45 topics · Updated 2026-09-17
Brokers must advise clients to obtain expert advice on material matters beyond the broker's expertise (mortgage brokering, title, appraisal, surveys, inspections, law). Brokers must not perform services requiring competency or licensure they lack.
When helping select settlement service providers, the consumer must play an active role and make the final selection. Providing several names is common; a broker cannot require a specific provider. Only refer competent providers to avoid negligent referral claims.
Estates above the surface (air rights) can be created and conveyed separately, and their division is a subdivision under county planning laws.
The Board may determine whether an applicant possesses necessary qualifications, considering fitness, prior licensure, and criminal convictions. 'Applicant' includes any AMC owner and designated controlling appraiser. If an applicant lacks qualifications or has violated part 6, the Board may deny the license and must provide a written statement. The applicant may request a hearing under section 24-4-104(9).
Acting as an MLO without a license, or after revocation/during suspension, is a class 2 misdemeanor; non-natural-person violators face a fine of up to $5,000. Each loan negotiated by an unlicensed person is a separate violation. A violation does not affect mortgage validity or enforceability.
A broker shall NOT establish dual agency with any seller, landlord, buyer, or tenant. Dual agency is prohibited in Colorado.
A transaction-broker is not an agent for either party and must perform agreements, exercise reasonable skill and care, present all offers/counteroffers timely, advise parties and suggest expert advice, account for money/property, keep parties informed, assist in complying with the contract and closing, and disclose adverse material facts.
Without informed consent of all parties, a transaction-broker must not disclose that a buyer will pay more, that a seller will accept less, motivating factors of any party, willingness to accept other financing terms, psychologically impacting facts, or material information unless required by law or to avoid fraud.
There is no imputation of knowledge between a party and the transaction-broker or among persons within an entity engaged as a transaction-broker. A transaction-broker may cooperate with other brokers but may not engage or create subagents, and may serve different parties in other transactions.
An appraiser violates part 6 by: felony conviction related to appraisal ability; violating part 6 or Board rules; accepting fees to influence appraisal outcome; misleading advertising; fraud in obtaining a license; fraudulent appraisals; failing to meet USPAP standards; exceeding competency; adverse action in another state; failing to disclose AMC-paid fees in residential reports; or conduct grounds for denial under 12-10-612.
The Board may deny, refuse to renew, revoke, suspend, admonish, place on probation, or publicly censure. For minor misconduct not warranting formal action but with merit, the Board may send a letter of admonition. The appraiser may request formal proceedings within 20 days of receiving the letter.
Upon revocation, the person must surrender the license immediately and is ineligible to reapply until more than two years have elapsed; reapplication is treated as new. The Board may impose a fine of up to $1,000 per violation. Persons participating in good faith in complaints are immune from liability. A licensee with direct knowledge of a violation must report it.
Closing instructions engage the company responsible for closing. If the broker performs closing services (preparing/recording documents, disbursing funds), the broker is the Closing Company and must ensure Commission-Approved Closing Instructions are completed when the contract is executed.
Brokers must retain a copy of closing instructions for Commission inspection whether the broker or a third party (title company, attorney, escrow) conducts the closing, per 12-10-217(1)(k) and Rules 5.21, 6.20, and 6.24.
Before instituting a construction defect action, the board must mail written notice to owners and the construction professional, call a meeting held 10-15 days after mailing, and provide extensive disclosures about costs, risks, and consequences.
The board may initiate a construction defect action only if owners of at least 65% of votes approve within the voting period. Certain votes are excluded, including development party units and nonresponsive owners.
An MLO cannot directly/indirectly compensate, coerce, or intimidate an appraiser to influence the appraiser's independent judgment on the value of a dwelling. Requesting an appraiser to consider additional information, provide substantiation, or correct errors is permitted.
Section 38-33.5-101 sets the formation method and required single-purpose of cooperative housing corporations.
Section 38-33.5-102 requires specific provisions in cooperative housing corporation articles.
Sections 38-33.5-103 through -106 address income requirements, tax credits, financing, proprietary lease provisions, and securities exemption.
Any broker must adopt a written office policy identifying and describing the relationships offered to the public. A broker is not required to offer all brokerage relationships. If a party asks about a relationship not offered, the broker must provide a Commission-promulgated written definition.
Before engaging in brokerage activities, a transaction-broker must disclose in writing that the broker is not acting as agent and is acting as a transaction-broker. The disclosure contains a signature block for acknowledgment; if the party declines to sign, the broker notes that fact and retains the copy.
Before engaging in activities, a broker intending single agency must enter a written agency agreement disclosing duties under 12-10-404 or 12-10-405. Notice of the single agency relationship must be furnished to any prospective party in a timely manner.
A broker who has already established a relationship with one party must advise any other potential parties or their agents of the established relationship at the earliest reasonable opportunity. Written agreements must state the relationship exists only with the designated broker, not the firm.
