§ 7-128-206, C.R.S. Committees of the board +9Colorado · Real Estate · English

The board may create committees and appoint directors to serve, approved by a majority of directors in office. Committees have board authority as stated but cannot take certain reserved actions.

• ✓Committee creation and appointment must be approved by a majority of directors in office (or bylaw-required number)
• ✓Committees may not authorize distributions, elect/remove directors, amend articles or bylaws, or approve mergers/major property dispositions requiring member approval
• ✓Committee members who are not directors may not exercise powers reserved to the board

Experience requirements must be satisfied by time spent on the Appraisal Process, including appraisal, appraisal review, appraisal consulting, and mass appraisal. All experience must be obtained after January 30, 1989 and comply with USPAP. If gained under guidance, the guiding appraiser must be appropriately credentialed and in Good Standing.

• ✓Acceptable experience includes appraisal, appraisal review, consulting, and mass appraisal
• ✓All experience must be obtained after January 30, 1989 and comply with USPAP
• ✓Guiding appraiser must be appropriately credentialed and in Good Standing
• ✓Reports must conform to the USPAP edition in effect as of the report date

Each application must include an experience log or certificate of completion. The log must contain: property type, report date, property address, description of work and scope of supervision, actual work hours, supervisor signature and license number (separate logs per supervisor), an attestation of accuracy, and the applicant's signature.

• ✓Experience log must include type of property, date of report, and property address
• ✓Separate experience logs required for each supervising appraiser
• ✓Log must include an attestation of accuracy and the applicant's signature

PAREA (Practical Applications of Real Estate Appraisal) programs approved by the AQB may serve as an alternative to traditional experience. No partial credit is available. A licensed residential PAREA program gives up to 100% for Licensed, 67% for Certified Residential, and 33% for Certified General. A certified residential PAREA program gives up to 100% for both lower levels and 50% for Certified General.

• ✓PAREA programs must be AQB-approved to count as experience
• ✓No partial credit for PAREA training
• ✓Licensed residential PAREA: up to 100% Licensed, 67% Certified Residential, 33% Certified General
• ✓Certified residential PAREA: up to 100% both lower levels, 50% Certified General
• ✓PAREA credit for Certified General is not eligible toward required non-residential hours

On/after January 1, 2011, each mortgage company must register with NMLS (unless exempted by rule) and renew each calendar year. The company must be legally operating in Colorado and not barred from operating. Sole proprietors and partnerships not required to register with the secretary of state must register using a trade name.

• ✓Mortgage companies must register with NMLS and renew each calendar year
• ✓Must be legally operating in Colorado and not barred
• ✓Sole proprietors/general partnerships must register using a trade name

Every licensee (except inactive brokers or attorney licensees with equivalent malpractice coverage) must maintain errors and omissions insurance covering all licensed activities. The Division makes a group policy available; licensees may obtain independent coverage meeting minimum requirements.

• ✓Active licensees must maintain E&O insurance covering licensed activities
• ✓Inactive brokers and attorney licensees with equivalent coverage are exempt
• ✓Licensees may obtain independent E&O coverage meeting minimum requirements

The Commission notifies each licensee of required terms at least 30 days before the annual premium renewal date. Each licensee must file a certificate of coverage showing compliance by the renewal date. The Commission adopts rules to carry out these provisions.

• ✓Commission notifies licensees of E&O terms at least 30 days before renewal
• ✓Licensees must file a certificate of coverage by the annual premium renewal date

Employing Brokers must exercise authority, direction, and supervision over Associate Brokers and all unlicensed employees. They must maintain trust accounts and transaction records, develop written policies, provide a Reasonable-Level of Supervision for all Associate Brokers, and a High-Level of Supervision for New Associate Brokers, and take steps to prevent violations.

• ✓Employing Brokers must supervise Associate Brokers and unlicensed employees
• ✓Reasonable-Level of Supervision required for all Associate Brokers
• ✓High-Level of Supervision required for New Associate Brokers

Reasonable-Level of Supervision includes maintaining a signed Office Policy Manual, reviewing executed contracts, and reviewing transaction files for required documents. High-Level of Supervision (for New Associate Brokers with under two years experience) adds specific training, availability for consultation, contract preparation assistance, monitoring transactions, reviewing closing documents, and ensuring an experienced broker attends or is available for closings.

