§ 38-33.3-315, C.R.S. Assessments for Common Expenses +7Colorado · Real Estate · English

Until the association makes its first assessment, the declarant pays all common expenses. Once assessments begin, they must be made at least annually based on an annually adopted budget, allocated per the declaration. Past-due assessments bear interest up to 8% per year.

• ✓Declarant pays all common expenses until the association makes a common expense assessment
• ✓Assessments made at least annually based on an annually adopted budget
• ✓Past-due assessments bear interest at a rate set by the association not exceeding 8% per year

To the extent the declaration requires: limited common element expenses are assessed against benefited units; expenses benefiting fewer than all units are assessed only against those units; insurance costs are assessed in proportion to risk; and utility costs in proportion to usage. Misconduct expenses may be assessed solely against the responsible owner.

• ✓Insurance costs assessed in proportion to risk; utility costs in proportion to usage (if declaration requires)
• ✓Common expense caused by owner misconduct may be assessed exclusively against that owner's unit
• ✓Owners cannot avoid assessment liability by waiving common element use or abandoning the unit

Each owner is liable for assessments during ownership, and cannot escape liability by waiver or abandonment. Associations may enter escrow agreements with mortgage holders to combine assessments with mortgage payments, subject to FHA/HUD/VA rules.

• ✓Owners remain liable for assessments during their period of ownership regardless of use
• ✓Association may combine assessments with mortgage payments via escrow, subject to federal agency rules

All regular and special meetings of a residential nonprofit corporation's board or committees authorized to take final action must be open to all residential members. Agendas must be made reasonably available in advance, with a general description if no formal agenda exists.

• ✓Board meetings and final-action committee meetings must be open to all residential members or their representatives
• ✓Agendas must be reasonably available in advance for member examination
• ✓The board must inform members at least annually of how agendas/notices are provided and give 30 days' advance notice of any change in method

The board may hold executive/closed sessions limited to enumerated matters: personnel/employment, legal counsel consultation on litigation, criminal investigations, legally protected matters, privacy invasions, and legal communications. The chair must announce the general matter before convening.

• ✓Executive session topics are limited to: employees/management contracts, legal consultation on litigation, criminal investigations, legally protected matters, unwarranted privacy invasions, and legal counsel communications
• ✓The chair must announce the general matter of discussion before convening in executive session
• ✓The board may not adopt article or bylaw changes during executive session; minutes must indicate a session was held and its general subject

Regular board meetings may be held without notice unless bylaws require it. Special meetings require at least two days' notice of date, time, and place, though bylaws may set a longer or shorter period.

• ✓Regular meetings may be held without notice unless articles or bylaws require otherwise
• ✓Special meetings require at least two days' notice of date, time, and place unless bylaws set a different period
• ✓The notice need not describe the purpose of a special meeting unless required by statute or bylaws

Before the board votes, residential members must be allowed to speak on the issue subject to reasonable time restrictions. Corporations are encouraged to provide electronic notices; special meeting electronic notice must be given at least 24 hours before.

• ✓The board must permit members to speak before voting, with reasonable time restrictions and balanced opposing views
• ✓Electronic notice of special meetings must be given at least 24 hours before the meeting
• ✓If electronic means are available, notice must be provided by email to members who request it and furnish addresses

In 1990, the Colorado legislature passed laws governing real estate appraisal in response to the federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). The enabling legislation has been amended several times. The statutes are §§ 12-10-601 through 12-10-623, C.R.S. Unless a specific exemption applies, any person acting as a real estate appraiser in Colorado must be licensed.

• ✓Colorado appraiser laws were enacted in 1990 in response to FIRREA
• ✓The governing statutes are §§ 12-10-601 through 12-10-623, C.R.S.
• ✓Any person acting as a real estate appraiser must be licensed unless exempt

Exceptions to the definition of 'real estate appraiser' are found in § 12-10-602(9)(b), C.R.S. These include licensed real estate brokers who perform broker price opinions and competitive market analyses that are not represented as appraisals and not used for obtaining financing, corporations valuing property they own/may purchase/sell, and appraisers of personal property, water, or mineral rights.

• ✓Brokers performing BPOs/CMAs not represented as appraisals and not for financing are exempt
• ✓Corporations valuing their own property are exempt
• ✓Appraisers of personal property, water, or mineral rights are exempt

The Board is composed of three licensed or certified appraisers (one with eminent domain expertise), one county assessor in office, one officer/employee of a commercial bank experienced in real estate lending, one officer/employee of an appraisal management company, and one member of the public at large. Members hold office for three-year terms.

