Board Review of Initial Decisions and Exceptions +17Colorado · Real Estate · English

All pleadings must be in written form, filed with the Board (not the Office of Administrative Courts), and served on the opposing party. The Board may initiate review of an initial decision on its own motion within 30 days of the Division mailing the decision. If neither party files exceptions, the initial decision becomes final after 30 days.

• ✓Pleadings must be filed with the Board, not the Office of Administrative Courts
• ✓Board may initiate review on its own motion within 30 days of mailing
• ✓Initial decision becomes final after 30 days if no exceptions are filed
• ✓Failure to file exceptions waives the right to judicial review (with limited exception)

A party seeking to file exceptions must first file a designation of relevant record/transcript parts within 20 days of mailing. If no transcript parts are designated, exceptions are due within 30 days. The designating party must order and pay for the transcript. Exceptions must include specific objections, and responses are due within 10 days.

• ✓Designation of record/transcript due within 20 days of mailing the initial decision
• ✓Exceptions due within 30 days if no transcript designated
• ✓The party designating a transcript must order and pay for it
• ✓Responses to exceptions due within 10 days

The board/ALJ may issue subpoenas served like district court subpoenas. Willful failure to appear/produce records is a petty offense, each day a separate offense. Persons participating in good faith in complaints, reports, investigations, or hearings are immune from civil/criminal liability.

• ✓Willful failure to comply with subpoena is a petty offense; each day a separate offense
• ✓Good-faith participants in complaints/investigations/hearings have immunity from liability

A broker is considered a transaction-broker unless a single agency relationship is established through a written agreement. When engaging in brokerage activities, the broker's general duties must be disclosed to the parties per 12-10-408.

• ✓A broker is a transaction-broker by default absent a written single-agency agreement
• ✓General duties must be disclosed to the parties per 12-10-408

A broker may complete standard forms in a transaction and must use a commission-approved form when one exists and is appropriate. Standard forms include commission-approved forms, attorney-drafted forms bearing names, party-provided forms, government/lender forms, Colorado Bar Association forms, disclosure-only forms, title company forms, and nonbinding letters of intent.

• ✓Brokers must use a commission-approved form when one exists and is appropriate
• ✓Brokers must advise parties that forms have legal consequences and to consult legal counsel

In a firm with more than one licensee, a designated broker works with the client; the brokerage relationship does not extend to the employing broker, other non-designated brokers, or the firm. Designated brokers can represent opposing parties in the same transaction without creating dual agency, and there is no imputation of knowledge to non-designated brokers.

• ✓Designated broker relationship does not extend to the employing broker or firm
• ✓Designated brokers for opposite parties do not create dual agency
• ✓No imputation of knowledge to non-designated brokers

No seller, buyer, landlord, or tenant is vicariously liable for a broker's acts or omissions they did not approve, direct, or ratify. This does not limit the employing broker's duty to supervise or shield the firm from vicarious liability.

• ✓Principals are not vicariously liable for unapproved broker acts
• ✓Employing broker's supervision duty and firm vicarious liability remain

Effective August 7, 2023, a residential broker engagement contract must NOT purport to be a covenant running with the land, allow assignment without owner notice/agreement, or create a recordable lien/encumbrance. Any such lien is void. Offering such a contract is an unfair or deceptive trade practice.

• ✓A broker engagement contract must not run with the land or bind future owners
• ✓It must not create a recordable lien or security interest (any such lien is void)
• ✓Offering a violating contract is an unfair or deceptive trade practice

Without specific declaration authorization, the association may adopt bylaws/rules, adopt budgets, collect assessments, hire/fire agents, litigate, make contracts, regulate common elements, acquire and convey property, grant easements, and impose charges.

• ✓The association may adopt and amend bylaws, rules, and budgets and collect assessments without specific authorization
• ✓The association may institute, defend, or intervene in litigation on behalf of itself or two or more unit owners
• ✓Common elements may be conveyed or encumbered only pursuant to section 38-33.3-312

The association may impose late payment charges, recover reasonable attorney fees and legal costs for collection, and levy reasonable fines after notice and opportunity to be heard. It may not fine for landscaping during compliant water restrictions.

