Rules Chapter 4: Professional Standards +12Colorado · Real Estate · English

Developers must not misrepresent or conceal material facts about utilities, services, or property.

• ✓Failure to disclose availability of legal access, sewage disposal, and utilities in uncompleted subdivisions (and whether developer/purchaser expense) violates 12-10-505(1)(b)
• ✓No developer may misrepresent future availability/costs of services, utilities, character, or use of surrounding-area real property
• ✓Disclosures must be provided to prospective purchasers before contracting, in the Consumer Agreement or a separate document

Developers must register before conducting business and maintain/produce business records.

• ✓The entity signing as seller/lessor must secure a Developer Certificate before negotiating, agreeing, or making any sale/lease/transfer
• ✓If acting only as trustee, the beneficial owner must secure the certificate
• ✓Developer must maintain Business Records per Rule 3.4 and produce them for inspection upon reasonable Commission request

Rules govern title insurance delivery, deed delivery timing, and duties to respond to complaints or audits.

• ✓Title insurance commitment/evidence of title must be provided within a reasonable time after execution; over 60 Days is unreasonable
• ✓Deed delivery must occur within 60 Days after closing (non-installment) or within 60 Days after completion of payments (installment)
• ✓Material adverse orders/judgments/decrees must be filed with the Commission within 30 Days of becoming final
• ✓Developer must submit written answer to a complaint within a reasonable time set by the Commission; failure is grounds for discipline

Timeshare developers must disclose whether a plan involves an Exchange Program and provide detailed information.

• ✓Must disclose whether a timeshare plan involves an Exchange Program
• ✓Must disclose exchange company name/address, whether participation is voluntary and separate from developer contract
• ✓Must disclose limitations, restrictions, fees, space-available vs. guaranteed exchanges, and participating accommodations

Generally, the declaration may be amended by owners of units to which more than 50% of votes are allocated, or a larger percentage up to 67%. Provisions requiring more than 67% are void as against public policy and treated as 67%.

• ✓Amendments generally require more than 50% of votes, up to a maximum of 67%
• ✓Any provision requiring more than 67% is void and deemed to require 67%
• ✓A smaller percentage than simple majority is allowed only if all units are exclusively nonresidential

Amendments creating/increasing special declarant rights, increasing units, or changing boundaries/allocated interests require at least 67% of votes including 67% of non-declarant votes. Changing unit use restrictions requires at least 67%.

• ✓Amendments changing units, boundaries, or allocated interests require 67% including 67% of non-declarant votes
• ✓Amendments changing unit use restrictions require at least 67% of votes
• ✓No action to challenge an amendment's validity may be brought more than one year after recording

Every amendment must be recorded in every county where the community is located and is effective only upon recordation. An association may petition the district court to amend the declaration under specified conditions.

• ✓Amendments must be recorded in every county and are effective only upon recordation
• ✓An association may petition the district court after twice noticing owners and obtaining more than 50% of required votes
• ✓The court grants the petition if no more than 33% of owners object and the amendment does not terminate the declaration or change allocated interests

The Board prescribes initial licensing requirements meeting FIRREA, and requires all applicants to pass an examination. If no federal law applies, the Board uses AQB criteria as guidelines. The four levels are defined: certified general, certified residential, licensed ad valorem, and licensed appraiser. Only a county assessor, employee of a county assessor's office, or division of property taxation employee may hold an ad valorem certification.

• ✓All applicants must pass an examination offered by the Board
• ✓Requirements cannot be more stringent than applicable federal law
• ✓Only county assessor/office employees or property taxation division employees may hold ad valorem certification
• ✓A county assessor employee with ad valorem license may not appraise outside official duties

The Board shall not issue a license until the applicant meets fitness standards and submits fingerprints to the CBI for a state and national criminal history check. A name-based judicial record check is required for applicants with an arrest without disposition. Ad valorem appraiser applicants are NOT subject to the fingerprinting and background check requirements.

• ✓Applicants must submit fingerprints to the CBI for state and national criminal history check
• ✓A name-based judicial record check is required for arrests without disposition
• ✓Ad valorem appraiser applicants are exempt from fingerprinting requirements

The Board prescribes CE requirements for certified general, certified residential, and licensed appraisers to meet FIRREA, and separately for ad valorem appraisers. CE requirements cannot be more stringent than federal law. Licensing criteria shall NOT include membership or lack of membership in any appraisal organization.