• ✓Three members must be licensed or certified appraisers, one with eminent domain expertise
• ✓One member must be a county assessor in office
• ✓One member must be from a commercial bank experienced in real estate lending
• ✓One member must be from an AMC and one from the public at large
• ✓Members serve three-year terms

The Appraisal Sub-Committee (ASC) oversees the appraisal process for federally related transactions. The Appraisal Foundation (TAF) develops qualifications and standards through the Appraisal Qualifications Board (AQB) and Appraisal Standards Board (ASB). USPAP standards are developed by the ASB. The AQB and ASB have no legislative power, but their recommendations were adopted via § 12-10-613(1)(g) and Board Rule 11.1.

• ✓USPAP is developed, interpreted, and amended by the ASB
• ✓AQB and ASB have no legislative power but recommendations adopted via statute and Board Rule 11.1
• ✓ASC oversees appraisals for federally related transactions

An applicant must complete 150 (or 158 after January 1, 2026) creditable class hours of Qualifying Education, including Basic Appraisal Principles (30), Basic Appraisal Procedures (30), Valuation Bias/Fair Housing (8, mandatory after 1/1/2026), 15-Hour National USPAP, and residential courses. Must complete 1,000 hours of experience in no fewer than 6 months and pass the Licensed Appraiser Examination.

• ✓1,000 hours of appraisal experience in no fewer than six (6) months
• ✓150 creditable class hours (158 after January 1, 2026)
• ✓All experience must be obtained after January 30, 1989 and comply with USPAP
• ✓24 months to take and pass the exam after Board approval
• ✓Certified Residential or Certified General exam are the only alternatives

Requires 200 creditable class hours of Qualifying Education plus college-level education (one of six options including Bachelor's degree, Associate's degree in related field, 30 semester hours of specific courses, CLEP exams, or 5-year Licensed Appraiser alternative). Requires 1,500 hours of experience across not less than 12 months and passing the Certified Residential exam.

• ✓1,500 hours of experience across not less than twelve (12) months
• ✓200 creditable class hours required
• ✓Must satisfy one of six college-level education options
• ✓5-year Licensed Appraiser with clean disciplinary record can substitute for college requirement
• ✓Certified General exam is the only alternative to the Certified Residential exam

Requires 300 creditable class hours of Qualifying Education, a Bachelor's degree or higher, and 3,000 hours of experience of which 1,500 must be non-residential, gained across not less than 18 months. Must pass the Certified General Appraiser Examination.

• ✓3,000 hours of experience, of which 1,500 must be non-residential
• ✓Experience gained across not less than eighteen (18) months
• ✓300 creditable class hours required
• ✓Bachelor's degree or higher required from an Accredited College or University

An applicant must be a County Assessor, employee of a County Assessor's Office, or employee of the Division of Property Taxation. Education includes Introduction to Ad Valorem Mass Appraisal (35 hours), Basic Appraisal Principles (30), Basic Appraisal Procedures (30), Valuation Bias/Fair Housing (8), and 15-Hour USPAP. Must pass the Ad Valorem exam and certify employment.

• ✓Must be a County Assessor, County Assessor's Office employee, or Division of Property Taxation employee
• ✓Introduction to Ad Valorem Mass Appraisal: no less than 35 hours
• ✓No experience hours or college degree required
• ✓Requires signed employment certification per Rule 2.8

An applicant with a college degree from a foreign country may have education evaluated for equivalency by an accredited domestic college/university, a NACES member evaluation company, or a foreign credential evaluation service accepted by a domestic institution or state licensing board.

• ✓Foreign degrees require equivalency evaluation from an approved source
• ✓NACES member evaluation companies are acceptable
• ✓Domestic accredited institutions can provide equivalency evaluation

An AMC must have and follow a written policy regarding the annual audit of appraisals completed for Colorado assignments during the previous Reporting Period. The policy must have an effective date, memorialize modification dates, and outline required minimum elements. The Board may evaluate an AMC's compliance with its own audit policies during an investigation.

• ✓The audit policy must be in writing and followed by the AMC
• ✓The policy must have an effective date and record dates of any modifications
• ✓The Board may evaluate an AMC's compliance with its own audit policies during an investigation

The audit sample must be randomly selected and a USPAP Standard 3 Review must be performed on not less than two percent (2%) of all appraisal reports performed by appraisers for the AMC during the previous Reporting Period. At least one USPAP Standard 3 Review must be performed for each appraiser who completed a Colorado assignment during that Reporting Period.

• ✓Audit sample must be randomly selected
• ✓USPAP Standard 3 Review required on not less than 2% of all appraisal reports
• ✓Minimum of at least one Standard 3 Review per appraiser who did a Colorado assignment

The AMC must have procedures to address material deficiencies affecting the value conclusion or credibility of a report with the appraiser. Material violations of USPAP or the Colorado Real Estate Appraiser Licensing Act must be reported to the Board.