The Board must investigate written complaints against AMCs and controlling appraisers. Upon finding a violation, the Board may impose an administrative fine up to $2,500 per separate offense, censure, place on probation, or temporarily suspend or permanently revoke a license.
AMCs are prohibited from: failing to exercise due diligence in engaging appraisers; requiring improper indemnification; influencing appraisals through coercion, bribery, or inducement; prohibiting appraiser communication with parties; altering completed reports without consent; requiring access to the appraiser's electronic signature; and failing to conduct annual audits of a random sample of appraisals.
AMCs must pay appraisers within 60 days after completion unless otherwise agreed or a bona fide dispute is noticed in writing. AMCs must disclose the client's identity to the appraiser at engagement, not reuse reports for other clients without consent, disclose fees paid to appraisers, and maintain records for at least five years (or two years after final disposition of related litigation).
AMCs violate part 6 by conviction of appraisal-related crimes, adverse action in another state, violating the Colorado Consumer Protection Act, procuring a license by fraud, false promises, or failing to disclose the fee paid to the appraiser. A controlling appraiser's entity may be suspended even without the controlling appraiser's knowledge. Licensees with direct knowledge of violations must report them.
REAPs perform clerical/administrative functions for brokers. Under 12-10-222, a broker may be liable for a REAP's unlawful acts if the broker had actual knowledge or was negligent in supervision. Employing brokers supervise all unlicensed employees (Rule 6.3.A). Inactive/expired licensees are treated as unlicensed.
Unlicensed REAPs (or licensed REAPs without a brokerage relationship) may complete broker-directed forms, distribute preprinted info, perform clerical duties, provide property access/showings if authorized, deliver paperwork, collect/receipt earnest money and deposits, and prepare market analyses (with disclosure and broker approval). They cannot negotiate or offer opinions/advice on forms.
A licensed REAP performing licensed duties (negotiating inspection items, preparing contracts) must establish a brokerage relationship with the principal, typically co-listing with the same relationship type. The REAP must have an active license and comply with their level of licensure requirements.
The board may promulgate necessary rules. An unlawful act by an agent/employee of a licensed MLO is not cause for disciplinary action against the MLO unless the MLO knew or should have known of the act or was negligent in supervision.
A special declarant right may be transferred only by a recorded instrument executed by the transferee. Transferors remain liable for pre-transfer obligations and warranty obligations; affiliates are jointly and severally liable.
Upon foreclosure of all declarant interests, the declarant ceases to have special declarant rights and declarant control terminates unless transferred by a recorded instrument. Successor liability depends on affiliate status and rights exercised.
The relationship commences when the broker is engaged and continues until performance/completion of the agreement. If not completed, it ends at the earliest of: any agreed expiration date, termination/relinquishment by the parties, or one year after the date of engagement.
After termination, a broker generally owes no further duty except to account for all money and property received during the engagement and to keep confidential information confidential unless consent is given, disclosure is required by law, or the information becomes public.
A broker's compensation may be paid by seller, buyer, landlord, tenant, third party, or by commission splitting. Payment of compensation does NOT establish an agency relationship. A buyer's/tenant's agent must obtain written approval before proposing to be compensated from the seller's side.
Prior to entering a brokerage/listing agreement or a contract to buy/sell/lease, the identity of those paying compensation must be disclosed to the parties. A broker may be compensated by more than one party only if those parties consent in writing before entering the contract.
Violation of any Part 4 provision (brokerage relationships) by a broker constitutes an act under section 12-10-217(1)(m), for which the Commission may investigate and take administrative action under 12-10-217 and 12-10-219.
Certain declarant-entered contracts (management, employment, recreational/parking leases, declarant/affiliate contracts, or unconscionable contracts) may be terminated without penalty by the association after the owner-elected board takes office, upon 90 days' notice.
An MLO who also acts as a real estate broker/salesperson in the same transaction must make full and fair disclosure of all material loan features/facts and maintain separate business activities and records. Businesses at a shared location must be clearly identified, physically separated, and not deceive the public.
Final actions and orders of the Board under sections 12-10-612, 12-10-613, and 12-10-614 appropriate for judicial review are subject to review in the court of appeals in accordance with section 24-4-106(11).
It is unlawful to perform an appraisal without a license, to violate specified prohibitions, to accept a contingent fee for an independent appraisal (based on predetermined conclusions or outcomes), to misrepresent a consulting service as an independent appraisal, or to fail to disclose a contingent fee in a consulting service.
A person violating subsection (1) commits a class 2 misdemeanor. A subsequent violation within five years of a conviction commits a class 5 felony.
Bylaws must comply with applicable corporate acts and provide the number of board members, officer titles, election of officers, qualifications and terms, delegation of powers, amendment authority, and a method for amending bylaws.
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