• ✓CE requirements cannot be more stringent than applicable federal law
• ✓Licensing criteria may not include membership in any appraisal organization
• ✓The Board separately prescribes CE for ad valorem appraisers

The Board shall not issue an appraiser's license unless the applicant meets the minimum appraisal experience requirement established by the AQB. The Board must authorize an exemption from full USPAP compliance for a licensed appraiser performing an evaluation, but cannot exempt ethics, record-keeping, competency, and scope-of-work standards.

• ✓Licensure requires meeting the AQB minimum appraisal experience requirement
• ✓Evaluation exemption cannot waive ethics, record-keeping, competency, or scope-of-work standards

A short-term rental is a license to use property, not Real Estate Brokerage Services, and can be revoked. A lease creates an exclusive interest requiring judicial action to extinguish. Length of stay is one factor; stays over 30 days are not automatically leases.

• ✓A short-term rental/occupancy is a license to use, not a lease
• ✓A lease creates an exclusive interest requiring judicial action to terminate
• ✓Stays longer than 30 days are not automatically converted to leases

Owners are responsible for collecting/remitting sales tax to the Colorado Department of Revenue and may need a business license, lodger's tax license, and local permits. Taxes are generally collected for rental periods of 30 days or less.

• ✓Owner must collect and remit sales tax to the Department of Revenue
• ✓May require business license, lodger's tax license, and local permits
• ✓Taxes generally collected for rental periods of 30 days or less

If an owner fails to pay assessments, the association may require reimbursement of collection costs and reasonable attorney fees, but attorney fees are capped at $5,000 or 50% of the amount owed, whichever is less. Courts award reasonable attorney fees to the prevailing party but cap association fees for collection at the same limit. If an owner prevails on an alleged violation not committed, the owner recovers fees and the association cannot. Limits are inflation-adjusted starting August 1, 2025.

• ✓Association attorney fees for collection are capped at $5,000 or 50% of amount owed, whichever is less
• ✓Courts award reasonable attorney fees to the prevailing party in enforcement actions
• ✓A prevailing owner who did not commit the alleged violation recovers fees; the association cannot
• ✓Fee limits are adjusted for inflation beginning August 1, 2025

Actions to enforce building restrictions must be commenced within one year from when the person knew or should have known of the violation. As a condition precedent to recovering money through foreclosure of an association lien, the association must strictly comply with applicable lien/foreclosure provisions; courts may stay proceedings to allow compliance, during which no late fees, interest, or delinquency charges may accrue.

• ✓Building restriction enforcement actions must be commenced within one year of discovery
• ✓Strict compliance with lien/foreclosure provisions is a condition precedent to foreclosure recovery
• ✓Courts may stay foreclosure proceedings to allow strict compliance
• ✓No late fees, interest, or delinquency charges accrue during a compliance stay

CCIOA encourages mediation/arbitration for neighborhood disputes not involving imminent threats. Each association was required to adopt a written policy for addressing disputes with unit owners by January 1, 2007 and make it available on request. Controversies may be submitted to mediation by agreement before litigation; declarations/bylaws/rules may specify binding arbitration.

• ✓Each association must adopt a written dispute resolution policy (deadline January 1, 2007)
• ✓The dispute policy must be made available to unit owners upon request
• ✓Controversies may be submitted to mediation by agreement prior to litigation

Unless bylaws provide otherwise, a nonprofit corporation may sell, lease, or encumber all or substantially all its property in the usual course of business as authorized by the board, without member approval.

• ✓Sales in the usual and regular course of business may be authorized by the board without member approval unless bylaws require it
• ✓The corporation may mortgage or encumber all/substantially all property whether or not in the usual course
• ✓Member approval is not required for transactions in the regular course of business

A sale of all or substantially all property other than in the usual course requires board proposal and member approval. Proper notice describing the transaction must be given, and after authorization the transaction may still be abandoned.