• ✓AMC must have procedures to address material deficiencies affecting value or credibility
• ✓Deficiencies must be addressed with the appraiser
• ✓Material violations of USPAP or the Appraiser Licensing Act must be reported to the Board

For each Colorado appraisal assignment, an AMC must maintain specified records in a Safe and Secure Manner for at least five (5) years, or at least two (2) years after final disposition of any judicial proceeding in which an AMC representative testified about the assignment, whichever period expires last. Records include contractual agreements with clients, engagement documents, all correspondence and payment accounting, appraisals and related reports, the Panel list, reviewed final reports and findings, and processes and controls under 12-10-614(1)(a)(II), C.R.S.

• ✓Records must be kept in a Safe and Secure Manner
• ✓Retention period is at least 5 years, or 2 years after final disposition of related litigation, whichever expires last
• ✓Records may be electronic but must be retrievable and legibly printable, and produced upon Board request

Under section 12-10-614(1)(h), C.R.S., when a bona fide dispute exists over the performance or quality of an appraisal, the AMC must notify the appraiser in writing of the reason for the dispute, how it may be resolved, and what payment will be withheld until resolution. The AMC must notify the appraiser within sixty (60) days of completion of the appraisal.

• ✓Applies when a bona fide dispute exists over performance or quality of an appraisal
• ✓Written notice must state the reason, resolution method, and withheld payment
• ✓Notice of dispute and grounds for nonpayment must be given within sixty (60) days of completion

If an AMC maintains a risk-based review process, it must comply with the Appraisal Selection subsection only for those appraisers for whom a USPAP Standard 3 Review was not already performed under the risk-based appraisal review process.

• ✓A risk-based review process may satisfy audit requirements
• ✓Subsection A applies only to appraisers not already reviewed under the risk-based process
• ✓The risk-based reviews must be USPAP Standard 3 Reviews

Appraisals must be evaluated for compliance with state and federal regulations, including USPAP. The individual(s) performing the audit must hold a certified credential in Colorado or any Jurisdiction and be competent to appraise residential real estate.

• ✓Appraisals must be evaluated for compliance with state and federal regulations, including USPAP
• ✓Reviewer must possess a certified credential in this state or any Jurisdiction
• ✓Reviewer must be competent to appraise residential real estate

For all Colorado appraisal assignments, an AMC must disclose its Colorado license number in writing in the engagement letter with an appraiser.

• ✓AMC must disclose its Colorado license number in writing
• ✓Disclosure must be in the engagement letter with the appraiser
• ✓Requirement applies to all Colorado appraisal assignments

A mortgage loan originator is an individual who takes a residential mortgage loan application or offers/negotiates terms of a residential mortgage loan. Certain persons are excluded, including loan processors/underwriters, real estate licensees not compensated by lenders/MLOs, timeshare credit persons, mortgage servicers, and dealers.

• ✓MLO takes a residential mortgage loan application OR offers/negotiates loan terms
• ✓MLO does NOT include an individual engaged solely as loan processor or underwriter
• ✓MLO does NOT include a real estate licensee unless compensated by a mortgage lender or MLO
• ✓MLO does NOT include a person servicing a mortgage loan or one solely in timeshare credit

A residential mortgage loan is a loan primarily for personal, family, or household use secured by a mortgage, deed of trust, or equivalent consensual security interest on a dwelling or residential real estate with a single-family or multi-family dwelling of four or fewer units.

• ✓Must be primarily for personal, family, or household use
• ✓Secured by a mortgage/deed of trust on a dwelling
• ✓Property must be single-family or multi-family of four or fewer units

A mortgage company means a person other than an individual who, through employees or other individuals, takes residential loan applications or offers/negotiates terms of a residential mortgage loan.

• ✓A mortgage company is a person OTHER than an individual
• ✓Acts through employees or other individuals to take applications or negotiate terms

A mortgage lender is in the business of making residential mortgage loans if the lender is the payee on the promissory note and the loan proceeds come from its own funds or a line of credit made available for funding mortgage loans.

• ✓Lender must be the payee on the promissory note
• ✓Loan proceeds from own funds or a line of credit for funding mortgage loans

A loan processor or underwriter performs clerical or support duties at the direction of and supervised by a state-licensed or registered loan originator. Clerical duties are performed after application receipt and cannot include offering/negotiating loan rates/terms or counseling consumers.

