Colorado License LawIntermediateColorado Exam
If the Colorado Real Estate Commission pays a claim from the Recovery Fund on behalf of a licensee, what happens to that licensee's license?
AThe license is suspended for 90 days
BThe license is automatically revoked until full repayment with interestCorrect
CThe licensee must complete additional continuing education, in most cases
DNothing happens to the license
Why The license is automatically revoked until full repayment with interest Is Correct
Answer B: The license is automatically revoked until full repayment with interest
When the Recovery Fund pays a claim, the licensee's license is automatically revoked. The license cannot be reinstated until the licensee repays the full amount paid from the Fund, plus interest.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
State-Specific Concepts
Continuing Education
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