Buyer Agent - Auto Industry Division

License Type

Buyer Agent

C.R.S. 40-20-102 (4) "Buyer agent" means any person required to be licensed pursuant to this part 1 who is retained or hired by a consumer for a fee or other thing of value to assist, represent, or act on behalf of the consumer in connection with the purchase or lease of a motor vehicle.

(b) (I) "Buyer agent" does not include a person whose business includes the purchase of motor vehicles primarily for resale or lease; except that nothing in this subsection (4) prohibits a buyer agent from assisting a consumer regarding the disposal of a trade-in motor vehicle that is incident to the purchase or lease of a vehicle if the buyer agent does not advertise the sale of, or sell, the vehicle to the general public, directs interested dealers and wholesalers to communicate their offers directly to the consumer or to the consumer via the buyer agent, does not handle or transfer titles or funds between the consumer and the purchaser, receives no compensation from a dealer or wholesaler purchasing a consumer's vehicle, and identifies himself or herself as a buyer agent to dealers and wholesalers interested in the consumer's vehicle.

(II) A "buyer agent" licensed under this part 1 shall not be employed by or receive a fee from a person whose business includes the purchase of motor vehicles primarily for resale or lease, a motor vehicle manufacturer, a motor vehicle dealer, or a used motor vehicle dealer.

How to Apply

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Buyer Agent License Application

 

 

1. Buyer Agent Application Checklist 

A buyer agent is any person that is retained or hired by a consumer for a fee or other thing of value to assist, represent or act on behalf of a consumer in purchasing or leasing a motor vehicle. A person whose business includes the purchase of motor vehicles primarily for resale or lease (i.e. a motor vehicle dealer) cannot be a buyer agent. Any person having an ownership or financial interest in or an employment relationship with a dealership cannot be licensed as a buyer agent. Licensed salespersons cannot obtain a buyer agent license because they receive compensation from a dealer. Buyer agents are strictly prohibited from being employed or receiving any fee from a dealer.

The Buyer Agent Application Information (DR 2237) form is provided to assist you with the application process.

2. Buyer Agent License Application
  • It is the business entity that is applying for the license, not the individual owner(s). The license is issued in the name of the business entity.

  • The owner, partner, corporate officer, or LLC manager must sign each application.

  • If the applicant is applying as a partnership, including husband and wife partnerships, the applicant must provide a copy of the partnership agreement.

  • If the applicant is a corporation or limited liability company (LLC), one copy of each document listed below must be submitted:

    • Articles of Incorporation or Organization with the  Secretary of State’s annotation “Filed Copy” plus ID Number.

    • Secretary of State’s Certificate of Incorporation/

    • Certificate of Authority for foreign corporation.

    • Secretary of State Certificate of Assumed or Trade

    • Name, If DBA is different than corporate or company names.

  • Complete and sign the Buyer Agent Application (DR 2105) form. Do not skip any fields.
3. Surety Bond
  • Submit a photocopy or scanned document copy of Surety Bond.

  • Bond must show FULL LEGAL NAME and DBA must appear on the “principal line.”

  • Buyer Agent Bond amount must be $5,000.

  • Bond must be signed by applicant.

  • Example of Bond.

  • The bonding company must indicate that the entity is being bonded as a buyer agent. The bonding company must indicate that the bond is for a buyer agent not a salesperson or dealer.

Individual : John T. Smith, DBA Smith Motors

PartnershipJohn T. Smith and Thomas R. Jones, DBA Nice Cars

Corporation: ABC Car Sales, Inc. Or: ABC Car Sales, Inc., DBA XYZ Car Sales (if operating under an assumed name).

Limited Liability Company: ABC Car Sales, LLC or: ABC Car Sales, LLC., DBA XYZ Car Sales, LLC (if operating under an assumed name).

4. Secure Verifiable Identification - Proof of Lawful Presence

  • All Auto Industry applications and forms require that a licensee use their FULL LEGAL name as shown on the applicants Driver License or Identification Card or proof of lawful presence document.

  • Provide SVID for All owners, partners, members or officers.

  • Submit a photocopy or a scanned copy of an appropriate identification such as a Colorado Driver License for the applicant (unless the applicant is a corporation or LLC).

  • Examples of Proof of lawful presence documents are listed on the SVID Matrix form.

  • HB06S-1023 - EVIDENCE OF LAWFUL PRESENCE - Verifiable ID is required for original and renewal applications. You may learn more about this requirement by viewing the Verifiable ID Requirement link for Rules of Evidence of Lawful Presence - 1 CCR 201-17 located on the Secretary of State Office website.

5. Verification of Fingerprints
  • Go to the Verification of Fingerprints page and read the requirements that must be met.

  • DO NOT provide Form Verification of Fingerprints (DR 2197) UNLESS YOU ARE REQUIRED TO DO SO.  TO DETERMINE IF YOU NEED TO SUBMIT THIS FORM, go to the Verification of Fingerprints page and read the requirements. 

  • IF you do not follow directions, your application may be rejected.