• ✓Must act at direction of and be supervised by a licensed/registered loan originator
• ✓Clerical duties cannot include offering/negotiating loan rates/terms
• ✓Cannot include counseling consumers about loan rates or terms

A state-licensed loan originator is an MLO who is not an employee of a depository institution (or its regulated subsidiary), is licensed under Part 7, and is registered with a unique identifier through NMLS.

• ✓Must not be an employee of a depository institution or its regulated subsidiary
• ✓Must be licensed under Part 7
• ✓Must be registered with a unique identifier through NMLS

A unique identifier is a number assigned to an MLO under NMLS protocols. The Nationwide Mortgage Licensing System and Registry tracks licensing/registration of MLOs and is established/maintained by the Conference of State Bank Supervisors and AARMR or their successors, or the HUD Secretary.

• ✓Unique identifier is assigned under NMLS protocols
• ✓NMLS developed under the federal SAFE Act of 2008, 12 U.S.C. sec. 5101 et seq.
• ✓NMLS maintained by CSBS/AARMR or the HUD Secretary

Servicing a mortgage loan means collecting, receiving, or obtaining the right to collect/receive payments on behalf of a mortgage lender, including principal, interest, escrow amounts, and other amounts due.

• ✓Includes collecting or receiving payments on behalf of a mortgage lender
• ✓Includes payments of principal, interest, and escrow amounts

An Applicant must complete 20 hours of pre-licensing education approved by NMLS. Effective March 1, 2016, Applicants must also complete 2 hours of Colorado-specific pre-licensing education, which replaces a required general elective. The Colorado-specific education requires a final exam with a passing score of 75%. Applicants who never held a license or whose license expired 3+ years must complete the 20 hours within the 3-year period immediately preceding application.

• ✓An Applicant must complete 20 hours of NMLS-approved pre-licensing education
• ✓2 hours of Colorado-specific pre-licensing education is required with a 75% passing score on the exam
• ✓New applicants or those expired 3+ years must complete the 20 hours within the 3 years immediately preceding application

The S.A.F.E. MLO Examination consists of the national exam with Uniform State Test content. An Applicant may retake the exam 3 consecutive times, each at least 30 days after the preceding exam. After 3 consecutive failures, the Applicant must wait at least 6 months before retaking. An MLO who fails to maintain a Valid license in any Jurisdiction for 5 years or longer must retake the exam.

• ✓An Applicant may retake the exam 3 consecutive times with at least 30 days between each
• ✓After 3 consecutive failures, the Applicant must wait at least 6 months before retaking
• ✓Failure to maintain a Valid license for 5+ years requires retaking the S.A.F.E. exam

To be eligible for Temporary Authority, an Applicant must have been registered in NMLS as a loan originator for a depository during the preceding 1-year period OR licensed as an MLO in another Jurisdiction during the preceding 30-day period, must be an Employee sponsored by a Colorado NMLS-registered Mortgage Company, and must have no disqualifying administrative/civil/criminal actions. Only ONE temporary license is granted; additional or extended temporary licenses are prohibited. A temporary license expires 120 calendar days after issuance or on other earlier triggering events.

• ✓Only one temporary license is granted; additional or extended temporary licenses are prohibited
• ✓A temporary license expires 120 calendar days after issuance (or earlier on other triggering events)
• ✓Temporary Authority requires depository registration in the prior 1 year or another Jurisdiction license in the prior 30 days
• ✓A temporary license holder must be Sponsored and supervised by a Responsible MLO

Pursuant to section 12-10-717, C.R.S., MLOs may satisfy the surety bond requirement one of three ways: an individual bond of $25,000; a company bond of $100,000 (companies with fewer than 20 licensed individuals); or a company bond of $200,000 (companies with 20 or more licensed individuals). MLOs must provide proof of continuous coverage. Failure to maintain the bond subjects the MLO to disciplinary action.

• ✓Individual surety bond must be $25,000
• ✓Company bond for fewer than 20 licensed individuals is $100,000
• ✓Company bond for 20 or more licensed individuals is $200,000
• ✓MLOs must provide proof of continuous surety bond coverage

Pursuant to section 12-10-707, C.R.S., every MLO holding an Active license must have errors and omissions insurance. The Board Insurance Policy or independent policies may be used. Board policy minimums: $100,000 per claim, $300,000 annual aggregate, deductible no greater than $1,000 ($20,000 for reverse mortgage policies). Company group policies have higher limits (e.g., $1,000,000 per claim). Insurers should maintain an A.M. Best rating of 'A-' or better.