• ✓Association may impose late charges and recover reasonable attorney fees for collection and enforcement
• ✓Fines may be levied only after notice and an opportunity to be heard
• ✓Association may not fine for inadequate watering when the owner complies with water restrictions or guidelines

Managing agents and others acting for the association are subject to this article. Architectural/landscaping decisions must follow declaration standards and not be arbitrary or capricious. Management contracts must be terminable for cause without penalty.

• ✓Managing agents are subject to this article to the same extent as the association
• ✓Architectural and landscaping decisions must not be made arbitrarily or capriciously
• ✓Management contracts must be terminable for cause without penalty and subject to renegotiation

Licenses expire on a schedule set by the director and may be renewed or reinstated. A license not renewed for more than two years cannot be reinstated, requiring a new application. Reinstatement fees: within 31 days = regular renewal fee; more than 31 days but within one year = renewal fee plus one-third; more than one year but within two years = renewal fee plus two-thirds.

• ✓A license unrenewed for over two years requires a new application
• ✓Within 31 days: regular renewal fee only
• ✓31 days to one year: renewal fee plus one-third reinstatement fee
• ✓One to two years: renewal fee plus two-thirds reinstatement fee

An applicant who complies except for CE requirements may renew on inactive status. An inactive license may be activated by certifying compliance with required CE hours. Inactive license holders shall not perform appraisals or AMC duties, nor hold themselves out as active. At renewal or reinstatement, licensees and 10%+ AMC owners must submit fingerprints if not previously done.

• ✓A licensee lacking CE may renew on inactive status
• ✓Inactive license holders cannot perform appraisals or hold out as active
• ✓Renewal requires fingerprinting if not previously submitted

A Single Agent advocates with fiduciary duties while a Transaction-Broker must remain neutral. Neutrality may be impossible or difficult when the broker is a principal, or dealing for a spouse, family member, close friend, business associate, or repeat consumer.

• ✓Single agent advocates; transaction-broker remains neutral
• ✓Impossible to remain neutral when broker is a principal
• ✓Disclose relationships and obtain written informed consent when neutrality is difficult

If a broker on a team wants to buy a property listed by the team, obtain written informed consent from both parties, remove the buying broker from the listing, and place a firewall. If a broker represents a family member as buyer's agent on the broker's own listing, disclosure and consent are required or the broker must withdraw.

• ✓Team buyer must be removed from the listing with a firewall and dual consent
• ✓Buyer's agent/family conflict requires disclosure and consent or withdrawal
• ✓May still collect a referral fee for introduction of business if withdrawing

Sections 31-23-101 through -313 govern municipal planning and zoning in incorporated areas, defining subdivision broadly and requiring approval.

• ✓A subdivision is a division of a parcel into two or more parcels, including condominiums, apartments, and multiple-dwelling units
• ✓A municipal planning commission must adopt a master plan including a zoning plan and holds zoning commission powers
• ✓The zoning commission must approve subdivisions; selling from an unapproved subdivision triggers financial penalty and possible injunction
• ✓Developers should check with the municipality about reservation agreement use even though 12-10-502(2) allows them before Real Estate Commission approval
• ✓A board of adjustment hears appeals and may grant variances or reverse orders

Before receiving a license, an applicant must post a surety bond in an amount set by board rule and maintain it at all times. The bond may be held by the individual or in the company's name. Surety need not pay a claim until a final court determination of fraud/forgery/impersonation/fraudulent representation.

• ✓Applicant must post a surety bond before receiving a license and maintain it at all times
• ✓Bond may be held individually or in the employing company's name
• ✓Surety pays only after a final court determination of fraud/forgery/impersonation
• ✓Surety must notify the board within 30 days of payment or cancellation

Articles 121 to 137 apply to all existing corporate entities previously subject to articles 20 to 29. Membership interests are presumed nontransferable unless recognized, and members with voting rights on June 30, 1998, are deemed voting members.

• ✓Articles 121 to 137 apply to all existing corporate entities formerly subject to articles 20 to 29
• ✓Membership interests are presumed nontransferable unless articles or bylaws recognize transfer rights
• ✓Members who had the right to vote for directors on June 30, 1998, are deemed voting members

Pre-1968 and certain other corporate entities may elect to accept articles 121 to 137. With voting members, acceptance requires at least two-thirds of votes cast; without voting members, a majority of directors in office. A statement of election must be filed with the secretary of state.