• ✓A sale of all/substantially all property outside the regular course requires board proposal and member approval
• ✓Notice must state the purpose and include a description of the transaction
• ✓A transaction constituting a distribution is governed by Article 133, not this section

Descriptive license titles may only be used by holders of that Board-issued license in Good Standing. In each appraisal report, the license title and number must clearly identify the appraiser wherever they sign, including the letter of transmittal, certification, and the report form. Approved abbreviations may be used (e.g., Lic. App., Crt. Res. App., Crt. Gen. App.).

• ✓License titles may only be used by holders in Good Standing
• ✓License title and number must appear wherever the appraiser signs
• ✓Approved abbreviations may be used; initials-only prefixes are prohibited except for federal data requirements
• ✓Temporary Practice Permit holders must identify their home state, license type, number, and permit number

No licensee may affix another licensee's name or signature without express permission for that specific assignment. Blanket permission is prohibited; authorization must be assignment-by-assignment. No licensee may permit their signature on a report without first personally examining and approving the final version.

• ✓Signature affixing requires express permission for each specific assignment
• ✓Blanket signature permission is prohibited; authorization must be assignment-by-assignment
• ✓Licensee must personally examine and approve the final version before signing

The license/permit document and ID card remain Board property and must be surrendered on demand and any digital copy deleted (e.g., upon suspension, revocation, surrender). Copies included in reports must display 'COPY' prominently overlaying the printed portions. No unauthorized alterations may be made to a Board-issued document.

• ✓License documents remain Board property and must be surrendered on demand
• ✓Report copies of the license must display 'COPY' prominently overlaying printed portions
• ✓No unauthorized alterations to Board-issued documents are permitted

The board may deny, refuse to renew, suspend, or revoke a mortgage company registration; issue cease-and-desist orders; and impose fines for acting without registration, failing document retention, employing unlicensed individuals, or false/deceptive advertising.

• ✓Mortgage companies must retain records for four years
• ✓Employing/contracting unlicensed individuals (not becoming licensed) is grounds
• ✓False/deceptive statements or bait and switch advertising is grounds
• ✓Fines: up to $1,000 first proceeding; up to $2,000 subsequent proceedings

Nothing automatically imputes a violation to the mortgage company if a licensed/required-to-be-licensed agent or employee violates another provision of Part 7.

• ✓A violation by an agent/employee is not automatically imputed to the company
• ✓Board may investigate on its own motion or on written complaint

It is unlawful for a broker registered as employed by another broker to accept a commission or valuable consideration for licensed acts from anyone except the broker's employer, who must be a licensed real estate broker.

• ✓An employed broker may accept compensation only from the employing broker
• ✓The employing broker must be a licensed real estate broker

Disciplinary and licensure-denial proceedings are conducted by an administrative law judge under sections 24-4-104 and 24-4-105. Proceedings are held in the county of the Commission's office or another designated place. No license may be denied, suspended, or revoked until the Commission decides by majority vote.

• ✓Disciplinary proceedings are conducted by an administrative law judge
• ✓No license action becomes effective without a Commission majority vote

An unlawful act by an employee, officer, or member of a licensed broker is NOT cause for disciplinary action against the broker unless the broker had actual knowledge or was negligent in supervision.

• ✓A broker is not disciplined for employee acts absent actual knowledge or negligent supervision
• ✓Actual knowledge or negligent supervision creates broker liability

Any person or entity acting as a real estate broker without a license, or after license revocation or during suspension, commits a class 2 misdemeanor.

• ✓Acting as a broker without a license is a class 2 misdemeanor
• ✓Acting after revocation or during suspension is also a class 2 misdemeanor

Commission decisions are subject to review by the Court of Appeals under 24-4-106(11). The court may stay a final order's effect, but only after a hearing on whether public health, safety, and welfare would be endangered, and may require a bond.

• ✓Commission decisions are reviewable by the Court of Appeals
• ✓Court may stay an order only after a hearing and may require a bond

The Commission, director, or ALJ may issue subpoenas compelling witness attendance and production of records. Willful failure to comply is a petty offense, and each day of refusal is a separate offense. The Commission may seek court enforcement.

• ✓Commission, director, or ALJ may issue subpoenas
• ✓Willful failure to obey a subpoena is a petty offense, each day a separate offense

The Commission may seek a court injunction against violations regardless of another remedy. Part 2 (broker license law) is repealed effective September 1, 2026, subject to sunset review under 24-34-104.