• ✓Reasonable-Level requires a signed Office Policy Manual and contract/file review
• ✓High-Level applies to New Associate Brokers with under two years experience
• ✓High-Level requires monitoring transactions and closing availability

Employing/Independent Brokers must adopt a written brokerage relationship policy and Office Policy Manual applying to all associate brokers, specifying designation procedures and protecting confidential information (e.g., that a seller will accept less, a buyer will pay more, motivating factors). They must also implement a written policy for destroying documents containing Personal Identifying Information.

• ✓Written brokerage relationship policy and Office Policy Manual are required
• ✓Confidential information such as willingness to accept less must be protected
• ✓A written PII destruction policy meeting statute 6-1-713 is required

Written brokerage relationship disclosures must be made to a consumer before eliciting or discussing confidential information for brokerage services. Preliminary conversations or 'small talk' about price range, location, styles, or general factual questions about advertised properties do not trigger the disclosure requirement.

• ✓Written disclosure required before eliciting confidential information
• ✓Small talk and general factual questions do not trigger disclosure

An Associate Broker may act as Designated Broker (Single Agent or Transaction-Broker) for a consumer. A broker or team cannot represent one consumer as Single Agent and another as Single Agent or Transaction-Broker in the same transaction. When working both sides, a broker may act as Transaction-Broker for both, Transaction-Broker for one and customer for the other, or Single Agent for one and customer for the other.

• ✓Cannot be Single Agent for one party and any agent for the opposing party
• ✓Both-side representation allowed only as Transaction-Broker or with one party as customer
• ✓Designated Broker serves as Single Agent or Transaction-Broker

A broker must present all offers to the other consumer's broker if an unexpired Listing Contract exists, escalating to the employing broker or the consumer directly only after reasonable failed attempts. Brokers cannot negotiate a listing directly with a consumer known to have an unexpired exclusive listing, but may respond if the consumer initiates and must confirm listing status in writing and advise consulting an attorney to terminate.

• ✓All offers must be presented to the other consumer's broker
• ✓Cannot solicit a listing from a consumer with a known unexpired exclusive listing
• ✓Broker must confirm listing status in writing before taking a new listing

Contracting instruments must accurately reflect financial terms and itemize Things of Value; subsequent terms require amendments. Brokers must deliver duplicates of prepared documents at preparation. Brokers cannot charge separate fees for legal document preparation. All seller and landlord Listing Contracts must be in writing before performing services and must contain a definite termination date.

• ✓Listing Contracts must be in writing and have a definite termination date
• ✓Brokers cannot charge a separate fee for preparing legal documents
• ✓Duplicates of prepared documents must be delivered at preparation

A broker who is not the owner's broker cannot share property access information with third parties or use it outside the authorized showing window without owner's broker authorization. Firms and brokers have a continuing duty to disclose known conflicts of interest in writing. A broker buying, selling, or leasing on their own account must disclose their license status in the contract or concurrent writing.

• ✓Non-owner's brokers cannot share access info without authorization
• ✓Known conflicts of interest must be disclosed in writing
• ✓Brokers acting on their own account must disclose their license status

The broker with a brokerage relationship is responsible for proper closing and must ensure the consumer receives an accurate, signed closing statement, delivering it to the firm immediately after closing. If a broker cannot attend, a designated broker may attend and assumes joint responsibility. Per statute 38-35-125, brokers cannot disburse funds until they are received and available for immediate withdrawal (good funds rule).

• ✓The broker with the brokerage relationship is responsible for proper closing
• ✓Consumer must receive an accurate, signed closing statement
• ✓Funds cannot be disbursed until available for immediate withdrawal (good funds)

Both broker and firm must retain transaction files for four years from consummation or listing expiration, per the Commission's Transaction File Checklist. Brokers cannot pay or receive referral fees except in accordance with RESPA and where reasonable cause exists. RESPA prohibits giving or receiving anything of value for referrals in transactions involving a federally related residential mortgage.

