-1978 housing to disclose known lead hazards and give buyers a 10-day inspection or risk-assessment opportunity.
- Security deposit return
- Colorado landlords must return a tenant's deposit with an itemized written statement of any deductions within one month, or within 60 days if the lease states.
- Warranty of habitability
- A Colorado statutory guarantee that residential rentals are safe, sanitary, and fit for human habitation; neither landlord nor tenant may waive it.
- Tenancy at sufferance
- A holdover tenant who remains in possession after the lease expires without the landlord's consent; the landlord may evict or create a new tenancy.
- Mill levy
- The property tax rate expressed per one thousand dollars of assessed value; the tax equals assessed value multiplied by the mill levy divided by 1,000.
- Proration
- Dividing an expense such as property taxes, rent, or HOA dues between buyer and seller based on the number of days each party owns the property.
- Acre
- A land area measure equal to 43,560 square feet; one section of land contains 640 acres and a township contains 36 sections.