Colorado License LawIntermediateColorado Exam
A Colorado broker who receives a gift from a vendor (inspector, lender, title company) must:
AA. Always decline gifts from vendors
BB. Be aware that gifts given in exchange for referrals may violate RESPA and Colorado rules; gifts should not influence referral decisions or exceed permitted thresholdsCorrect
CC. Report all gifts to the Division of Real Estate, which is why practitioners are generally advised to confirm the specific rule with local counsel or the relevant agency
DD. Only accept gifts of less than $25 in value
Why B. Be aware that gifts given in exchange for referrals may violate RESPA and Colorado rules; gifts should not influence referral decisions or exceed permitted thresholds Is Correct
Answer B: B. Be aware that gifts given in exchange for referrals may violate RESPA and Colorado rules; gifts should not influence referral decisions or exceed permitted thresholds
The federal Real Estate Settlement Procedures Act (RESPA) Section 8 prohibits kickbacks and unearned fees in settlement services. A broker should not accept gifts or payments from vendors (lenders, title companies, inspectors) in exchange for referrals.
Key Colorado License Law Terms in This Question
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Key Terms to Know
Short Sale
A sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
State-Specific Concepts
License Law
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