• ✓Commission may seek injunctions against violations
• ✓Part 2 is repealed effective September 1, 2026, subject to sunset review

A CIC is created only by recording a declaration executed like a deed (and in a cooperative, by conveying the real estate to the association). The declaration must be executed by/authorized by the real estate owner, recorded in every county where any portion is located, and indexed in the grantor's index. No CIC is created until the plat or map is recorded. Communities with horizontal unit boundaries require a certificate of completion from an independent engineer, surveyor, or architect.

• ✓A common interest community is created only by recording a declaration executed like a deed
• ✓The declaration must be recorded in every county where any portion is located
• ✓No common interest community is created until the plat or map is recorded
• ✓Horizontal unit boundary communities require a certificate of completion

Except as provided by the declaration: finished surfaces of walls/floors/ceilings are part of the unit, with other portions being common elements. Fixtures serving only one unit are limited common elements; those serving more than one are common elements. Spaces and improvements within boundaries are part of the unit. Exterior items designed to serve a single unit (shutters, doorsteps, balconies, patios, exterior doors/windows) are limited common elements allocated to that unit.

• ✓Finished surfaces of walls, floors, and ceilings are part of the unit
• ✓Fixtures serving only one unit are limited common elements allocated to that unit
• ✓Exterior items serving a single unit (balconies, patios, exterior doors/windows) are limited common elements

All declaration and bylaw provisions are severable. The rule against perpetuities does not defeat any declaration, bylaws, or rules provision. If declaration and bylaws conflict, the declaration prevails (unless inconsistent with CCIOA). Title is not rendered unmarketable by insubstantial failure of the declaration to comply with CCIOA.

• ✓Declaration and bylaw provisions are severable
• ✓In a conflict between declaration and bylaws, the declaration prevails
• ✓The rule against perpetuities does not defeat declaration/bylaw provisions
• ✓Insubstantial declaration non-compliance does not render title unmarketable

A unit may be legally described by the CIC name, recording data, county, and identifying number without using the term 'unit.' The declaration must contain names/type of community, counties, legal description, maximum units, unit boundary descriptions, limited common element descriptions, development/special declarant rights, allocation of interests, use/occupancy restrictions, and easement recording data. Declarants may amend to correct errors or comply with secondary mortgage market requirements.

• ✓A unit may be legally described by CIC name, recording data, county, and identifying number
• ✓The declaration must state the maximum number of units the declarant reserves the right to create
• ✓The declaration must allocate interests to each unit per § 38-33.3-207
• ✓Declarants may amend to correct clerical/technical errors or meet secondary mortgage market guidelines

An applicant applies for an AMC license or as a controlling appraiser. Partnerships, LLCs, and corporations must designate a controlling appraiser actively certified in a state recognized by the ASC. The controlling appraiser is responsible for the entity's licensed practices and all employees. The Board has jurisdiction over both the designated appraiser and the entity.

• ✓Entities must designate a controlling appraiser actively certified in an ASC-recognized state
• ✓The controlling appraiser is responsible for the entity's licensed practices and employees
• ✓The Board has jurisdiction over both the controlling appraiser and the entity

The Board shall not issue an AMC license until the controlling appraiser and each 10%+ owner meet fitness standards and submit fingerprints. The Board shall not license an entity if the controlling appraiser or any owner has had an appraiser credential refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any state. Prior disciplinary action is prima facie evidence of grounds for denial.

• ✓Controlling appraiser and 10%+ owners must submit fingerprints and meet fitness standards
• ✓No license if controlling appraiser or any owner had a credential revoked/denied in any state
• ✓Prior disciplinary action is prima facie evidence of grounds for denial

Each AMC must maintain a definite place of business. Out-of-state AMCs must have their controlling appraiser supervise all Colorado licensed activities. Partnerships, LLCs, and corporations must be properly registered/in good standing with the state. Financial institutions and AMC subsidiaries owned/controlled by an insured depository institution regulated by federal agencies are NOT required to register with the Board.

• ✓Each AMC must maintain a definite place of business
• ✓Entities must be properly registered and in good standing with the state
• ✓Financial institution-owned AMC subsidiaries regulated by federal agencies are exempt from registration

The board may fine, deny, censure, place on probation, order restitution/damages, or suspend/revoke for numerous acts including misrepresentation, false advertising, undisclosed conflicts of interest, mishandling funds, converting/commingling funds, and paying commissions to unlicensed persons.

