VI. Appraisal Management Companies +12Colorado · Real Estate · English

Under the Dodd-Frank Act, Colorado passed HB 12-1110 requiring AMCs providing services in connection with Federally Related Transactions to be registered in Colorado. Each AMC must designate a Controlling Appraiser to supervise all licensed activities in the state.

• ✓AMCs providing services for Federally Related Transactions must register in Colorado
• ✓Each AMC must designate a Controlling Appraiser to supervise licensed activities
• ✓HB 12-1110 was passed in accordance with the Dodd-Frank Act

The Board shall not issue an AMC license until: the Controlling Appraiser and each individual owning more than 10% establishes truthfulness, honesty, good moral character, and submits fingerprints to the Colorado Bureau of Investigation; the controlling appraiser confirms no owner has had an appraiser license refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any state; and the AMC maintains a surety bond of at least $25,000.

• ✓Controlling Appraiser and 10%+ owners must submit fingerprints to the CBI
• ✓No owner may have had a license refused, denied, cancelled, surrendered, or revoked in any state
• ✓Each AMC must maintain a surety bond of at least $25,000

Applicants for Licensed, Certified Residential, or Certified General credentials must submit fingerprints to CBI for criminal history checks before applying, then submit the application with education certificates, transcripts, and experience log. Upon approval, a Letter of Exam Eligibility is issued. Ad Valorem applicants are exempt from fingerprinting and E&O insurance and receive no Letter of Exam Eligibility.

• ✓Fingerprints must be submitted to CBI before applying (except Ad Valorem)
• ✓Application is Deemed Complete when all documentation and Fee are received
• ✓Ad Valorem applicants are exempt from fingerprinting and E&O insurance
• ✓Letter of Exam Eligibility issued upon education/experience approval

Applicants must demonstrate they do not possess a background calling into question the public trust. An applicant is ineligible if, during at least the five-year period preceding application, they were convicted of, pled guilty to, or entered a plea of nolo contendere to a crime calling their fitness into question. Applicants with any past felony/misdemeanor (excluding minor offenses) must submit required documentation.

• ✓Ineligible if convicted of a disqualifying crime within the five (5) years preceding application
• ✓Must submit court disposition, statutes violated, classification, and case status
• ✓Must include a signed written explanation attesting no other criminal violations
• ✓Failure to provide documentation within 30 days cancels the application

Every active appraiser (except government-employed for their employment scope) must maintain E&O insurance covering all licensed acts. Coverage must be at least $100,000 per claim with a $300,000 aggregate per individual, deductible no more than $1,000 for claims and no deductible for legal defense. Firm policies require $1,000,000 per claim and $1,000,000 aggregate with maximum $10,000 deductible.

• ✓Minimum E&O coverage: $100,000 per claim, $300,000 aggregate per individual
• ✓Deductible no more than $1,000 per occurrence for claims; no deductible for legal defense
• ✓Firm policies: $1,000,000 per claim and $1,000,000 aggregate, max $10,000 deductible
• ✓Government-employed appraisers are exempt within their employment scope
• ✓Failure to maintain coverage results in immediate Inactive status
• ✓Insurance carrier must maintain A.M. Best rating of 'A-' or better

Applications are reviewed for completeness; incomplete applications get 30 days to cure deficiencies or the application is canceled and Fee forfeited. Invalid payment (bounced check or denied payment) cancels the application and requires resubmission with full fees plus a clerical service fee.

• ✓Applicants have 30 days to cure application deficiencies or forfeit the Fee
• ✓Invalid payment cancels the application; resubmission requires full fees plus clerical fee
• ✓Fees are non-refundable

An Initial License is valid through December 31 of the year of issuance. Upon expiration of the Initial License, the license cycle becomes a two-year period commencing January 1 of year one and expiring December 31 of year two.

• ✓Initial License is valid through December 31 of the year of issuance
• ✓Standard license cycle is a two (2) year period ending December 31 of year two

Before applying, a person may request a preliminary advisory opinion on the potential effect of prior conduct, criminal convictions, or license violations on a future application. The opinion is non-binding, not appealable, and does not limit Board investigation, but a favorable opinion may be adopted as final. A negative opinion does not prohibit applying.