• ✓Election to accept with voting members requires at least two-thirds of votes cast at a meeting
• ✓Election without voting members requires a majority vote of directors in office
• ✓A statement of election must be delivered to the secretary of state for filing to become effective

A seller's or landlord's agent is a limited agent who must perform the written agreement, exercise reasonable skill and care, and promote the client's interests with utmost good faith, loyalty, and fidelity — seeking acceptable price/terms, presenting all offers timely, disclosing adverse material facts, counseling on risks, advising on expert advice, and accounting for money and property.

• ✓Seller's/landlord's agent owes utmost good faith, loyalty, and fidelity to the client
• ✓Must present all offers timely and account for all money and property
• ✓Must disclose adverse material facts and advise on obtaining expert advice

Without informed consent, the agent must not disclose that the seller/landlord will accept less than asking price, the seller's motivating factors, or that the seller will accept other financing terms, and must not disclose material information unless required by law or to avoid fraud.

• ✓Cannot disclose that the seller will accept less than asking price without consent
• ✓Cannot disclose the seller's motivating factors without consent

A seller's/landlord's agent owes no duty to the buyer/tenant except to disclose adverse material facts actually known (title defects, physical condition, defects, environmental hazards), subject to psychologically impacted property limits. The agent owes no duty to independently inspect or verify.

• ✓Must disclose known adverse material facts to prospective buyers/tenants
• ✓No duty to independently inspect the property or verify statements

A seller's/landlord's agent may show alternative properties and list competing properties without breaching duties. A designated broker acting as seller's/landlord's agent may cooperate with other brokers but may NOT engage or create subagents.

• ✓May show alternative and list competing properties without breach
• ✓May cooperate with other brokers but may not create subagents

A broker must be either a Single Agent or Transaction-Broker for at least one consumer. Single agents owe advocacy, fidelity, loyalty, and fiduciary duties. Without a written listing contract, a broker defaults to Transaction-Broker (12-10-403(2)) and performs the 17 uniform duties.

• ✓Broker must be single agent or transaction-broker for at least one consumer
• ✓Default is transaction-broker without a written listing contract (12-10-403(2))
• ✓Single agency requires a listing contract with the Agency box checked
• ✓No brokerage services until a listing contract establishes the relationship (Rule 6.14.C)

A transaction-broker performs the 17 uniform duties (12-10-407). A single agent performs the uniform duties plus 3 additional fiduciary duties (12-10-405 and -406). Performing fiduciary duties as a transaction-broker or failing them as a single agent is a license law violation.

• ✓Transaction-broker performs 17 uniform duties (12-10-407)
• ✓Single agent performs uniform duties plus 3 additional fiduciary duties
• ✓Performing fiduciary duties as transaction-broker violates the license law

Changing from single agent to transaction-broker for a specific transaction requires sending the Commission-Approved Change of Status form (Rule 6.9). If the transaction terminates, status reverts to what the listing contract designates.

• ✓Send Change of Status form when changing relationship (Rule 6.9)
• ✓Status reverts to listing contract designation if the transaction terminates
• ✓Consumer on the other side may be treated as a Customer or, with consent, as transaction-broker

County commissioners must approve final plats before recording and sale; violations carry penalties.

• ✓Subdivisions must submit survey/ownership, site characteristics, plat, water/sewage/utility estimates, potable water evidence, and public facility dedications
• ✓An approved plat must be recorded before any lots are sold; no plat approved without a subdivision improvement contract and sufficient collateral
• ✓Violations are punishable by a fine up to $1,000 for each parcel sold or offered for sale
• ✓A sale before final plat approval is prima facie evidence of a fraudulent sale and grounds for the purchaser to void the sale
• ✓County commissioners may bring an action to enjoin selling undivided land before final plat approval

Sections 30-28-101 through -209 define subdivisions for county jurisdiction and set exemptions and submission requirements.