• ✓Transaction files must be retained for four years
• ✓Referral fees must comply with RESPA and require reasonable cause
• ✓RESPA prohibits kickbacks for referrals in federally related mortgages

A license is nontransferable, and neither a broker nor firm may lend their name or license for another's benefit. Associate Brokers must not hold themselves out as Employing or Independent Brokers, and Employing Brokers must not knowingly permit this. Procuring a license by fraud or material misstatement is prohibited.

• ✓A license is nontransferable and cannot be lent for another's benefit
• ✓Associate Brokers cannot hold themselves out as Employing/Independent Brokers
• ✓Procuring a license by fraud or misstatement is prohibited

To conduct brokerage services a broker must possess necessary experience, training, and knowledge and maintain legal compliance. If lacking, the broker must decline the service, obtain the needed knowledge, obtain assistance from a competent broker or legal counsel, or co-list with a qualified broker.

• ✓Brokers must have adequate experience, training, and knowledge for services
• ✓Lacking competency, a broker must decline, get assistance, or co-list

Employing Brokers may delegate supervisory authority to experienced Associate Brokers (Supervisory Brokers) for both supervision levels. Delegation must be in writing and signed, the Supervisory Broker must be competent in the relevant practice area, and both share responsibility for compliance. Delegation does not relieve the Employing Broker of ultimate responsibility.

• ✓Delegation of supervision must be in writing and signed
• ✓Supervisory Broker must be competent in the relevant practice area
• ✓Employing Broker remains ultimately responsible despite delegation

When acting as agent for one party while treating the other as a customer, a broker may perform ministerial tasks (showing property, scrivener duties, conveying offers, explaining financing, providing service information) without creating an agency relationship. A broker changing from Single Agent to Transaction-Broker assisting both parties must provide the Commission-Approved Change of Status form no later than when the consumer signs the contract.

• ✓Ministerial tasks do not create an agency or transaction-broker relationship
• ✓Change of Status form must be provided no later than contract signing

No broker may conduct brokerage under more than one firm, and all advertising must be clearly and conspicuously in the broker's firm name. Brokers cannot mislead the public about identity. A firm may use one Trade Name (filed with the Commission) and Trademarks with the owner's permission. A broker advertising their own unlisted property is exempt from the firm-name requirement.

• ✓All advertising must be clearly in the broker's firm name
• ✓No broker may conduct brokerage under more than one firm
• ✓Firms may use only one Trade Name but multiple Trademarks with consent

Teams cannot advertise in a way that misleads the public about the firm's identity and are prohibited from using terms like realty, real estate, realtors, company, corporation, Inc., LLC, or LP in the team name. All team advertising must clearly include the firm's legal or trade name. Team member names must be provided on request, and team names cannot be used by outside brokers.

• ✓Teams cannot use entity-implying terms like LLC, Inc., or realty
• ✓All team advertising must include the brokerage firm's name
• ✓Team member names must be provided upon request

When a broker owns/controls Electronic Media, each Viewable Page must include the firm's name, and expired listings must be removed within 3 days of a Listing Contract expiring. For third-party syndicators, the broker must submit a written removal request within 3 days. Broker firm name must appear in electronic communications; when space is limited it must appear within the first click.

• ✓Each Viewable Page must include the brokerage firm's name
• ✓Expired listings must be removed within 3 days of expiration
• ✓Firm name must appear within the first click when space is limited

General past sales data advertising must cite the data source and include a disclaimer that reported sales were not necessarily listed/sold by the broker. Brokers may not advertise a property's availability or price without owner or owner's broker authority. Disseminating another broker's or a FSBO owner's advertising requires written permission and conspicuous disclosure, and the advertised price must match the owner-broker agreement.

• ✓Past sales data must cite source and include a disclaimer
• ✓Cannot advertise availability or price without owner/owner's broker authority
• ✓Advertised price must equal the price agreed with the owner

When advertising residential square footage, a broker must disclose the source on the Commission-Approved Form. Brokers need not measure, but if measuring must aim for accuracy and disclose methodology, note it is for marketing not valuation, and advise independent measurement if exactness matters. Sources other than the broker's measurement (with issuance date) must be disclosed in writing, and brokers cannot use known-unreliable sources.