• ✓Advisory opinion is non-binding and not appealable
• ✓A person requesting an opinion is not an applicant for licensure
• ✓A negative opinion does not prohibit submitting an application

Unless bylaws provide otherwise, a nonprofit corporation must have a president, secretary, and treasurer. Officers must be at least 18 years old and need not be directors or members unless bylaws require. One person may hold multiple offices.

• ✓A nonprofit corporation must have a president, secretary, and treasurer unless bylaws provide otherwise
• ✓An officer must be at least eighteen years of age
• ✓The same individual may simultaneously hold more than one office

An officer may resign at any time by written notice, effective when received unless a later date is stated. Unless bylaws provide otherwise, the board may remove any officer at any time with or without cause.

• ✓Resignation is effective when written notice is received unless a later date is stated
• ✓The board may remove any officer at any time with or without cause unless bylaws provide otherwise
• ✓Appointment of an officer does not itself create contract rights, and removal does not affect existing contract rights

The board may inactivate a license or registration when a licensee fails to comply with surety bond, E&O insurance, contact information requirements, respond to an investigation/examination, comply with education/testing, or register/provide required information to NMLS.

• ✓Failure to maintain surety bond can lead to inactivation
• ✓Failure to maintain E&O insurance can lead to inactivation
• ✓Failure to respond to an investigation or examination is grounds
• ✓Failure to comply with education or testing requirements is grounds

Third parties dealing with the association as trustee may assume proper exercise of trust powers without inquiry. When CCIOA provisions conflict with other Colorado statutes (Business Corporation Act, Nonprofit Act, etc.), CCIOA (article 33.3) controls.

• ✓Third parties may rely on the association's trust powers without inquiry and are fully protected
• ✓CCIOA provisions control where they conflict with other Colorado corporate or partnership statutes

All pleadings must be in written form, mailed with a certificate of mailing to the Board, and filed with the Board (not the Office of Administrative Courts). A pleading is considered filed upon receipt by the Board, with no additional time for mail service. Pleadings must be served on the opposing party on the date filed with the Board.

• ✓Pleadings must be filed with the Board, not the Office of Administrative Courts
• ✓A pleading is considered filed upon receipt by the Board with no additional time for mail service
• ✓Pleadings must be served on the opposing party on the same date filed with the Board

The Board may initiate review of an initial decision on its own motion within 30 days of the date the Division mails the decision. If neither party files exceptions, the initial decision becomes final after 30 days. Failure to file exceptions waives the right to judicial review unless the final order differs from the initial decision. A party seeking to file exceptions must first file a designation of relevant record parts within 20 days.

• ✓The Board may initiate review of an initial decision on its own motion within 30 days
• ✓Failure to file exceptions waives the right to judicial review (with a limited exception)
• ✓A designation of relevant record parts must be filed within 20 days of the mailed decision

If no transcript is designated, exceptions are due within 30 days of the mailed initial decision. If a transcript is designated, the party must order it and pay for it; exceptions are then due within 30 days of the Board's notification that transcripts were received. A supplemental designation must be filed within 10 days. Responses to exceptions are due within 10 days. Both parties' exceptions are due on the same day.

• ✓Without a designated transcript, exceptions are due within 30 days of the mailed decision
• ✓With a designated transcript, exceptions are due within 30 days of the Board's transcript-receipt notification
• ✓Responses to exceptions are due within 10 days of the exceptions being filed

The Commission (5 members, type 1 entity) is created under 12-10-206. Members, consultants, expert witnesses, and complainants are immune from civil suit for good-faith official acts. No broker's license may be denied, suspended, or revoked except by majority vote of the Commission.

• ✓Commission members and complainants are immune from suit for good-faith acts
• ✓License denial, suspension, or revocation requires a majority vote of the Commission

A nonresident may become a Colorado broker by conforming to all conditions but need not maintain an in-state place of business if maintaining a definite place of business in another state. Service may be made by registered/certified mail; service is perfected at the earliest of receipt, return receipt date, or 5 days after mailing.

