What “Independent” Means in Colorado
When real estate agents hear the word independent, it often gets confused with things like:
- Being an independent contractor
- Team vs. solo agent structures
- Personal branding or marketing freedom
Under Colorado real estate license law, that’s not what independent means. Going independent refers to your license level, not your business style. It determines whether you can operate without supervision and run a brokerage as a sole proprietor or boutique firm.
In Colorado, there are three real estate license levels:
- Associate Broker – License prefix typically begins with FA
- Independent Broker
- Employing Broker
All licensees begin as Associate Brokers and must work under an Employing Broker’s supervision.
To operate your own brokerage, you must upgrade to an Independent or Employing Broker license, which allows you to run your own office, practice without supervision, and build a brokerage business.
Step 1: Meet the Experience Requirements
To move from associate broker to employing broker in Colorado, you must meet both of the following requirements:
✔ Two Years of Active Licensure
You must have held an active Colorado real estate license for at least two years.
✔ 50 Experience Points
Colorado also requires a minimum of 50 experience points, documented using the Division of Real Estate’s Employing Broker Experience & Knowledge checklist found here: https://drive.google.com/file/d/1ReQhjLvETfawt6ntHocByspad65pjN2c/view
Experience points can be earned through activities such as:
- Closed residential or commercial transactions
- Property management experience
- Approved continuing education
- Other qualifying brokerage activities
You do not need to exceed 50 points, once you meet the threshold, additional points are unnecessary.
Licensing and experience are regulated by the Colorado Department of Regulatory Agencies through its Division of Real Estate.
Step 2: Complete Brokerage Administration Education
Before applying for Employing Broker authority, you must complete the 24-hour Brokerage Administration course, which focuses on:
- Brokerage supervision responsibilities
- Trust account management
- Risk management and compliance
- Office systems and oversight
This course is designed to prepare brokers not just to sell real estate, but to run a compliant brokerage. It is offered through many different real estate schools.
Step 3: Apply to Upgrade Your License
Once you meet the experience and education requirements, you can apply to upgrade your license to an Independent or Employing Broker. This application includes:
- Documentation of your two years of licensure
- Your completed 50-point experience checklist
- Proof of required education
Once approved, you are legally authorized to operate your own brokerage in Colorado.
Step 4: Write an Office Policy Manual
Every Colorado brokerage, including a one-person office, is required to maintain an Office Policy Manual.
This manual outlines how your brokerage operates and how compliance is maintained. It typically includes policies related to:
- Broker supervision
- Handling of confidential information
- Record retention
- Trust account procedures (if applicable)
- Compliance with Commission rules
Even if you are the only broker in your office, this document is still required and should reflect how you actually conduct business.
Step 5: Maintain Errors & Omissions (E&O) Insurance
Colorado law requires all active real estate licensees and brokerages to carry Errors & Omissions insurance. This coverage protects you and your firm if a client claims financial loss due to a mistake or omission in your professional services.
Important points about E&O in Colorado:
- You must maintain active E&O coverage before your license is activated.
- If you operate a brokerage with other brokers under you, the brokerage must maintain a policy that covers your firm’s activities, and you must also maintain individual coverage as a licensee.
Step 6: Set-Up Your Brokerage Business
Now that you’re licensed as an Employing/Independent Broker and compliant with office policies and insurance, it’s time to think about your business infrastructure:
- Choose your entity type (sole proprietor, LLC, corporation, etc.)
- Register your business with the Colorado Secretary of State
- Establish accounting systems and, if applicable, trust accounts for holding other peoples funds.
- Create a brand identity and marketing plan
- Develop client intake and transaction management processes
Final Thoughts: Independence Is a Business Decision
Taking the leap to become an Independent Broker in Colorado isn’t just about a license upgrade, it’s about running a business. With the right experience, education, documentation, and compliance in place, you can create a brokerage that reflects your values, strategy, and service standards.
If you’re serious about independence, start planning early, track your experience points, and build systems that support both compliance and growth.
Ready to advance your career and build your own brokerage?
Explore more resources and connect with other independent real estate professionals at IndyBrokers.org your hub for support, community, and success in Mesa County, Colorado.