• ✓Every Active-license MLO must maintain errors and omissions insurance
• ✓Minimum individual coverage is $100,000 per claim with a $300,000 annual aggregate
• ✓Individual policy deductible cannot exceed $1,000 ($20,000 for reverse mortgage policies)
• ✓Insurers should maintain an A.M. Best rating of 'A-' or better

An initial license Applicant must submit CBI fingerprints (within one year preceding application), register with NMLS, submit NMLS fingerprints, complete education, pass the S.A.F.E. exam, acquire a surety bond and E&O insurance prior to obtaining an Active license, submit the application, and pay the Fee. Temporary license applicants must complete state-specific requirements within 7 business days of NMLS temporary authority issuance.

• ✓CBI fingerprints must be submitted within one year immediately preceding the application
• ✓Surety bond and E&O insurance must be acquired prior to obtaining an Active license
• ✓Temporary license applicants must complete state-specific requirements within 7 business days of NMLS temporary authority notice

Pursuant to section 12-10-704(6), C.R.S., an Applicant must submit fingerprints to the Colorado Bureau of Investigation for a state and national criminal history record check prior to submitting an application. Fingerprints must be readable and satisfactory to the CBI. The Board may acquire a name-based check if fingerprints are unclassifiable after two submissions.

• ✓Fingerprints must be submitted to the Colorado Bureau of Investigation before applying
• ✓The Board may use a name-based check after two unclassifiable fingerprint submissions

Companies with fewer than 20 licensed individuals need coverage of at least $1,000,000 per claim and $1,000,000 annual aggregate, deductible no greater than $50,000. Companies with 20 or more licensed individuals need $1,000,000 per claim and $2,000,000 annual aggregate, deductible no greater than $100,000. The Mortgage Company must verify employment timelines or the individual MLO becomes noncompliant.

• ✓Companies under 20 individuals: $1,000,000 per claim, $1,000,000 aggregate, $50,000 max deductible
• ✓Companies with 20+ individuals: $1,000,000 per claim, $2,000,000 aggregate, $100,000 max deductible
• ✓Failure of the Mortgage Company to verify employment results in individual MLO noncompliance

All applications are reviewed for completeness. If incomplete, the Applicant is notified and has 30 days to provide documentation, otherwise the application is canceled and the Fee forfeited. If payment (check or otherwise) is denied/returned as invalid, the application is canceled and must be resubmitted with full payment plus the State Fiscal Rules fee for clerical services.

• ✓An incomplete application must be cured within 30 days or it is canceled and the Fee forfeited
• ✓Invalid or returned payment causes cancellation requiring resubmission with full payment plus a clerical fee

Applicants with past convictions, guilty/nolo pleas, deferred judgments, or pending charges (excluding misdemeanor traffic) must submit required documentation including court case disposition, police/arrest reports, and a signed written explanation attesting to no other violations. Supplemental documentation (employment history for preceding 5 years, recommendation letters, personal statement) may demonstrate rehabilitation and fitness.

• ✓Required documentation includes court disposition, police reports, and a signed written explanation attesting to no other violations
• ✓Failure to provide required documentation within the timeframe results in cancellation and Fee forfeiture
• ✓Supplemental documentation may include 5 years of employment history and letters of recommendation

Prior to application, a person may request the Board issue a preliminary advisory opinion regarding potential effects of criminal convictions, being enjoined for deceptive conduct in the preceding 5 years, prior professional license revocations, or Consumer Protection Act penalties. A person seeking such an opinion is not an Applicant. The opinion is non-binding and non-appealable; a negative opinion does not prohibit applying.

• ✓A preliminary advisory opinion is non-binding on the Board and not appealable
• ✓A person requesting a preliminary advisory opinion is not an Applicant for licensure
• ✓A negative or unfavorable opinion does not prohibit submitting an application

Every unit owners' association must register annually with the Director of the Division of Real Estate and submit basic association information plus a fee set by the Director. Associations must complete an initial registration, renew annually, and update relevant information within ninety (90) days of any change.

• ✓Associations must register annually and renew each year
• ✓Relevant information changes must be updated within 90 days
• ✓Associations collecting over $5,000 in annual revenue must pay the registration fee
• ✓Associations collecting $5,000 or less or with no revenue still must register but need not pay the fee

If an association fails to register or its registration expires, its right to impose or enforce assessment liens under § 38-33.3-316 or pursue enforcement mechanisms under § 38-33.3-123 is suspended until validly registered. Previously recorded liens are not extinguished, but pending enforcement proceedings are suspended and time limits delayed. Suspended rights revive without penalty once validly registered.

• ✓Failure to register suspends the right to impose/enforce assessment liens and pursue enforcement
• ✓Previously recorded valid liens are not extinguished by expired registration
• ✓Suspended rights revive without penalty once the association is validly registered