• ✓Nonresident brokers need not maintain a Colorado office if they have a definite out-of-state office
• ✓Service by mail is perfected at earliest of receipt, return receipt date, or 5 days after mailing

The Commission maintains records of names and addresses of all licensees. The Commission is not required to preserve licensing history records longer than seven years. Records related to administration, when certified with the seal, are admissible as evidence in courts.

• ✓Commission maintains records of all licensees' names and addresses
• ✓Licensing history records need not be preserved longer than seven years

The Commission prescribes the form and size of licenses. Each real estate license shows the licensee's name, bears the department's seal (or facsimile), and contains any other matter the Commission prescribes.

• ✓License must show the licensee's name and department seal
• ✓Commission prescribes the form, size, and contents of licenses

The Division of Real Estate and the director are type 2 entities. The director aids in administration, enforcement, prosecution, and conducts audits of licensee business accounts. The executive director employs the director, who employs attorneys, investigators, and staff.

• ✓The Division and director are type 2 entities
• ✓The director conducts audits of licensees' business accounts

The Commission compiles and publishes quarterly statistical data on exam passing rates per educational institution, retaining data for three years. Individual applicant exam scores are kept confidential unless the applicant authorizes release.

• ✓Exam passing rate data is published quarterly and retained for three years
• ✓Individual applicant exam scores are confidential unless the applicant authorizes release

Under section 12-10-403(4), C.R.S., a Broker acting as a Single Agent or Transaction-Broker may complete Standard Forms in a real estate transaction, including forms conveying personal property as part of it. Use must be appropriate, and brokers must advise parties that forms have legal consequences and to consult legal counsel before signing.

• ✓Brokers may complete Standard Forms only when acting as a Single Agent or Transaction-Broker
• ✓Form use must be appropriate for the transaction and circumstances
• ✓Brokers must advise parties that Standard Forms have important legal consequences and recommend consulting legal counsel

A Commission-Approved Form is promulgated by the Commission for current use by brokers. A broker MUST use a Commission-Approved Form when one exists and is appropriate for the transaction. Forms are available on the Division's website.

• ✓Brokers must use a Commission-Approved Form when one exists and is appropriate
• ✓Broker may advise parties as to the effects of the form
• ✓Commission-approved forms are obtained from the Division's website

An Attorney Form is drafted by a licensed Colorado attorney representing the broker/employing broker/firm. It may only be used when no Commission-Approved Form exists or is appropriate. It must include a disclaimer and the preparing attorney's and broker's names, and cannot be altered except by filling blanks.

• ✓May only be used when no Commission-Approved Form exists or is appropriate
• ✓Must state: 'This form has not been approved by the Colorado Real Estate Commission'
• ✓Must include the preparing attorney/law firm name and the broker/firm name for whom prepared
• ✓May not be altered by the broker other than completing blank spaces

A Client Form is provided by a party to the transaction for whom the broker acts as Single Agent or Transaction-Broker. The broker must keep written confirmation the form came from that party, and may only insert transaction-specific information.

• ✓Only allowed when the broker is the Single Agent or Transaction-Broker for the party providing the form
• ✓Broker must retain written confirmation the form was provided by that party
• ✓Broker's use is limited to inserting transaction-specific information

A Government/Lender Form is prescribed by a governmental/quasi-governmental agency or a regulated lender, and its use is mandated by that agency or lender. Broker's use is limited to inserting transaction-specific information.

• ✓Use must be mandated by the government agency or regulated lender
• ✓Broker's use is limited to inserting transaction-specific information

A Colorado Bar Association Form is used with the CBA's written approval and designated for broker use. It may only be used when no Commission-Approved Form exists or is appropriate, must follow CBA guidelines, cannot be altered except by filling blanks, and must contain the CBA approval disclaimer.

• ✓Only usable when no Commission-Approved Form exists or is appropriate
• ✓Must contain: 'This form has been approved by the Colorado Bar Association for use by Real Estate Brokers in Colorado in accordance with the guidelines provided with this form'
• ✓Must be used within CBA guidelines/conditions and may not be altered except by completing blanks

A Disclosure Form is used for disclosure only and cannot waive or create legal rights; it must carry the non-approval disclaimer and provide only info about the specific real estate or its geographic area. A Letter of Intent, created by the broker/firm, must state it is nonbinding and carry the non-approval disclaimer.