6. Affidavit - Restriction on Public Benefits
  • All Auto Industry applications and forms require that a licensee use their FULL LEGAL name as shown on the applicants Driver’s License or Identification Card.

  • Affidavit - Restrictions on Public Benefits (DR4679) form must be completed by each applicant unless the applicant is a corporation or an LLC.
7. Business Documents

The following is required if filing as a Limited Liability Company/Limited Liability Partnership/Corporation

  • Certificate of Good Standing from the Colorado Secretary of State.

  •  Constituent Filed Document. The Articles of Incorporation (corporation, nonprofit corporation, cooperative or cooperative association), Articles of Association (limited partnership association), Articles of Organization (limited liability company), Certificate of Limited Partnership (limited partnership) or Statement of Registration (limited liability partnership or limited liability limited partnership). For further information, visit the Secretary of State‘s web site.

  •  Bylaws of the Corporation, operating agreement for a limited liability company, or the partnership agreement for any partnership.

  •  Trade Name — If doing business in a name other than the corporate name, attach a copy of the Certificate of Assumed or Trade Name.

    • Trade names must be filed electronically through the Secretary of State’s web site.

    • Provide a copy of the registration with your packet.

    • Buyer agents should guard against using a trade name that gives the false impression that they sell motor vehicles.

    •  All other entities, such as corporations and LLC’s, must register their trade name with the Colorado Secretary of State.

  • If foreign corporation, submit a copy of Certificate of Authority to do business in Colorado.

8. Sales Tax License
  • Complete the Colorado Sales Tax Withholding Account Application (CR 0100AP) form.

  • A Colorado Sales Tax account number or a copy of the sales tax license must be provided as well as proof of trade name registration.

9. Certified Court Documents
  • If the applicant has ever been charged with, convicted of, received a deferred judgment/sentence, or pled no contest, to any felony, full details must be provided including type of crime, date, place of conviction, sentence received, etc. Certified court records must be included with the application.

  • If the applicant has been charged with, convicted of, received a deferred judgment/sentence, or pled no contest, to any misdemeanor crime in the past ten years, full details must be provided including type of crime, date, place of conviction, sentence received, etc. Certified court records must be included with the application.

  • It is the applicant's responsibility to provide rehabilitation information for their criminal convictions.

10. Written Correspondence
  • If you have anything you wish the Motor Vehicle Dealer Board to take into account or need to explain any licensing character, criminal character, or financial character issues please provide it with the application.

  • Failure to disclose any licensing character, criminal character, or financial character issues in writing with the application is considered a material misstatement and may result in your license being denied. When in doubt provide an explanation.

  • You cannot hold a license issued by the Executive Director of the Colorado Department of Revenue through the Auto Industry Division if you have been convicted of a felony within the last 10 years of an Article 3, 4, or 5 if Title 18 of the Colorado Revised Statutes or any crime involving odometer, salvage, motor vehicle title fraud, or the defrauding of a retail consumer in a motor vehicle sale or lease transaction.  See C.R.S. 44-20-121(8) and C.R.S. 44-20-420(8).

  • Article 3 of Title 18 includes, but is not limited to crimes against persons such as murder, assault, kidnapping, sexual assault, custody violation, menacing weapon, vehicular homicide, manslaughter, criminal extortion and enticing a child.

  • Article 4 of Title 18 includes, but is not limited to crimes against property, arson, theft, burglary, robbery, criminal mischief over $500, criminal trespass in the 1st degree and unlawful transfer for sale (copyright infringement).

  • Article 5 of Title 18 includes, but is not limited to fraud, forgery, criminal possession of a forged instrument or forging instrument, criminal impersonation, fraud by check (over $500), commercial bribery, bribery in sports and equity skimming.

  • MATERIAL MISSTATEMENT - Any license issued by the Executive Director of the Colorado Department of Revenue through the Auto Industry Division may be denied, suspended, or revoked if a material misstatement is made in an application for a license. A “Material Misstatement” means any false or misleading statement, omission, or misrepresentation regarding personal identification information, employment history, prior occupational licensing history, criminal background and history, including filings, indictments, municipal, misdemeanor, and/or felony convictions and deferred judgments.

11. Additional Requirements
  • All documents submitted must be on 8.5” x 11” size paper.

  • Do not submit legal size copies.

  • Do not submit double sided copies.

  • Do not staple documents.

12. Other Documents

You may provide additional documents that you feel would be useful to the Colorado Motor Vehicle Dealer Board.

13. Incomplete Applications
  • All of the information provided on this web page is to assist you to ensure your application is not missing any required documentation.

  • The Auto Industry Division strongly recommends that you use this information to aid you in completing the application.

  • Any fields that are not complete may result in your application being rejected and may delay processing.

14. Pay Fee(s)

Check should be made payable to the Department of Revenue. All fees are subject to change July 1st of every year. Fees

Adobe Acrobat Reader

  • To view or print any of the forms listed on this page, you will need a free copy of Adobe Acrobat Reader.

  • You can download a copy from the Auto Industry home page - Quick Links

For additional information contact the Auto Industry Division at (303) 205-5604 or e-mail your question to: dor_dealers@state.co.us