• ✓Subdivision means any parcel divided into two or more parcels, separate interests, or interests in common
• ✓Interests means surface land or air above the surface but excludes sub-surface interests
• ✓Divisions creating parcels of 35 acres or more not intended for multiple owners are exempt
• ✓Condominiums, apartments, and multiple dwellings are included unless previously included in a filing with substantially the same density

Associations must preserve unit owners' ability to use common elements and may not unreasonably restrict access, even during maintenance. Restrictions during maintenance are limited to what is necessary for safety or preserving repair integrity.

• ✓Associations may not unreasonably restrict or prohibit unit owners' access to common elements
• ✓Restrictions during maintenance are limited to what is necessary for safety or to preserve repair integrity
• ✓Restrictions over 72 hours require electronic/written notice to owners and posted notice at access points

The Board may issue a license by endorsement to an appraiser in good standing under another jurisdiction if the applicant possesses substantially equivalent credentials, or if the issuing jurisdiction has a reciprocal law licensing Colorado appraisers. The Board may specify by rule what constitutes substantially equivalent credentials.

• ✓Endorsement requires substantially equivalent credentials or a reciprocal jurisdiction law
• ✓The applicant must be in good standing in the other jurisdiction
• ✓The Board may define substantial equivalence by rule

Pursuant to Title XI of FIRREA, the Board shall recognize on a temporary basis an out-of-state appraiser's license if the appraiser's business is of a temporary nature and the appraiser applies for and is granted a temporary practice permit.

• ✓Temporary practice requires business of a temporary nature
• ✓The appraiser must apply for and be granted a temporary practice permit

An AMC or Controlling Appraiser applicant with past/pending criminal or disciplinary actions must submit documentation per Rules 6.7 and 6.8. Initial AMC licenses expire December 31 of the year of issuance, and all AMC and Controlling Appraiser licenses expire annually on December 31. An AMC must have a Controlling Appraiser with an active license to perform services.

• ✓AMC/Controlling Appraiser fitness standards follow Rule 6.6
• ✓All AMC and Controlling Appraiser licenses expire annually on December 31
• ✓An AMC must have an active Controlling Appraiser to perform licensed services
• ✓Loss of Controlling Appraiser must be reported within three (3) business days, and the AMC goes Inactive

An AMC must maintain a surety bond of at least $25,000 in conformance with Colorado statute covering acts under part 6 of article 10 of title 12. Failure to maintain the bond results in immediate Inactive status. An inactive AMC must cease licensed activities and advertising and inform clients.

• ✓AMC surety bond minimum is $25,000
• ✓Failure to maintain the surety bond results in immediate Inactive status
• ✓Inactive AMC must cease licensed activities and advertising and inform clients

Applicants for AMC licensure/renewal/reinstatement must report and certify the number of appraisers providing appraisals in Covered Transactions on the Colorado panel, the total Colorado panel, and the total panel across all licensed states. AMCs meeting the Panel Size Threshold must submit the AMC Registry Fee. Federally Regulated AMCs must report required information and submit the registry fee.

• ✓Must report appraisers on the Colorado panel and across all licensed states
• ✓AMC Registry Fee required for AMCs meeting the Panel Size Threshold
• ✓Federally Regulated AMCs must report to the Division and submit the registry fee

A license cannot be transferred for another person's benefit. The Board may refuse a name identical or confusingly similar to a suspended/revoked entity. No AMC license under a name identical to another licensed AMC. Ownership changes (including increases above 10%) must be reported within ten business days. An AMC need not be domiciled in Colorado if it maintains a business elsewhere and registers as a foreign entity.

• ✓Licenses cannot be transferred for another person's benefit
• ✓Ownership changes, including increases above 10%, must be reported within ten (10) business days
• ✓No AMC license under a name identical to another licensed AMC
• ✓An AMC may be licensed without Colorado domicile if registered as a foreign entity

A temporary Controlling Appraiser's license may be issued to prevent hardship, but only if the designated individual is a certified appraiser in Good Standing. The temporary license is valid for ninety (90) days and may be extended for one additional 90-day period upon application and good cause.