• ✓Disclosure Forms and Letters of Intent must state: 'This form has not been approved by the Colorado Real Estate Commission'
• ✓A Disclosure Form may only address the specific real estate or the general geographic area
• ✓A Letter of Intent must state on its face that it is nonbinding and creates no legal rights or obligations
• ✓Title Company Forms are prescribed and completed by the title company providing closing services

Every unit owners' association must register annually with the Director of the Division of Real Estate, submitting a fee and information including association name, management agent, physical address, contact information, and number of units, updated within 90 days of changes.

• ✓Every association must register annually with the Division of Real Estate
• ✓Registration is valid for one year
• ✓Associations with revenue of $5,000 or less, or that cannot assess and have no revenue, are exempt from the fee but not registration

If an association fails to register or lets registration lapse, its right to impose/enforce assessment liens or pursue enforcement actions is suspended until valid registration. Previously recorded liens are not extinguished, but pending enforcement is suspended and time limits are tolled.

• ✓Failure to register suspends the right to impose/enforce assessment liens until valid registration
• ✓Previously recorded liens are not extinguished by a registration lapse, but enforcement is suspended
• ✓Re-registering revives previously suspended rights without penalty

As part of annual registration, associations must report delinquency data: number of owners six or more months delinquent, judgments obtained, payment plans entered, and foreclosure actions filed during the preceding 12 months.

• ✓Associations must report the number of owners 6+ months delinquent in annual registration
• ✓Associations must report judgments, payment plans, and foreclosure actions filed in prior 12 months

Licensees must complete 28 hours of real estate appraisal CE during the two-year licensing period, including the 7-hour National USPAP CE Course every two calendar years and, beginning January 1, 2026, a Valuation Bias/Fair Housing course. Initial Licenses issued before July 1 require 14 hours; those issued on/after July 1 require none as a condition of renewal.

• ✓28 hours of CE per two-year licensing period
• ✓7-hour National USPAP CE Course required every two calendar years
• ✓The 15-hour National USPAP Course is not a substitute for the 7-hour CE Course
• ✓Initial License before July 1 = 14 hours; on/after July 1 = no CE for first renewal
• ✓Valuation Bias/Fair Housing CE required every two years beginning January 1, 2026 (first time 7 hours, thereafter at least 4 hours)

CE must have clear application to real estate appraisal practice; motivational, personal growth, general business, and general computing courses are unacceptable. Approved topics include ad valorem taxation, USPAP/ethics, valuation bias/fair housing, land use, real estate law, and green building appraisals. CE providers are similar to Qualifying Education providers.

• ✓CE content must have clear application to real estate appraisal practice
• ✓Motivational, personal growth, general business, and general computing courses are unacceptable
• ✓CE must be at least two (2) class hours in duration

Applying for renewal constitutes a statement of CE compliance. Licensees must retain documentary evidence of CE for not less than five years after license expiration. Non-resident licensees may comply via their home jurisdiction's CE requirements if AQB-consistent. Colorado accepts CE hours accepted by Title XI-compliant jurisdictions.

• ✓Licensees must retain CE documentation for not less than five (5) years after license expiration
• ✓Non-resident licensees may satisfy CE via AQB-consistent home jurisdiction requirements
• ✓Colorado accepts CE hours accepted by Title XI-compliant jurisdictions
• ✓Disciplinary-ordered education is not creditable toward CE or qualifying education

The Board awards CE credit for attending one Board public meeting per license cycle (minimum 2 hours, maximum 7 hours). The Board may also grant credit for alternatives like teaching or authorship for up to one-half of required CE, with prior written petition. Courses cannot be repeated more than once per CE cycle (except USPAP).