• ✓Square footage source must be disclosed on the Commission-Approved Form
• ✓Brokers must advise measurement is for marketing, not loan or valuation
• ✓Brokers cannot use sources known to be unreliable

When preparing a CMA or BPO for any reason other than anticipated sale or purchase, the broker must include a notice that the evaluation is not an appraisal and cannot be used for financing. Brokers are prohibited from completing CMAs/BPOs used for obtaining financing. CMAs/BPOs for other reasons are not brokerage services, so compensation need not go through the firm unless the Office Policy Manual requires.

• ✓Non-marketing CMA/BPO must state it is not an appraisal and not for financing
• ✓Brokers are prohibited from CMAs/BPOs used to obtain financing

Holdover commission provisions after a listing expires must refer only to persons or properties the broker negotiated during the term and whose names/addresses were submitted in writing to the consumer. Brokers may not advise on title exceptions (unauthorized practice of law) and must recommend consumers examine title and consult an attorney; brokers should not advise on deeds they did not draft.

• ✓Holdover provisions apply only to persons/properties negotiated during the term
• ✓Brokers must recommend title examination and legal counsel
• ✓Brokers cannot advise on title exceptions or non-broker-drafted deeds

An Affiliated Business Arrangement must be disclosed in writing to the consumer at or before referral (complying with RESPA) and to all transaction parties before/at contract execution. Brokers must disclose ABA names and physical locations to the Commission when entering or changing an arrangement, and employing brokers must disclose annually, all through the Colorado Affiliated Business Online Services database.

• ✓ABA must be disclosed to consumer at or before referral per RESPA
• ✓ABA existence disclosed to all parties before/at contract execution
• ✓ABA names and locations reported to Commission via online database

When an Employing Broker's license is lost, they must cease activities/advertising, personally handle all earnest money and trust/escrow funds, and return records. The Brokerage Firm must designate a new Employing Broker or may seek a Temporary License to prevent hardship; if it cannot, licenses go inactive.

• ✓Employing Broker is personally responsible for handling all earnest money and Trust/Escrow funds and returning records
• ✓The Brokerage Firm must designate a new Employing Broker for management/supervision
• ✓The firm may seek a Temporary License under section 12-10-203(6)(c), C.R.S. if no associate holds an Employing Broker license
• ✓If no new Employing Broker is designated and no Temporary License is granted, the firm and associate licenses go Inactive
• ✓On firm license loss, Employing Broker has 7 days to notify consumers, 30 days to disburse funds, and must maintain records 4 years

An Associate Broker whose license is suspended, revoked, expired, or made inactive must cease licensed activities, inform the Employing Broker, cease all advertising, and inform impacted consumers within 7 days. The Employing Broker must designate another associate broker or release affected parties from listing contracts.

• ✓Must cease all activities requiring a license and inform the Employing Broker
• ✓Must cease all advertising (signs, billboards, print, internet, mailings, MLS)
• ✓Must inform impacted consumers within 7 days of the action and its impact on pending transactions
• ✓Employing Broker is responsible for reassigning duties or releasing parties from Listing Contracts

An Independent Broker whose license is lost must cease activities and advertising, notify impacted consumers within 7 days, release parties from active listing contracts, instruct parties to seek an attorney or new firm, and account for/disburse all funds and return records within 30 days, maintaining records for 4 years.

• ✓Must cease licensed activities and all advertising
• ✓Must notify impacted consumers within 7 days and provide the Commission a consumer contact list within 7 days
• ✓Must release affected parties from active Listing Contracts and instruct them to seek counsel or a new firm
• ✓Must account for all funds, return Trust/Escrow records, and make final disbursements within 30 days
• ✓Must maintain all records for 4 years

A Broker or Brokerage Firm may receive commissions or fees only for transactions where the commission or fee was earned before the broker's suspension, revocation, expiration, or transfer to Inactive status.

• ✓Commissions/fees may only be received if earned prior to the license status change
• ✓No commission may be collected for work not yet earned at the time of suspension/revocation/expiration/inactivation

The Commission will not discipline a firm for refusing to disburse disputed funds when acting per the contract. If there is no dispute, the firm should disburse timely as directed. Signed releases are not required by the Commission.

