Colorado License Law

Colorado's 'Real Estate Recovery Fund' protects consumers by:

AA. Insuring all real estate transactions against price declines
BB. Providing compensation to consumers who have suffered actual monetary losses due to a licensed broker's fraud or misrepresentation, when the broker cannot pay✓ Correct
CC. Paying broker commissions when sellers default
DD. Funding the Colorado Division of Real Estate's operations

Explanation

Colorado's Real Estate Recovery Fund (C.R.S. § 12-10-120) allows consumers who obtain an unsatisfied court judgment against a licensed broker for fraud, misrepresentation, or deceit to apply for reimbursement from the fund. The broker's license is revoked upon payment from the fund.

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