• ✓CE credit for one Board public meeting per license cycle (2-hour minimum, 7-hour maximum)
• ✓Alternatives (teaching, authorship) count for up to one-half of required CE with prior petition
• ✓No course may be repeated more frequently than once per CE cycle, except USPAP

Upon written request and supporting documentation, the Board may grant a CE compliance deferral for licensees returning from active military duty. Such licensees may be placed on Active status for up to ninety (90) days pending completion of all CE requirements.

• ✓CE deferral available for licensees returning from active military duty
• ✓Up to ninety (90) days of Active status pending CE completion

Listing Contracts, consumer relationships, and commissions are owned by the Brokerage Firm, not the individual broker. Assignments to another firm depend on the original firm's Office Policy Manual and consent.

• ✓Listing contracts, relationships, and commissions are owned by the firm
• ✓Assignment depends on original firm's consent and Office Policy Manual
• ✓Amend/Extend or MLS authorizations alone are generally insufficient to assign a listing

To assign a listing: (1) the consumer must consent in writing; (2) the original firm must execute an assignment of rights; and (3) the new firm must accept in writing. Alternatively, terminate the old and execute a new listing. PM assignments must transfer trust funds and disclose security deposit status within 30 days.

• ✓Consumer must consent in writing to the transfer
• ✓Original firm executes assignment; new firm accepts in writing
• ✓PM assignments include trust funds and 30-day security deposit disclosure (Rule 5.8.B)

Once under contract, commission is contingent on closing. If the original firm consents to assignment, the exiting broker may continue through the new firm, but the original firm may remain liable for pre-assignment acts. If the firm declines, it must designate another broker.

• ✓Commission is contingent on closing once under contract
• ✓Original firm may remain liable for exiting broker's pre-assignment acts
• ✓If assignment declined, firm must designate another broker to complete the transaction

The Commission must act on applications within a set period and may inspect subdivisions within a deadline.

• ✓Commission shall issue or deny a certificate or additional registration within sixty (60) days of receipt
• ✓Any subdivision inspection must be completed within sixty days of filing, or the right of inspection is waived and cannot be grounds for denial

The Commission may make rules, require disclosures and standardized forms, and mandate business record retention.

• ✓Commission may make any rules necessary to enforce or administer Part 5
• ✓May require written disclosures and prescribe standardized forms (except section 12-10-503(3)(f))
• ✓May require developers to maintain business records for at least seven years
• ✓May audit accounts of any homeowners' association whose funds are controlled by a developer

The Commission may seek court orders to enjoin violations, appoint receivers to protect purchasers, and issue subpoenas.

• ✓Commission may apply for an injunction/restraining order against violations regardless of another available remedy
• ✓Commission may seek appointment of a receiver to protect purchaser property/interests
• ✓Commission, director, or ALJ may issue subpoenas served like district court subpoenas

Except as expressly provided, CCIOA provisions may not be varied by agreement and conferred rights may not be waived. A declarant may not use a power of attorney or other device to evade CCIOA limitations or the declaration.

• ✓CCIOA provisions generally cannot be varied by agreement
• ✓Rights conferred by CCIOA cannot be waived
• ✓Declarants cannot use devices to evade CCIOA limitations

In a cooperative, a unit owner's interest is real estate unless the declaration provides it is personal property. In a condominium or planned community with common elements, each unit plus its common element interest is a separate parcel of real estate, separately assessed and taxed; common elements are not separately taxed. The declarant must deliver a copy of the recorded declaration to each county assessor.

• ✓Each unit in a condo/planned community with common elements is separately assessed and taxed
• ✓Common elements are not separately taxed or assessed
• ✓Cooperative unit interest is real estate unless the declaration says it is personal property

A court finding a contract or clause relating to a CIC unconscionable at the time made may refuse enforcement, enforce the remainder, or limit the clause. Parties may present evidence on the negotiations' setting, taking advantage of a party's inability, and price disparities. Every contract or duty under CCIOA imposes an obligation of good faith. Remedies are liberally administered but consequential/punitive damages are limited.

• ✓Courts may refuse to enforce unconscionable CIC contract clauses
• ✓Every contract or duty under CCIOA imposes an obligation of good faith
• ✓Consequential, special, or punitive damages generally may not be awarded