• ✓No discipline for refusing to disburse disputed funds when following the contract
• ✓Releases are not required by the Commission when there is no dispute
• ✓When one party authorizes release in writing, the other party's release is not required
• ✓Exculpatory provisions holding the firm harmless are prohibited (Rule 7.4)

If the party entitled cannot be located, the firm may transfer earnest money to the Colorado State Treasurer under the Unclaimed Property Act (38-13-101). If a third party (title company/attorney) holds the deposit, the firm is not responsible for its disposition.

• ✓Unclaimed earnest money may go to the State Treasurer under 38-13-101
• ✓Firm is not responsible for disposition of deposits held by a third party

The Commission may impose fines, admonitions, probation, or refuse/revoke/suspend registration after investigation, notice, and hearing for enumerated violations.

• ✓Commission may impose an administrative fine not exceeding $2,500 for each separate offense
• ✓May issue a letter of admonition, impose probation, or refuse/revoke/suspend registration
• ✓Requires investigation, notice, and hearing under section 24-4-104
• ✓Applies to developer or any director, officer, or stockholder with controlling interest

Numerous acts constitute grounds for discipline, including false advertising, misrepresentation, fraud, mishandling funds, and refusing cancellation rights.

• ✓False/misleading advertising or false statements in registration application
• ✓Misrepresenting or concealing material facts from a purchaser
• ✓Employing device, scheme, or artifice to defraud a purchaser
• ✓Conviction/plea to fraud, deception, theft, misrepresentation, false advertising, or dishonest dealing
• ✓Failing to account for or diverting purchaser/HOA funds under developer's control
• ✓Refusing to honor a buyer's cancellation request made within five calendar days after execution (by telegram, mail, or hand delivery)
• ✓Violating the Colorado Consumer Protection Act (article 1 of title 6)
• ✓Failing to disclose encumbrances or transfer clear title when agreed

A buyer's cancellation request is measured by the sending method used.

• ✓Request considered made if by electronic mail when sent, if by mail when postmarked, if by hand delivery when delivered to seller's place of business
• ✓No developer may employ a contract waiving the buyer's cancellation right

Out-of-state disciplinary actions are prima facie evidence, and letters of admonition allow the registrant to request formal proceedings.

• ✓Disciplinary action by another state, jurisdiction, or federal government is prima facie evidence of grounds if substantially similar
• ✓Registrant may request formal proceedings in writing within twenty days after proven receipt of a letter of admonition
• ✓Timely request vacates the letter and triggers formal disciplinary proceedings
• ✓All administrative fines are transmitted to the state treasurer for the division of real estate cash fund

CCIOA defines three community types: condominium (portions for separate ownership with common elements vested in unit owners), cooperative (real property owned by an association with members entitled to exclusive possession), and planned community (any CIC that is not a condominium or cooperative). A common interest community is real estate where unit ownership obligates payment for taxes, insurance, or maintenance of other real estate.

• ✓Condominium requires undivided common element interests vested in unit owners
• ✓Cooperative: real property owned by the association, members have exclusive possession
• ✓Planned community is any common interest community that is not a condominium or cooperative
• ✓Ownership of a unit excludes leasehold interests of less than forty years including renewals

Article 38-33.3 is the 'Colorado Common Interest Ownership Act' (CCIOA). The legislature declared it aims to establish a clear, comprehensive, uniform framework for creating and operating common interest communities, strengthen HOAs financially (via statutory assessment liens, six months' lien priority), give developers flexible development rights, promote efficient property management, and promote financing availability.

• ✓CCIOA establishes a uniform framework for common interest communities
• ✓CCIOA grants associations six months' lien priority for assessments
• ✓CCIOA creates statutory assessment liens to strengthen associations financially

Allocated interests differ by community type: condominium (undivided interest in common elements, common expense liability, votes); cooperative (common expense liability, ownership interest, votes); planned community (common expense liability, votes). Common elements are all portions other than units (condo/co-op) or association-owned/leased real estate other than units (planned community). Limited common elements are reserved for fewer than all units.

• ✓Allocated interests vary by community type (condominium, cooperative, planned)
• ✓Common elements in a condo/co-op are all portions other than the units
• ✓Limited common elements are allocated for exclusive use of one or more but fewer than all units

A declarant offers to dispose of a unit as part of a common promotional plan or reserves/succeeds to special declarant rights. A declaration is any recorded instrument creating a CIC including plats and maps. Development rights allow adding real estate, creating units/elements, subdividing, or withdrawing real estate. Special declarant rights include completing improvements, exercising development rights, maintaining sales offices, using easements, and appointing/removing officers during declarant control.

