Colorado Real Estate Commission Adopts Rules
(Effective January 1, 2020)
On August 5, 2019, the Colorado Real Estate Commission (“Commission”) held a rule-making hearing to update and adopt rules for Real Estate Brokers based upon the mandatory rule review required by Senate Bill 14-063 (Mandatory Review of State Agency Rules). The Division of Real Estate (“Division”) initiated the rule review on behalf of the Commission to assess the continuing need for, appropriateness and cost effectiveness of the administrative rules. It also assessed whether the rules should be continued in their current form, amended or repealed. The rule review process included stakeholder and public participation and input, including the use of a real estate industry task force to consider that input with regard to the existing regulations. The task force included the following individuals and groups:
- Colorado Association of Realtors (CAR) – Represented by David Barber
- Denver Metro Commercial Association of Realtors (DMCAR) – Represented by Katie Kruger
- Institute of Real Estate Management (IREM) – Represented by Brett Welker
- Building Owners and Managers Association (BOMA) – Represented by Brett Welker
- National Association of Residential Property Managers (NARPM) – Represented by Ben Praham
- Colorado Bar Association, Real Estate Section – Represented by Joey Lubinski
- Shelley Hodge – Real Estate Broker
- Scott Sammons – Real Estate Broker
- Keith Alba – Real Estate Broker
- Rob Lynde – Real Estate Broker
- Scott Peterson – General Counsel for the Colorado Association of Realtors
- Division staff members from the licensing, investigations, education and policy sections.
The adoption of the rules is the culmination of these collaborative efforts, resulting in rules that have been re-organized, re-indexed, re-formatted into nine (9) chapters, as well as being written in plain language for easier use and understanding of the Real Estate Practice Act. These rules are effective beginning January 1, 2020.
Although the rules are not effective until the beginning of the year, the Commission and the Division wanted to provide adequate notification to ensure everyone has sufficient time to acquaint themselves with the rules in the new chapter format as described below. To assist with the review of the rules, the Division has highlighted the significant substantive changes to the rules. Please click on each chapter link to read the summary of the substantive changes.
In comparing the previous rule references with the recently adopted rules, a Rule Conversion Chart can be found below. Also, as of October 1, 2019, the recodification of the Real Estate Broker profession statutes currently cited as §12-61-101, et seq., will change and be referenced as §12-10-201, et seq. This recodification and reorganization of Title 12 (Professions and Occupations) of the Colorado statutes resulted from the passage of HB19-1172, which can be reviewed on the Colorado General Assembly website. A comparative table of the statute changes can be found below.
Establishes a standard set of defined terms relating to the licensing and enforcement of Brokers.
Describes the licensure requirements for Brokers such as the pre-licensing education, examination and experience requirements for each level of licensure.
Describes the requirements for licensure, renewal, license status and errors and omissions insurance for Brokers.
Specifies the continuing education requirements for Brokers and the standards for course providers seeking the Commission’s approval for offering continuing education credits.
Establishes the trust and escrow account requirements and accounting methods for Real Estate Brokerage Firms.
Specifies the practice standards for Brokers.
Describes the requirements of using standard forms in real estate transactions for Brokers.
Specifies the procedures to petition the Commission for a declaratory order.
Specifies the requirements for the review of the initial decision by the Commission and procedures for filing exceptions.