• ✓Designated individual must be a certified appraiser in Good Standing
• ✓Temporary Controlling Appraiser license valid for ninety (90) days
• ✓One additional 90-day extension available for good cause

The board sets license/registration fees to offset direct and indirect costs of implementing Part 7 and section 38-40-105, credited to the division of real estate cash fund. The attorney general has concurrent jurisdiction with district attorneys to prosecute criminal violations.

• ✓Fees set to offset direct and indirect costs of implementing Part 7
• ✓Fees credited to the division of real estate cash fund
• ✓Attorney general has concurrent jurisdiction with district attorneys for criminal violations

A buyer's or tenant's agent is a limited agent who must perform the written agreement, exercise reasonable skill and care, and promote the client's interests with utmost good faith, loyalty, and fidelity — seeking acceptable price/terms, presenting all offers timely, disclosing adverse material facts, counseling on risks, advising on expert advice, and accounting for money and property.

• ✓Buyer's/tenant's agent owes utmost good faith, loyalty, and fidelity
• ✓Must present all offers timely and account for all money and property

Without informed consent, the agent must not disclose that the buyer/tenant will pay more than the offered price, the buyer's motivating factors, or that the buyer will accept other financing terms, and must not disclose material information unless required by law or to avoid fraud.

• ✓Cannot disclose that the buyer will pay more than the offered price without consent
• ✓Cannot disclose the buyer's motivating factors without consent

A buyer's/tenant's agent owes no duty to the seller/landlord except to disclose adverse material facts actually known, including the buyer's financial ability to perform and whether the buyer intends to occupy as a principal residence. The agent owes no duty to independently investigate the buyer's finances or the property.

• ✓Must disclose known adverse material facts about the buyer's financial ability to the seller
• ✓No duty to independently investigate the buyer's finances or inspect the property

A buyer's/tenant's agent may show the same property to competing buyers/tenants and assist them without breaching duty. The agent may cooperate with other brokers but may NOT engage or create subagents.

• ✓May show the same property to competing buyers without breach
• ✓May cooperate with other brokers but may not create subagents

The executive board may act in all instances for the association except where limited. Declarant-appointed officers/board members must exercise fiduciary care; non-declarant members are not liable except for wanton and willful acts.

• ✓The executive board may act in all instances on behalf of the association except as limited
• ✓Declarant-appointed board members and officers must exercise the care of fiduciaries
• ✓Non-declarant board members are liable only for wanton and willful acts or omissions

The board may not amend the declaration, terminate the community, or elect board members, but may fill vacancies. A proposed budget is deemed approved unless vetoed by a majority of all unit owners at a noticed meeting.

• ✓The board may not amend the declaration, terminate the community, or elect board members
• ✓A proposed budget is deemed approved unless vetoed by a majority of all unit owners at the noticed meeting
• ✓Budget summary must be mailed/delivered within 90 days after adoption with a meeting set for consideration

The declaration may provide a period of declarant control, but it terminates no later than the earlier of 60 days after conveying 75% of units, two years after the last unit conveyance, or two years after the last exercise of a right to add units.

• ✓Declarant control terminates no later than 60 days after conveying 75% of units, or two years after the last conveyance/right exercised
• ✓Large planned communities have longer limits: 75% of max units, six years after last conveyance, or 20 years after declaration recording
• ✓Not later than 60 days after 25% conveyance, at least one and 25% of board members must be elected by non-declarant owners

Books and records may be audited or reviewed by an independent qualified person. An audit is required only if the association has annual revenues/expenditures of at least $250,000 and owners of one-third of units request it.

• ✓An audit is required only when revenues/expenditures are at least $250,000 and one-third of unit owners request it
• ✓A review is required when requested by owners of at least one-third of units
• ✓Copies of an audit or review must be available to any unit owner within 30 days after completion

Unit owners may remove any board member with or without cause by a 67% vote of those present, except declarant-appointed or class-elected members. The declarant must transfer all property and records within 60 days after owners elect a board majority.

• ✓Unit owners may remove a board member by 67% vote of those present, except declarant-appointed or class-elected members
• ✓Within 60 days after owners elect a board majority, the declarant must deliver all association property and records
• ✓Declarant must provide an audited accounting of association funds, at declarant's expense, not charged to the association