• ✓A declaration is any recorded instrument creating a common interest community
• ✓Development rights include adding real estate, creating units, subdividing, or withdrawing real estate
• ✓Special declarant rights include exercising development rights and appointing officers during declarant control

A map depicts a CIC in three dimensions and is required for a community with units having horizontal boundaries. A plat is a land survey plat depicting the CIC in two dimensions. Both must be executed by an authorized person and recorded in every county where any portion is located. A map and plat may be combined in one instrument.

• ✓A map is required for a common interest community with units having a horizontal boundary
• ✓Both map and plat must be recorded in every county where any portion is located
• ✓A map and plat may be combined in one instrument

Associations must maintain accurate accounting records and adopt policies on collection, conflicts of interest, meetings, covenant enforcement, records inspection, reserve fund investment, rule adoption, dispute resolution, and reserve studies.

• ✓Associations must maintain accurate and complete accounting records
• ✓Associations must adopt written policies covering collection, conflicts of interest, enforcement, records inspection, and dispute resolution
• ✓Conflict of interest policies must include criteria in subsection (4)

Before referring a delinquency for collection, associations must first contact the unit owner (or designated contact) by certified mail plus two other means (phone, text, email, or regular mail), maintaining a record of contact.

• ✓Association must first contact the unit owner to alert of delinquency and keep a contact record
• ✓Notice must be sent by certified mail return receipt requested, plus two other means of contact
• ✓A unit owner may designate a contact and request notices in a language other than English

An association or its management company may refer a delinquent account to a collection agency or attorney only if a majority of the executive board votes to refer the matter in a recorded vote at a meeting.

• ✓Referral requires a majority board vote in a recorded vote at a properly conducted meeting
• ✓Management companies cannot refer delinquent accounts without the required board vote

Associations cannot impose daily late fees or fines. Public safety/health violations get 72-hour cure notice; other violations get 30-day notice with a $500 cap and require two consecutive 30-day cure periods before legal action.

• ✓Late fees and fines may not be imposed on a daily basis
• ✓Public safety/health violations allow 72 hours to cure; fines then imposed only every other day
• ✓Other violations require 30-day cure notice via certified mail; total fines capped at $500 with two consecutive 30-day cure periods before legal action

An association may not fine a unit owner unless it has adopted and follows a written fine policy with a fair, impartial fact-finding process guaranteeing notice and opportunity to be heard before an impartial decision maker.

• ✓Association must adopt and follow a written fine policy with an impartial fact-finding process
• ✓Unit owner must receive notice and an opportunity to be heard before an impartial decision maker
• ✓If the owner is not responsible, no association costs or attorney fees may be allocated to the owner's account

Before using collections or legal action, the association must adopt a written collection policy specifying due dates, late fees/interest, payment plan availability, and must send a certified-mail notice of delinquency with accounting and cure instructions.

• ✓Collection requires a written policy and certified-mail notice of delinquency with an accounting of amount due
• ✓Notice must include payment plan availability under 316.3 and how to obtain a copy of the ledger within seven business days
• ✓Notice must warn that failure to cure within 30 days may lead to collections, lawsuit, lien foreclosure, and loss of equity

An association cannot initiate judicial foreclosure for assessment delinquency unless it complied with all requirements and offered an 18-month repayment plan (minimum $25/month). Interest is capped at 8% per year, and fines alone cannot support foreclosure.

• ✓Foreclosure requires prior compliance and a written offer of an 18-month repayment plan with minimum $25 monthly payments
• ✓Association may not charge interest greater than 8% per year on unpaid assessments, fines, or fees
• ✓Association may not foreclose on a lien consisting only of fines or collection costs/attorney fees associated with fines

A party may file in small claims court to enforce governing documents in disputes over assessments, fines, or fees where the amount does not exceed $7,500, exclusive of interest and costs.

• ✓Small claims court may be used where the amount at issue does not exceed $7,500 exclusive of interest and costs
• ✓Monthly itemized statements of amounts owed must be sent by first-class mail (and email if available)