• ✓Knowingly making misrepresentations or false/misleading advertising is prohibited
• ✓Acting for more than one party without disclosing conflicts is prohibited
• ✓Converting, commingling, or failing to escrow others' funds is prohibited
• ✓Paying commissions to unlicensed persons is prohibited

MLOs must place entrusted money into the employer's custody promptly, account for and remit others' money within a reasonable time, and keep others' funds in an escrow/trustee account with a Colorado bank/depository insured by a US agency, subject to board audit.

• ✓Must promptly place entrusted funds into employer's custody
• ✓Must not convert, divert, or commingle others' funds
• ✓Others' funds must be kept in an escrow/trustee account with a Colorado depository
• ✓Records of funds are subject to audit by the board

Grounds include conviction/plea to specified crimes (title 18 fraud, theft, and related articles), violating Colorado or federal fair housing laws, and failing to immediately notify the board of such convictions or violations.

• ✓Conviction/plea for specified title 18 crimes is grounds for discipline
• ✓Violating or aiding violation of fair housing laws is grounds
• ✓Must immediately notify the board in writing of covered convictions/violations

Prohibited acts include soliciting a fee earnable through best efforts even if no loan is obtained, advertising terms not actually available, secret/undisclosed compensation, and false statements about rates, points, or financing terms (bait and switch).

• ✓Cannot contract to earn a fee through best efforts if no loan is actually obtained
• ✓Cannot advertise rates/terms unless actually available at the time
• ✓Cannot take secret or undisclosed compensation
• ✓Bait and switch advertising is prohibited

MLOs must pay third-party providers within 30 days of loan closing document recording or 90 days after completion (whichever is first) unless disputed. Records must be kept four years and complaint/investigative files are closed to public inspection while stipulations and final orders are public.

• ✓Must pay third-party providers within 30 days of recording or 90 days of completion
• ✓Records must be maintained for four years unless employed by a registered company
• ✓Complaint and investigative files are closed to public inspection
• ✓Stipulations and final agency orders are public record

The board shall not consider a new application until two years after revocation. If suspension/revocation resulted from conduct causing financial loss, no license issues until full restitution (with interest, attorney fees, costs) is made.

• ✓No new application considered until two years after revocation
• ✓No relicensing until full restitution is made when conduct caused financial loss
• ✓Restitution includes interest, reasonable attorney fees, and costs
• ✓Board must refer criminal matters to law enforcement authorities

MLOs must comply with federal acts in advertising including TILA/Regulation Z, RESPA/Regulation X, ECOA/Regulation B, Gramm-Leach-Bliley, HMDA/Regulation C, the FTC Act, and the Telemarketing Sales Rule.

• ✓Must comply with TILA/Regulation Z and RESPA/Regulation X in advertising
• ✓Must comply with ECOA/Regulation B and Gramm-Leach-Bliley Act
• ✓Must comply with HMDA/Regulation C and the FTC telemarketing sales rule

All firms and brokers using documents with Personal Identifying Information (PII) must maintain policies for secure maintenance, proper destruction, and breach notification per Colorado law. Failure may result in findings of unworthiness/incompetence.

• ✓Must have policies for secure maintenance and disposal of PII (6-1-713.5)
• ✓Must have breach identification and notification procedures (6-1-716)
• ✓Failure to protect PII may result in discipline under 12-10-217(1)(d)

Firms with an employing broker and at least one associate broker must have written policies on brokerage relationships offered, confidentiality protection, designation of Designated Brokers, employing broker as designated broker, and trust account accounting controls.

• ✓Must adopt written policy identifying working relationships offered (Rule 6.4.A)
• ✓Must have confidentiality maintenance procedures (Rule 6.4.B.4)
• ✓Must address trust/escrow account accounting controls (Rule 5.1)
• ✓Policies must apply to all associate brokers and be signed as received

Brokers must prevent inadvertent disclosure of confidential information in situations like sales meetings, shared equipment, telephone messages, and social functions. An associate broker may share confidential info with an employing/supervisory broker without extending the relationship.

• ✓Brokers must guard against inadvertent disclosure of confidential information
• ✓Associate broker may share confidential info with employing/supervisory broker without extending the relationship